|Observing trends ahead of Competition|
In the business world, forecasting is the technique used to try to predict what will happen in the future in terms of the potential acceptance and demand for products as well as the direction that a company’s market will take. It is important for a business to observe and take advantage of trends before its competitors do.
To stay ahead of your competitors, there is need to devote considerable amount of resources to gather and analyze information for future strategy. However, there is a need to take care so that the company is not misled by wrongly reading market sentiments.
A good way to manage the risk of wrong forecasting is to combine both quantitative and qualitative forecasting techniques. So, while a detailed market research may lean towards taking a particular course of action, the company’s past experiences should moderate the scale and speed at which such an action is implemented.
There is a need to regularly review strategy based on emerging trends and to align these trends with the company’s mission and vision. Failure to do this could lead the company into a state of confusion and identity crisis.
It is not every new trend that a company observes that it has to follow; there are some that will fade-away faster than they came. So a company has to identify its core values and stick with them irrespective of its attempt at positioning itself to take advantage of new trends.
A company simply needs to identify which trends it can exploit to gain an advantage in the market whilst monitoring those that may pose a threat to it. If these principles are followed, a company should have little or no problems managing trends.