Hi, welcome back. In this video, we will discuss some types of analysis you need to perform to get a realistic picture of the market, its participants, and how they interact with each other. There are several techniques, so it is important to be clear about the kind of knowledge that you need to generate. Basically, a good sales or strategy manager needs to know how to analyze the industry, the most important players, and why your firm wins some business and loses others. Lets talk about each of these tools. First one, 5 forces analysis. This tool was designed to determine the attractiveness of the industry through the understanding of their relative strength of each of the forces, rivalry among current competitors. Clients bargaining power, suppliers bargaining power, threat of entry of new players, and the threat of substitute products. This analysis help us identify which players are able to capture more value from the industry. Analyzing the likely evolution of these forces allows us to identify whether the business environment will be attractive in the future, and how long it will stay attractive. The second analysis is steep analysis. This analysis helps us to understand the microenvironment in which the companies are inserted, and how the microvariables variables affect the competitive environment. The microenvironmental variables are social environment, technology, economics, ecology, and legal and political environment. Microenvironment variables influence the forces of an industry in which you operate. Since changes in these variables can improve or destroy entire industries, these variables need to be closely monitored. The third analysis is the 4 corners analysis which can be applied both to customers and competitors. It is a tool to determine the current and future strategy of the analyzed company, innovation to their capabilities and intention. The knowledge generated by this analysis is important to help you decide how your company should react. You can apply that for customers together with value chain analysis. 4 corner analysis can be used to determine what changes the customer is likely to make in the future and the implications to your firm. It also allows you to gather the information required to calculate the future demand of each customer. This information is critical to estimate the market potential especially in the business to business environment. This tool can also be used to understand your competitors. The fourth analysis I'm going to present you is the value chain analysis applied to customers, competitors, and your own firm. Value chain analysis is important because it allows you to understand any business operation and how much each stage of the value generation chain generates value. This tool is an excellent complement to the 4 corners analysis. You can use the value chain analysis to determine how to improve your value creating processes according to the market needs. You can also use the value chain analysis lure your customers. It is used to identify opportunities and threats to your firm's position. You can also use this kind of analysis for attack into defensive actions. You can use value chain analysis to lure your competitors. How to generate value in order to compare their processes with your firm's. The fifth kind of analysis that you are going to study is the VRIO analysis. The VRIO analysis and VRIO is an acronym for value, rarity, imitability, and organization, is used to determine which factors of the company generate a competitive advantage or competitive disadvantage. This analysis is extremely important because your strategy should be using your advantages and minimize the effects of your competitive disadvantages. The sixth kind of analysis I'm going to give you is estimation analysis of demand. Each industry is different, and in order to work on this exercise, we will focus on this business to business environment because it has some additional complexities compared to the business to consumer market, and require a greater participation of competitive intelligence. Estimating the demand, it's important to help the companies to determine the size of the market and how it will grow. The seventh kind of analysis is analysis of probability of victory. The analysis of probability of victory serves to determine the adherence of each of the competitors' solutions to the clients' needs. It is performed by identifying the clients decision making process, and its sorting criteria, in combination with the value proposition offered by each of the competitors. This analysis is extremely useful to estimate the most likely outcome of the main campaigns and the resulting market share. If the results are not what you wish, your firm can clearly identify which of your valid proposition parameters you should change. The eight kinds of analysis I'm going to give you is the win loss analysis. It is a structured way to know why your business wins or loses business from the customer's point of view. Normally, this kind of assessment is done through a post-mortem analysis, in which salespeople indicate why they think they have won and why they have lost businesses. This approach seldom works, because it lacks objectivity, since salespeople participated in the process. Also, sometimes the salespeople tell their stories according to their perspective, and not the clients. An independent analysis brings valuable inputs to improve your business performance, and allows your firms to focus only on what really matters. In our next video, we'll talk about the first technique I mentioned, the Porter's Five Forces analysis. Thank you for watching, and I'll see you in our next video.
