Since data and information on market volumes, prices, quantities, etc. are important parameters for strategy analyses and strategy planning, market analyses are a critical base of strategic business decisions. In particular, market intelligence is delivering fundamental market trends and drivers as well as showing market forecasts and developments determined by systematic explorations of the considered market segments. This presentation will explain the most important basics of market analyses such as terms and definitions, tasks, targets and deliverables.

1. Market Analyses
In Industrial Practice
Strategic Management and Marketing Practices
Copyright © 2011. All rights reserved. www.strategie-und-planung.de
11.10.2012

2. Main Tasks Of Market And Competitive
Analyses
Market Analyses Competitive Analyses
Customer Market Market
strategically tactically
Analyses Forecasts Positions
 Buying Decision  Market Trends  Market Shares  Competitor  Product / Feature
Criteria  M. Segments  Dynamic of the Profiles Comparisons
 Customer Satis-  Market Volume Market Position  C. Strategy  Unique Selling
faction  Market  C. Position Propositions
 Market Growth
 Buying Behaviour Penetration  Key Business  Selling
 M. Attractivity
 Demand Analysis  Competitive Data Arguments
 M. Potential
 Buying Power Advantages  Portfolio  Competitor News
 Customer
 Price Sensitivity  Soft Facts  Competitor
Structure
Weaknesses
 Promotion Impact  Sales Channels
 Sales Support  Support of Strategy Development  Sales Support
Copyright © 2011. All rights reserved. www.strategie-und-planung.de page 2
11.10.2012

3. Market Definition –
Market Cascade
e.g., because
 product approval not existing
 publicly protected monopolies
Inaccessible  inhouse supply of competitors
Market  legal restrictions
e.g., because
 missing products
Market Unserved  prices not competitive
Potential  lacking market penetration
Market
 customer preferences for local suppliers
Total Market
Addressable
Market Currently
Addressed Served
Market
Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 3
11.10.2012

4. Information Sources For Market Analyses
 Customer surveys
 Customer feedback
Customers  Account information
 Market reports  Institutionalized
Service / feedback
 Research on Industry process
order Analysts Sales
 Regional data
 Market models
 Presentations
 Commissioning  Product information
Consul- Trade Shows/
 Customer data from  Contests
consulting projects tants Congresses
Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 4
11.10.2012

5. Forecast Techniques Within Market Analyses
Evaluation of Market Parameters
 Volumes
 Prices
 Distribution structure
Forecast Techniques  Margins
 Market Models Levels of Detail
 Scenario Analysis
 Varying by market segment
 Trend Analysis  Varying by customer / technology
 Extrapolation segment
 Top down / Bottom up  Varying by size / performance
 Expert Views class
Finding of Influencing Factors
 Replacement cycles
 Innovation cycles
 Age of installed base
Copyright © 2011. All rights reserved. www.strategie-und-planung.de 11.10.2012
page 5
11.10.2012

6. Market Trends And Drivers
(Example)
Productivity increases in … Standards-based architectures …
Customer Requests
 
 Cost optimization (ROI / TCO) …  Service-oriented architectures (SOA) …
Technology
 Increase of process efficiency …  Integrated platforms …
 Security …  Open Source Software …
 …  …
 Value added moves from hardware towards  Competitor A. is integrating …
Business Models
software and services …  Competitor B. is making use of its strong
Competition
 Software and applikations „on demand“ … position in …
 Increasing relevance of solution packages  Competitor C. is specializing in core
… business segments …
 Increasing relevance of vertical solutions …  Competitor D. is expanding through M&A
 Increasing partnering and cooperation activities in …
models …  …
Copyright © 2011. All rights reserved. www.strategie-und-planung.de 11.10.2012
page 6
11.10.2012

7. Market Forecasts –
Development Of Market Volume (Example)
Total Market
bln. € CAGR 12 - 18
44,0 Total Market X,X%
40,0 5,0 Managed Services x,x%
36,0 4,5
5,0 Professional Services x,x%
32,0 4,0 4,5
Product-related
28,0 3,5 6,0 x,x%
4,0 Services
5,5
24,0 3,0 3,5
5,0 5,0 Segment E x,x%
2,5 3,0 4,5 4,5
20,0 4,0
2,5 4,0 5,0 Segment D x,x%
2,0 3,5 4,5
2,0 3,5 3,0 4,0
3,0 3,5 6,0 Segment C x,x%
2,5 3,0 5,5
2,0 2,5 5,0
4,5
2,0 4,0
3,5 5,5 6,0 Segment B x,x%
3,0 5,0
4,0 4,5
3,0 3,5
4,5 5,0 5,5 6,0 Segment A x,x%
3,0 3,5 4,0
2012 2013 2014 2015 2016 2017 2018
Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 7
11.10.2012

8. Market Development –
Volumes And Technologies (Beispiel)
Technology Markets Technology Split in %
mill. units
100% 2
36 3 4 6
xx% p.a. 14
16
75% 19
22
24 25
27
28
50%
xx% p.a.
12 25
21
25% 18
16
14
11
8
xx% p.a.
0 0%
2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018
Old technology
Current technology
Innovative (future) technology
Copyright © 2011. All rights reserved. www.strategie-und-planung.de 11.10.2012
page 8
11.10.2012

9. Evaluation Of Market Attractivity
(Example)
Criteria Market A Market B Market C Market D
++ + 0 - -- ++ + 0 - -- ++ + 0 - -- ++ + 0 - --
Market Volume
Market Growth
Customer Structure
Sales Channels
Intensity of Competition
Level of Earnings
Entry Barriers
…
Summary + ++ 0 -
Copyright © 2011. All rights reserved. www.strategie-und-planung.de 11.10.2012
page 9
11.10.2012

10. A comprehensive market analysis
presentation with detailed explanations of
the practices and numerous practical
examples is available on request.
(currently available only in German)
Please use the contact form to order the
presentation
http://www.strategie-und-planung.de/kontakt.html
Note: This presentation is available only for a small charge because of the benefits of the huge amount of information and the
multitude of examples, etc. The current price list of the documentation can be seen at
http://www.strategie-und-planung.de/mediapool/92/922449/data/Preise/Preisliste_Doku-Tools-20110101.pdf
Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 10
11.10.2012