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Market analysis
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A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and this in turn of the global environmental analysis. Through all
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As a consequence, market segmentation is indispensable.[2] Segmentation includes a lot of market research, since a lot of market knowledge is required to segment the market. Market research about market structures and processes must be done to define the “relevant market”. The relevant market is a part of the whole market, on which the company focuses its activities. To identify and classify the relevant market, a market classification or segmentation has to be done.[3]
[edit] Dimensions of market analysis
David A. Aaker outlined the following dimensions of a market analysis: * Market size (current and future) * Market growth rate * Market profitability * Industry cost structure * Distribution channels * Market trends * Key success factors
The goal of a market analysis is to determine the attractiveness of a market, both now and in the future. Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to that organization's own strengths and weaknesses.
Organizations use the finding to guide the investment decisions they make to advance their success. The findings of a market analysis may motivate an organization to change various aspects of its investment strategy. Affected areas may include inventory levels,a work force expansion/contraction, facility expansion,

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