# Data Analysis Patterns for Market Research Templates and frameworks for conducting rigorous market analysis. --- ## Market Sizing Frameworks ### TAM/SAM/SOM Analysis **Total Addressable Market (TAM)** represents the total revenue opportunity if 100% market share was achieved. #### Top-Down Approach ``` TAM = Total Industry Revenue (from market research reports) Example: - Global AI Software Market (2024): $184 billion - Source: Gartner, IDC, or similar ``` #### Bottom-Up Approach ``` TAM = Number of Potential Customers × Average Revenue per Customer Example: - Number of enterprises globally: 400 million - Target segment (large enterprises): 50,000 - Average annual spend on solution: $500,000 - TAM = 50,000 × $500,000 = $25 billion ``` **Serviceable Addressable Market (SAM)** represents the portion of TAM that can be served given product/service capabilities. ``` SAM = TAM × Applicable Segment % Example: - TAM: $25 billion - Geographic constraint (North America only): 40% - Product fit (enterprise only): 60% - SAM = $25B × 40% × 60% = $6 billion ``` **Serviceable Obtainable Market (SOM)** represents realistic market share capture. ``` SOM = SAM × Achievable Market Share % Example: - SAM: $6 billion - Conservative market share (5%): $300 million - Base case market share (10%): $600 million - Optimistic market share (15%): $900 million ``` ### Growth Rate Calculation #### CAGR (Compound Annual Growth Rate) ``` CAGR = (End Value / Start Value)^(1/n) - 1 Where n = number of years Example: - 2020 market size: $10 billion - 2024 market size: $18 billion - n = 4 years - CAGR = (18/10)^(1/4) - 1 = 15.8% ``` #### Year-over-Year Growth ``` YoY Growth = (Current Year - Previous Year) / Previous Year × 100 Example: - 2023: $15 billion - 2024: $18 billion - YoY Growth = (18-15)/15 × 100 = 20% ``` --- ## Porter's Five Forces Analysis ### Framework Template For each force, assess: **HIGH**, **MEDIUM**, or **LOW** #### 1. Threat of New Entrants **Factors to evaluate:** | Factor | Assessment | Notes | |--------|------------|-------| | Capital requirements | High/Med/Low | $ required to enter | | Economies of scale | Strong/Moderate/Weak | Incumbent advantages | | Brand loyalty | High/Med/Low | Customer switching cost | | Access to distribution | Easy/Moderate/Difficult | Channel availability | | Regulatory barriers | High/Med/Low | Licensing, certifications | | Proprietary technology | Critical/Important/Minor | IP and know-how | | Expected retaliation | Aggressive/Moderate/Passive | Incumbent response | **Overall Assessment:** [HIGH/MEDIUM/LOW] **Key Insights:** [Summary of implications] #### 2. Bargaining Power of Suppliers **Factors to evaluate:** | Factor | Assessment | Notes | |--------|------------|-------| | Supplier concentration | High/Med/Low | Number of suppliers | | Switching costs | High/Med/Low | Cost to change suppliers | | Supplier differentiation | High/Med/Low | Uniqueness of inputs | | Forward integration threat | High/Med/Low | Can suppliers compete? | | Importance to supplier | Critical/Important/Minor | Your share of their revenue | | Substitute inputs | Many/Some/Few | Alternatives available | **Overall Assessment:** [HIGH/MEDIUM/LOW] #### 3. Bargaining Power of Buyers **Factors to evaluate:** | Factor | Assessment | Notes | |--------|------------|-------| | Buyer concentration | High/Med/Low | Few large vs. many small | | Purchase volume | Large/Medium/Small | Relative importance | | Switching costs | Low/Med/High | Cost to change vendors | | Price sensitivity | High/Med/Low | Focus on price vs. value | | Backward integration threat | High/Med/Low | Can buyers self-supply? | | Information availability | Full/Partial/Limited | Market transparency | **Overall Assessment:** [HIGH/MEDIUM/LOW] #### 4. Threat of Substitutes **Factors to evaluate:** | Factor | Assessment | Notes | |--------|------------|-------| | Substitute availability | Many/Some/Few | Number of alternatives | | Price-performance ratio | Better/Same/Worse | Value comparison | | Switching costs | Low/Med/High | Friction to substitute | | Buyer propensity to switch | High/Med/Low | Willingness to change | | Perceived differentiation | Low/Med/High | Unique value | **Overall Assessment:** [HIGH/MEDIUM/LOW] #### 5. Competitive Rivalry **Factors to evaluate:** | Factor | Assessment | Notes | |--------|------------|-------| | Number of competitors | Many/Several/Few | Market fragmentation | | Industry growth | Slow/Moderate/Fast | Growth rate impact | | Fixed costs | High/Med/Low | Pressure to fill capacity | | Product differentiation | Low/Med/High | Commoditization level | | Exit barriers | High/Med/Low | Difficulty leaving market | | Strategic stakes | High/Med/Low | Importance to competitors | **Overall Assessment:** [HIGH/MEDIUM/LOW] ### Five Forces Summary Table | Force | Rating | Key Drivers | Implications | |-------|--------|-------------|--------------| | New Entrants | [H/M/L] | [Top factors] | [Strategic impact] | | Supplier Power | [H/M/L] | [Top factors] | [Strategic impact] | | Buyer Power | [H/M/L] | [Top factors] | [Strategic impact] | | Substitutes | [H/M/L] | [Top factors] | [Strategic impact] | | Rivalry | [H/M/L] | [Top factors] | [Strategic impact] | **Overall Industry Attractiveness:** [ATTRACTIVE / MODERATE / UNATTRACTIVE] --- ## PESTLE Analysis ### Framework Template #### Political Factors | Factor | Current State | Trend | Impact | Time Horizon | |--------|---------------|-------|--------|--------------| | Government stability | | ↑ ↓ → | H/M/L | Short/Med/Long | | Trade policies | | ↑ ↓ → | H/M/L | | | Tax regulations | | ↑ ↓ → | H/M/L | | | Government support | | ↑ ↓ → | H/M/L | | | Political relations | | ↑ ↓ → | H/M/L | | **Key Political Implications:** [Summary] #### Economic Factors | Factor | Current State | Trend | Impact | Time Horizon | |--------|---------------|-------|--------|--------------| | GDP growth | X.X% | ↑ ↓ → | H/M/L | | | Interest rates | X.X% | ↑ ↓ → | H/M/L | | | Inflation | X.X% | ↑ ↓ → | H/M/L | | | Exchange rates | | ↑ ↓ → | H/M/L | | | Consumer spending | | ↑ ↓ → | H/M/L | | | Unemployment | X.X% | ↑ ↓ → | H/M/L | | **Key Economic Implications:** [Summary] #### Social Factors | Factor | Current State | Trend | Impact | Time Horizon | |--------|---------------|-------|--------|--------------| | Demographics | | ↑ ↓ → | H/M/L | | | Cultural attitudes | | ↑ ↓ → | H/M/L | | | Consumer behavior | | ↑ ↓ → | H/M/L | | | Education levels | | ↑ ↓ → | H/M/L | | | Health consciousness | | ↑ ↓ → | H/M/L | | | Work-life balance | | ↑ ↓ → | H/M/L | | **Key Social Implications:** [Summary] #### Technological Factors | Factor | Current State | Trend | Impact | Time Horizon | |--------|---------------|-------|--------|--------------| | R&D activity | | ↑ ↓ → | H/M/L | | | Technology adoption | | ↑ ↓ → | H/M/L | | | Automation | | ↑ ↓ → | H/M/L | | | Digital infrastructure | | ↑ ↓ → | H/M/L | | | Innovation rate | | ↑ ↓ → | H/M/L | | | Disruptive tech | | ↑ ↓ → | H/M/L | | **Key Technological Implications:** [Summary] #### Legal Factors | Factor | Current State | Trend | Impact | Time Horizon | |--------|---------------|-------|--------|--------------| | Industry regulations | | ↑ ↓ → | H/M/L | | | Data protection | | ↑ ↓ → | H/M/L | | | Employment law | | ↑ ↓ → | H/M/L | | | Consumer protection | | ↑ ↓ → | H/M/L | | | IP rights | | ↑ ↓ → | H/M/L | | | Antitrust | | ↑ ↓ → | H/M/L | | **Key Legal Implications:** [Summary] #### Environmental Factors | Factor | Current State | Trend | Impact | Time Horizon | |--------|---------------|-------|--------|--------------| | Climate change | | ↑ ↓ → | H/M/L | | | Sustainability reqs | | ↑ ↓ → | H/M/L | | | Resource availability | | ↑ ↓ → | H/M/L | | | Waste management | | ↑ ↓ → | H/M/L | | | Carbon regulations | | ↑ ↓ → | H/M/L | | | Environmental awareness | | ↑ ↓ → | H/M/L | | **Key Environmental Implications:** [Summary] --- ## SWOT Analysis ### Framework Template #### Strengths (Internal, Positive) | Strength | Evidence | Strategic Value | |----------|----------|-----------------| | [Strength 1] | [Data/proof] | High/Med/Low | | [Strength 2] | [Data/proof] | High/Med/Low | | [Strength 3] | [Data/proof] | High/Med/Low | **Core Strengths Summary:** [2-3 sentence synthesis] #### Weaknesses (Internal, Negative) | Weakness | Evidence | Severity | |----------|----------|----------| | [Weakness 1] | [Data/proof] | Critical/Moderate/Minor | | [Weakness 2] | [Data/proof] | Critical/Moderate/Minor | | [Weakness 3] | [Data/proof] | Critical/Moderate/Minor | **Key Vulnerabilities Summary:** [2-3 sentence synthesis] #### Opportunities (External, Positive) | Opportunity | Size/Potential | Timeframe | |-------------|----------------|-----------| | [Opportunity 1] | $X / High/Med/Low | Short/Med/Long | | [Opportunity 2] | $X / High/Med/Low | Short/Med/Long | | [Opportunity 3] | $X / High/Med/Low | Short/Med/Long | **Priority Opportunities Summary:** [2-3 sentence synthesis] #### Threats (External, Negative) | Threat | Likelihood | Impact | |--------|------------|--------| | [Threat 1] | High/Med/Low | High/Med/Low | | [Threat 2] | High/Med/Low | High/Med/Low | | [Threat 3] | High/Med/Low | High/Med/Low | **Critical Threats Summary:** [2-3 sentence synthesis] ### SWOT Strategy Matrix | | **Strengths** | **Weaknesses** | |---|---------------|----------------| | **Opportunities** | **SO Strategies** (use strengths to capture opportunities) | **WO Strategies** (overcome weaknesses to capture opportunities) | | **Threats** | **ST Strategies** (use strengths to mitigate threats) | **WT Strategies** (minimize weaknesses and avoid threats) | --- ## BCG Growth-Share Matrix ### Framework Template **Axes:** - X-axis: Relative Market Share (High → Low, logarithmic scale) - Y-axis: Market Growth Rate (High → Low, typically 10% as midpoint) ### Quadrant Definitions | Quadrant | Growth | Share | Characteristics | Strategy | |----------|--------|-------|-----------------|----------| | **Stars** | High | High | Market leaders in growing markets | Invest to maintain position | | **Cash Cows** | Low | High | Market leaders in mature markets | Harvest for cash flow | | **Question Marks** | High | Low | Small share in growing markets | Invest selectively or divest | | **Dogs** | Low | Low | Small share in mature markets | Divest or minimize investment | ### Product/Business Unit Analysis | Product/BU | Market Growth | Relative Share | Quadrant | Recommended Strategy | |------------|---------------|----------------|----------|---------------------| | [Product A] | X.X% | X.X | Star/Cow/QM/Dog | [Strategy] | | [Product B] | X.X% | X.X | Star/Cow/QM/Dog | [Strategy] | | [Product C] | X.X% | X.X | Star/Cow/QM/Dog | [Strategy] | ### Portfolio Balance Assessment | Quadrant | Number of Products | Revenue % | Investment Priority | |----------|-------------------|-----------|---------------------| | Stars | X | X% | High | | Cash Cows | X | X% | Maintain | | Question Marks | X | X% | Selective | | Dogs | X | X% | Low/Divest | --- ## Value Chain Analysis ### Framework Template #### Primary Activities | Activity | Description | Value Created | Cost | Competitive Position | |----------|-------------|---------------|------|---------------------| | **Inbound Logistics** | Receiving, storing, inventory | | $X | Strong/Average/Weak | | **Operations** | Manufacturing, assembly | | $X | Strong/Average/Weak | | **Outbound Logistics** | Distribution, delivery | | $X | Strong/Average/Weak | | **Marketing & Sales** | Promotion, sales force | | $X | Strong/Average/Weak | | **Service** | Installation, support, repair | | $X | Strong/Average/Weak | #### Support Activities | Activity | Description | Value Created | Cost | Competitive Position | |----------|-------------|---------------|------|---------------------| | **Infrastructure** | Management, finance, legal | | $X | Strong/Average/Weak | | **HR Management** | Recruiting, training, comp | | $X | Strong/Average/Weak | | **Technology Dev** | R&D, process improvement | | $X | Strong/Average/Weak | | **Procurement** | Purchasing, supplier mgmt | | $X | Strong/Average/Weak | ### Value Chain Margin Analysis ``` Total Revenue: $XXX - Inbound Logistics: ($XX) - Operations: ($XX) - Outbound Logistics: ($XX) - Marketing & Sales: ($XX) - Service: ($XX) - Support Activities: ($XX) = Margin: $XX (X%) ``` ### Competitive Comparison | Activity | Company | Industry Avg | Best-in-Class | Gap | |----------|---------|--------------|---------------|-----| | [Activity] | X% | Y% | Z% | +/-X% | --- ## Competitive Positioning Analysis ### Framework Template #### Positioning Dimensions Common positioning dimension pairs: - Price vs. Quality - Market Focus (Niche vs. Broad) - Solution Type (Product vs. Platform) - Geographic Scope (Regional vs. Global) - Customer Focus (Enterprise vs. SMB vs. Consumer) - Innovation Level (Leader vs. Follower) #### Competitor Mapping | Competitor | Dimension 1 Score (1-10) | Dimension 2 Score (1-10) | Market Share | Notes | |------------|-------------------------|-------------------------|--------------|-------| | Company A | X | X | X% | [Position description] | | Company B | X | X | X% | [Position description] | | Company C | X | X | X% | [Position description] | #### Strategic Group Identification | Strategic Group | Companies | Characteristics | Market Share | |-----------------|-----------|-----------------|--------------| | Group 1: [Name] | A, B, C | [Description] | X% | | Group 2: [Name] | D, E | [Description] | X% | | Group 3: [Name] | F, G, H | [Description] | X% | --- ## Risk Assessment Framework ### Risk Identification #### Risk Categories 1. **Market Risks**: Demand changes, price pressure, market shifts 2. **Competitive Risks**: New entrants, competitor moves, disruption 3. **Regulatory Risks**: New regulations, compliance requirements 4. **Technology Risks**: Obsolescence, security, integration 5. **Operational Risks**: Supply chain, quality, capacity 6. **Financial Risks**: Currency, interest rates, credit 7. **Reputational Risks**: Brand damage, social media, ethics ### Risk Assessment Matrix | Risk ID | Risk Description | Category | Probability | Impact | Score | Priority | |---------|------------------|----------|-------------|--------|-------|----------| | R1 | [Description] | Market | 1-5 | 1-5 | P×I | H/M/L | | R2 | [Description] | Competitive | 1-5 | 1-5 | P×I | H/M/L | **Scoring Guide:** - Probability: 1=Very Unlikely, 2=Unlikely, 3=Possible, 4=Likely, 5=Very Likely - Impact: 1=Minimal, 2=Minor, 3=Moderate, 4=Major, 5=Severe - Priority: Score 15-25=High, 8-14=Medium, 1-7=Low ### Risk Mitigation Planning | Risk ID | Risk | Mitigation Strategy | Owner | Timeline | Cost | |---------|------|---------------------|-------|----------|------| | R1 | [Risk] | [Prevention + Response] | [Name] | [Date] | $X | --- ## Financial Analysis Patterns ### Revenue Projection Model ``` Year N Revenue = Year N-1 Revenue × (1 + Growth Rate) Or bottom-up: Revenue = Customers × Revenue per Customer × Retention Rate + New Customers × Revenue per Customer × (1 - Churn Rate) ``` ### Scenario Analysis Template | Metric | Conservative | Base Case | Optimistic | |--------|--------------|-----------|------------| | Market Growth | X% | Y% | Z% | | Market Share | X% | Y% | Z% | | Pricing | $X | $Y | $Z | | Gross Margin | X% | Y% | Z% | | **Revenue Y5** | $X | $Y | $Z | | **EBITDA Y5** | $X | $Y | $Z | ### Key Financial Metrics | Metric | Formula | Target | |--------|---------|--------| | Gross Margin | (Revenue - COGS) / Revenue | X% | | EBITDA Margin | EBITDA / Revenue | X% | | Customer Acquisition Cost | Sales & Marketing / New Customers | $X | | Lifetime Value | ARPU × Gross Margin × Lifetime | $X | | LTV/CAC Ratio | LTV / CAC | >3x | | Payback Period | CAC / (ARPU × Gross Margin × 12) |