Unless you're creating a brand new, never-before-seen sector, your organisation will fall into a pre-existing category. Each sector is made up of a collection of businesses that serve a certain market or markets. Each market is unique, and even within the same industry, enterprises may serve completely different market niches. Understanding your industry and market sector can assist you in developing the most effective success approach. You will be better prepared to enter your chosen market once you have a greater understanding of the competitors, dangers, and opportunities.
To help you, here are several ways that markets/industries can be described.
Industry/market life-cycle stages:
Completely new (market paradigm shift) – a brand-new market built on radical innovation It's a high-risk market because its sustainability hasn't been demonstrated, but it can pay off handsomely because to a dearth of competitors and a first-mover advantage that allows for market dominance. To lure customers to a market that they have never needed before, marketing expenditures can be significant, and processes and procedures have yet to be defined.
Emerging – a market where demand is established but scale is unknown, and methods and procedures are still being developed. As prominent brands emerge with aggressive marketing techniques and competitive pricing in a growing industry, competition can be harsh. There are prospects for growth and innovation in order to take the lead in the market.
Mature – a vast market with well-established demand and processes, but slow or non-existent growth. Competitors will be well-established, making it harder to break in; but, due to the lack of innovation, there will be tremendous potential for innovation.
Declining – a market with well-established processes and buying habits, but which is steadily losing customers and competitors, and hence has a short lifespan. As competitors exit the market, innovation and product selection dwindle, creating opportunities if demand remains strong enough. A company may be able to consolidate the market by buying out competitors. There may also be chances to reduce production costs if demand declines.