There are several different types of business trends, and understanding what they are, as well as how to analyze these trends, can make a significant difference in your company’s success, or lack thereof. Business trend analysis is actually nothing more than digging into past performance, statistics and numbers, and then making informed predictions based on that information. What does business trend analysis offer your organization?
Market Trend Analysis
For business owners and decision makers, understanding market forces is vital. Specifically, you need to understand consumer buying trends and how those trends apply to your business. For instance, if your business manufactures hard drives, and you’ve noticed a dip in sales, it might correlate to a consumer trend of buying static memory drives rather than conventional spinning disks. External storage media manufacturers might notice a drop in sales as consumers shift toward USB drives and other easily portable options, rather than conventional disks.
By analyzing market trends, you’re able to determine past performance, take note of changes, and then predict how those changes will affect your business. To use the example above once more, a company specializing in manufacturing spinning disc hard drives could shift to manufacturing solid state storage systems, or at least add that product to their other offerings, thereby keeping a larger percentage of their customers and capitalizing on current buying trends.
All businesses have competitors – there’s no getting around it. However, an informed business owner or decision maker can turn that to their advantage through trend analysis. By analyzing the offerings and performance of competing companies in the market, you can determine what they are doing right, what they are doing wrong, how they’re cementing customer relationships, and then turn that information to your advantage.
For example, let’s say your company manufactures running shoes. Your largest competitor recently debut three new styles of running shoe, and has taken a large lead in the market. Through competition analysis, you can determine which of those three models the highest performer is, and even dig into granular details about what makes that particular style so appealing to consumers. Based on that information, you can innovate. Note that this does not mean copy your competitors. Rather, you’re able to make better informed decisions regarding your own product design and development processes and capitalize on new consumer trends.
Business owners and decision makers must keep a close eye on financial trends to determine profitability, revenue and more. Without accurate, up to date information, it can be impossible to determine if your business is actually successful or not. By conducting in depth trend analysis on financial information, you can track trends, forecast upcoming shortfalls and more. This allows you to make informed decisions regarding your cash flow, and keep your business in the black and out of the red.
Trend analysis is a vital consideration for businesses of all shapes and sizes, but you’ll need to
– Research Optimus