The ability to accurately size a market can be the defining factor between success and failure. Whether for launching a business, developing a product or service, or entering a new market, market sizing plays a pivotal role for businesses, offering guidance on the optimal path forward. From unlocking investment opportunities to steering strategic decisions and fueling market growth, its impact resonates across industries and geographies. In this article, we delve into what market sizing entails, its applications and benefits, and, most importantly, the best practices for accurate results. Market Sizing: Understanding the Basics Market Sizing and Market Share Explained Market sizing is a strategic research process that quantifies the actual or potential demand and supply of a specific product or service. This involves estimating their current or future sales or revenues, in terms of volume or value. The portion of the total market sales or revenue that a company holds is referred to as Market Share. The below chart illustrates the interplay between ‘Market Size’ and ‘Market Share’: Source: idc The total smartphone market size was 326.1 million shipments in the fourth quarter of 2023, with Apple, Samsung, and Xiaomi having the largest shares of 24.7%, 16.3%, and 12.5%, respectively. Who Benefits from Market Sizing? Many businesses have failed throughout history due to insufficient market analysis when launching or expanding into new product lines or territories. For instance, Walmart encountered significant setbacks when attempting to expand into Germany and South Korea with its U.S. business model without adapting to local preferences and market conditions. For that matter, market sizing is a key research process for stakeholders. Here’s to whom and why: Entrepreneurs and Business Owners: Assess the viability of their business, understand market potential, and make strategic decisions regarding market entry and expansion, pricing, and resource allocation. Investors and Financial Institutions: Evaluate investment opportunities, assess business plans, and optimize risk management processes. Market Research Professionals: Measure market opportunities in terms of size and profitability and help businesses make accurate and informed decisions on the scale of their investments. Defining Your Market through Industry Classification Systems Industry classifications are systems that assign businesses standardized codes based on their activities. They are essential in defining and delineating market boundaries. Below are the 4 common market classifications and their origins: The Statistical Classification of Economic Activities in the European Community (NACE): European Union Standard Industrial Classification (SIC): United States North American Industry Classification System (NAICS): United States, Canada, and Mexico A business may fall under a different industry code based on the leveraged classification system due to differences in industry definitions, regional variations, and scheme revisions. Below are examples: .industry-classification-table { border-collapse: collapse; width: 100%; border-color: #c4c4b8; } .industry-classification-table th, .industry-classification-table td { border: 1px solid #cccccc; text-align: left; padding: 10px; } .industry-classification-table tr:nth-child(even) { background-color: #f2f2f2; } .industry-classification-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; } .industry-classification-table th { background-color: #004080; color: #00ccff; font-weight: normal; } .industry-classification-table h3 { margin: 0; color: #FFFFFF; } Industry NACE SIC NAICS Insurance 65 - Insurance, reinsurance and pension funding, except compulsory social security 63 - Insurance Carriers64 - Insurance Agents, Brokers, and Service 52 - Finance and Insurance Computer Programming 6201 - Computer programming activities 7371 - Computer programming services 541511 - Custom Computer Programming Services Understanding where a market falls in the different classifications will help you identify relevant companies and estimate the market size more accurately. Harnessing the Full Potential of Online Sources To enhance the accuracy and depth of your market sizing model, you can leverage a variety of sources, including national and international statistical sources, market and financial reports, social media, and competitive intelligence data. National Statistics National statistical sources like government agencies, ministries, official statistical offices, trade organizations, and banking institutions provide key data and insights on various themes such as economies, demographics, and industry-specific statistics. International Statistical Sources International databases provide good data coverage, whether premium, like Bloomberg and Euromonitor, or freely available and accessible to the public. Examples of free databases include the UN Data that covers different themes, industry-specific databases like the International Energy Agency (IEA), and geography-specific ones like the OECD’s database for its member countries. These statistics are based on standardized data calculation methods to ensure cross-country data comparability. Market Reports While market reports and industry publications can be costly, they offer valuable and credible data that enhances market size estimations. Examples of publishers include Mordor Intelligence, Fortune Business Insights, The Insight Partners, and others. Financial Reports You can also leverage the financial statements of publicly listed companies to get insights into their business performance, financial position, profitability, cash flow, and historical and potential growth. While private companies are not required to share such information, some financial estimations can be accessible. Social Media Data Data could also be sourced from web scraping and social media analysis, keeping in mind data privacy and copyright laws. Check out our article on web scraping services to learn more about their applications, end uses, and key considerations when picking the right provider. Our web scraping guide also explains how to optimize this process to reap its benefits. Competitive Intelligence Data Gathering and analyzing data on competitors' products and services, market expansion strategies, and online presence can provide crucial insights that can inform your market sizing efforts and validate findings. Implementing Effective Solutions to Common Challenges Market sizing is a crucial step in understanding the scope and potential of a market. However, several challenges can hinder the accuracy and reliability of your market sizing efforts. These challenges include data limitations, difficulties defining and segmenting the market, shifting market dynamics, and geography-specific considerations. 1. Data Availability One of the most apparent challenges that any researcher faces is data limitations or unavailability, especially in emerging or niche markets. Combining primary and secondary data sources can be one way to fill data gaps in databases and other sources to enhance comprehensiveness and reliability. 2. Defining the Addressable Market Defining the total addressable market can be challenging for several reasons, including scope ambiguity, changing consumer needs, market segmentation complexity, evolving competition, and globalization. A solution for this could be leveraging advanced segmentation techniques and multiple indicators to capture different aspects of the market and their impacts on consumer decision-making. 3. Segmentation Complexity Segmenting the market can be tricky, especially in industries that fall under different industry classifications or have varying consumer needs. To mitigate these risks, investing time in selecting the right methodology can be crucial. You can also use machine learning algorithms to segment the market with a higher degree of accuracy. To learn more about the different market sizing techniques, check out our step-by-step guide on market sizing estimations. 4. Dynamic Markets and Trends Markets are not static but rather constantly changing due to evolving consumer needs and competitive landscapes, technological advancements, regulatory changes, and various other factors. Staying agile and gathering real-time data is key to overcoming this challenge. 5. Geographic Variability Cultural differences, economic conditions, and regulatory environments change across regions and countries, making a “one-size-fits-all” approach inapplicable. Hence, market sizing models should be tailored to the studied geographies to overcome local factors. Refining your Methodology: Advanced Tips and Data Considerations The accuracy of market size data is fundamental, as it directly impacts investment choices, strategic decision-making, and the overall success of a business. In this section, we have shared key tips for accurate market sizing results. 10 Tips & Tricks for Enhancing Accuracy Here are ten tips to further ensure correct market sizing: Target and segment markets with precision - Define your market clearly and be consistent. Outline the boundaries of the target market to avoid ambiguity. Work with simple assumptions - Base your assumptions on basic elements to avoid losing clarity and minimize potential errors. Choose your methodology wisely - Pick your methodology and approach based on the available data and the studied market. Document everything - Note all your assumptions and calculations for transparency and future reference. Diversify sources - Incorporate multiple data sources for a credible and data-driven market size calculation. Account for influencing factors - Account for all influencing market, consumer, and geography-specific factors in your estimations. Be dynamic and flexible - Don't be rigid. Always be open to refining your methodology based on any new data. Validate assumptions - Refer to other market research data to compare and cross-validate findings. Seek expert help - Consult industry experts such as Infomineo who have extensive experience in market sizing. Regularly update your data - Update your data regularly to consider the ever-evolving landscape. Uncovering Market Potential: Infomineo's Holistic Approach to Robust Market Sizing At Infomineo, our market sizing experience spans a wide range of geographies and markets, including both emerging and developed regions. Our approach integrates multiple secondary sources, such as databases, market reports, and financial statements, with primary research techniques to overcome data limitations and deliver concrete insights. By incorporating real-time data to capture market fluctuations and a diverse set of metrics, we ensure comprehensive market sizing models that are customized to adapt to the cultural, economic, and legal nuances specific to each region under study. This tailored approach allows us to provide our clients with actionable insights that address their unique needs. Unlock the full potential of the market with Infomineo's comprehensive market sizing expertise. hbspt.cta.load(1287336, '2b5e793e-a5bb-4790-970b-5720b156a58c', {"useNewLoader":"true","region":"na1"}); Frequently Asked Questions (FAQs) 1. When should you conduct market sizing? You should conduct market sizing before launching a business, introducing new products or services, or expanding to new markets. This will help you determine the potential of your business and the appropriate course of action. 2. What sets top-down market sizing apart from bottom-up? The Top-down market sizing approach starts with macro data on a broader industry scale and narrows it down to estimate the market size. On the other hand, the bottom-up approach starts with microdata and goes into the finer details to estimate market size. 3. How do you choose the best market sizing methodology? You can choose either the top-down or bottom-up approach based on data availability, reliability, and accuracy. The top-down approach can be preferable if you have scarce data, rely mostly on estimations, and are covering an already established market. On the other hand, bottom-up is ideal if you want to capture data and variations in detail, especially when dealing with emerging markets. 4. What factors affect a market size? Market size can be influenced by a government’s fiscal policies and international relations, geopolitics, economic activities and cycles, consumer behavior, and supply and demand. 5. How do you validate your market size? To validate your market size, cross-check data across multiple sources. For example, when determining the total addressable market, you can verify data from industry reports through competitors’ sales data. Wrapping Up Determining the market size is key for any business as it informs strategic decisions, including investment, planning, resource allocation, product development, and market entry and expansion strategies. The accuracy of the results is paramount and depends on your choice of methodologies and online sources. Identifying challenges up front is also critical to planning practical solutions to mitigate them. In summary, market sizing is a valuable research exercise that requires time, resources, and expertise to get accurate results tailored to the studied industries and regions.
Secondary research involves identifying and analyzing existing data to generate valuable insights. While it is regarded as a more efficient process than primary research, it is far from straightforward. It entails developing efficient approaches, utilizing multiple sources to enhance the quality and accuracy of the data, and analyzing complex information to fulfill the research objectives. Let’s discuss secondary research and how Infomineo is the bridge between its advantages and complexities. .infomineo-banner { font-family: Arial, sans-serif; color: white; padding: 2rem; display: flex; flex-direction: column; align-items: flex-start; position: relative; overflow: hidden; background: url('https://infomineo.com/wp-content/uploads/2024/09/TEST-CHTGPT-8.gif') no-repeat center center; background-size: cover; min-height: 300px; } .infomineo-logo { width: 150px; margin-bottom: 1rem; } .infomineo-title { font-size: 2.5rem; font-weight: bold; margin-bottom: 1rem; max-width: 60%; } .infomineo-cta { background-color: #00b9ff; color: white; padding: 0.75rem 1.5rem; text-decoration: none; font-weight: bold; border-radius: 5px; transition: background-color 0.3s; } .infomineo-cta:hover { background-color: #0095cc; } @media (max-width: 768px) { .infomineo-banner { background: linear-gradient(135deg, #0047AB, #00BFFF); } .infomineo-title { font-size: 1.8rem; max-width: 100%; } } Overcome Secondary Research Challenges with Infomineo hbspt.cta.load(1287336, 'bce85c70-5efe-489d-ba2f-1ee1de716518', {"useNewLoader":"true","region":"na1"}); Understanding Secondary Research Secondary research, or desk research, examines existing data to gather insights. It involves collecting data from various sources, such as public and premium databases, company websites, industry reports, statistical surveys, news, and official sources such as governments, ministries, statistical offices, and local authorities. Identifying the right sources can often be challenging, especially when handling complex research questions. Proficiency in uncovering relevant and credible sources requires accumulated experience, technical expertise, and critical thinking. This step is crucial, as it impacts not only the accuracy of the data but also all subsequent analyses. Secondary research comprises two main types: quantitative and qualitative research. Quantitative research draws conclusions through statistical analysis to uncover trends and patterns in datasets. Examples include analyzing the production volume of different companies or determining the market size of a certain industry. Qualitative research, on the other hand, delves into descriptive information such as understanding a company's product and service offerings or mapping out an entity's organizational structure. Use Cases Secondary research provides a starting point for exploring unfamiliar topics. It includes navigating existing literature, data, and resources to understand key concepts and themes. By providing insights into the current state of knowledge within a particular field or industry, it pinpoints knowledge gaps and areas where information is scarce or outdated. Awareness of the required additional study lays the groundwork for further investigation and analysis. Secondary research is also useful in building arguments, supporting or challenging existing theories, evaluating the validity of hypotheses, and drawing evidence-based conclusions. With shifting market dynamics, industry reports and competitor profiles provide solid grounds for businesses to gather intelligence on competitors and monitor market trends. Hence, information provided by secondary research can either validate the findings of primary research or complement them with additional insights, leading to more comprehensive research outcomes. The Power of Online Data: Advantages of Secondary Research Secondary research is key to every business and entity, regardless of their focus and mission. Some of its benefits include the ability to navigate a wide pool of information, access premium databases through specialized research providers, and boost time efficiency compared to primary research. Wide Information Pool With secondary research, analysts can explore a wide range of information through reputable online sources. This accessibility contrasts with primary research, where data collection often starts from scratch, making secondary research more efficient and versatile for information gathering. While secondary research has opened the doors to vast amounts of information, effectively harnessing and navigating resources requires specialized skills and research expertise to avoid information overload. Premium Access While some premium online databases may come with hefty price tags due to their extensive data coverage, clients can sidestep individual subscriptions by outsourcing their research needs to experts. Research providers like Infomineo, for instance, boast subscriptions to these databases, blending their access to comprehensive data with their research expertise, business acumen, and critical thinking. We streamline client costs by charging for comprehensive services that deliver value-added insights. Time-Efficiency Unlike the time-consuming nature of primary research, secondary research can yield more results in less time. Even though gathering information from multiple sources or developing proxies can be challenging and time-consuming, the efficiency of the process depends on the complexity of the project and the expertise of the researcher. At Infomineo, we can swiftly develop relevant approaches, identify and leverage credible sources, and analyze and package the extracted data into a digestible format that provides timely and actionable insights to our clients. Addressing the Challenges of Secondary Research: Key Solutions for Success Secondary research offers access to relevant databases and information, but it does present certain challenges. To fully benefit from secondary research, it is essential to possess extensive knowledge and technical research expertise. 1. Limited, Outdated, and Unreliable Data. When researching a particular topic, it is not uncommon to encounter limited, outdated, unreliable, or unavailable data. This especially happens with niche sectors, underdeveloped or emerging markets, and private companies that lack financial disclosure. For example, when analyzing the value chain of a niche market like recycled car parts, you are likely to encounter limited data on the suppliers that collect and distribute these parts. The scarcity and incomprehensive nature of the data can hinder research analysis and outcomes. Solution Estimations and proxies are the two main ways of overcoming data limitations and quantifying variables. You can either find estimates in industry reports, financial databases, or other sources, or you can develop your own proxy with the right data and tools. Both need prior alignment with relevant stakeholders on their importance, benefits, and potential limitations. For proxies, the below additional steps should be taken using creative and critical thinking: Identifying and defining data gaps. Brainstorming on potential indicators that can indirectly reflect the missing data. Choosing the indicator that best fits the desired research outcome. Testing and running the analysis with the chosen indicator to confirm outcome accuracy and relevancy. While proxies may seem like a long road, they can sometimes be the only solution for researchers who do not allow data limitations to obstruct their research and project goals. 2. Subscription Requirements The costs associated with subscription requirements can be inconvenient and act as barriers to effective secondary research. While some data may be accessible through previews and free summaries of paid reports and publications, in-depth information is mostly disclosed in market reports and premium databases that require membership fees. Solution This is where service providers like Infomineo come in handy. You can tap into a vast pool of resources, saving you the hassle and cost of individual subscriptions. This allows you to gather comprehensive and up-to-date data across various sectors, regions, and time frames. 3. Data Discrepancies Across Sources Data discrepancies across sources present a significant challenge in secondary research. These variations can arise between similar sources, like two databases, or across different source types, like a database and a market report. Inconsistencies are mostly due to differences in data collection techniques, reporting standards, and source credibility. Navigating data discrepancies across sources requires scrutiny and thorough validation of information to ensure the reliability and accuracy of results. Solution: To assess the reliability of information, it is essential to cross-check various sources to identify the most reliable methodology and the numerical values most frequently repeated across these sources. It is also important to understand the data collection methods of each source. For example, forecast data can differ based on the publisher's estimation method and the selected base year, while market size data can vary based on the exact components included in its computation. Through a rigorous validation process, researchers can identify and rectify discrepancies or inconsistencies within datasets, enhancing their trustworthiness and integrity. 4. Information Overload The challenge of having to navigate numerous data sources and large amounts of data is significant for secondary research. This is particularly true when conducting a deep dive into complex topics. Researchers may encounter difficulties in distinguishing between pertinent data that directly addresses the research questions and supplementary information that may be beneficial but does not directly relate to the research question. Analyzing large amounts of information can be time-consuming and detract from the research objectives, leading to inefficiencies. It is crucial for researchers to keep the end goal in mind at all times to avoid being overwhelmed by the flow of information they encounter throughout their research. It is also important to keep in mind the time it takes to analyze data and factor it into the research time. This is especially important when faced with time constraints. While exploring certain aspects of the topic or digging deeper might be tempting, it is always important to make sure it doesn’t take away from other tasks. This will help ensure that the research results are comprehensive and delivered on time. Solution Proficiency in navigating large amounts of information to address specific research objectives requires specialized experts and professional research providers, such as Infomineo. Through project management, we deliver timely and specific insights that meet and exceed client expectations. Our extensive expertise and collaborative approach allow us to act as thought partners for our clients, providing solutions to any challenges faced during the research process and ensuring efficient business outcomes. Secondary Research Solutions: Infomineo's Differentiating Approach to Client Success Infomineo has extensive experience in secondary research, having served a diverse client base, including consulting firms, Fortune 500 companies, governments, and financial institutions. Efficiency is a core principle of our operations. Our expertise lies in identifying the most relevant sources for each research question and formulating the most effective methodologies to yield impactful results. Our commitment extends beyond simply providing raw data. We conduct in-depth analysis to identify discrepancies in data, validate information across multiple sources, and provide concrete answers to your business questions. Our distinctive collaborative and thought-partnership approach enables us to tailor our research solutions to our clients' specific objectives, needs, and deadlines. hbspt.cta.load(1287336, '2eda4939-5b57-4ff3-b29a-bcb5fc500f05', {"useNewLoader":"true","region":"na1"}); FAQs What is the difference between primary and secondary research? The main factor differentiating between the two types of research is the source of the data. Secondary research leverages existing data sets and information from other entities, such as international organizations, governmental bodies, research institutions, and specialized databases. On the other hand, primary research requires the independent collection of raw data from scratch through surveys, in-depth interviews, focus groups, and other data collection techniques. Are there subscription-free solutions to access high-quality secondary data? While subscription costs for premium databases can pose a barrier to secondary research, it is important to note that freely available sources can offer good data coverage for a range of themes and industries. These sources include national statistical offices, governmental databases, and international databases provided by organizations such as the UN, OECD, and the European Commission. How can researchers/businesses maintain a clear research focus? Analyzing data from several sources can lead to information overload and distract from the research objective. To cut down on excess information, researchers need to structure their data and focus on research objectives. Learning to differentiate between core information directly relevant to your research question and supplementary details that add context can make secondary research more effective and less overwhelming. How to evaluate the credibility of secondary data sources? Source credibility is paramount. To assess the credibility of secondary data sources, look for reputable publishers with established research methodologies and transparent data collection practices, as well as cross-check information from diverse sources to understand the rationale behind data discrepancies. Conclusion and Future Outlook While secondary research is vital for gaining insights, it presents some challenges, including information limitations such as outdated, unavailable, or unreliable data, subscription requirements for premium sources, and data discrepancies across sources. These challenges can be mitigated through expertise, critical analysis, and appropriate methodologies. Additionally, the emergence of advanced technologies such as Artificial Intelligence can facilitate the navigation of online sources and provide guidance on research questions, increasing the time-efficiency of the research. However, given the obstacles associated with this technology, human expertise remains crucial to fact-check the generated information and draw in-depth analyses. Take the first step to harness the power of secondary research by exploring how Infomineo can support your research needs.
Desk-based research is the process of collecting and analyzing existing information and data to generate research outcomes that can benefit businesses. It provides crucial insights into markets, industry trends, competitors, and customers by leveraging a wide array of online sources. These include financial databases, statistical offices, government sources, and industry reports, among others, which cover both quantitative and qualitative data. By integrating multiple data sources and types, companies can gain a comprehensive understanding of even the most complex research questions, effectively guiding their strategic decisions. This article delves into secondary research, how it works, and how to optimize desk-based research with alternative data collection solutions. .infomineo-banner { font-family: Arial, sans-serif; color: white; padding: 2rem; display: flex; flex-direction: column; align-items: flex-start; position: relative; overflow: hidden; background: url('https://infomineo.com/wp-content/uploads/2024/09/TEST-CHTGPT-14.gif') no-repeat center center; background-size: cover; min-height: 300px; } .infomineo-logo { width: 150px; margin-bottom: 1rem; } .infomineo-title { font-size: 2.5rem; font-weight: bold; margin-bottom: 1rem; max-width: 60%; } .infomineo-cta { background-color: #00b9ff; color: white; padding: 0.75rem 1.5rem; text-decoration: none; font-weight: bold; border-radius: 5px; transition: background-color 0.3s; } .infomineo-cta:hover { background-color: #0095cc; } @media (max-width: 768px) { .infomineo-banner { background: linear-gradient(135deg, #0047AB, #00BFFF); } .infomineo-title { font-size: 1.8rem; max-width: 100%; } } Maximize Your Research Efficiency with Infomineo hbspt.cta.load(1287336, '7cf7d06b-068b-4be4-9775-b1299e38f34e', {"useNewLoader":"true","region":"na1"}); Establishing Research Fundamentals Understanding the goals and purpose of a study will help guide your research approach and answer the research questions, saving time and resources. Secondary 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 it. The goal of secondary research is to answer a research question by leveraging existing information and statistics. 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. 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 analyze company offerings 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 or geography; it's about understanding the potential your business can tap into. Secondary research enables you to assess existing markets and identify potential ones, providing insights into the best opportunities to drive 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. body, html { margin: 0; padding: 0; font-family: Arial, sans-serif; } .header-container { position: relative; width: 100%; height: 512px; display: flex; justify-content: center; align-items: flex-start; flex-direction: column; text-align: left; padding: 30px; box-sizing: border-box; color: white; background-image: url('https://infomineo.com/wp-content/uploads/2024/09/TEST-CHTGPT-1.gif'); background-size: cover; background-position: center; background-repeat: no-repeat; overflow: hidden; } .logo { width: 120px; margin-bottom: 15px; } .title { font-size: 36px; font-weight: bold; margin-bottom: 10px; text-shadow: 2px 2px 4px rgba(0, 0, 0, 0.5); } .subtitle { font-size: 20px; margin-bottom: 20px; max-width: 80%; text-shadow: 1px 1px 3px rgba(0, 0, 0, 0.5); } .cta-wrapper { position: relative; width: 100%; animation: slideInOut 10s ease-in-out infinite; } @keyframes slideInOut { 0%, 100% { transform: translateX(-100%); opacity: 0; } 10%, 90% { transform: translateX(0); opacity: 1; } 95%, 100% { transform: translateX(100%); opacity: 0; } } @media (max-width: 768px) { .header-container { height: auto; background-image: url('https://infomineo.com/wp-content/uploads/2024/09/Black-Ash-Grey-Video-centric-Element-Centric-Mobile-Video-Background.gif'); padding: 40px 20px; justify-content: flex-start; } .logo { width: 100px; margin-bottom: 20px; } .title { font-size: 28px; } .subtitle { font-size: 16px; max-width: 100%; } } Enhance Your Data Strategy with Expert Support Combine the power of desk-based research with advanced data analytics for better decision-making. Partner with Infomineo today. hbspt.cta.load(1287336, '8695500c-dff7-4f29-a15e-60d1b60ef19e', {"useNewLoader":"true","region":"na1"}); 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. Databases There are two types of databases: freely available databases and premium ones that require subscriptions. 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 vary from one governmental source to another 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, one 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-the-ground research. Expert interviews are an invaluable tool for enhancing the reliability of research, 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, which 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, we recognize the value of desk-based research as a cornerstone of our service offerings. Our highly experienced team is well-versed in identifying relevant data sources and overcoming the challenges of discerning between trustworthy and unreliable online sources, ensuring reliable data. Our access to premium databases and our blended research approach, which combines secondary and primary research with the latest technological tools, allow us to extend beyond publicly available sources and overcome data limitations. This comprehensive approach to desk-based research, combined with our business acumen, allows us to consistently 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 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.
Market sizing is a fundamental and strategic process every business must undertake before rolling out a product or service or when expanding into a new market. 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 guide and inform their strategic and investment decisions. Fundamentals of Market Sizing Definition and Overview Market sizing is the process of evaluating and identifying how big your market is in terms of the volume or revenue of goods and services sold within the specified market and geography. It gives you an insight into what to expect from the market, helping you avoid surprises while creating a solid business plan. This exercise can be conducted for different market types and geographic levels, as explained below: Broad Market vs. Niche Markets The broad market refers to the main market of a product, while the niche market narrows it 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). Another example is the main footwear industry, which can be segmented into more niche markets such as moccasin shoes, running shoes, or high heels. Established vs. Emerging Markets Established markets refer to existing markets within an economy, such as regular sunglasses, and emerging markets are developing ones like Ray-Ban’s Meta Smart Glasses that can take high-quality pictures and videos National vs. Global Markets National markets are located within a country, while global ones extend beyond a nation's borders to include international or intercontinental markets. The geographic scope of the market sizing exercise can vary based on business objectives and can cover underdeveloped, developing, or developed countries. For instance, you can assess the market for sustainable buildings in the U.S., then proceed to North America, South America, or globally. Market Sizing: An Essential Tool for Business Success Market sizing is a pivotal tool every business must deploy to support its growth and success. Here are some ways market sizing can benefit businesses. Pursuing Investments Market sizing can help existing businesses assess the profitability of a geographic market expansion or a new product or service before its launch. It also provides insights to entrepreneurs on the potential success or failure of a new business. Consequently, companies can direct their efforts toward areas that promise significant investment returns. Such profitability assessments can serve as a robust foundation to persuade other businesses to participate in investments or collaboration opportunities. Research and Development (R&D) Market sizing is indispensable for Research and Development (R&D) teams. It helps them determine potential customers, where they are, what they want, and how to reach them. By doing so, the R&D team can recommend to management products and services that can potentially generate profits. Steps Involved in Conducting Accurate Market Sizing Accurate market sizing begins with a clear understanding of your market. Start by identifying your exact product or service, target customers, and potential demand, then, choose the appropriate estimation method to ensure your estimates are relevant and reliable. 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 much revenue can be generated from this market? How much is the product and service demand in this market? After clearly defining your market, you can become more specific about your products/services by determining the sector and sub-sector to which they belong. First, start by identifying the broad sector your product or service fits into; it could be technology, healthcare, consumer goods, or any other large sector. You can then drill down into specific sub-sectors. For example, if your sector is technology, the sub-sector can include software, hardware, IT services, or telecommunications. Each may 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 Once you have defined and segmented your market, you should pick the market sizing estimation method that best suits your needs; this could be either a top-down or a bottom-up approach. Let's look at these two methods, including their pros and cons, so you can decide which one is the most appropriate for your business. Top-down Approach This method starts with a broad market and then narrows it down to specific segments or niches. To illustrate, a top-down approach to market sizing involving cars in the UK would typically start 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 Seamless and relatively quicker as it leverages readily available data from secondary sources. Not suitable for emerging markets, smaller markets, or disruptive products due to a lack of substantial data. Effective for established markets where data is abundant and similar market size estimates/analyses may be publicly available. May overlook certain details unique to your product or service, resulting in potential data inaccuracies due to the broad and high-level nature of the gathered data. The Bottom-up Approach This approach is the reverse of the first. You can start with a clearly defined and specific population and then expand to encompass the larger market. For example, a market-sizing exercise for toothbrushes in the U.S. would proceed as follows: Determining the cost of a single toothbrush. Estimating the number of toothbrushes an individual uses in a year. Estimating the cost of the total number of toothbrushes an individual uses in a year. Estimating the number of individuals that buy toothbrushes in the US. Multiplying all the 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 Benefits smaller and emerging products as you begin from individual estimates to the overall market size. Requires more in-depth primary research and internal data analysis, making the process relatively more complex and time-consuming. Provides more realistic and accurate data on market size as it leverages primary research from surveys, questionnaires, and interviews. May involve many assumptions and uncertainties about the number of potential customers. It is tailored to suit your unique product and circumstances since it uses your data. Requires meticulous attention to detail, as any mistakes made at the micro level will become more pronounced at the macro level. Key Considerations for Selecting the Best Approach Both approaches have their pros and cons. What may work for your business may not work for another due to unique market characteristics and business needs. Here are some factors to consider when looking for the best approach for your business. Availability and Reliability of Data Data is everything when it comes to market sizing. Hence, if you are not certain of reliable and substantial data availability, you can opt for the top-down approach, as it is less data-intensive and more estimation-based. Accuracy and Detail When a precise and granular estimate is required, the bottom-up approach is more suitable. It captures multiple aspects and variations of the market through primary research methods, including customer insights, surveys, and interviews. Step 3: Selecting the Optimal Methodology Now that you've decided on the best approach for market sizing, your methodology is the next critical factor. The Analogy Method The analogy method compares similar markets in different regions and industries where data is accessible. By evaluating the similarities and differences in these markets and taking into account certain variables like population density, GDP, industry trends, and age brackets, you can estimate the size of your target market. For instance, if you are trying to launch a fintech app, you should focus on similar markets to compare. By analyzing and comparing what you plan to offer with similar markets like mobile banking and money-saving apps, you can gain reliable insights into the potential size of your target market. This same market can also be assessed across geographies based on similar population and GDP data. Proxy Indicators Proxy indicators refer to market size estimations using proxies or 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 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 by multiplying a base number by a chain of adjusting percentages. For instance, the base number here can be a country’s population, 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 the market size by analyzing historical data and noting patterns, variations, sequences, and trends. 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, time series modeling can be even more efficient when analyzing seasonal, annual, or monthly sales trends. For instance, products like fireworks and firecrackers record higher sales in seasons like Christmas and the 4th of July in the United States. Regression Modelling Regression modeling, or analysis, involves the analysis of 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 geographies and age brackets. For instance, a company might be trying to predict its monthly sales for 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 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 Multiple regression helps businesses simultaneously analyze different independent variables while noting their individual impacts on the market size evaluation. Thus, companies can better understand their target market by evaluating the effect of each independent variable among a series of variables on the market size. Infomineo's Expertise in Market Sizing and Comprehensive Market Assessments Infomineo has extensive experience conducting market sizing studies for a variety of industries. By leveraging Infomineo's market sizing capabilities, our clients can gain critical insights into the potential of a new business venture, product, or service and evaluate their market entry strategies. Our team assesses a range of methodologies to identify the optimal approach to address specific research questions, considering data availability and research objectives. This ensures that the market sizing insights we deliver are tailored to the unique needs and challenges of our 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 businesses in today's highly competitive world as it helps them determine potential investment outcomes before investing. 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 the Analogy Method, the Chain Ratio Method, Proxy Indicators, Time Series Modeling, and Regression Modeling. The method you choose will depend on the desired outcome, the available data, and the resources at your disposal. 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 obtain it, assessing the different methods along with their respective pros and cons, and testing them. What are the Key Factors that can Influence the Accuracy of Market Size Estimates? Some key factors that can influence the accuracy of market sizing estimates include the availability of reliable data, the leveraged approach and methodology, and the nature of the market. When Should Market Sizing be Conducted? The market is constantly evolving, and as a result, market sizing can be conducted when a company wants to expand into other markets, launch new products or services, or improve existing marketing strategies. Conclusion Market sizing is an integral research process that can help businesses attract investments, plan hiring processes, allocate resources, set price strategies, and facilitate research and development processes. The choice of the market sizing approach between top-down and bottom-up is even more important. You can use the one that best fits your business needs along with one of the 5 estimation methodologies, which are Proxy Indicators, Time Series Modeling, Regression Analysis, the Method of Analogy, and the Chain Ratio Method. The choice of approach or methodology not only depends on your research objectives but also on data availability, market and geography coverage, and previous experience.
The business world is a dynamic and demanding environment, with constant activity in the form of partnerships, investments, mergers, and acquisitions. In this challenging landscape, conducting a thorough company profiling exercise is crucial to inform decision-making and avoid significant losses. This article comprehensively explores the concept of company profiling, including processes, advantages, and how to get it right. Let’s begin with the basics. Setting the Stage Company profiling is a multifaceted research process that thoroughly examines various aspects of an organization to gain a deep understanding of its operations, structure, performance, and overall business landscape. These steps are essential for potential business investors or partners to gain insight into a company's operations, strengths, and weaknesses. It can focus either on one or multiple aspects of a company, including the following: Business Activities: The scope of activities, business lines, and product and service offerings. Distribution Channels: The network of individuals and businesses that facilitate the movement of a product or service from the manufacturer to the final consumer. Geographical Coverage and Market Expansion Strategies: The current reach of a company's products and services within a geographic region or demography and their local or international growth strategies. Financial Performance: The historical and present financial records that reveal a company’s profits and losses, successes, or loopholes such as discrepancies in financial statements. History and Organizational Structure: The history and record of a company provide insight into past and present performance, including successes and failures. They also reveal the managerial structures that determine the hierarchy and chain of command, from board members to department and unit heads. Infomineo turns data into decisions Discover how our Company Profiling can revolutionize your business strategy. hbspt.cta.load(1287336, 'd780a08d-d58e-4705-b7e8-05b014403b97', {"useNewLoader":"true","region":"na1"}); Research Perspective Company profiling is an application of desk-based research, also known as secondary research. It involves analyzing materials published on public domain sites alongside articles, surveys, statistics, and reports. This exercise can be conducted independently or as part of a competitive landscape assessment, which delves into a business’s dynamics such as customer profiles, competitor strategies, supplier relationships, and industry trends. In competitive landscape assessments, competitive benchmarking assumes a central position by comparing a company’s products and services, performance, market share, and marketing strategies to those of its counterparts in the same industry to identify points of strength and areas for improvement. Learn more about competitive landscape assessments and competitive benchmarking and how Infomineo leverages them to drive business success! hbspt.cta.load(1287336, '3da43f8d-a199-426d-a0ed-29a79942d5fd', {"useNewLoader":"true","region":"na1"}); Company Profiling: An Asset for Stakeholders For stakeholders in the manufacturing, agricultural, education, health, finance, and key sectors of the economy, company profiling is a valuable tool. 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 provides a comprehensive understanding of the market landscape, delving into key areas such as logistics, operations, marketing, and sales activities. It enables businesses to identify potential distributors and marketing partners while gaining valuable insights into operational best practices from industry peers. It guides various stakeholders in their partnership and investment decisions, here is how: Consulting firms: Identifying opportunities and risks for their clients in different sectors and advising them accordingly. Business owners and CEOs: Analyzing existing structures, operations, supply chains, marketing, and customer service to spot potential partners and investments. Financial Analysts: Evaluating past and present company records and financial profiles to advise clients on profitable investments. R&D departments: Identifying market trends and emerging technologies to recommend new tools, products, and services to management. Make your next business move with confidence hbspt.cta.load(1287336, 'ca95c0ec-7d8e-4afd-9f88-eba4821130e6', {"useNewLoader":"true","region":"na1"}); Key Elements for an Effective Company Profiling Exercise An effective company profiling exercise requires comprehensive, accurate, and up-to-date data, solid expertise, and technical skills. While data is the foundation upon which insights and analyses are built, having the right skill set and technical know-how is equally important to effectively analyze the extracted information, navigate complexities, and extract valuable insights. Practical Data Sources Data is at the core of any research exercise. Some practical data sources for an efficient company profiling exercise include company websites and publications, LinkedIn profiles, news articles, premium databases, and industry reports. A company’s official website is considered the primary source of information about a business. This can cover its history, mission and vision, strategic objectives, product and service offerings, supply chain, geographic coverage, customer communication channels, and more. Publications like annual reports, financial statements, investor presentations, company brochures, and factsheets can offer valuable insights into a company’s financial status and market position. LinkedIn is another significant online platform for businesses, entrepreneurs, companies, professionals, and corporate entities. It offers insight into a company’s achievements and provides valuable data on the company’s executive team, as well as its partners and branches. To mitigate potential biases and misinformation, it is important to incorporate data and insights from sources unrelated to the company, such as news and market reports. For example, checking news and press releases provides up-to-date information on company achievements and developments, product or service launches, investments, and M&As, and changes in board members and organizational structures. Join the leaders who trust Infomineo to enhance decision-making with solid, data-backed company insights. Fundamental Skills Once the relevant data sources have been identified, it is crucial to conduct a thorough analysis of the extracted data. To achieve this, certain skills are required. These include: Research Skills Researchers are expected to have an inquisitive mindset, seeking to uncover answers to the questions at hand. They should also be comprehensive in their research, using a variety of techniques and approaches to find data. This includes the use of keywords, shortcuts, and efficiently navigating different sources. Critical Thinking and Problem Solving Critical thinkers are characterized by their skepticism, open-mindedness, respect for evidence, and ability to view situations from multiple perspectives. Researchers with this skill can identify and challenge their assumptions, evaluate the credibility and relevance of information, identify biases, and make informed decisions based on solid data. They ensure that their research is conducted ethically and logically to avoid undermining the validity of their findings. Data Analysis The value of the collected data is only as good as the analysis that follows. Researchers must analyze the data, identify any gaps, and refine their hypotheses and research strategies to ensure they can accurately answer the research questions. Industry Knowledge Combining research with industry-specific knowledge ensures that research findings are credible and relevant. Understanding sector dynamics, regulations, trends, and key players helps researchers tailor their research strategies, identify opportunities and challenges, mitigate potential threats, and make prudent financial decisions. Combining business acumen with data findings ensures that research efforts are impactful and aligned with company objectives. Communication Skills Communication skills are crucial throughout the research process, enabling researchers to convey the message accurately and concisely. Researchers should be able to present their findings to different audiences, including peers, industry stakeholders, policymakers, and the general public. They should also adapt their communication to different contexts, including professional, cross-cultural, and online platforms. These skills should be combined with active listening to understand stakeholder needs, avoid misunderstandings, and build trust. Adaptability For professional research analysts, adaptability is an essential skill. Clients may demand changes in the research scope or methodology at the beginning, midway, or toward the end of the research process while mandating strict adherence to set deadlines. Timely and efficient adaptation to shifting client needs and research objectives is crucial to ensuring relevant outcomes. 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 an entity, including its 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 prioritize 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.
