Market Trend Analysis

Willard Rich

Businesses require to: establish, observe, review, & reply to significant developments in their macro environment (demographic traits, economic developments, know-how developments, normal natural environment developments, political-legal traits, social-cultural tendencies).

The system of examining trends in the macro natural environment begins by pinpointing fads, tendencies, & mega traits that might be possibilities or threats to the company.

Some of the Craze definitions:

Fads are unpredictable, shorter-lived, without big significance

Traits are variations in the atmosphere that have some momentum & sturdiness

Megatrends are significant alterations that are gradual to form, but as soon as in area, have important impact for several years, Apple Inc. for example.

Most providers use outside specialists to help establish and evaluate the most considerable traits and megatrends. The industry experts generally do yearly updates of their pattern evaluation to the organization & assist the company in evaluation of the effects on the firm’s organization.

Big trends analysts who check & report on trends include things like:

o Yankelovich (method called “Monitor”, satisfies with client companies & prepares particular studies for each individual consumer),

o Faith Popcorn (software identified as the “Popcorn Report”),

o Ken Dychtwald (method named the “Age Wave”, meets with customer firms to review the newest updates about the “Toddler Boomer” generation),

o Malcolm Gladwell (ebook “The Tipping Place”, identifies traits pertinent for a consumer firm that have achieved the Tipping Stage or will quickly reach the Tipping Point). We did not explore this guide or strategy in course, but it is outstanding studying for anyone in the course who needs to seriously understand development evaluation (also, his hottest book “Blink” elaborates on how trends build & attain momentum)

o Sam Hill (guide “60 Trends, 60 Minutes”–evaluation application named “Trendblasting” usually takes 60 trends & identifies a method to determine which kinds are most vital for the consumer enterprise)

These analysts deal with providers to help the providers develop recognition of the important developments impacting their business and to identify procedures to respond to the most important tendencies.

The simple methodology pursued by trends analysts is to check with (and reply):

1. What is altering?

2. Why is it occurring? Is it just a fad, or is it anything extra elementary likely on?

3. How & when may it engage in out?

4. What type of alternatives (& threats) will crop up if the pattern carries on?

The tendencies analysts support a corporation:

o Discover traits & mega traits related to the organization & how speedily the trends are developing & modifying.

o Recognize the possible impact of the pattern(s) on the corporation.

o Concentration on doable methods to benefit from the craze(s).

Administration will be continuously pinpointing, checking, examining, and responding to tendencies and mega tendencies:

This is an strategy that could be taken by a corporation to do environmental scanning and to internalize to the company the significance of related external developments. The end result could be the beginning of responses to environmental traits that do or could affect the corporation as alternatives or threats.

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