The entrepreneur must also be able to measure the actual demand and supply as well as the potential demand and supply of the industry that the enterprise belongs to. Equally important is the monitoring of the prevalence of product substitutes and their market impact on the existing players in the industry. Market trend analysis is also conducted by determining the critical variables, which would most likely affect the future directions of the industry. Lastly, market traits, characteristics, and behavior are identified in order to match these customer traits with the product offerings of the enterprise.
Market sources of opportunities can be discovered from increased or decreased demand as well as higher or lower supply. An example of this is the battle of the value/combo meals, otherwise known as “more-for-less” strategy in the fast food restaurant industry. The demand for more affordable but filling meal is continuously growing particularly for the working population. This, in turn, creates an increased demand in the items that come with the value/combo meal such as rice, chicken, pasta, sidings (e.g., mashed potato, buttered corn, french fries, etc.) and beverage drink. Although smaller in portions, the volume served is more, particularly during peak hours (lunch and dinner). It also opens up the opportunity of offering breakfast items and strengthening this time-of-the-day segment. More and more consumers are resorting to having their breakfast near their workplaces or along the way to work in order to avoid getting stuck in the rush hour traffic. However, the threat of price war remains strong such that the industry players are compelled to strengthen their supply chain for better leverage.
