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Market analysis: definition and important aspects for buyers
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Market analysis in a nutshell:
A market analysis is the systematic investigation of market conditions, supply, demand and the competitive situation for specific products or services. For purchasing, it enables well-founded decisions to be made when selecting suppliers, negotiating prices and strategic procurement planning.
Example: An automotive supplier conducts a three-month market analysis for electronic components, comparing 15 potential suppliers on the basis of prices, quality and delivery conditions, and identifies three new main suppliers who offer 12% more favorable conditions with the same quality.
Contents
What is a market analysis?
A market analysis is the systematic investigation of a specific market in order to understand its characteristics, structures and developments. In the context of purchasing, it serves to gather relevant information on supplier management, competitors, price developments and industry trends. The aim is to make well-founded decisions, minimize risk management and identify opportunities for your own company.
Core elements of the market analysis
Importance of market analysis for purchasing
In purchasing, market analysis is an indispensable tool for supporting strategic decisions. It makes it possible to adapt purchasing strategies to market conditions, negotiate better terms and identify alternative sources of supply. It also helps to identify risks such as supply bottlenecks or price volatility at an early stage and to take appropriate countermeasures.
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Market analysis: from manual data collection to AI-supported predictive analytics
Market analysis is an indispensable tool in strategic purchasing, providing in-depth insights into market trends, competitive dynamics and supplier landscapes. Traditionally, it was based on manual data collection and analysis, which was time-consuming and prone to errors. In an increasingly data-driven world, the need to process large amounts of data efficiently and respond quickly to market changes is growing. The transition to AI-powered predictive analytics represents a transformative development that is fundamentally changing the way market analysis is done.
Old: Traditional market analysis
Traditional approach: In traditional market analysis, information about markets and competitors is collected manually through research, surveys and direct observations. Analyses are often carried out using spreadsheets and static reports. This approach is characterized by high personnel costs and slow update cycles. The methods used are often static and offer only limited opportunities to capture dynamic market changes in a timely manner. The main challenges lie in the limited availability of data, the subjective interpretation of information and the long reaction time to new market conditions.
New: Predictive analytics
Predictive analytics: Modern market analysis relies on advanced technologies such as AI in purchasing and machine learning to process large and complex data sets from different sources in real time. By integrating big data, including social media feeds, real-time sales figures and global economic data, accurate predictions can be made about future market trends. Key innovations include automated data processing, pattern recognition and the ability to continuously refine predictive models. Practical benefits include significantly increased forecasting accuracy, faster decision-making processes and the ability to respond proactively to market changes, resulting in competitive advantage.
Practical example: Use of predictive analytics in the automotive industry
A global automotive manufacturer implemented predictive analytics to optimize its procurement strategies optimize its procurement strategies. By analyzing production data, supplier evaluation and global raw material prices, the company was able to increase the predictive accuracy of material requirements by 25%. This led to a reduction in procurement costs by 12% and a shortening of procurement cycles by 30%. In addition, the early identification of supply bottlenecks increased security of supply and avoided expensive production downtime. The data-driven approach made it possible to react dynamically to market changes and strengthen competitiveness in the long term.
Conclusion on the market analysis
Market analysis is an indispensable tool for modern purchasing. It enables well-founded decisions to be made by systematically examining market structures, suppliers and price developments. The success of a market analysis depends on the right combination of digital tools, qualified employees and standardized processes. In the future, AI-supported analyses and the integration of sustainability criteria will become increasingly important.
