Why you don’t need a market analysis
A market as a Second Order Chaos
Strategic thinking
A market as a Second Order Chaos
Few strategic meetings go without market analysis discussions. People from the marketing department prepare long and colorful PowerPoint presentations with charts and diagrams representing market players’ shares, CAGR, current trends, and forecasts. It is believed obvious that this information is crucial when it comes to strategic decisions. But when something is regarded as going without saying, it is better to be especially precautious. It is highly likely that we are dealing with a cliché shifting our thinking away from what is genuinely essential (and our minds love clichés because they save us cognitive energy, which is not always of use to us). I have participated in many such discussions and have never seen anybody exclaiming “eureka!” looking at those charts and coming up with a game-changing idea.
If a company is going to create a new market, the use of the market analysis is close to zero. For example, I doubt that Jeff Bezos …