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Market Analysis
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A market analysis is a quantitative and qualitative assessment of a market. It considers the size of the market, both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation.
How To Conduct Market Scanning
The environmental audit is reliant on the monitoring activity that is undertaken by the organisation. The process is normally referred to as scanning.
There are four forms of scanning according to Aguilar (1967). They are as follows:
There is of course an unlimited amount of information that can be scanned. Any organisation can only scan a certain amount of this information. A balance has to be struck between the resources allocated to this activity and the potential benefits. More information also does not lead to better decision making. Understanding the dynamics of the environment is the critical aspect to this activity, not the volume of information.
Types Of Information Relevant To Scanning The Environment
Managers search for information in five broad areas:
- Market Intelligence
- Technical intelligence
- Acquisition intelligence
- Broad issues
- Other intelligence
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Area of External information |
Category |
General Content |
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Market intelligence |
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Technical intelligence |
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Acquisition intelligence |
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Intelligence on broad issues |
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Other intelligence |
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