Market analysis part 1

what is a market:

The market is who perceive the product or service that you offer. This is whom you will try an aim to as your customers. this definition is for you. the company. Generally, the definition of a market is the exchange of goods, services and assets that can be done either by an individual with a company or between two companies.

This will be the definition of a market explained to any regular individual out there. But organisations to should know that the market is which is who you are targeting as clients they see you as their market just like you see them the same way. And the reason for this is because it is where both of you come to an agreement of exchange. which is the agreement of you giving them what you have to offer which is your product or service, in exchange for what they have to offer which is their money.

Importance:

The reason why I am going into very specific basic explanation. Is to make sure that you do not get the purpose of a market wrong. when talking about the market as the place of exchange between you and your client what is meant by that is that your market is the place where your sales comes from which is your highest form of income or in many case could even be your only form of income.

Secondly you have to understand when talking about the market as been your place of exchange is that what it means is you have to identify the type of market. It could be age, gender, interest, needs. etc. because a person will only be happy to exchange something which is their money for something else which is what you have to offer only if it is something that they value. So what this means is that the main thing you should know is that the market is what you are highly depended on when it come to gaining your earnings.

what this means:

Now that you know how valuable the market is to you. it will now help you understand how much dedication you should be giving to the market. this is why it was crucial for the explanation of what is a market to be very basic. The primary goal is to make as much earning as possible especially if you are a start up since you will need to maintain your position and not fail so making a lot of earning when you started in important.

And for that reason you have to be able to scale your position in the market all the time since that is the way you make as much earnings. meaning that more people will be willing to exchange your good or service for their money. the key message to learn here is that if you want to increase your earning, then your market is the only way you could do this. So you should dedicate a lot of time on your studying, making experience and coming up with new ideas that will attract more of the market to you.

The market structure:

What you should know is that markets are dispersal. What this means is that is it a redistributed system. And the way to know that is because every market have another market that is depended on them and a market, they are depended on. Which intern is depended on another market when you will be selling your product to a market, you will need to make the product first. And that will have a cost. That cost will be to pay all of the essential things that will be needed to make the product or service that you will sell, and those things will eventually be provided by another market. Which eventually means that you, the start-up company is the client to another market just like your customer will be your client.

Dependency:

The reason why you should understand the way it is structure is because you could use it at your benefit as well remember that each market is comprise of multiple companies operating for the same aim which is having as much of the market share as possible this then mean that each market have competition to please their client the most. And since you are a client to another market you will then have it make sure that you first analyse which company in the market you will depend on as supplier will be the best choice to make.

This will depend on many factors. This means that as you will buy either a product or service to sell your own product or service you should choose which of the supplier of those product or service offers the best value. This will depend on many factors like the cost you will have to pay with them, The reliability, the quality they provide etc. What this basically means is that you should study and analyse very carefully who will be the market you will rely on to make the product or service that you sell before choosing who you will rely on.

Examples:

• You sell smart phones. You first have to manufacture them before selling them to people. And a huge cost of the phone production will be the metal used to make the phone since you have to buy them from mining companies

• So your clients are ordinary people that will buy your phone, but you are a client of mining companies. So

ordinary people rely on you to provide them with smart phones and you rely on mining companies to

provide you with the metals

• You want your supply of raw material to be as reliable and affordable as possible so you identify which

mining company you should rely on as your metal supplier. So you study all of the metal suppliers that there is

• Let's say you find one metal supplier that does not mine for the raw material but instead recycle electronic,

recollect the metal inside and sell them.

• You notice that since there are millions of tons of electronic waste been throwing every year, that metal

supplier will never run out of metal to provide since they will recycle tons of metal every year.

• Then you notice that recycling electronics for metal cost far less than mining for metals so that recycling

company will probably sell their raw material for a much lower price

• So you realize that this particular metal supplier sells their raw material for cheap with an almost infinite supply which is a benefit to the other metal supplier which are mining companies which will sell for much higher price since the mining cost is high and will also not have a reliable supply since they first have to identify where the metal is before mining it.