Identifying Market Segments and Targets

How should a company chose the most attractive target markets?

Ways To Determine Attractiveness Of AMarket Segment

5

Method 1

Intense Segment Rivalry

Any company must take care of the numerous, aggressive competitors

already present.

Fierce competition In Smartphone Industry

Method 2

New Entrants The most attractive segment is one in

which entry barriers are high and exit barriers are low.

E-commerce has brought a whole new change in market.

Method 3

Substitute ProductsUnattractive if potential substitutes are

present.Increase in completion can cause fall in

profits and prices

In Airline Industries many substitutes are there for any company.

Method 4

Buyers’ Bargaining Power

The rise of Retail Giants leads to increasing bargaining powers.

Method 5

Suppliers’ Bargaining Power

Many substitutes for a courier service are present which can reduce the bargaining.