A Structured Approach To Developing Corporate Strategy
   Overview
   Demonstration   movie
   Tutorial
    • Getting Started
    • Economic Objectives
    • Segmentation Matrix
    • Ansoff Matrix
    • MAFs
    • Market Attractiveness
    • Define Competitors
    • CSFs
    • Competitive Strength
    • Market History & F'cast •
    • Life Cycle Analysis
    • Share Analysis
    • Boston Matrix
    • Directional Policy Matrix
    • Perceptual Maps
    • Gap Analysis
    • Risk Analysis
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Strategic Analysis and Planning with MATRIX V5
Tutoial Step 9 - Market History And Forecast

The 'Market History And Forecast' data editor is used to input historical and forecast sales information into MATRIX V5, the software application for business strategists. Data typically includes:

  •  the year-on-year volume of product sold into the market
  •  the rate of growth of the market, (or its rate of contraction)
  •  the typical unit price
  •  the performance of your company relative to growth (or contraction) of the market
  •  the performance of key competitors
To display the 'Market History And Forecast' data editor exactly as shown below, select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix, and click the 'Market History And Forecast' button (right) which is located on the toolbar. Click the 'Industry Statistics' button.
The 'Industry Statistics' Data Editor in MATRIX V5.
The Niche is approaching the ‘mature’ phase of its life cycle. Sales Volumes will grow from 7,000 units in 2006 to 9,400 units in 2009 when the market will peak. Thereafter, demand will tail off with a Sales Volume of 9,000 units predicted for 2010. The Host Company will maintain its position within the Niche, with Sales Volumes increasing from 2,250 units in 2006 to 4,000 units in 2009. Budget Assemblies Ltd is anticipated to be one of the losers, with Sales Volumes expected to fall from a high of 3,000 units in 2006, to 2,650 units in 2010. It is anticipated that the Average Unit Price (paid by the Niche) will fall from $1,280.00 in 2006 to $1,060.00 in 2010. The Gross Margin enjoyed by HandyMan PLC will similarly erode from 50% of Sales Price in 2006 to 32% of Sales Price in 2010.

Note, to cope with different industry types, MATRIX V5 can accommodate various permutations of 'Industry Statistics' data. These include 'Volume Only', 'Revenue Only', 'Volume and Revenue', 'Volume, Unit Price and Gross Margin', and 'Revenue and Gross Margin' (shown above). Minor competitors are dealt with automatically under 'Others'.

Be realistic! The temptation is always to describe a healthy growing business, or increased share of the market. Yet often there is no basis for such optimism, and the real driver is the desire to 'talk up' one's chances of success. If the market has been in steady decline over recent years, but you predict year on year improvements to sales, then someone is bound to ask what gives you cause for such optimism!

The information provided via this data editor is used within Life Cycle Analysis (Niche, Host and Competitor Growth profiles), Share Analysis (Niche, Host and Competitor Shares), the Boston Matrix (Position on 'Market Growth' and 'Market Share' axes, and sizes of bubbles), the Directional Policy Matrix (Sizes of pies and pie slices), Perceptual Maps (Optional) (Sizes of bubbles, pies and pie slices), Gap Analysis (plot of polygons and calculation of gap), and Risk Analysis (Position on 'Return' axis).

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