Business research is a very important practice for all companies, if they want to prosper and succeed. Nowadays, most of the companies purchase expensive research services from different market research agencies in order to improve their strategies and better manage the company. It is important to constantly improve business strategies in order to keep market shares. Business research enables companies to obtain a huge variety of data about their business performance. Most of the time business research includes analysis of financial data, consumer feedback, product research, industry analysis and benchmark analysis. Thus, being able to conduct business research and provide valuable business research report is a highly appreciated skill on a CV. In this article, the key components of the business research are described. This information will help to write a professional business report.
Of course, understanding the industry where the company operates is a fundamental part of the business research report, especially when the company plans to enter a new market or industry. Usually, this section comes first, in order to introduce the subject to the audience. There are several factors that need to be studied for the industry data section. The fist one is the rivalry of the market, which includes industry growth, economies of scale, fixed costs on the market and diversity of competitors. The second one is the bargaining power of buyers and suppliers that has a big impact on the pricing policy and profits of the companies. Third, it is important to include substitutes of the product as well as potential new entrants on the market.
Markets consist of numerous market players and they compete with each other. Enterprises usually conduct the analysis of the rivalry on the market, by measuring their performance in comparison to their key competitors on the market. Key competitors are the companies that have nearly the same position on the market and the target group. The benchmark analysis presents the comparison of several attributes of a product, for instance: promotional strategies, media usage, selling methods, customer service, price, and technical attributes. The result is – the information on how well a product is doing on the market. Marketers use this information in order to see product’s strongest and weakest points. Sometimes, it works as a stimulus for new investments and business strategies.
One of the most complicated components of the business research paper is the financial data. The financial data presents business performance in a quantitative manner. Most of the time this section includes sales reports, revenues and costs. This information shows which products in the portfolio are the most profitable, which need replacement or modification, and which need to be dropped. Marketers rely on the financial information because most of the time it is a key influential in decision marking process.
In marketing, the biggest struggle for marketers is to get to know what is inside the consumer’s black box – consumer’s mind. This information is highly valuable for companies as their ultimate goal is to satisfy customer’s needs. Consumer feedback is an essential part of the business research paper, because it presents the opinions of the customers and creates a room for significant improvement of the product. Businesses use case studies, focus group interviews, customer surveys and questionnaires to research all the attributes of products and analyze their performance.
All manufacturing companies have a department of Research & Development, where professionals conduct technical (depending on the product) research on products and seek improvements. Very often, consumer feedback triggers new R&D projects, as it is necessary to respond to customer needs and be able not only to improve the service around the product, but the product itself. Markets are very sensitive to physical changes; thus, it is important to consider product research while writing a business research report.