Key Market Players You Should Know

Market players are important factors in a business environment that could affect the success or failure of a business. Market players are simply market participants, and each participant plays different roles and it is necessary for a business owner to pay attention to them.

The environment of a business determines who the key players would be. Industry analysis helps a business owner understand each market player and how they affect the business. The business environment is volatile in nature and the business is sensitive to these changes in return. Everything that happens in the environment affects the business, it is, therefore, advantageous to have adequate knowledge of such.

These players include customers, suppliers, competitors, Regulators, substitutions.

Customers

These are the most important players in the business environment. They are the users, consumers, or buyers of the products or services of the business. Both major and minor customers are important because they contribute to revenue; the business cannot thrive without them. Businesses should seek to manage their customers well by ensuring their satisfaction. Treating customers well may give the business a competitive edge in the market. Customer satisfaction helps to increase revenue, reduce customer turnover, and even attract new customers.

Suppliers

These are entities that provide products or services to the business. Suppliers include those who provide the raw materials used by the business to manufacture its own goods, provide finished products for resale, render services that aid business operations, etc. Suppliers play the role of an intermediary in the product life cycle. In some markets, a business supplier also supplies its competitors which gives them power; therefore, it is important for businesses to maintain a supplier management process. The process helps to choose the right vendors and strengthening confidence.

Competitors

Every business entity has competitors. Competitors are simply business rivals, they can healthy for the business as well as detrimental. They sell the same products or render the same service and might aim at the same target market. The presence of competitors encourages businesses to be more efficient so as to meet up with market demands. Competitors are powerful as they can control the price and demand for an entity’s goods and services.

Regulators

Regulatory agencies implement and enforce laws. The agency can either be independent organizations or government. They are established to ensure customer safety & protect consumers. Adherence to regulations helps to boost customer confidence and integrity of the firm. Examples of global regulatory agencies are the World Health Organisation (WHO), International Council on Harmonisation (ICH), International Organisation of Securities Commissions (IOSCO), etc.

Substitutions

These are those whose products can be a replacement for another. Substitutes are like competitors but with different products. A substitute product provides an alternative solution to the same problem. Businesses should watch out for entrants into the market that can satisfy the same needs they satisfy at a lower price. A good example is Coffee as a substitute for Tea.

Understanding all these participants and properly managing them is critical successfully running a business.