Understand and master your market

What is Market Knowledge?

When we think about competitiveness, the first thing that comes to mind is direct competition within the industry. This happens because it's the most obvious form of competition. However, there's much more to consider.

If you own a bakery, for example, you certainly know other bakeries in the area and the options your customers have. But have you considered that consumers might be increasingly health-conscious and replacing their morning bread with homemade scrambled eggs? Competitiveness goes beyond the bakery next door; it includes the possibility of the customer preparing their own breakfast.

These and other nuances are essential for anyone looking to evolve and grow as an entrepreneur.

Looking Beyond Direct Competition

Planning a business without considering factors like government changes, family transformations, technological advancements, and new consumption trends can be a big mistake. These macro-environmental elements directly impact your business and are impossible to control, but it's crucial to understand and adapt to them. 

1. Analyze the Macroenvironment: Understand how political, economic, social, and technological factors impact your idea. The PEST Analysis tool can be very useful here.

2. Evaluate the Operating Sector: Consider competitors, substitute products, the ease of entry for new companies, and the power of suppliers and customers. Use Porter's 5 Forces tool.

3. Understand the Sector's Life Cycle: Identify whether the sector is in introduction, growth, maturity, or decline.

4. Identify Key Success Factors: Determine the basic and essential ingredients for the business to stand out in the sector.

5. Perform a Self-Assessment: Know your strengths and weaknesses in relation to external variables.

6. Contextualize Information: Contrast strengths, weaknesses, opportunities, and threats using SWOT Analysis.

Using Tools for Market Analysis

It might seem complex to do this analysis on your own, but there are tools that facilitate this process.
 Through Vibz, you can perform a deep and reliable market analysis, with the considerations and recommendations of the AI Consultant.