Before a business corporation steps into something completely new, they must understand the ins and outs of that industry. Knowing what are the various markets within an industry and comprehending the buyer’s environment is necessary before launching a new product or service, this rigorous study of the industry and its sectors is known as industry or market research. The core objective of conducting industry analysis is to understand your advantage against the present competition. An industry is a broader umbrella term as it includes many other small markets under it. For example, the Oil and Gas industry has smaller markets which function under it like petroleum, crude oil, refineries and many other by-products. Industry analysis will help you know know what the customer needs and what the market demands. It will also help you with detailed information on demand and supply chains of the competitors so you can learn and customize your product in a way that it becomes tempting for your client such as personalized whiskey decanters. Any industry research will have two ways of reaching the outcome, internet research and ground research. Internet research will offer you with a continual flow of data while ground research will provide you with personal experiences of the customers, competitors and old players of the industry.
Industry research assists in eliminating possible threats to the business or the upcoming product. These threats can be internal and external, which will prove to be a hindrance in the production, promotion or selling of the product. Any industry is filled with rivals who are ready to bring down your status as a respected brand. These rivals are most commonly seen in the form of governmental authorities, labour laws and unions, environment protectors in the way of Non-Governmental Organisations (NGO’s) and the civil society. There are always new competitors entering the market and to make your product the most desirable and demanded by the customers, companies employ the method of reducing its production cost, and the labourers felt the first impact. It is essential to thoroughly analyse this situation beforehand so that you will be able to relieve the pressure on the workers.
Supply chain and buyers are in a constant tug of war with the producer in the middle ground. Since the target is to mass-produce any good, the company cannot monopolise the supply chain. This gives the suppliers an advantage over the company to bargain on the rates. The buyers are always in a situation to negotiate the prices of the product. If the target audience is not appropriately selected as per the data in the market research, then the production costs will keep on increasing.