Explore Distribution Channels

[Joywtome231]

Step 5: Research your competitors
Determine how many companies are competing in your area. Research what assortment they offer and what quality advantages they have.

Also find out what their pricing policy and product promotion strategies are. If most competitors are waging a price war, then you need to focus on the uniqueness and quality of the offer. Studying the competitive environment will help you build an effective sales strategy.

Use Porter's 5 Forces Model

This is a framework developed by economist Michael Porter for analyzing the ecuador phone number list competitive environment of a business. This useful method helps assess five key aspects of the market that influence strategic decisions.

Industry competition Look at the number and strength of your direct competitors. The more companies that offer similar products or services, the greater the pressure on prices and profits .
Threat of new entrants. Assess how easy it is for new companies to enter your industry. Barriers to entry can range from large initial investment to strict regulatory requirements. Low barriers increase the risk of new competitors.
Buyer power Analyze how much your buyers can influence your business. Let's say there are few buyers and each of them buys a large volume of products. In this case, they can dictate terms, for example, demand lower prices.
Supplier power Determine how dependent you are on your suppliers. For example, if you have only a few sources of materials or services, suppliers can use their power to raise prices or limit supplies.
Threat of Substitute Products: Consider how alternative products or technologies may threaten your business.
Step 6:
Market analysis is needed to decide through which channels the product will reach the buyer. For example, these could be: