To thrive in business, self-sustenance is not always the paramount factor. At times understanding the strengths, weaknesses, opportunities, and threats prevalent in the market is equally effective. Thus a thorough market research program approach helps in identifying what the competitors are looking for in the market. Through several espionage sources in the market, a gathering of information about the operation procedures and the innovative ideas about competitive key market players is also important to thrive in this world of cut-throat competition.
Thus an organization needs to be aware of how its competitors are performing and how they wish to expand their business in the future. The research Approach mainly incorporates Historical Data, Market Environment Analysis, and Factors influencing the Market Forecast. The historical Data Approach helps in identifying how the cost structure of the company was initially. It helps in the policies of price skimming and price rationing, important tools to ensure that the consumers are still interested in the consumption of the products.
Market Environment is generally based on the kind of market conditions that reign supreme in the market. Both Inflationary and Deflationary situations demand the incorporation of different tendencies by the specified market players. When the environment is bullish, one is expected to invest less so that future investment can be preserved. One should reap the benefits from the stocks whose scale value has soared up. On the other hand, when the market environment is bearish, the individual stock prices hit rock bottom. That's when the investors should realize which stocks would reap the benefit in the future and invest in those.