Market Trend Analysis

Companies need to: establish, check, examine, & react to main tendencies in their macro environment (demographic developments, financial traits, technological innovation developments, normal surroundings tendencies, political-legal trends, social-cultural trends).

The process of analyzing developments in the macro atmosphere begins by identifying fads, tendencies, & mega trends that may possibly be chances or threats to the company.

Some of the Pattern definitions:

Fads are unpredictable, small-lived, without the need of main importance

Developments are alterations in the environment that have some momentum & longevity

Megatrends are major improvements that are slow to variety, but the moment in spot, have substantial impact for many years, Apple Inc. for instance.

Most providers use exterior specialists to help recognize and appraise the most important trends and megatrends. The experts commonly do yearly updates of their development analysis to the organization & support the corporation in evaluation of the influence on the company’s enterprise.

Important tendencies analysts who check & report on tendencies include:

o Yankelovich (program called “Keep track of”, fulfills with client companies & prepares specific experiences for every client),

o Faith Popcorn (program referred to as the “Popcorn Report”),

o Ken Dychtwald (plan referred to as the “Age Wave”, satisfies with client firms to assessment the most up-to-date updates about the “Baby Boomer” era),

o Malcolm Gladwell (book “The Tipping Position”, identifies tendencies relevant for a shopper firm that have arrived at the Tipping Stage or will soon get to the Tipping Issue). We did not talk about this book or notion in class, but it is exceptional examining for everyone in the course who desires to actually have an understanding of pattern analysis (also, his newest guide “Blink” elaborates on how trends establish & acquire momentum)

o Sam Hill (e-book “60 Developments, 60 Minutes”–examination method termed “Trendblasting” usually takes 60 developments & identifies a system to decide which ones are most essential for the consumer company)

These analysts contract with corporations to enable the organizations develop awareness of the critical tendencies impacting their business and to identify methods to reply to the most significant trends.

The standard methodology pursued by traits analysts is to question (and answer):

1. What is changing?

2. Why is it occurring? Is it just a trend, or is it a thing much more elementary likely on?

3. How & when may well it engage in out?

4. What type of chances (& threats) will come up if the pattern carries on?

The developments analysts help a enterprise:

o Discover trends & mega tendencies appropriate to the organization & how fast the trends are rising & shifting.

o Recognize the possible impression of the development(s) on the enterprise.

o Focus on doable tactics to gain from the craze(s).

Administration will be repeatedly pinpointing, checking, analyzing, and responding to tendencies and mega traits:

This is an strategy that could be taken by a business to do environmental scanning and to internalize to the organization the great importance of appropriate exterior developments. The result could be the starting of responses to environmental traits that do or could impact the firm as options or threats.