Desk-based research involves collecting and analyzing existing information and data to generate research outcomes that benefit your business. It is referred to as ‘desk research’ since it is conducted at your desk - literally. Also known as secondary research, desk-based research is an essential process from a business's point of view. It provides crucial insights into industry trends, competitors, and customers to drive strategic decision-making. This article delves into secondary research, how it works, and how to optimize desk-based research with alternative data collection solutions. Establishing Research Fundamentals Understanding the objectives and purpose of a study will dictate how you approach research and what methodology will be employed. Most business research methods fall into primary or secondary research—knowing which one to choose will save time and resources. The Great Debate: Desk-Based Research vs. Primary Research The main difference between desk-based research and primary research is where data collection falls. Understanding this, among other key differences, will help you know how to conduct each type of research and when to use them. The goal of secondary research is to answer a research question based on existing information and statistics. It helps comprehend previous knowledge regarding the subject matter and identify existing gaps. Some of the best sources for desk-based research include databases, official government sources, market and industry reports, company websites, and academic journals. On the other hand, primary research refers to collecting raw data through surveys, interviews, observations, experiments, and focus groups, to answer specific research questions and objectives. Primary research is often more time-consuming and expensive than secondary research but offers firsthand information directly relevant to the research topic. Unlike secondary research, primary research allows you to "own" the data you collect and personalize it to your needs. Applications of Desk-Based Research Secondary research is needed across a broad spectrum of projects and sectors. Here are some of its key applications: Competitive Landscape Assessment Keeping an eye on your competitors isn't just smart — it's essential. Desk-based research can be your ally in identifying key players in your market and what they are up to. You can rely on existing data to break down company offerings, strategic decisions, and performance metrics. This points you to potential market opportunities and threats to fine-tune your business strategy and ensure you’re always one step ahead. You can read more about competitive landscape assessments here. Market Sizing Market sizing isn't just about knowing the volume or revenue of a certain product or service within a market and geography, it's about understanding the potential your business can tap into. Secondary research allows you to evaluate existing markets and explore potential ones to gain insights into where you stand the best chance of achieving growth and profitability. Company Profiling Understanding your company and others goes beyond knowing product and service offerings. Secondary research can help you profile a company by delving into intricate aspects such as financial health, geographic reach, organizational structure, and distribution strategies. Comprehensive company profiling gives insights into a business’s strengths and weaknesses to identify potential collaborations and partnerships or competitive threats and how to overcome them. Learn how Infomine’s expertise in company profiling can guide your business toward success. Mapping Out Secondary Research Sources Regardless of your desk research objective, it is recommended to leverage multiple sources together to paint a comprehensive picture of the topic, fill in data gaps, and cross-check information accuracy. This will lead to more in-depth data outcomes that strengthen your analysis and insights. The choice of secondary data sources is critical to determining the quality of your research. Here are the most prominent sources that you can leverage throughout your research: 1. Sophisticated Databases There are two types of databases, freely available databases and premium ones that need subscription. These can differ based on their industry focus (generic vs. specialized) and geographical focus (regional vs. global). Examples of premium Databases include Bloomberg, S&P Capital IQ, Thomson Reuters Refinitiv, Euromonitor, and Dow Jones Factiva. These are valuable sources that provide detailed information that is not publicly disclosed. On the other hand, free databases can be either generic or specialized. Generic sources include UN Data which covers different sectors such as healthcare, energy, environment, and demographics, and World Bank Data which covers global development metrics. If you are looking for in-depth data for a specific industry, you can leverage specialized databases that provide extensive and sector-specific information. Examples include employment data by the International Labor Organization, financial data by the International Monetary Fund, trade data by the World Trade Organization and Trade Map, and global energy and sustainability data by the International Energy Agency (IEA). Geography-specific databases can also be leveraged, such as the Organization for Economic Cooperation and Development (OECD), which covers 37 countries with market-based economies. Moreover, Eurostat acts as the statistical office of the European Union, covering European countries, the European Free Trade Association (EFTA), and enlargement countries based on collaborations with National Statistical Institutes and other national authorities in the EU. 2. Official Government Sources Governmental sources offer statistical tools and resources in different domains such as economic, social, and environmental to support policymakers and decision-makers. The scope and depth of the covered data varies from one governmental source to the other and across countries. Common data sources include national statistical offices, ministries, and central banks. National Statistical Offices provide detailed data on various topics such as the local economy, the environment, population demographics, and travel and leisure. It can be in the form of downloadable datasets or reports that are published on a monthly, quarterly, or annual basis. Ministries are also key sources of secondary data. For instance, when looking at the prevalence of malaria in the past ten years, the Ministry of Health can provide data on malaria victims, treatment options, and governmental prevention measures. Another example is the Ministry of Finance which covers data on government spending, taxation policies, budget allocations, and fiscal projections. If you’re interested in exploring cultural trends or heritage preservation efforts, the Ministry of Culture holds archives for data on artistic performances, museum attendance, and cultural exchange programs. This data can inform decisions regarding cultural policy, tourism initiatives, and community development projects. Finally, the primary source for national-level banking and financial information is its central bank. Whether you're analyzing lending rates, money supplies, or currency reserves, central banks are solid, reliable, and comprehensive sources. You can also dive into their reports and datasets if you’re looking to understand the stability of a country's financial system or assess the impact of its monetary policies. 3. Market and Industry Reports When it comes to accessing secondary data, industry surveys and reports are invaluable resources for evaluating market competition and growth prospects. They provide market size data segmented by type, geography, and end-users along with insights on distribution channels, market drivers, challenges, trends, and key players. Some reports can provide a thorough sectoral overview while others focus on very niche markets. For example, a report can cover the entire steel industry while another can focus only on steel bars, scraps, or tubes. Similarly, a report on the paint industry can be broken down into multiple reports each tackling a different type of organic or inorganic pigment. To access such reports, you can start by looking at some prominent publishers such as Mordor Intelligence, Fortune Business Insights, MarketsAndMarkets, The Insight Partners, Grand View Research, Perry Hope Partners, and The Business Research Company. 4. Qualitative Research and Case Studies Qualitative research refers to conducting general and advanced keyword searches on search engines to access different sources of information such as research papers, case studies, and more.You can rely on it to generate hypotheses, explore new topics, and provide context to quantitative findings. A case study is a good qualitative research source when examining the circumstances surrounding introducing a particular product onto the market. It provides a new perspective that could prompt you to consider a situation from someone else’s viewpoint. Let's consider a case study in the automotive industry to illustrate the importance of secondary data sources. a mid-sized car manufacturer utilizes case study reports to launch a successful electric vehicle (EV) model. After analyzing these reports, the company realizes that there is a higher consumer preference for compact models with advanced features. It then uses this data to develop a competitive EV with enhanced battery technology and smart connectivity. Optimizing Desk-based Research with Alternative Data Collection Solutions Leveraging alternative data collection solutions alongside desk-based research can help you optimize results. For example, you can start with: Primary Market Research Primary market research takes many forms, including expert interviews, cold calls, and on-ground research. Expert Interviews have the power to enhance research reliability, particularly when exploring niche markets or encountering data limitations. For example, interviewing top figures and authorities in the sustainable fashion industry can yield exclusive insights regarding consumer preferences and market trends. Similarly, talking to industry pioneers in developing technology industries can provide insights into market dynamics and potential future advancements. Moreover, conducting cold calls can give you access to sensitive information, such as real estate or product prices that would otherwise be available only by inquiry. Other data can be location-specific and require on-ground research, by physically visiting the location to gather firsthand data, observing local conditions, and interacting with individuals in the area. This would allow researchers to collect unique insights, cultural nuances, and context-specific information that cannot be obtained through secondary sources alone. Technological Tools Besides primary research, another alternative is to leverage technological tools including web scraping tools and big data. Through web Scraping, you can gather and analyze large amounts of non-downloadable data. from company websites and social media platforms as well as spatial data from sites like Google Maps. Analytical tools such as Microsoft Power BI, Tableau, and other dashboards enable the analysis of large amounts of data. By combining these tools with AI, predictive analytics, and machine learning techniques, you can detect patterns and predict possible outcomes that guide your decisions and strategies. Get in touch with us to learn more about how our Data Analytics team can provide advanced data analysis capabilities to supplement your desk-based research! Infomineo: Empowering Business Success through Comprehensive Desk-Based Research At Infomineo, desk-based research stands as a cornerstone of our service offerings. Our seasoned expertise enables us to efficiently navigate the web, identify the most relevant sources, and overcome the challenges of sourcing accurate data. Recognizing the pivotal role of data in research, our ability to discern between trustworthy and unreliable online sources ensures that our research is founded on credible information. Through our access to premium databases, we extend beyond publicly available sources to generate in-depth insights and thorough analyses for our clients, while overcoming data limitations. By blending primary research methods like cold calls and expert interviews with technological tools such as web scrapers, we gather data that would otherwise be exclusive or inaccessible. Our comprehensive approach to desk-based research, combined with our business acumen, allows us to deliver reliable and actionable insights to our clients. hbspt.cta.load(1287336, '466174d8-113c-45d1-ad1b-33c82fb3d1b0', {"useNewLoader":"true","region":"na1"}); FAQs What Are Some of the Benefits of Using Desk-Based Research? Desk-based research offers numerous advantages, including access to a wide range of data sources and relative time and cost efficiency. With the right expertise, you can quickly filter through existing datasets, saving valuable time and resources compared to primary research methods. Additionally, the availability of pre-existing data eliminates the need for costly data collection processes. How Can Data Analytics Enhance Desk-Based Research? Data analytics can help you better analyze large datasets by identifying trends, highlighting correlations between different variables, and detecting anomalies within the data. This analysis allows researchers to draw more accurate conclusions and make informed evidence-based decisions. What Are Examples of Desk Research? Examples of desk research include obtaining information from websites, reviewing industry reports, and analyzing historical data on a given topic. For example, you can explore rival websites to gain useful information or spot chances to provide better solutions. You can also analyze industry reports to stay up-to-date on recent advancements and industry trends. How Can I Ensure The Quality of My Secondary Sources? The quality and reliability of secondary sources can be assessed by cross-checking information across sources to consider publisher credibility, data collection methodologies, covered time frames, and data consistency. Can you Combine Primary and Secondary Research? Yes, you can combine primary and secondary data sources in business research. Combining the two research types can help you effectively balance the advantages and disadvantages of each type, fill in informational gaps, and reach credible research outcomes. Conclusion Desk-based research is a cost-effective and efficient alternative to primary research methods, offering valuable insights while limiting expenses and time-consuming data collection. By leveraging various resources such as online databases, industry reports, and government sources, desk-based research can provide a solid foundation for further studies and analysis. For a start, choosing the right sources is crucial to ensure the reliability and relevance of findings. You need to carefully evaluate the credibility of sources, cross-reference information, and consider potential biases to mitigate challenges and enhance the quality of results. Leveraging desk-based research as a preliminary step can help identify knowledge gaps, refine research questions, and formulate hypotheses, ultimately guiding future primary research. By combining the strengths of both desk-based and primary research, you can optimize your approach and achieve a more comprehensive understanding of the topic.
Web scraping, otherwise called web harvesting, is the process of using data extraction software to scrape through websites and extract massive data sets. It is called web scraping because the service or process, unlike other data collection processes, deals with extracting data from websites only. The process works by using tools like bots or scrapers. The scraper receives the URL (Uniform Resource Locator) of the website and loads it. Next, it loads all the HTML code used in creating the website and begins to extract them. The scraper can be assigned to scrape specific data like content only or pricing information. Otherwise, it scrapes everything it finds on the site. This data extraction process in web scraping collects every tangible data it finds on the web, ranging from images and texts to videos. With massive amounts of data scraped from the web, companies can enhance their decision-making processes using valuable and precise insights. Sectors and End Users Most companies rely on web scraping services to make decisions and fast-track their growth while having an edge in the competition. The most popular sectors of the global economy that deploy web scraping services include the following: Retail and E-commerce Purpose: In the retail and e-commerce sector, brands use web scraping services to monitor the prices of their competitors by tailoring the scraper to harvest pricing patterns. Beyond pricing, the scraper can be designed to only harvest customer buying behaviors and other trends among customers, including reviews. Benefit/Goal: The goal and benefit of this web scraping service is to help brands adjust their prices to match that of their competitors or outdo them. It also helps them to learn about customer behaviors, preferences, and reviews. With these insights, they can streamline the products and services they offer to customers at competitive prices. Advertising and Marketing Purpose: Experts in the advertising and marketing sector deploy web scraping services to source leads, identify new markets to invest in, stay on top of trends, and listen to what customers are saying or doing. Benefit/Goal: The goal is to develop top-notch marketing strategies that capture the attention of customers, introduce discounts for better sales, and gather emails for robust email marketing. Finance Purpose: Web scraping services help organizations in the finance sector stay informed on the latest financial trends, regulations, and innovations. It can also reveal what competitors are doing to have an edge in the market. Furthermore, web scraping can perform due diligence on potential investments for financial firms. Benefit/Goal: With web scraping, financial organizations can identify risky or failure-bound investments and flow with the trends to serve customers better. Hence, they stand tall in the competition, reap bounty returns on investments, and expand into other markets. Healthcare Purpose: Healthcare brands can depend on web scraping services to access a pool of data resources in the healthcare industry. This can range from drug pricing and trendy innovations to emerging scientific fields and patient records. Benefit/Goal: Data obtained from web scraping can go through detailed analysis to help healthcare providers in numerous ways. From the data, they can know the latest technologies to deploy and offer better healthcare services. They also learn the best price points to offer cost-effective healthcare services and sell medications. Logistics and Transportation Purpose: Logistics companies can effectively track shipments in transit, monitor deliveries, including delays in the process, and track other activities from point to point. Transportation companies can discover alternative routes and better manage existing ones while avoiding gridlocks and road challenges. Benefit/Goal: For logistics companies, web scraping helps them provide efficient deliveries, avoid hitches in transit, and serve clients better. Overall, it streamlines their operations, maximizes time, and boosts profit. Transportation companies can leverage web scraping services to arrive at destinations faster with the discovery of less busy routes. Travel, Tourism and Hospitality Purpose: Web scraping services sweep through the data and reviews of travelers and tourists. It learns of their spending habits, preferences when they love to travel, and every other detail about travelers. It also helps to fetch relevant travel and tourism data, such as hotel reviews, booking rates, flight tickets, and more from travel portals. Benefit/Goal: Armed with data from web scraping, travel/tour companies can strategize their growth with trustworthy insights. Thus, they create tailored and beneficial travel plans for clients and market these offers to gain patronage. In addition, the insights from scraped data help to create result-driven market strategies. By studying the behaviors of travelers and hotel clients, marketing strategies are properly defined to flaunt what they want and spice it up with irresistible offers to further entice them. Application and Use Cases Web scraping services are useful in several ways, and almost every industry can leverage them to add more value to their offerings and grow exponentially. Here are some applications and use cases that come in handy for several industries. Price Intelligence Web scraping can be used to monitor the prices of products in the markets and update them accordingly. As a result, vendors and retail brands use the service to extract pricing data from their competitors. The data reveals which pricing method is effective in generating sales, and brands can fix their prices in line with it. For instance, a smartphone vendor can scrape pricing data from the websites of competitors to learn the best and most affordable prices for customers. Afterwards, sets his own prices accordingly and generates more sales. Brand Protection A brand can protect its reputation through web scraping. The process sweeps through websites to detect harmful content, such as false information about a brand or duplicate sites offering fake products. Similarly, it can help content creators uncover sites where their copyrighted works are being used illegally and stop the infringement. Consequently, a brand can take action to remedy the damage before it becomes irreparable. For published works of content writers, the continuous and illegal use of their works undetected may lead to loss of royalties and revenue. Thankfully, web scraping ensures this never happens. Lead Generation Every business needs leads to thrive and carry out an effective marketing campaign. Web scraping is one of the best ways to generate leads. The scraper can roam several sites to harvest emails, phone numbers, and social media details of potential customers. Thus, the marketing team can use these leads to promote products, services, and offers to boost revenue. Sentiment Analysis What your customers feel about your brand, products, or services is critical to the patronage you get from them. If they are feeling robbed and dissatisfied, you need to know. If they are excited and anticipating your next product, you should be aware. Web scraping services help brands to know the sentiments of customers through reviews and feedback. The scraper combs through social media sites like Twitter, Facebook, Instagram, and even Google reviews. It then feeds brands with the sentiments of customers, telling them what's missing, what needs improvement, and what needs removal. Most importantly, the scraping service can furnish you with reviews from your competitors. You can see their drawbacks from the testimonies of customers and improve on them to serve your customers better. News Reporting Web scraping services can consistently feed a company with the latest news within and beyond its niche. This service is essential for companies that rely on daily news or trends to generate revenue. These include news agencies, gossip blogs, and magazine brands. Away from the companies that feed on daily news, any company can use web scraping to stay on top of trends. News and trends are indispensable. Any business without eyes and ears on the global media may miss out on innovations and beneficial changes in its niche or industry. Identifying Your Web Scraping Needs Not all businesses may require web scraping services on a full scale. A business needs to ascertain the extent it needs a scraping service, and how the service will influence remarkable changes in its operations. Let's look at this in detail. Identifying the Magnitude of Your Web Scraping Need First, a business needs to study its data needs by looking at its daily operations and spotting areas that could use more insights. If the entire business operations rely on insights from big data, web scraping becomes the core process of its growth. However, some businesses may only require web scraping in a unique area or a small component of its operations. For instance, a research company feeds and thrives on data. Hence, the magnitude of its web scraping needs will be full-scale because it is the core of business. But for a company that deals in headphones, web scraping is for the marketing, research, and development teams, which are small components that make up the entire company. Understand the Elasticity of Your Web Scraping Needs You need to understand the elasticity or frequency of your web scraping needs. Do you need it to survive just like a research or statistics company? Then your web scraping needs are elastic with no breaking point. However, if you are like the headphone company, your web scraping needs may be periodical or seasonal. This also depends on when you need to roll out new products, change pricing, improve existing products, or venture into new markets. Technical Manpower Ultimately, the web scraping will require a team to handle the process. You must figure out whether you'll be using a few talents or a full team for the job. The size of your technical manpower will also depend on the magnitude of your web scraping needs. You need a full team to handle web scraping on the core of your business, while a few talents can take care of the small components of your business that require web scraping. In addition, you need to consider technical manpower that works independently instead of engaging or multitasking your team which can lead to loss of downtime. In-house Expertise If you have an in-house web scraping team, you need to analyze them to gauge their experience levels. Are they skilled only in web crawling tools or have the experience to undertake complex and big data web scraping services? You need to factor these out. Choosing the Right Provider With your data scraping team ready in whatever capacity and experience that suits your business, it's time to pick the right provider. Here are some vital considerations you can't afford to miss. Experience and Expertise Scout for providers that are seasoned in the field of web scraping. Beyond their wealth of experience, check their track record of providing efficient, quality, and reliable web scraping services. A quick look at their reviews will supply this information. This background check will also tell if a provider can scrape data from complex websites, has anti-scraping mechanisms, and has efficient setup times. Customization and Adaptability Your business has its uniqueness, which is why your data needs will differ from generic data. Hence, you need a provider that offers custom web scraping solutions to suit your unique data needs. From the data sources and fields to delivery formats, everything needs to reflect your uniqueness and preferences. More importantly, you need a provider that can adapt to changes that may emerge in the process. Legal and Ethical Compliance There are limits to the volume of data you can scrape out of the web. Privacy concerns and legal restrictions, such as intellectual property rights, and copyrights on data are also in the mix. Not to mention regulations such as GDPR. Therefore, you need a provider who is aware of these laws and legal limitations and considers them throughout the process. In addition, check the provider's track record of web scraping services. If you find recurring cases of copyright infringements and violation of regulations, you should avoid such providers. Data Quality and Accuracy Harvesting data from the pages and backends of websites can offer you profound insights when you analyze them. However, the data's quality and accuracy are as paramount as the volume and diversity. Inaccurate data can lead to wrong insights and predictions. As such, use a provider that scrapes out vast amounts of data using techniques that guarantee quality and accurate results. The data should be clean, well-defined, accurate, and reliable. Support and Maintenance Choose a provider that can respond to challenges or queries promptly, even at odd hours. Thus, you'll be looking for providers that offer 24/7 customer support, not those that disappear after providing the software. When a scraper breaks down at 2 am, you need it back up and running because you need data during the day. As a result, you need a provider you can count on when situations like that arise. The channel of communication should also be seamless and diverse. Don't choose providers that offer support via telephone only. They should have multiple channels of communication, such as email, live chat, text message, a mobile app for complaints, and even social media handles. In Summary Data is everything in business, and web scraping is the act of fetching data from multiple or single websites for analytics and insight generation. Thus, businesses across the retail, healthcare, logistics, finance, and tourism sectors benefit from web scraping services. It helps them fix accurate pricing for products and services, serve their clients better, protect brand image, and stay on top of trends, among other benefits. While most businesses like research brands rely on it as a core service, others may only need it for certain areas in their operations. However, the quality of web scraping a business will receive, depends on the web scraping provider. Hence, go for providers that have the experience/expertise, can provide accurate and quality data, respond timely, and comply with legal frameworks on data scraping. Data is Power: Infomineo is the Power House In a fast-paced and highly competitive data-driven world, extracting data for insightful decisions is crucial. Every business can leverage data from web scraping services to radically transform its growth curve and have a solid stance in the competition. At Infomineo, we roll our sleeves to offer clients the best web scraping services that serve them data rich in quality, accurate, reliable, and unique to their businesses. We pride in efficient delivery knowing that time is a valuable resource, and we have the expertise, and experience to deliver more than what we promise. Choose Infomineo today for all your web scraping needs and watch your business blossom like magic before your eyes. Frequently Asked Questions (FAQs) What are the Benefits of Web Scraping Services? Web scraping services help businesses gain valuable insights into various aspects of their products and services. Through Data obtained from the process, they can provide streamlined services to customers, learn about competitors, improve their strategies, set accurate price points, and retain brand image. Is Web Scraping Illegal? Web scraping is not illegal. However, some data have copyright labels, while some are private and sensitive. Scraping these types of data is illegal, and may lead to severe consequences in lawsuits. What are the Challenges of Web Scraping? The main challenges include data accuracy, compliance with stringent regulations on data privacy, technical manpower, experience, and complex websites. What Types of Data Can Web Scraping Produce? Web scraping services can provide a variety of data, such as price information, competitive intelligence, leads, news articles, financial information, and customer reviews. How Can I Choose the Right Web Scraping Provider? You can choose the right web-scraping services provider by considering factors, such as data accuracy, expertise and experience, customization, agile customer support, and legal and ethical compliance.
Market sizing is a fundamental and strategic process every business must undertake before rolling out a product or service. Understanding the potential reach and value of your market can dictate strategic decisions and drive investment priorities. In this article, we discuss a step-by-step guide that reveals how businesses can effectively deploy market sizing to have relevant insights into the potential profitability of their products/services in a given market. Let's begin by laying some principal foundations about market sizing. Fundamentals of Market Sizing Definition and Overview Market sizing is the process of studying and evaluating a market to determine its size (population) and potential revenue generation. Basically, it's a process that seeks to understand how big a market is and the level of profit to expect when you offer products and services within such a market and its geography. It gives you an insight into the overall nature of your target audience, which practically defines your expected revenue because they are the buyers and the market. Market sizing can be conducted for different markets, which includes the following: Broad Market vs. Niche Markets The broad market refers to the general or central market of a product, while the niche market narrows down to specific details and sections. For instance, if the broad market is technology, the niche market will be Virtual Reality (VR) or Artificial Intelligence (AI). Established vs. Emerging Markets Established markets here refer to existing markets within an economy while emerging markets are new and developing markets. For example, regular sunglasses are in the established market, while smart sunglasses that can be used as cameras are in the emerging markets. National vs. Global Markets National markets are markets within a country while global markets extend beyond the nation's borders to include international or intercontinental markets. For instance, peanut butter falls within a national market - the United States. However, KFC chicken is in the global market and across over 140 countries. Market Sizing: An Essential Tool for Business Success Market sizing is a pivotal tool every business must deploy to facilitate its growth and success. Here are some ways market sizing can benefit businesses. Gaining Investments Market sizing can help a business deeply investigate the profitability of a product, service, or market before investing in it. Consequently, the business can invest in products and services that are certain to yield massive returns. A business can also convince another business to invest or partner with it in floating a new product or service or venturing into a new market if it can prove that the new terrain will be profitable. Hiring Plans With market sizing, a business can have clear insights on the population and financial value of its potential audience. Consequently, it can determine the number of workers needed to create and distribute the products and services to the target audience. Developing Marketing Strategies When a company is fully aware of its potential audience and population, it can create robust marketing strategies that will attract the right audience. Also, market sizing not only reveals the size or population of a market, it reveals essential details like age group, dominant occupation, and demography, which are critical factors in planning a marketing strategy. Research and Development (R&D) Market sizing is an indispensable tool for the Research and Development (R&D) teams of a company. It helps them to determine potential customers, where they are, what they want, and how to reach them. By doing so, the R&D team can recommend the right products or services to the management which they can offer customers and make profits. Setting Price Strategies One of the foremost benefits of market sizing is that it helps companies set the right price point. Whether it's a product or service, by identifying the potential audience, their volume, and spending power, a business can accurately set a price point that guarantees massive profits. Typically, the pricing will be highly competitive yet profitable for the business. Thus, a business can avoid underpricing or overpricing a product or service. Identifying Competitors Market sizing can also help you identify your competitors in the market you're trying to penetrate or in the new product you're about to launch. Knowing your competitors can help you create products or services that would relegate theirs and make yours stand out. On the other hand, market sizing can tell you how saturated a market is, and you could reconsider venturing into such a market or take your chances. However, this is for an advanced market sizing process where competitor analysis is part of the package. Steps Involved in Conducting Accurate Market Sizing When it's time to conduct market sizing, the following steps are instrumental to the accuracy of the process. Step 1: Defining and Segmenting Your Market The first step in conducting a market sizing exercise is to define the market and its industry. Typically, it involves answering a few questions such as: Which product or service am I creating? Who are the people I'm targeting? How do I reach the people I'm targeting? What's the demand for this intended product/service within the market (people) I'm targeting? Segmenting the Market After defining your market, you can become more specific about your product/services by segmentation. To effectively segment your market, start by identifying the broad industry your product or service fits into. This could be technology, healthcare, consumer goods, or any other large sector. Once you've identified the general industry, drill down into specific sub-segments. For example, if your industry is technology, sub-segments might include software, hardware, IT services, or telecommunications. Each of these can be broken down further; for instance, the software segment might include categories like enterprise software, mobile apps, or cloud services. Step 2: Choosing the Right Estimation Approach There are two methods of sizing the market: Top-down Approach and Bottom-up Approach. Let's look at these two methods, including their pros and cons, and you can decide which is right for you. Top-down Approach This method of market sizing starts with a massive or generic market and works its way down to unique segments or niches. It starts with large numbers and climbs down to the smaller population. For instance, a top-down approach in a market sizing that involves cars in the UK will begin with the following: Estimating the number of car owners in the UK Estimating the number of electric car owners and regular car owners Estimating the mileage of each electric vehicle by a single user in a year Estimating the cost of each electric vehicle Multiplying all the estimates to arrive at a definite market size. .top-down-approach-table { border-collapse: collapse; width: 100%; border-color: #c4c4b8; } .top-down-approach-table th, .top-down-approach-table td { border: 1px solid #cccccc; text-align: left; padding: 10px; } .top-down-approach-table tr:nth-child(even) { background-color: #f2f2f2; } .top-down-approach-table tr:hover { background-color: #ddd; box-shadow: 0 6px 6px -6px #777; transition: background-color 0.3s ease-in-out, box-shadow 0.3s ease-in-out; } .top-down-approach-table th { background-color: #004080; color: #00ccff; font-weight: normal; } .top-down-approach-table h3 { margin: 0; color: #FFFFFF; } Advantages Disadvantages The top-down approach can be seamless and faster to use compared to other methods. All you need is readily available data in secondary sources or public domain sites. This approach is not suitable for emerging markets, smaller markets, or disruptive products due to a lack of substantial data. The approach is more effective for established markets where data is abundant and similar market sizing estimates/analyses may be publicly available. The data risks being inaccurate owing to the generic or secondary source. It may overlook certain details unique to your product and demand adequate primary research to be effective. The Bottom-up Approach This approach is the reverse of the first. You can start from a single, distinct, and definite population or individual and walk your way up to the larger populace of the market. Using the previous example, the market sizing of electric cars in the UK will look like this: Estimate the cost of each electric vehicle Estimate the average mileage per year of each vehicle by a single user Estimate the number of electric car owners vs regular car owners in the UK Estimate the number of car owners generally in the UK Multiply all estimated figures to get the market size. .bottom-up-approach-table { border-collapse: collapse; width: 100%; border-color: #c4c4b8; } .bottom-up-approach-table th, .bottom-up-approach-table td { border: 1px solid #cccccc; text-align: left; padding: 10px; } .bottom-up-approach-table tr:nth-child(even) { background-color: #f2f2f2; } .bottom-up-approach-table tr:hover { background-color: #ddd; box-shadow: 0 6px 6px -6px #777; transition: background-color 0.3s ease-in-out, box-shadow 0.3s ease-in-out; } .bottom-up-approach-table th { background-color: #004080; color: #00ccff; font-weight: normal; } .bottom-up-approach-table h3 { margin: 0; color: #FFFFFF; } Advantages Disadvantages This approach benefits smaller and emerging products as you begin from individual estimates to the overall market size. It can be too complex to conduct and may demand more resources because it's an in-depth primary research process. It will also demand more time than the top-down approach. It provides more realistic and accurate data on the market size because it deals with primary research from surveys, questionnaires, and interviews. Assumptions and uncertainties about the number of potential customers may be inevitable, which is a principal drawback in market sizing. The bottom-up is tailored to suit your unique product and circumstances as it uses your own data. Any mistakes made during the micro sizing will become more pronounced as you walk up the sizing ladder to the macro level. Thus, it requires meticulous attention, and mistakes are forbidden. Key Considerations for Selecting the Best Approach Both approaches, as you've seen, have their pros and cons. What may work for your business may not work for the next business due to uniqueness and market type. Here are some factors to consider when looking for the best approach that best suits your business. Availability and Reliability of Data Data is everything when it comes to market sizing. Hence, if you are not certain of the availability of reliable and substantial data, you can opt for the top-down approach and complement it with primary research. Accuracy and Detail Accurate and detailed or niche-specific data can inform accurate decision-making in any business. In determining market size, accurate data can reveal the feasibility of a product or service in a given market. Therefore, the top-down approach is more reliable for population accuracy because it involves mass data and avoids assumptions. However, if you are looking for detailed and accurate data, use the bottom-up approach. However, you must have access to primary data, customer insights, and internal research capabilities for the bottom-up approach to be successful. Step 3: Selecting the Optimal Methodology Now that you've decided on the best approach to conduct market sizing, methodology is the next critical factor. The Analogy Method The analogy method compares similar markets in different regions and industries where data is accessible and also similar. By evaluating the similarities and differences in these markets, taking into account certain variables population density, GDP, industry trends, and age bracket, you can estimate the size of your target market. For instance, if you are trying to launch a fintech app, you focus on similar markets to compare and contrast. By analyzing and comparing what you plan to offer with similar markets like mobile banking and money-saving apps, you can have reliable insights on the potential size of your target market. Proxy Indicators Proxy indicators refer to an estimation of a market size using proxies. By capturing proxy indicators, you estimate based on similar products in a broader category. For example, a proxy for microwaves can be a TV or refrigerator. The assumption is that households that can afford TVs or refrigerators are financially stable enough to afford microwaves. Therefore, the total number of households using microwaves can be estimated by the number of households with TVs or refrigerators. Chain Ratio Method The chain ratio method estimates the size of a market or the demand for a product in the market by multiplying a base number by a chain of adjusting percentages. For instance, the base number here can be the population of a country, while the varying percentages can be the number of people within a certain age bracket. It can also be the number of people who use mobile devices instead of desktop variants if the intended product is a software app. Time Series Modelling Time series modeling estimates a market’s size by analyzing historical data over time, noting patterns, variations, sequences, and trends. The past has always been a guide for the future and by analyzing data over time, market sizes and trends can be forecasted. A typical example is in the retail sales industry. Retail brands can determine the size of their markets or the number of sales they can make in a given season by studying previous sales data. However, the time series is more practical for analyzing seasonal, annual, or monthly sale trends. For instance, products like fireworks and firecrackers record higher sales in seasons like Christmas and the 4th of July in the US. Regression Modelling Regression modeling or analysis is a system of determining market size by analyzing dependent and independent variables. Dependent variables refer to the potential market size or outcome. On the other hand, independent variables can range from demographics and GDP to geography and age bracket. For instance, a company might be trying to predict its monthly sales of a given product, which is the dependent variable. However, it has to relate to an independent variable, such as marketing or production costs, which are independent variables, to come up with a concrete analysis of what a potential market size will look like. This methodology is often the most complex and involves two types, which are: Linear Regression Analysis Linear regression analysis seeks to identify the correlation between a dependent variable (market size) and one or more independent variables, such as advertising cost, product cost, economic trends, and demographics or geography. By incorporating a linear equation into data analysis, businesses can project a market’s size based on the values of independent variables. Multiple Regression Analysis The multiple regression analysis helps businesses to simultaneously analyze different independent variables while noting their individual impacts on the market size evaluation. Thus, businesses can understand their target market better by evaluating the effect of each independent variable among a series of variables on the market size. How Infomineo Provides Expert Insights through Market Sizing Infomineo has extensive experience in conducting thorough market sizing studies for different industries. The data and insights we provide can offer our clients invaluable guidance on the potential success or failure of a new business venture, product, or service. By leveraging Infomineo's market sizing capabilities, our clients can gain critical insights to evaluate their market entry strategies, assess their hiring plans, and develop targeted marketing initiatives. Our team meticulously examines a range of methodologies to determine the most appropriate one for addressing unique research questions, guided by key factors such as data availability and research objectives. This expertise in selecting the right methodologies and metrics ensures that the market sizing insights we deliver are tailored to the unique needs and challenges of clients, enabling them to make informed and data-driven decisions. Our comprehensive and multi-faceted approach empowers our clients to navigate complex business landscapes with clarity and confidence. hbspt.cta.load(1287336, '00ff18d7-06fe-43bc-82af-d402d1220759', {"useNewLoader":"true","region":"na1"}); Frequently Asked Questions (FAQs) Why is Market Sizing Relevant for Today's Businesses? Marketing sizing is relevant for modern businesses in today's highly competitive world as it helps them determine potential outcomes on investments before they invest. It also helps them allocate resources, understand their competition, avoid overpricing and underpricing, and devise market expansion strategies. What are Some Common Methodologies Used for Market Sizing? The most common methodologies for market sizing include top-down, bottom-up, and the analogy method which compares similar markets in other regions and demographics to determine the market size. What are the Key Factors that can Influence the Accuracy of Market Sizing Estimates? Some of the key factors that can influence the accuracy of market sizing estimates include the availability of reliability data, the approach and analogy method used, and whether the market is established or emerging. How Often Should Market Sizing Be Conducted? The market is constantly evolving, and as a result, market sizing should be done periodically to reflect the changes. Ideally, market sizing should be fine when a company wants to expand into other markets, launch new products or services, and improve existing marketing strategies. How Can I Know Which Market Sizing Methodology is Best for My Business? You can determine the best market sizing methodology for your business by defining your goals and objectives, evaluating the availability of the data you seek and the resources to get them, assessing the different methods and their pros and cons, and test-running them. Conclusion Marketing sizing is estimating the number of people who will purchase a product or patronage a given service in a certain region. Thus, market sizing is an integral business process that helps businesses in many ways. These include attracting investments, planning hiring processes, allocating resources, setting price strategies, and facilitating research and development processes. However, the approach to market sizing is even more important. When there is insufficient reliable data, the top-down approach is better because it narrows down from massive data to a smaller population. By contrast, the bottom-up approach that begins from a single population or distinct data to the general population is best if you have access to internal data and primary research resources.
The conversation on big data globally continues to expand. The data analytics industry was valued at $49 billion in 2022 and is expected to maintain a compound annual growth rate of 26.7% till 2030. However, one of the aspects of data analytics that has often been overlooked or underutilized is web scraping. In this article, we explore what web scraping is and how companies can benefit from this innovation. We also outline the steps for an effective web scraping exercise. What is Web Scraping? Web scraping is a method of obtaining data from websites. Depending on the project, it is sometimes part of the data analysis process. Data analytics services and professionals typically extract large volumes of data, including text, audio, image, or video. This information is then stored, cleaned, and used to discover insights for decision-making. The Rise of Web Scraping and Big Data Analytics Data is the building block of most thriving 21st-century organizations. In today’s cut-throat business space, companies that can use the vast amounts of data generated daily will maintain an edge over their competitors. Data analytics services have become increasingly popular because they can source, organize, and analyze data and guide company executives in decision-making. However, one of the challenges of big data analytics is finding reliable data sources to build a robust sample size for analysis. To curb this limitation, many data professionals rely on web scraping to gather the information they need from reputable websites. With web scraping, analysts can curate large datasets that are useful in understanding specific business problems. Web Scraping vs. Screen Scraping Two terms that are often used interchangeably among data analysts are web scraping and screen scraping. While these practices share some similarities, they also have a few differences, especially in the type of data they collect and the methods involved. As explained earlier, web scraping refers to the process of extracting data from websites. Usually, this will involve crawling the websites with a scraping bot, retrieving relevant datasets, and presenting the data in a machine-readable format such as CSV, JSON, or XML for analysis. Screen scraping, on the other hand, involves retrieving data from screens. Unlike web scraping, which is primarily restricted to websites, screen scraping can collect information from software applications, PDF files, and other types of documents displayed on a device’s screen. Data from screens can be accessed manually or automatically. However, this option is severely limited for obtaining big data. Screen scraping differs from web scraping in its preferred data format. Data gathered from screens is usually unstructured and sometimes not machine-readable. For example, when the data type is a screenshot from a document or an image, the data analyst must use an Optical Character Recognition (OCR) program to parse the text and convert it into a readable format. The table below clearly highlights the significant differences between web scraping and screen scraping. .data-scraping-comparison-table { border-collapse: collapse; width: 100%; border-color: #c4c4b8; /* Border color */ } .data-scraping-comparison-table th, .data-scraping-comparison-table td { border: 1px solid #cccccc; /* Cell border color */ text-align: left; padding: 10px; } .data-scraping-comparison-table tr:nth-child(even) { background-color: #f2f2f2; /* Zebra striping for rows */ } .data-scraping-comparison-table tr:hover { background-color: #ddd; /* Hover color */ box-shadow: 0 6px 6px -6px #777; /* Hover shadow */ transition: background-color 0.3s ease-in-out, box-shadow 0.3s ease-in-out; /* Transitions for effect smoothness */ } .data-scraping-comparison-table th { background-color: #004080; /* Heading background color */ color: #00ccff; /* Heading text color */ font-weight: normal; } .data-scraping-comparison-table h3 { margin: 0; /* Removes default margin from h3 tags */ color: #FFFFFF; /* Sets h3 tag color to white for contrast against the heading background */ } Web Scraping Screen Scraping Can retrieve structured and unstructured data Gathers unstructured data from desktop or mobile screens Standard data formats include JSON, CSV, or XML Often requires OCR to convert images or screenshots into machine-readable formats Requires scraping bots and web crawlers Can be done manually or automatically Suitable for big data Better for small and mid-sized datasets Extracts data from web pages Used to obtain data from a broader range of sources like applications, images, and PDFs. Web Scraping vs. Web Crawling Another term that is hard to distinguish from web scraping is web crawling. Many data analysts sometimes struggle to differentiate between both expressions because they are equally crucial in data extraction. The goal of web scraping is to extract data from websites. However, the challenge is that you might not know the web pages that have the information you require. This is where web crawling becomes valuable. Web crawling is the process of finding links on the internet. As the name implies, web crawlers scan through pages, index them, and organize them so that web scrapers can get the information required for analysis. In other words, data extraction from web pages demands crawling and scraping. If you still find both terms confusing, here is a table outlining the difference between web scraping and web crawling. .web-scraping-crawling-table { border-collapse: collapse; width: 100%; border-color: #c4c4b8; } .web-scraping-crawling-table th, .web-scraping-crawling-table td { border: 1px solid #cccccc; text-align: left; padding: 10px; } .web-scraping-crawling-table tr:nth-child(even) { background-color: #f2f2f2; } .web-scraping-crawling-table tr:hover { background-color: #ddd; box-shadow: 0 6px 6px -6px #777; transition: background-color 0.3s ease-in-out, box-shadow 0.3s ease-in-out; } .web-scraping-crawling-table th { background-color: #004080; color: #00ccff; font-weight: normal; } .web-scraping-crawling-table h3 { margin: 0; color: #FFFFFF; } Web Scraping Web Crawling Outputs a wide range of data fields Outputs links to websites Requires a scraping bot or web scraper Uses a web crawler Aims to extract data from URLs Seeks to curate and index a list of URLs Output can be used for decision-making in various industries and sectors Output requires scraping to be valuable for data analysis Where is Web Scraping Used? Web scraping has seen a massive increase in its use cases across many industries, including e-commerce, real estate, healthcare, and consulting. For example, Although most businesses have recognized the need for data-driven decision-making, many have yet to grasp the role web scraping can play in finding trustworthy data sources. Here are some of the common ways web scraping is defining the trajectory of businesses in pivotal industries. Web Scraping in E-Commerce The e-commerce industry is highly competitive. Customers can access an endless list of businesses offering the same product; hence, retaining old users and attracting new buyers can be challenging. Many businesses have continued to thrive by leveraging data from web scraping. Compared to other sectors, price competition is arguably the highest in e-commerce. Web scraping is helpful in gathering prices of similar products on competitor sites to determine sales strategy. A perfect example is a Morrocan car sales company that used web scraping to build a robust database of second-hand car sales from the top C2C e-commerce platforms. While it would ordinarily be difficult to locate extensive documentation of price listings, web scraping readily provides this information readily. E-commerce companies use web scraping to collect data, which is used to make decisions, predict trends, adjust prices, and determine sales campaigns. Web Scraping in Finance Financial services is a very research-intensive industry. Organizations in this space rely on data from web scraping to stay up-to-date with the continuously changing market landscape. It has already been established that web scraping provides access to an extensive database that would otherwise be inaccessible. Finance companies use web scraping to gather this treasure trove of information and filter it to discover trends and make forecasts. Often, this technology is used by data analysis companies as a precursor to performing predictive analysis. Working with data obtained from websites, financial service businesses can navigate the increasing market complexities and conduct thorough due diligence. Web Scraping in Healthcare Healthcare service providers benefit from web scraping in several ways. Data analytics companies with healthcare organizations sometimes use web scraping to obtain research data or make critical decisions. For example, pharmaceutical companies can apply web scraping to determine a suitable price point for their new drug. Hospitals that prioritize data and use scraping programs to gather enough information will likely offer better patient care and be current with best practice standards. Web Scraping in Advertisement and Marketing Marketing and advertising require an in-depth understanding of customer behavior and preferences. To create effective advertisements and marketing campaigns, many companies rely on data scraped from websites, including competitor pages. Web scraping has facilitated a rise in data-driven marketing discoveries. Rather than taking shots in the dark, regular businesses and advertising agencies can develop personalized strategies for specific demographics and contexts. Benefits of Web Scraping Businesses can gain a lot by incorporating web scraping services. Adding web scraping to your data analytics process potentially increases the information at your fingertips and boosts your chances of accurate analysis. Here are some benefits of including web scraping in your data-driven decision-making workflow. Affordability Data gathering can be costly. Companies that operate a manual data collection system often have to conduct surveys or hire many experts to obtain the data they need for effective decision-making. Web scraping eliminates this reliance on manual labor and makes it cheaper to acquire information. By engaging the services of a web scraping company, businesses can get top-notch quality at a fraction of the price. Access to Detailed Datasets It’s no news that at least 90% of global data has been produced post-2018. As the number of internet users continues to increase, people are generating data about their preferences and interests at an alarming rate. Most of this information is available via websites and APIs and can be obtained via web scraping. Web scraping companies give you access to reliable and comprehensive datasets. Organizations are more likely to find all the parameters they need to conduct their research via web scraping than any other means of data collection. Scalability As companies continue to grow and expand their market reach, they must incorporate methods to handle this increased demand. Web scraping is an excellent data collection method because of its scalability. Depending on the specific business problem, you can collect more data or have access to data from a wider range of sources. Saves Time In business, they say time is money. If that’s the case, then web scraping is an invaluable asset because it can achieve much in relatively little time. Companies that have run a manual data analysis exercise know how cumbersome and time-consuming it can be. These disadvantages and the fact that manual processes are prone to human error make web scraping a better option for any business. Web scraping is an automated process. Hence, data analytics companies that use this technology always deliver quickly. By implementing web scraping, you can free up time for other critical business challenges and increase the speed of your decision-making at all levels. Produces Reliable Data The problem with manual data collection methods such as surveys is that you can still obtain inaccurate data despite the amounts spent. User responses can be skewed, and your analytics team can make critical mistakes during the data collection process that will affect the quality of insights you derive from the available data. Web scraping services reduce errors at the data-gathering stage. They allow organizations to obtain reliable data and store it in a readable format. Furthermore, because web scraping gives access to large amounts of data, businesses can be more confident in the results of their data analysis. According to the law of large numbers, the larger a randomly distributed dataset, the more likely it is to be genuinely representative of the population. Web scraping allows companies to obtain enough information to accurately sample the population or event they wish to study. How to Conduct an Effective Web Scraping Exercise Although web scraping has countless benefits, it must be done appropriately to produce exceptional results. Top-rated web scraping companies like Infomineo have a four-step process to ensure that their web scraping yields accurate datasets. Identify Your Web Scraping Goals Before you get started, it is important to decide the nature of the data you want to scrape. This information will guide your approach and help you streamline which websites to scrape from. Companies have different reasons for gathering data. For example, while one business may need customer behavioral data, another may need pricing information for competitor products. Depending on your reasons for collecting data, you can decide how to proceed with the rest of the web scraping exercise. Evaluate Your Data Sources Once your goals are clearly outlined and you’ve determined the websites you want to scrape for the data you need, you must evaluate these sources across various indices such as privacy, reliability, and structure. Check each web page’s privacy policies and sitemap to see if they allow third parties to scrape their data. Also, be sure that you are collecting data from a trustworthy source. It is also important to confirm whether the data you need is in a format that can be scraped. Estimate the Volume and Complexity of the Data The amount of data your company needs will depend on the purpose of the data collection exercise. While some problems can be addressed with small or medium-sized datasets, others require enormous data. Another factor to consider is the complexity of the datasets – the nature of parameters needed and their type. Extremely complex datasets typically take longer to clean and prepare for analysis. Select Your Tools and Build Your Scraper Next, you need to select the tools that will enable you to scrape data effectively. You can hire programmers to create a custom solution from scratch or rely on an existing scraping bot. Companies that use web scraping services can save themselves the time spent exploring various tools and focus on core business tasks. They can also be assured that the web scraping exercise will follow best practice standards. Consider Data Storage Storage is the final piece of a data extraction process. Once data has been scraped, it must be preserved in a database or file for further action. Web scraping services use popular databases such as MongoDB or MySQL or save the results of the data collection exercise in CSV, JSON, or XML format. FAQs (Frequently Asked Questions) Is web scraping legal? While web scraping is not illegal, it must be carried out cautiously to avoid breaking copyright laws. Since there are currently no concrete laws regulating web scraping, it is essential to determine the position of the website on scraping before proceeding. Also, if you are handling the web scraping exercise yourself, you can consult with a legal expert to ensure that you remain within the boundaries of the law. Can I scrape data from behind a login page? Yes, you can, provided you have valid login details. Why do I need a web scraping service? Web scraping services are useful for companies that cannot handle the complexities of a large data project or the resources to build a web scraping service from scratch. How long does web scraping take? It depends on how many websites a scraper has to parse and the sizes of each website. Companies that intend to build an in-house infrastructure to perform a continuous, large-scale web scraping project can take months to complete the exercise. However, web scraping services such as Infomineo can complete similar projects relatively quickly. Conclusion Web scraping has evolved beyond a means of data extraction to become a pillar of modern-day big-data analysis. Companies now depend on the information obtained via web scraping to identify trends, forecast business outcomes, understand their customers, and improve their decision-making. However, since most businesses do not have the in-house personnel or resources to build a robust data analysis architecture that includes web scraping, they now opt for data analysis companies that provide this feature. The consensus is that data will be the defining factor for the coming years across various industries. By incorporating all means to collect data and stay in touch with current business best practices, companies can retain their customers, increase their revenues, and create lasting impact.
The global business industry is active round-the-clock with partnerships, investments, mergers, and acquisitions. Hence, it is imperative to study a company via profiling before making that grand decision to do business with it - whether it is a partnership or investment venture. Failure to sufficiently carry out this defining process in the preliminary stages of investing in a business can lead to a loss of millions on investment. This article comprehensively explores the concept of company profiling, revealing details, processes, advantages, and how to get it right. Let us begin with the basics. Setting the Stage and Research Context Before we delve into the intricate details of company profiling, let us lay some foundations. Company Profiling Defined Company profiling is the act of studying, evaluating, investigating, gathering facts, and understanding everything about a business or company. These investigations and evaluations are intentional steps taken by potential business investors or partners to understand a company's operations, strengths, competitive edge, viability, weaknesses, potentials, and general profile. The profiling task involves integral processes which include the following. Business Activities/ Products and Services This process involves studying a business to fully comprehend its mode of operations, the kind of services/products it offers, and its clients or customers. History and Management This involves evaluating the history and track record of a business to understand its previous and current performances, successes, and failures. The management also needs evaluation to understand who sits at the helm of affairs, its board members, department, and unit heads. Distribution Channels Profiling seeks to understand a company's distribution channels, which refers to the various stages involved from manufacturing to delivering the products to customers. Beyond products, it could also refer to the services that a company offers, how they are created, and the way they flow from the creation stage to their final delivery to clients. Geographical Coverage and Market Expansion Strategies This process studies the spread or reach of a company's products and services. How far do their products and services go within a geographic region and demography? Are they localized or international? These questions are answered via profiling. In addition, the process also seeks to understand their growth or expansion strategy beyond their coverage. This study particularly gives a hint at the potential of a company to thrive in future. Financial Performance When profiling a company, its financial performance is a critical process as it unveils the company's historical and present financial records. It reveals whether the company is making a profit or not, discrepancies in financial statements, inconsistent balance sheets, and every other loophole or remarkable success it has made or is making. Organizational Structure This process studies the organizational structure of a company, its hierarchy, chain of command, and how effective are these structures in the day-to-day running of the company. There are different structures in the corporate world, and each organization might modify or recreate a version for its unique needs. Profiling reveals the structure and how potent it is in driving the company's growth. Infomineo turns data into decisions hbspt.cta.load(1287336, 'd780a08d-d58e-4705-b7e8-05b014403b97', {"useNewLoader":"true","region":"na1"}); Research Perspective Company profiling incorporates research and here, we look at two principal research areas in profiling. Desk-based Research Desk-based Research, Also known as secondary research, this type of research anchors on analyzing materials published in public domain sites, government websites, and e-libraries. It also involves exploring articles, surveys, statistics, reports, and studies available online or offline about a company. Competitive Market Research and Benchmarking Competitive market research is an integral part of profiling. It compares a company with its counterparts in the same niche and weighs how the company performs in parallel to others. Furthermore, it goes beyond a company's counterpart to compare with better-performing companies in what is known as competitive benchmarking. This unique research technique compares a company's KPI with that of leading and mega companies in the same field to identify lapses and areas that require complete overhauling or restructuring. hbspt.cta.load(1287336, '3da43f8d-a199-426d-a0ed-29a79942d5fd', {"useNewLoader":"true","region":"na1"}); Company Profiling: A Valuable Asset for Stakeholders For stakeholders in the manufacturing, agricultural, education, health, finance, and key sectors of the economy, company profiling is a valuable asset. It can redefine operations, provide adequate insights, and help avoid pitfalls in the future. Let's start with the general benefits. General Advantages Company profiling equips you with an overview of the market and its structure while focusing on strategic areas that can reform and drive positive results. Some of these core areas that profile can help to influence dramatic and positive results include the following: Inbound and Outbound Logistics for transportation and logistics companies Profiling helps tremendously in inbound and outbound logistics, and this is how it works. Inbound Logistics - This refers to the process of receiving, storing, and preparing raw materials, finished products, or supplies into a company's supply chain for distribution. Profiling helps to study this process in detail and discover better ways to maximize time and boost efficiency. Outbound Logistics - The process of distributing finished products, orders, or inventories from a company's warehouse to customers in need of them. Similarly, profiling studies this process in-depth to uncover lapses and map out efficient strategies to streamline them. Operations The overall processes involved in the transformation of raw materials into finished products are known as operations. When profiling, these processes are analyzed and include profiling the supplier of the raw materials, the type of raw materials, and the technology used in making them. It also includes the machinery used in transforming the raw materials, the number of factories involved, the timing of the process, the number of labor involved, and challenges if there are any. Marketing and Sales This refers to the strategies deployed to improve visibility, reach a wider audience, target the right customers, create irresistible offers, and astronomically boost sales. These strategies are reflected in promotions, new offers, pricing, customization, and advertising using offline and social media channels. Profiling could review the distribution channels, media platforms used in advertising, targeted demography and geography, sales funnels, custom offers, and customer service. Make your next business move with confidence hbspt.cta.load(1287336, 'ca95c0ec-7d8e-4afd-9f88-eba4821130e6', {"useNewLoader":"true","region":"na1"}); Stakeholder Benefits Profiling is an indispensable asset in various sectors of the global economy and helps the following stakeholders achieve the desired results. Consulting Firms Profiling helps consulting firms identify opportunities and risks for their clients and advise them accordingly. Hence, these consulting firms do a lot of profiling in different sectors for the benefit of clients who rely on their counsel to make business and project decisions. Business Owners, CEOs, and Business Development Teams This category of people in the business world relies on profiling to identify potential partners and investment portfolios that will yield high returns on investments. In addition, they use profiling internally to analyze their existing structures, operations, supply chains, marketing, and customer services. Afterwards, they create resilient strategies for growth, adopt efficient operational systems, and create growth plans to compete with their counterparts in the industry. Sales Team The sales team particularly relies on the research aspect of profiling known as competitive benchmarking. They study the marketing strategies of leading brands in the competition and adopt the best methods that will help their own company improve sales, reach a wider audience, advertise better, and retain clients or customers. Financial Analysts, Venture Capitalists, and Investors This category of professionals in the business world deploys profiling to scout for potential investment portfolios or companies to invest in. Profiling reveals which companies or investment portfolios have the potential for a high yield on investments and those with zero or minimal risks. The process studies past and present records of these companies, their financial profile, their structures, operating systems, growth strategies, and future opportunities. Thus, financial analysts can advise clients on profitable investments, and venture capitalists or investors can safely part with their funds on investments that guarantee amazing profits R&D Departments No other department in a company practices consistent profiling than the research and development department. They are constantly profiling brands, researching the market, identifying trends and patterns, and adopting new strategies almost immediately to fast-track growth and development in their firms. They also study the competition to review their existing products and services, identify and recommend emerging technologies, and advise their companies on the best strategies that will keep them in the competition. Steps for an Effective Company Profiling Exercise Having an effective company profiling exercise requires the deployment of certain integral resources such as a data pool and the right skill set or technical know-how. Let's begin with the data aspect. Practical Data Sources Data is the core of profiling. This is because you will be analyzing, studying, and understanding different data sets about the company you're profiling. Hence, where and how you source the data becomes paramount. Let's look at the following practical data sources that form the core of any successful profiling exercise. Company Websites The first data source to find out almost everything or at least the basics about a company is its website. A typical first port of call would be the company's “About Page” where its history, what it does, and how it does it, is spelled out. The company's website will also reveal its mission, goals, objectives, achievements, target audience, and even some of its growth strategies. Companies take time to set up their profiles on their websites and this makes a website one of the most valuable data sources in profiling assignments. Company Publications Company materials and publications such as financial statements, Initial Public Offer (IPO) publications, brochures, annual reports, factsheets, budgets, and investor presentations are valuable data sources in profiling. They offer profound insights into the progress, potential, and financial status of a company. These publications will reveal companies on the brink of bankruptcy, those struggling to stay afloat, and the high-flyers. However, for the profiling to be comprehensive, compare previous and present reports. This is because a company might be doing well in the past but experiencing a decline in the present. This comparison is necessary for investors who would want to help with bail-out funds in exchange for a substantial stake in the company judging from the company's excellent performance in the past. LinkedIn Profiles LinkedIn is the social media of businesses, entrepreneurs, companies, professionals, and corporate entities. Thus, it becomes a valuable data source for profiling a company. LinkedIn will reveal some of the company's achievements not found on its websites. It will also reveal its followers (a yardstick to measure the company's popularity and coverage) and other relevant information. Some of these may include its executives, partners, headquarters, branches, and market strength. News Articles and Press Releases You can keep track of a company and its progress by checking its news articles and press releases, which is also part of profiling. These data sources reveal the most recent developments within a company or between a company and the market. Others include the value of its shares, new product/service launching, market penetration, mergers/acquisitions, and new board members. Fundamental Skills After establishing the most practical data sources, certain relevant skills will be required to carefully analyze and understand these data sets from their sources. These skills include the following: Research Skills Researching is a distinct skill in the business world and is not for everyone. Researchers are trained to be curious, passionate, and comprehensive in their search. They also understand keywords, use shortcuts, keep an eye out for details, and manipulate different sites to scrape information. This is the kind of skill set a company profiling exercise demands. Critical Thinking and Problem Solving This is an extension of research skills because most researchers combine critical thinking and problem-solving in their stack of knowledge. However, it can stand alone as a skill. Researchers may fetch the data and transfer it to those with the critical thinking prowess to identify problems in a given data and think out of the box to solve them. Data Analysis Data analysis is the most integral part of profiling and requires the expertise of skilled data analysts. After data is sourced, data analysts gather it for evaluation. In this process, they identify patterns and trends, isolate similar data for further comparison, draw conclusions, and make recommendations. These are what inform the decision-making processes of businesses. Industry Knowledge Comprehensive knowledge of a given industry is a prerequisite and compulsory skill for anyone who wants to perform an effective company profiling. To effectively profile a company in the same industry, you must have the dynamics, nuances, and technicalities at your fingertips. Other things include trends, complexities, market nature, challenges, and prospects of a given industry. Communication Skills When any profiling exercise is complete, it demands excellence and proficiency in communication to effectively report facts and findings. Furthermore, communication skills will help you vividly present your findings. Plus, it will be void of ambiguities, and in a language that your target audience will comprehend. Technical Skills Alongside communication skills, reporting the outcome of a profiling exercise requires proficient technical skills in handling data visualization tools. These tools include Google Charts, Excel, Zoho Analytics, Fusion Charts, etc. Having the technical knowledge to adequately deploy these tools to communicate findings and results of analysis is what makes a company profiling exercise not just effective but successful. This is because a profiling exercise and outcome may be meaningless to relevant parties until it is well communicated with the right tools to both technical and non-technical audiences. Adaptability For professional data analysts and firms profiling companies for clients, adaptability is an essential skill. Clients may demand changes in the profiling area, methodology, or demography. And only adaptability will ensure these changes are reflected in the final result. Sometimes, the demands may come in at the beginning, midway, or toward the end of the profiling job, while mandating strict adherence to set deadlines. Clients may also demand a shift in the delivery timeline which can be convenient or not. These dynamics and changes will require the adaptability skill of a seasoned expert in profiling and data analytics. This is to ensure the job doesn't go wrong. Transform Your Strategy: Unlock the Power of Data with Infomineo's Insights Making well-informed decisions is not only advantageous but also essential in the fast-paced world of business. With our customized company research services, which include meticulous company profiling, Infomineo is here to illuminate your path to success. Our methodology goes beyond the traditional consulting framework. We focus on the extraction and analysis of data that are not just relevant but rigorously verified for reliability. Imagine having the power to navigate through the complexities of the market with confidence, equipped with insights that offer a deeper understanding of your competitive landscape. With Infomineo, that power is within your reach. Are you ready to boost your decision-making process? Eager to strategize with the backing of comprehensive and dependable data? Unveiling Business Potential: Infomineo's Strategic Company Profiling Solutions As part of our secondary research services, we specialize in conducting comprehensive company profiling across different segments of the value chain. Whether you seek insights on suppliers, producers, or distributors, we are equipped to gather and analyze data that supports your strategic partnerships or investment decisions. By leveraging a combination of public sources such as company websites and reports, along with premium financial databases, we ensure a comprehensive examination of each entity regarding their operations, products and services, financial position, management structure, and more. Our team possesses the necessary skills for an efficient company profiling exercise, including critical thinking to validate data accuracy, expertise in data analysis to derive meaningful insights, and industry knowledge to contextualize findings. At Infomineo, we place a high priority on flexibility and customization throughout the entire research process, adapting our technical methodologies and communication channels to meet the distinct needs of each client. hbspt.cta.load(1287336, 'bc75fd24-b43a-40b7-b37d-1a87ee9535bb', {"useNewLoader":"true","region":"na1"}); Frequently Asked Questions (FAQs) Why is Company Profiling Relevant to Understanding Businesses? Company profiling is a relevant process that is critical to understanding any business. This is as it reveals core areas, such as market performances, competitive edge, financial status, strengths, weaknesses, opportunities, and potential risks. These findings will help potential partners and investors make informed decisions on possible investments, maximize profits, and minimize risks. Who Can Benefit from Company Profiling? Company profiling benefits a diverse range of entities and individuals. There are stakeholders in various sectors of the global economy who can benefit from the process. Also, consultants, investors, venture capitalists, suppliers, competitors, and potential partners can immensely benefit from profiling. Generally, anyone looking to engage in a business relationship with a company can benefit from profiling. What Relevant Information is Typically Found During Company Profiling? Company profiling uncovers sufficient information about a company that would have otherwise been hidden. Profiling goes in-depth to gather more information about a company from different sources. Typical findings include products, services, history, mission, financial performance, goals and objectives. Others include strategies for growth, organizational structure, mode of operations, board members, quality of workforce, and competitive advantage, among others. What are the Core Areas of Company Profiling? The core areas of company profiling are research and analysis. In terms of research, many data sources are involved ranging from websites, publications, and news articles. Other sources include LinkedIn profiles, statistics, and press releases. While analysis involves processing, identifying trends and patterns, and interpreting findings from several data sources using relevant visualization tools. What are the Requirements to Carry Out an Effective Company Profiling Exercise? The most fundamental requirement for an effective company profiling exercise is finding the right personnel with relevant skills. This includes skills such as communication, industry knowledge, technical know-how, research, and critical thinking. Next are the practical data sources. This includes company websites and publications, news articles and press releases, LinkedIn profiles, financial statements, budgets, reports, and statistics. Conclusion Company profiling is a fundamental process in the business world that studies a business down to its roots. The aim is to obtain accurate and reliable insights into its potential and risks before partnering or investing in it. The process relies heavily on data sources, technical and communication skills, and effective research, among other core essentials. From stakeholders to business executives, investors, and venture capitalists, profiling benefits several categories of people in the global business world. It helps them make informed decisions on which company to invest in or partner with. It also helps them avoid risky investments, and maximize return on investments.