The basis of enterprise analysis - market supply and demand analysis

According to the principle of economics, market supply and demand determine the development trend of the industry, so the first step to analyze the enterprise when the market supply and demand to start.

According to the basic supply and demand relationship, according to the combination, can be divided into the following six kinds:

1, the increase in demand, the supply is also increased: often occurs in some of the emerging industries, such as the Internet industry, the new energy industry.

2, demand expansion, supply stabilization or reduction: this is the ideal situation of the market; if it is the threshold of entry (whether financial, technological or policy-wise) is greatly improved, and the process is irreversible, then it is really worth taking a closer look, such as the pharmaceutical industry, and the current aquaculture industry.

3, the need to stabilize, the supply is significantly reduced: this generally occurs in the maturity of the industry, many years of competition to achieve a basic balance, the realization of the pattern of oligopoly, such as some of the food, or home appliance production enterprises.

This kind of industry is generally easy to be undervalued by the market, because of its appearance of the industry's growth rate is very slow, but in fact, the oligopoly in this period, so that its profitability is, on the contrary, to improve; if the preferred relative to the overall market share is still small, this neglect of the situation, it is likely to become a high-quality investment opportunities, such as Gree, Haier, Midea, and the boss of the electrical appliances, and in the pattern of the oligopoly of the industry,. Oligarchs have strong pricing power and cost transfer capacity, so the leading companies in such an industry, is a better investment target.

4, stable demand, stable supply: the general demand for this industry is broad, but the entry threshold is low, it is difficult to realize the oligopoly of the industry, such as catering, barber stores, ordinary clothing and footwear. This industry is difficult to achieve a reduction in supply, but should focus on having a sharp differentiation and new business models, thus overcoming the homogenization, difficult to sustain the expansion of the disadvantages, such as Uniqlo, Starbucks, Haidilao and Suning, Gome, etc. The impact of decentralized home appliance sales pattern, are through a new model, to achieve the original dispersal of the market concentration of the way.

5, stable demand, supply increased significantly: this is not a very good market, such as Yantai Wanhua MDI from 2002 supply exceeds demand to 2012 supply exceeds demand, because competitors are also expanding capacity. The market focuses on two points: 1, how much potential there is for demand to be developed? 2, whether the competition can be squeezed out of the market through rivals.

6, reduced demand, reduced supply: this is a shrinking market, many times the sunset industry, it is best to stay away from, once again do not discuss.

It is worth noting that the above is the market supply and demand 6 in the basic situation, standing completely in the classification of the point of view to state, but the above at least through the next 5 years point in time to see, but not through 1-2 years.

In the supply and demand pattern faced by enterprises, there are 2 typical patterns:

1, the market demand is huge, but the market is too fragmented: such as renovation, department store retailing, aquaculture industry, branded apparel or food and beverage.

2, companies in an industry has an overwhelming advantage and share, but the problem is that the industry in the end how much demand is not clear; such as industry applications and chemical materials;

Above the 2 pattern, in order to be bigger, must be innovative. In the first traditional industry, the most important thing is the mode of innovation; to solve the industry can not do a big disease; such as the decoration industry of the Golden Mantis, through the project management of the labeling, talent training gradient, engineering modularity, etc. to reduce the characteristics of the non-standard; farming industry within the Wensley Group, through the company plus farmers, to achieve rapid low-cost expansion.

Of course, this market pattern, there may be each occupying one side of the vassals, such an environment to give birth to a large market capitalization of the enterprise, inevitably through mergers and acquisitions this means to achieve, this time, we have to see who the resources of the whole ability to strong. Typically, such as advertising, food and spice industry, due to high customer stickiness, and differentiation, the various vassals in the field of subdivision is difficult to subvert.

Corresponding to the large market share, demand potential but more vague, such as Angie's yeast and Beixin building materials. This situation requires even more attention to the ability to educate the market, develop new products and tap into demand.

All enterprise analysis, can not get around the basis of the market supply and demand analysis, market supply and demand trends and evolutionary path, determining the future trend of enterprises in the industry and the eventual end, so the sensitivity and grasp of supply and demand, is the basis of the analysis of the enterprise and the industry.