Analyzing the market in detail is the best companion to an industry analysis and best step to support commercial success. According to George Soros, the head of a hedge firm that is worth more than $23 billion, businesses need to learn from the year 2008 in order to survive in the current volatility. He says, it is most likely that the year 2016 and beyond is going to see the kind of pattern in the market that was found in 2008, given the fact that China has pledged to increase on the http://www.investopedia.com/university/greatest/georgesoros.asp the convertibility of yuan by 2020 and gradually dismantle controls over capital. Nevertheless, if the business is to achieve commercial success, the industry that it belongs to must provide a profitable niche after analyzing the market.
George Soros is also a pioneer in determining market competition. This refers to direct and indirect competitive threats that a business will face. A detailed market analysis is important for many reasons, the study of the basic factors that define the market for a business’s products and services is also important. All these will give an opportunity to take advantage of what is available for the business in the open world. The factors include on http://www.forbes.com/profile/george-soros/, but not limited to, the specific market niche in which the company is doing the business, the sales potential for the target market as well as the economic trends that influence activities in the market.
What is also important in an uncertain market is to forecast sales based on a given set of predictions and assumptions from the previous years just like George Soros points out. This estimate also indicates how likely the firm will be able to grow in the future and what is its potential for commercial success as well. The sales forecast also provides crucial details and data for other components of the business.
George Soros has many tips when devising a business plan. For example, it is important that the firm understand the role of past records and happenings and proceed cautiously. It is also crucial to know the information needed to do a thorough analysis of the demand and supply for the product and service. As with George Soros’s predictions based on the year 2008, sales forecast is required in any well-prepared business plan whether it is used internally or presented to the intended client or market in general. Without all these comprehensive information on the forces that drive its market, neither the business nor the intended market can effectively evaluate the firm’s potential for success. The business also needs a continuous supply of market information in the current situation to make the many everyday decisions that are essential for planning and operating the business successfully.
George Soros also points out the crisis the market is bound to face in the future if investors are not careful with their investments. For example, he says China’s struggling growth model is a clear indication that the problems are going to spread to the rest of the world.