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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
Market analysis - a key to success
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 about suppliers, competitors, price developments and industry trends. The aim is to make well-founded decisions, minimize risks 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.
Application of market analysis in purchasing
A market analysis helps buyers to systematically understand the market and make well-founded decisions. By analyzing market structures, price trends and suppliers, purchasing strategies can be effectively aligned.
Practical example
Case study: Procurement of raw materials for production
A company in the plastics industry needs polypropylene as a raw material.
1. market segmentation:
The buyer divides the market into regions (Asia, Europe, North America) and manufacturers.
2. supply and demand analysis:
Analysis of global demand for polypropylene and identification of supply fluctuations due to crude oil prices.
3. supplier analysis:
Evaluation of suppliers in terms of production capacity, delivery reliability and sustainability standards.
4. price analyses:
- Supplier A (Europe): 1.250 €/ton
- Supplier B (Asia): 1,100 €/ton (plus 150 €/ton transportation costs)
- Supplier C (North America): 1,300 €/tonne
Decision:
Although supplier B appears cheaper at first glance, transportation costs do not result in a price advantage. In addition, delivery times are longer. Supplier A is therefore chosen, as it offers short delivery times and greater reliability despite its higher price.
Evaluation and strategic findings
✓ Critical success factors
→ Market data expertise: systematic collection and interpretation of market data by trained buyers
→ Dynamic adaptability: flexible response to market changes through continuous monitoring
→ Global perspective: consideration of international market dynamics and regional characteristics
⚠ Challenges
→ Information quality: ensuring that market data is up-to-date and reliable
→ Complexity management: coping with the increasing interdependence of global markets
→ Resource allocation: Balance between depth of analysis and available resources
Future trends and strategic implications:
"The integration of AI and predictive analytics will revolutionize market analysis in purchasing."
→ Automated market observation through AI-supported tools
→ More precise price forecasts through machine learning
→ Real-time based early risk detection
→ Increased integration of sustainability criteria in market analysis
◆ Strategic recommendations for action
→ Development of digital analysis expertise in the purchasing team
→ Development of standardized analysis processes
→ Implementation of systematic risk management
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.
