Daxue Consulting offer comprehensive market analysis in China, the goal of which is to determine the attractiveness of Chinese market as well as to understand a business`s evolving opportunities and threats a firm will be confronted with. We conduct serious analysis considering a firm`s strengths and weaknesses and figure out suitable solutions.
Our market analysis is outlined in the following dimensions:
The market size of a certain industry or a product in China can be evaluated through present sales and potential sales supposing the business will keep the current expansion rate. Our analysis is supported by various reliable information sources, including government data, trade associations, financial data from major players and customer surveys.
Our forecasts on the market growth rate are first extrapolated based on continuous historical data. Then we study market growth stimulants such as demographic information, sales growth in complementary products, policy changes, to give more accurate estimates.
Also, sometimes the market growth rate can be predicted by studying the characteristics of the adoption rate of a similar product in the past. It is called a product diffusion curve. What is more, the model of product life cycle can be applied by us to guide a business to develop itself to its mature stage or to rescue a business from its dilemma. We analyze the level of price pressure and brand loyalty, market capability, substitutes and other growth drivers.
Different industries have different levels of profitability. The average profit level of a market can be used as a reference point to understand how money is earned in this market. Porter`s Five Forces model, identifying the five most important external factors that influence the potential profitability in a market, is our main consideration. We analyze buyer power, supplier power, barriers to entry, threat of substitutes, and rivalry in the industry and give a profound view of the topic.
To clearly identify cost structure is a key to success. It helps to formulate strategies to develop a competitive advantage. We design the value chain model for your business in China and help you to ascend profit margin, avoiding unnecessary costs and making the best use of money. In one word, we work to create value for you.