The business environment has become more precarious than ever before. The Corona Virus Pandemic is the most pertinent example to understand this uncertainty. There has been a 5.2% contraction in the global GDP. Per capita income of global countries saw the most significant contraction in over a century. Multi-million dollar businesses wiped out under the burden of shifting market dynamics. Whereas new companies also came into existence out of nowhere.
It has all been the case of having an in-depth eye on the evolving market dynamics. Among many, China is the only country to report economic growth in 2020 due to the closest insights on changing market dynamics in the wake of the pandemic. Moreover, the Chinese business philosophy also revolves around complementing market dynamics. So what can you do to prevent your business from falling into a debacle? How can you ensure the long-term viability of your business?
The answer inheres addressing market dynamics timely and in the most optimal manner. The choice is between being reactive or proactive. You either file for bankruptcy after succumbing to external pressures or foresee the challenges and develop contingency plans. Whatever your choice may be, the differentiating factor is responsiveness to market dynamics. Specifically, when your business has a product portfolio of FMCG products, a continuous eye on the market dynamics becomes even more essential. This article lists some of the common ways to track business market dynamics.
Utilize Business Analytics
The most efficient tool businesses can deploy in the current markets is the utilization of business analytics. It provides a unique blend of data management and business intelligence. It incorporates a historical data set and applies statistical analysis to generate valuable insights for future decision-making. Business analytics provides substantial statistical input to bolster your strategic decision-making. In 2019 alone, the global business analytics industry gained a whopping value of $194 billion. Since then, it has been growing at a promising CAGR of 10.9%.
Its success is also evident by the high enrolment rate in business analytics degree online and at almost every leading university. Getting an education in big data, especially business analytics, appears to be the ultimate choice among data science students. Corporate giants like Amazon, Shell, Nissan, Netflix, and even Starbucks have been utilizing business analytics to surpass their competitors for a long time now.
Modernize your marketing strategy
The traditional methods of marketing, mainly print media, would soon be obsolete. They have already suffered a radical decline. Even TVCs are losing significance in marketing. Notably, if your business relies on such traditional marketing channels, you would certainly lose out on addressing market dynamics. The evolving market landscape and consumer demands place a portentous need to assimilate modern marketing gimmicks in your marketing strategy.
Now, you have innumerable latest marketing options like Marketing Automation, Tag Management, CDN (Content Delivery Network), CRM (Customer Relationship Manager), SEO (Search engine optimization), and Mobile Optimization. It would be best to critically harmonize all these tools to generate the maximum insight into market dynamics. You should break your echo chamber and use modern and updated marketing strategy will make your business more adaptive and responsive to market dynamics.
Enhance Data Visualization
Most businesses have accumulated huge data sets over time. This data is no more than junk lying uselessly in data warehouses. The key to extract something productive from this data depends on your interpretation and data visualization. The data must qualify the 5 Vs. (Volume, Velocity, Variety, Veracity, and Value) to yield viable market dynamics insights. At first, it must be of the right size (Volume). Secondly, data collection should be done in real-time (Velocity). Third, it should encompass different segments of the market (Variety). Forth, the data must be credible (Veracity).
Finally, it must add some value to your business and focusing the right market forces that sway your business (Value). Undoubtedly, it seems too much to control out of the massive data sets. Therefore, hiring a data science professional would be nice to look after these aspects. He/she is skilled in creating digestible data visualizations and interpreting. Perhaps, a data science master’s salary has been above the median base salary in the U.S. for quite some time now. The presence of a professional trained specifically in the field of data equips your business to be more vigilant of the capricious market dynamics.
Keep an Eye on Your Competition
The most crucial factor that affects your business directly is your competition with other giants of the industry. Your competitors make up the most violent part of market dynamics. They are like the unforgiving mountain that is waiting for your one wrong step to send you down to death. The more heedful you are of your competition, the greater your chances to decrease any harm to your business.
Alibaba was just in its initial developmental stages when the global online retail giant, eBay, entered the Chinese market. eBay acquired Eachnet, a huge Chinese C2C marketplace. Jack Ma was able to address market dynamics accordingly because he had a close eye on his competitors. He launched Alibaba’s new online C2C marketplace, Taobao, for free during the first three years of its operation. eBay could not sustain its business model for long in the face of such intense competition from Alibaba. Hence in 2016, eBay stepped out from the Chinese market and proved to be a massive failure in China. Like these market giants, you need to stay well-informed about your competition and track their market dynamics’ involvement to respond strongly.
Work with KOLs
The principal source of up-lifting market awareness and brand perception of your business is to work with Key Opinion Leaders (KOLs). KOLs are the subject matter experts about your business offerings. Masses trust their opinions, and they enjoy significant influence over establishing public notions about brands and businesses. It is also known as an off-shoot of celebrity marketing, but KOL marketing exists mainly on virtual platforms.
Moreover, a KOL is an expert in the product category or the service your business renders. A celebrity might endorse your business but not be an expert in it. KOL marketing provides strong pivots to establish a positive perception of your business in the market. It also ensures a firm grasp on the latest market trends and keeps your business relatable among the masses.
The business environment has become responsive to ever-changing market dynamics at an unprecedented rate. Competition among the businesses has become fiercer, and market forces increasingly unforgiving. A single mistake in the contemporary corporate world can dismantle your entire business machinery in no time. Therefore, your business must integrate modern tools to appropriately address market dynamics by using business analytics, voguish marketing gimmicks, or working with relevant opinion leaders. It is your business intelligence to identify the right means and implement them in the best possible shape.