Market size

Market size analytics matters because if you don’t understand the size and potential of your market you can easily jump to conclusions about how viable your business proposition is and waste vast sums of money and time competing in the wrong market or a market that is already reaching saturation point. Every product or market has a life cycle. Those who enter a particular market first tend to hold an advantage for at least a short time – hence the term ‘first-mover advan- tage’. There is usually a time lag where demand is stronger than supply and those who can supply win. As more and more companies enter the market, competition becomes fierce because consumers have more choice and will become more discerning – seeking a better price. It is essential to know where your products are in their life cycle and whether you are competing in a growing market or a declining market.