If you drive somewhere and only look at your navigation, chances are you won’t arrive at your destination. At least not without a scratch, a fine or without creating a havoc. It’s crucial to take your entire environment into account. So, all factors that have an influence: regulations, signs, other traffic, etc. This also goes for your commercial strategy.
Many factors influence your commercial results
We’re all looking for the markets where our offer meets buyer requirements perfectly. As in those markets, convincing buyers to purchase our product or service takes less effort. But it’s not just the buyer preference or market size that determines where you’ll be successful. You are also affected by factors such as the type and amount of competitors you’ll face, demographics of your target audience, local legislation, and the political and economic stability. To name a few!
Comparing your market fit is a challenge
When you operate in a limited number of markets, you probably have a decent idea of the local situation for these markets. The more markets you tend, the harder it gets. Have you taken into account all relevant factors? And where can you find the information about these factors: in the minds of several employees, or is tools? And in what format: competitor brochures that are stored on a shared drive or the relevant aspects in a clear dashboard? It is difficult to map all insights in a way that allows you to immediately see the status and truly compare your markets.
Your sweet spots move all the time
For the markets you’ve been operating in, you may have had a pretty good idea of the local situation. But the market situation has changed rapidly and substantially these past few years. Buyers have switched to online channels and most likely have changed their preference in other areas as well. New regulations have been implemented. The competitive landscape has changed, as competitors have adjusted their approach or new competitors may have entered the market, offering cheaper products that can substitute yours. Or you may face unfavorable changes in currency rates or trade policies, increasing prices for raw materials and labor, adverse demographic shifts, etc. So, question is how well you still fit the situation of the markets you are used to target.
Crises affect your business model
A changing environment forces organizations to change their business model in order to remain relevant and successful. Many organizations needed to focus their attention on surviving and upholding the cash flow. But once the dust settles, it’s key to evaluate and update your strategy. To determine where your sweet spots are now, in order to be able to take advantage of opportunities and deal with the threats. With restrictions loosening in most countries, that time is now!
As we’ve all experienced these past years, the world around us can change in a blink. Forcing you to adjust the way you operate and serve your customers. To remain competitive you’ll need to be aware of the status of all factors that influence your commercial success. So you can determine where the new sweet spots for your business are, and what adjustments you need to make to fit your offer to all attractive markets.
For more information also read our blog A market analysis can take months, while decisions are often time-bound or plan a demo so we can show you how you can easily map your sweet spots with the SpotOpp platform. Please don’t hesitate to contact us if you want to know more.