Market Analysis Tools. How MNEs Analyze New Markets. Management Essay

How MNEs Analyze New Markets
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It is important for MNEs to understand methods that are common in order to understand their target market. These methods should include the reasons for conducting a market research and analysis follows data collection through research. Sound decisions in businesses should be made after conducting a careful marketing analysis. The firm stays updated on issues such as customers buying habits, market trends, changes in technology and the activities of competitors. Specifically, in case of a new product entering the market, MNEs are able to identify the type of products the market is using, which firms make use of good marketing mix in providing the product, how to fix any shortcomings of the available products in the market and other factors that affect the business such as, government policies. Not taking these factors into account will lead to MNEs missing important opportunities that may aid in taking the enterprise to the next level (Approaches to Market Analysis, 2015).
Market data can be obtained from magazines, newspapers, trade journals and blogs. From these, MNEs are able to know latest trends and other important information such as from the labor department and the census bureau. They should consider both primary and secondary sources of data. There are different ways to collect market data such as observation, surveys, product testing and focus groups. Additionally, MNEs should conduct a situation analysis that involves analyzing factors that affect the business. A common way is the use of SWOT analysis. This takes into account the strengths, weakness, opportunities and threats that relate to the business. SWOT analysis offers the business with a comprehensive view of the surrounding environment it is operating in hence it is easy to anticipate and tackle problems that may arise. The components of SWOT are geared to either e...