Market research class - How to conduct a market attractiveness analysis using 5 indicators | Thibault Dubois | Skillshare

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Market research class - How to conduct a market attractiveness analysis using 5 indicators

teacher avatar Thibault Dubois, Manager in business consulting

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

    • 1.

      Welcome to the class!

      2:17

    • 2.

      Introduction

      2:41

    • 3.

      Indicator 1 - Market health

      8:46

    • 4.

      Indicator 2 - Customer segments

      6:34

    • 5.

      Indicator 3 - Competition

      8:52

    • 6.

      Indicator 4 - Supplier power

      2:56

    • 7.

      Indicator 5 - Market trends

      3:24

    • 8.

      Key takeaways

      2:40

    • 9.

      Project

      1:38

    • 10.

      Share your thoughts!

      0:22

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About This Class

What is this class about?

In this class you will learn how to assess the attractiveness of a market by looking at 5 key indicators. The goal of this market analysis exercise is to help businesses decide whether to enter a specific market or not.

What will you learn?

At the end of this class you will be able to confidently assess the attractiveness of a market and formulate a recommendation whether to enter it, or not…

You will be able to build a robust recommendation using the 5 indicators from market analysis.

  • Indicator 1 – Market health: this indicator provides an overview on the market’s health. It accounts for elements such as the size of the market, the growth rate and how much market share can potentially be captured.
  • Indicator 2 – Customer segments: this indicator provides an overview on the customer segments present in the market. It accounts for elements such as purchase behaviors, customer needs, frustrations, value, customer bargaining power, etc.
  • Indicator 3 – Competition: this indicator provides an overview on how competitive the market currently is. It accounts for elements such as market fragmentation, the available substitutes, the ability to differentiate, their USPs, potential entrants, etc.
  • Indicator 4 – Suppliers: this indicator provides an overview on how strong suppliers are. It account for elements such supplier bargaining power, the size and number of suppliers, the availability of substitutes in their market.
  • Indicator 5 – Market trends: this indicator provides an overview on large scale trends that can potentially impact the market. It accounts for elements such as technology, regulations and sustainability.

Why is doing a market analysis so important?

Entering a new market with an existing or new product is a serious strategic decision for a business which often comes with many unknowns. Are customers actually interested in our offering? How tough is competition? Is the market big enough to welcome a new player? What are the barriers to entry and exit? How much power do suppliers hold over us,…? These are but a few of the many unknowns that a business will face when entering a new market.

Thanks to market analysis, some of these unknowns will be elevated and risks can be limited to a certain extent. Market analysis helps business to see more clearly before committing a large portion of their hard-earned resources towards that ambition.

Who is this class for?

This class for anyone managing an existing product or looking after the launch of a new product. This includes product managers, product owners, marketeers, and more!

What do you need in order to follow this class?

There’s no specific equipment needed to follow this class. Only your happy self!

Meet Your Teacher

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Thibault Dubois

Manager in business consulting

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Level: All Levels

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Transcripts

1. Welcome to the class!: Hi and welcome. Entering a new market can be quite high. Reward move for a company. Think of Amazon going from an online bookstore to becoming the largest e-commerce player in the world. Or Netflix, doing a pilot from the DVD by mail rental market to the streaming market, but can also be a very risky and costly move. Think of Google trying to enter the social media market with Google Plus, or targets to trying to enter the Canadian market with their stores. Both had to close down their activities because they're offering didn't stick. It's important to make sure that you are entering the right market. And if you also have the right capabilities to do so. You can, however, increase your chances of success by conducting something we call in market attractiveness analysis, which is exactly what we will learn during this course. If you're a product manager, market tier, a product owner or consultant in charge of detecting opportunities and new markets, then don't go anywhere. This course offers the right tools, tips, and tricks to increase your chances of success. My name is Thibault Dubois, and I'm a manager in one of the largest consulting firms in the world. Our main activities as a consultant consists of advising and guiding businesses throughout their digital transformation. My professional career, I had the pleasure to work with many product managers, product owners, marketeers, where I helped him in creating new and exciting offerings for their customers. At the end of this class, you'll be able to confidently assess the attractiveness of the market and formulate a recommendation whether to enter it or not. In order to do that, we will have a look at five key indicators. Being the market health, customer segmentation, busyness of the competition, the bargaining power of suppliers, the market trends. But that's enough for me. Now it's your turn to act. If you feel that discourse is something for you, then hop on board. And if not, maybe next time. In any case, I wish you good education and I hope to see you soon. Bye bye. 2. Introduction: Hi, and welcome to the chapter on where to play. As I mentioned in the introduction of the course, this step is about identifying the market's and, or segments we would like to serve with our product. It's possible that you have a specific market in mind. But before entering that market, you first need to assess whether it is attractive or not. This is an important step as you don't want to spend a lot of time and effort on developing a product, only to realize that there's nobody in that market willing to buy it, or perhaps the competition, it turns out to be really tough, leaving no profits on the table. All suppliers are squeezing, squeezing, add all the distributors with high resource prices and so on. So how can we assess the attractiveness of a, something like a market? In essence, it's always comes down to five elements. First of all, you need to know what the size of the market is, whether it is growing or not, and how much market share you will be able to capture. This is called industry analysis. Next, you need to do a customer analysis in order to know who your customers are, what purchase behaviors do they have, what 30 they find important, and what's frustrating them today, I can tell you that your product strategy will be completely different if you decide to target the high end of a market versus the low end. Another very important aspect to analyze is our competition. You need to know whether the market is fragmented or aggregated. Can we differentiate our products from the competition or not? It's easier to deal with many smaller players compared to few big players. And that's also something you need to account as well. Next, let's not forget about our suppliers. We need to understand what's going on on their side of the industry. How can they impact us? Again, many suppliers easier to deal with compared to a few that hold a lot of bargaining power. And lastly, you should assess, also assess factors that might not always impact the industry, but they should be considered when they do. I'm talking about technology trends, regulatory trends, economic trends, and sustainability trends. Okay, Let's dive right it onto the industry analysis. See you there. Bye 3. Indicator 1 - Market health: Hello and welcome back. Doing an industry analysis is all about understanding whether the industry or market is healthy or not. We have for health indicators that can tell us more. The first indicator is the size of the market. You don't want to launch a product in a market that's smaller than your annual revenue or where potential sales volumes are not covering your fixed costs, for instance. The second indicator is the growth of the market. In market's that's shrinking is usually not a good sign. So you want to steer clear from those markets. The third indicator is the lifecycle of the market. Having this information will help us to time or market entry. You don't want to enter a market. That's already been contraction phase. And the fourth indicator is how much market share you will be able to capture with a product. Let's start with estimating the market size. In order to estimate this, we need to define the scope of the market. This may include identifying geographic boundaries, the product or service offerings within the market and the target customer segments wants the scope is defined, you can start to gather data to estimate that scope. This can include data on population, demographics, consumer behaviors and industry reports. Check whether you have access to public databases in your country. Interviewing industry experts is also a good way to collect data if you have access to their expertise. To quantify the size of the market, you can use a combination of top-down and bottom-up approaches. The top-down approach gives you a rough estimate of the market size, which you can cross-check with a more refined bottom-up approach, where you start with one unit that's extrapolated to the entire population. Let's first look at the top-down approach. Here you want to write out your formula on how you want to compute the size of the market. This makes calculations easier as you then just have to fill in the missing numbers. Say for instance, you want to compute the annual market size of smartphones in the US, expressed in US dollars. In order to calculate this, I will first write down my formula, starting with the annual volume of smartphones purchased in us. So I need to know the total population in the US, the percentage of population with a smartphone, and the percentage of population that will replace their smartphone this year. Multiplying all these parameters should give me a rough estimate of the volume. Next, I would compute what a smartphone costs on average in the US. Let's take an average of thousand dollars if we mainly account for the newer models. And finally, I would multiply both fingers together, which gives me an approximation of the total annual market size of smartphones in the US. Okay, so there was the top-down approach. It gives us a basic idea on the market size. However, it's not sufficiently refined to use as a final market size estimates. That's why we also should do a bottom-up approach to cross-check the top-down estimates. This approach typically takes longer as you need to crunch the numbers, do research, and discuss assumptions with industry experts. So that was the first indicator. In addition to analyzing the current size of the market, it is important to assess the potential for growth. This can include analyzing trends in consumer behavior, technological advances, and changes in regulation. By understanding the potential for growth, businesses can identify opportunities for innovation and investment. There are many forecasting methods out there liked compounded annual growth rate, seasonality, growth rate, moving averages, etcetera. Tackling each one of these would take us outside the scope of this course, which is just suggest to simply use an average growth rate equal to the historical growth between two fixed periods at time. So okay, that was the size and the estimated growth rate. Another aspect that we need to touch upon is the market cycle. Markets tend to follow this fixed pattern if you were, it consists of four stages being expansion, peak, contraction, and phase-out. In the expansion phage, economic activity is increasing, businesses are growing, unemployment is rising. As a result, consumer confidence is high and demand for goods and services is strong. This leads to higher prices and profits for businesses and investors. This is the best moment to enter the market. At a peak of the market cycle, economic growth begins to slow down and the rate of expansion starts to decrease. Businesses and consumer confidence can still be relatively high, but growth is starting to, to plot. This is often a time when investors and businesses begin to take profits and are more cautious, investors start to exit market You might still be able to make some profits because you have someplace that's already leaving the market and leaving up some gaps that you can fill it. In the contraction phase, the economic, the economy begins to shrink and businesses may start to cut costs, reduce hiring, and decrease investment. Consumers may also start to pull back on spending, which can lead to decrease demand for goods and services. This can lead to a decline in prices and profits and investors may become more risk averse. My advice would be to not enter anymore unless you have a product that will revolutionize the market. But that's quite a bold strategy. Finally, in the face out stage, the economy has bottomed out and economic activity is at its lowest point. Businesses may struggle to survive and investors may be worried of entering the market. However, this stage can also represent an opportunity for businesses and investors to buy low and position themselves for future growth. But good indicator to tell you at what point of the markets and what part of the market cycle you are is to look at the growth rate. If it's accelerating, we are in the first stage. If it's stagnating, we might be at the top and if it's declining than we might be in the contraction phase. Now it's time to compute the market share. You will, that we would like to capture. It's completely normal if you don't have enough information at this point to answer this question. So I would suggest to come back to this part when you have more information about the segments you want to capture, what product you want to offer to them. The best way to approach a market share question is when you don't have all the information yet, is to formulate some meaningful milestones and compute the market share that matches those milestones. Here's an example. The first milestone for launching a product could be revenues are covering initial investment costs done for developing the product. So here we want to look for how much volume we need to sell in order to cover development costs of the product. Once you know the volume, you should divide it by the total market share and see if that percentage makes sense. As a rule of thumb, don't expect to capture more than five per cent of the market the first year. The second milestone that you want to reach is the breakeven point. Here you want to take it a step further and compute how much we need to sell before our revenues are covering the fixed and variable costs. The next milestone is completely arbitrary. There's more of a, this is more of a strategic objective that's set between you and management of the company. It should remain realistic however. So overall, you want to enter an industry that's in good health, meaning the size of the market is sufficiently large and allows you to take a market share at which you're profitable. And the market is still growing, indicating that it's either in an expansion phase or at a peak phase. And voila, that's about it for the industry analysis. Let's now move on to the customer side of the industry. See you there. Bye. 4. Indicator 2 - Customer segments: Hi, and welcome to the customer analysis lecture. So you have to understand that in most cases, you cannot serve the entire market within one-size-fits-all solution. This is because there are multiple customer groups within a market, also called Customer segments. And Customer segments means customer segmentation. But I hear you ask, why should we do customer segmentation? Well, customer segmentation is the process of dividing a customer base into smaller groups of consumers with similar needs, behaviors, and characteristics. This activity is very important as it enables businesses to tailor their marketing strategies and product offerings to specific groups of customers, which in turn increases the effectiveness of their marketing efforts. Customer analysis also helps to identify which segments are the most attractive and profitable to target. So how do we do customer segmentation? Here are the necessary steps. First, you want to identify your target segment. This is already something that you did in the previous step. Second, we need to gather data on the industries or markets customers. This can be done through market research, customer surveys, or by analyzing existing data. So what you're looking for is data on demographic, psychographic, behavioral, and customer satisfaction characteristics. Let's break these down for a moment. Demographic analysis involves evaluating the age, gender, income, education, and other demographic characteristics of customers. It helps businesses understand the specific needs and preferences of different customers segments. Psychographic analysis involves evaluating customer's personality traits, lifestyle choices, and values. It helps businesses understand the emotional and psychological factors that influence customer behavior. Then you have behavioral analysis, which involves evaluating customers purchasing habits, such as the frequency, timing, and amount spent on a product or service. It helps businesses to understand customer loyalty and identify opportunities for cross-selling and up-selling. Customer satisfaction analysis involves evaluating customer's satisfaction levels with a product or service. It helps businesses identify areas for improvement and develop strategies to increase customer loyalty and adoption rate. By looking at customers through these four angles, you will have a pretty good view on the industry's customers and the segments at holes. Okay, the third step is about identifying common needs, preferences, and behaviors of the customers within the industry. This will help in creating different customer segments based on DVD, on these common characteristics. The fourth step is to actually create a Customer segments using the common needs, preferences, and behaviors that you were able to identify and Step treat. Each segment should have distinct characteristics that differentiate it from the other segments. A powerful tool that you can use here is to make a persona that represents each segments. Personas are fictional representations of the target customer segment that captured the key characteristics and needs. By developing customer persona's, businesses can better understand their customers and create products that meet their specific needs and preferences. Moving on now to the fifth step. After creating the customer segments, you need to evaluate them and then select a segment that you want to target. The evaluation should be done on factors such as size, growth, potential, profitability, accessibility, and alignment with business goals. And the sixth and final step is to develop a marketing strategy for your target segment. This could involve creating different products or services, changing prices of this or distribution strategies, and creating targeted advertising campaigns will do a deep dive on marketing strategies later in the course. Let's use a simplified example from the automated industry. Step one, identifying target, the target industry. Well, in our case, this is the automotive industry step to gathering data on the automotive industry and its customers can be gathered through market research, customer service surveys, or by analyzing existing data. This could include data on factors such as demographics, psychographics, purchasing behaviors, product preferences. Step tree. We identify a common needs and behaviors. We saw that some customers, for instance, prioritize fuel efficiency and environmental sustainability, while others prioritize performance and luxury step for creating Customer segments within the automotive industry. So we distinguished two of them, the eco conscious bias and the performance enthusiastic and luxury buyers. Step five, we evaluate and select the segments we want to target. We decided to go with the eco conscious segments because they're growing rapidly and have high profit margins due to increasing demand for environmentally-friendly vehicles. Step six, developing a marketing strategy. We customize on Marketing Communication and product features to appeal to the specific needs and preferences of each segment. This could involve creating electric, electric or hybrid vehicles for the eco conscious segments, high performance sports cars for the performance and Tuesday, and luxury vehicles with the premium features for the luxury, luxury buyers. Now, this is a very simplified example. Normally we would have an entire analysis report describing each segment in great detail, including persona's. But I hope it already makes things a bit more tangible. So yeah, there you have it. That's the customer analysis part with customers notation. Let's now move on to the next analysis, which is that of our competitive landscape. I see you there. Bye 5. Indicator 3 - Competition: Hi, and welcome to this lecture on competition analysis. Competition analysis focuses on the intensity of competitive rivalry. It refers to the degree of which competitors, potential entrants and substitutes are able to compete with each other and how aggressively they do so. Companies must be able to assess the strength and competitive capabilities of their rivals in order to develop effective strategies that will enable them to compete effectively as well. There are a number of different factors that can influence the intensity of competitive rivalry in the market. Such as the number of existing competitors, their market share, and relative size, the degree of product differentiation, the level of fixed costs required to operate in the market, and so on. Companies must be carefully analyzed these factors in order to understand the competitive dynamics of their industry and to identify areas, areas where they can gain a competitive advantage. Another important aspect of Competitive Analysis is identifying potential threats from new entrants, as well as opportunities for growth and expansion. Companies must be able to assess the barriers to entry in their market, including regulatory and legal barriers, economies of scale and brand recognition. They must also be able to identify potential substitutes for their products or services and develop strategies to mitigate these threats of substitution. So in essence, you want to have a market with a population of small and fragmented competitors, meaning that market share is not concentrated with two or three players. You also want the numbers of potential entrants to be as low as possible thanks to high barriers. And finally, you don't want many substitutes to be available for the customer. Okay, The theory sounds good and orbit, how can you turn this into practice? There's three phases in doing competition analysis. Phase one is about exploring who your competitors are, including new entrants and potential substitutes. Fe2 is about data gathering. You want to know or collect as much information on your competitor as possible. Because this will help you with Step tree. And in Step tree, it's about assessing the strengths and weaknesses of your competitors offering. What is their unique selling proposition? How do they reach the customers? What is their pricing, what are their costs, and so on. Let's do a deep dive in each step. In step one, you need to identify your direct and indirect competitors. Direct competitors offering similar products or services, while indirect competitors are offer alternative solutions to the same problem. This framework should help you to determine what type of competitors you should be researching. As you can see, you need to analyze your competitors on two criteria, which are capabilities and client needs, which gives you a matrix of four different competitor types. Most of the obvious ones are the direct competitors. They have similar capabilities that we have and are also going after the same clients segments. Next we have the indirect competitors. They have different capabilities that again go after the same client. Then you have potential competitors that have the same capabilities but are targeting different clients. And finally, you have to know competitors that have different capabilities and are also serving different clients. You don't really need to research the research them. Okay. So that's was phase one. Let's now go to phase two, which was collecting information. You should research your competitors and gather information on their market share products, pricing, marketing strategies, target market customer satisfaction levels and so forth. You can structure your research by splitting it up in multiple buckets, such as financial information, market information, and product information. But feel free to use any other structure if you want. Not all this information is readily available. So you will need to do some digging and use a combination of multiple research methods. Some source of inflammation include their website if the competition, social media, customer reviews, industry reports, and financial statements. You could also go out on the street and ask random people what they think of your competitors products and branding. That type of study is quite helpful when you're targeting retail customers. And it also helps to understand the positioning of your competitors offering and image. Again, you can structure your research by splitting up in different types of buckets. I personally often use existing information and new information. Existing information means it's already available and new information means that it to create it myself. Finally, in phase tree, you need to analyze the strengths and weaknesses of your, of your competitors. You can use the famous swat analysis, which looks at your competitors strength, weaknesses, opportunities, and threats. Strengths and weaknesses are considered internal to your competition. Is strength could be, for instance, a reactive distribution network Whilst a weakness could be high prices, then you have opportunities and threats. These are considered as external factors relative to the, your competitors company. And opportunity could be a new market segments, Whilst a threat could be more stringent regulation. From your perspective, you want to explore your competitors weaknesses and threats. You need to hit them where it hurts if you will. Okay, that's enough theory. Let's look at a small example to apply what we've just learned. Imagine that I'm an online tutoring service. Something tells me that's maybe not so hard to imagine. So I've decided to divide my competitors into two groups, being direct and indirect competitors. To make my life a little easier, I have not looked at potential competitors that are not serving the same customer needs. But you should get the idea of where I'm going. Within the group of direct competitors. You have other online tutoring services. You have me check futures and wissen for instance. Within the group of indirect competitors, you have the can Academy, Coursera, and YouTube. The difference between these two groups is that my direct competitors or tutoring services offering one-on-one education, whilst the indirect competitors of a one-to-many form of education. Next, you can see that I applied a shortened version of the swat technique on all my competitors. Once you want to do here is to look for weaknesses that you can exploit and turn into strength. Something I noticed is that the indirect competitors all have weaknesses in common and that's limited personalized attention. As a tutoring service, it should be something that I need to keep doing if I want to differentiate myself from them. Looking at my direct competitors, I see that I should focus on creating a large pool of tutors that can offer a wide variety of topics and be flexible with regards to scheduling a session. I hope that you can now see how powerful this analysis is. By identifying the strengths and weaknesses of my competition, I was already able to pinpoint some key features that my offering should have if I want to win in this competitive landscape. These are not the type of features that you will uncover by just doing some brainstorming session. And internally, you need to go out there and do the research. So overall, Competitive Analysis is a critical part of the strategic planning process, allowing companies to develop effective strategies that enable them to compete successfully in their market. By understanding the intensity of competitive rivalry and the factors that influence IT, companies can develop a deep understanding of their industry and position themselves for long-term success. Well, onto the supplier analysis. See you in the next lecture. Bye 6. Indicator 4 - Supplier power: Hi, and welcome to the supply side of the market. Supplier analysis is another crucial factor that can influence a company's decision whether or not to launch a product in the market, we should account for the supplier's bargaining power in an industry. This analysis considers factors such as the number of suppliers, the size and the scale of the suppliers, the availability of substitutes, and the switching costs involve when changing suppliers. By analyzing these factors, businesses can determine the degree of bargaining power that's suppliers hold over them. If there are only a few suppliers in an industry, they are likely to have a lot of bargaining power over the businesses that rely on them for inputs. This is because the businesses have fewer options to choose from and are more dependent on suppliers to meet their needs. In contrast, if there are many suppliers in an industry, businesses have more options to choose from and suppliers have less bargaining power. Another important factor to consider in Supplier analysis is to size and scale of the supplier's. If a small number of large is dominated to market, there are likely to have more bargaining power again, compared to a large number of smaller suppliers. Large suppliers have more resources, resources, negotiating power, and are able to dictator terms in their relationships with businesses. Additionally, the availability of substitutes inputs is an important consideration and supplier analysis as well. If there are many substitute inputs available in the market, businesses to have again, more options to choose from and Suppliers Cephalus bargaining power. However, if there are only a few or no substitutes, inputs, suppliers have more bargaining power over businesses that rely on them for these inputs. The final factor to consider are switching costs. Switching costs are the costs associated with changing suppliers, such as retooling production processes, training employees are developing new supplier relationships. It's switching costs are high. Businesses may be less likely to switch supplier's, giving suppliers more bargaining power over them again. In conclusion, and attractive supply side of the market, ideally, a large amount of small suppliers and, or many potential substitutes and preferably low switching costs. Okay, let's move on now to the final factor in your market attractiveness study. Hope to see you there. Bye 7. Indicator 5 - Market trends: Hello and welcome to this small lecture on market trends. So we now gathered information on the key drivers behind every market or industry. But there are some additional drivers that may or may not have an impact on the industry. I'm talking about technology regulations, economic indicators, and sustainability. Let's go over each one of them. Starting with technology. The impact of technology on a market can be significant. Consider how advancements in technologies are changing the industry and how they may have impacted consumer behaviors and expectations. For example, the rise of mobile devices has made it easier for consumers to research and purchase products online, which has had significant impact on traditional retail markets. On the, on the other hand, advances and automation and robotics have made manufacturing more efficient, leading to lower costs and increase productivity. And then what about regulation drivers? The regulatory environment can have is significant impact on market attractiveness. It's important to analyze the regulatory framework for the industry, including any legal requirements, restrictions, or subsidies. Take the example of the healthcare industry. Regulations on drug approvals and patterns can have a significant impact on the attractiveness of a market. In the energy sector, government subsidies for renewable energy sources can make them more attractive to consumers and investors. Next, let's discuss economic indicators. Economic factors such as GDP, inflation, and interest rates can impact consumer spending and demand. Consider the economic indicators for the market and how they may impact the mount for your product or services. For example, a strong economy can lead to increased consumer confidence, higher demand for luxury goods and services. Conversely, a weak economy can lead to lower consumer spending and reduce demand for non-essential products. And last but not least, we should also have a look at sustainability. Sustainability is becoming increasingly important to consumers and can impact the attractiveness of a market. Consider how sustainable practices can impact consumer behavior and how they can be incorporated into your products or services as well. For example, consumers may be willing to pay more for products that are environmentally friendly or companies that have sustainable supply chains. Additionally, some industries are facing regulatory pressure to reduce their carbon footprints, which can impact the attractiveness of the market as well. So here you have it. These were the bonus drivers that you should also consider when you are assessing the attractiveness of a market. In the next lecture, we will do a quick recap of what we've just learned. I hope to see you there. Bye 8. Key takeaways: Hello and congratulations on finishing the chapter on where to play. Let's do a quick recap on what we've just covered. In order for a business to assess whether a market is attractive, we need to check five aspects. The industry, Customer segments that competition landscape, suppliers and other key Market trends. Within the industry analysis, we need to estimate the size and the growth of the market. We need to calculate what market share we wish to capture based on some key milestones in the break-even point. And we finally also need to understand in what cycle of the market we're currently are. Within the customer analysis, we need to split the customer base and two smaller Customer segments in function of their needs, behaviors, and characteristics. Doing this will enable us to tailor or marketing strategies and product offerings. And it will help us to target the most attractive and most profitable target groups. Next, we had competition analysis. Competition analysis focuses on the intensity of a competitive rivalry. Or in other words, we look at the degree to which competitors, potential entrants as substitutes, are able to compete with each other and how aggressively they do. So, it's important to first identify all your competitors. So the indirect ones and assess their strengths, weaknesses, threats, and opportunities. During this will help us in coming up with an offering that is able to compete with theirs. Within supplier analysis, we had to account for the supplier's bargaining power. This analysis considers factors such as the number of suppliers there, size and scale, and the availability of substitutes, inputs, and also the level of switching costs. Knowing this factor will enable us to determined degree of bargaining power. That's suppliers hold over us. And finally, we should also take a look at drivers such as technology, regulations, economic indicators, and sustainability. These can have large impacts on the industry attractiveness as well. And voila, that covers the theory part of the lecture. In the next chapter, we will cover the next part of a story which is How to Win. Hope to see you there. Bye 9. Project: Hello and welcome to the practical part of the course. It's time again to pull up your sleeves. So you've normally already picked your product and the previous chapter, if not, don't worry, there's still time to do so. But you should also come up with a draft version of your product fisher. So don't forget that once you have your product in mind, you will need to conduct an industry attractiveness analysis around it. In other words, you will need to come up with the size of the industry and its growth, the market share you would like to capture the cycle in which the market is currently situated. Customer segments and their needs. The customer segments that you would like to target. The competitive landscape, including direct and indirect competitors, supplier side, and they're bargaining power based on the factors we solved. And finally, the key market trends that could shape your industry today. If you're not sure on how to start, then just referred back to the previous lectures. It includes everything that you need to know in order to complete this exercise. In terms of deliverable, I would suggest to use PowerPoint as it's the most common tool used for that kind of analysis. You are free to use any tool you want to just keep your audience in mind and professional contexts. You, your analysis might go through a steering committee with upper management and executives. So you want to make it easy on them when they go through your report. Okay, that's it for me. Good luck with the assignment. Bye bye. 10. Share your thoughts!: Hi Thibault here. Congratulations for finishing the course. I hope you've got something out of it and it will be helpful in your future career. In case you'd like to course, please leave a review and let others know what you liked about it. That seems extremely helpful to meet, and it's also helpful for other students. Now, I'll, if I go have a nice and educational day, Bye