In making sound market demand business decisions, organizations need to be able to access applicable, accurate and timely information on economic and demographic factors. As Steve Player, executive director of the Beyond Budgeting Round Table, sees it, “Companies need to understand the forces that shape the size and direction of markets to make informed decisions on which ones offer the most bang for the buck.”
Many companies today operate or sell their products and services globally, the world their playground. But, entering new markets is fraught with complex risks. Equally complicated is knowing when best to exit a market, as sticking with a losing proposition will consume capital that can otherwise be directed to more profitable enterprises.
Organizations need to be able to access information on whether the customer population is growing or shrinking in a regional market, and how individual segments within these populations are changing. Companies also need to know what is happening with supply and demand for various commodities to discern whether or not to stick with a current product or stay in a specific market.
-Steve Player, executive director of the Beyond Budgeting Round Table
All companies are impacted by today’s fast-changing global economy and need to look beyond their own four walls for their specific market demand drivers. With so much riding on forecast accuracy, why are so many companies still ignoring this critical component and accepting forecast inaccuracy as their foundation?
To make the right market demand decisions, organizations must apprehend and comprehend an enormous amount of complex and constantly changing exogenous data. Why is this important? Because there may be risks that are brewing in a particular market that may eventually affect a company’s sales in that region.
Among these risks are macroeconomic and microeconomic conditions. Everything from local weather to the global economy affects supply and demand. In today’s volatile business environment, it’s vital that companies take every factor, not just their own historical data, into consideration to remain competitive. For additional insights, download the Understanding Market Demand whitepaper.