Importance of business research
Business research is the process of acquiring detailed information about business Business research includes quiring information about business to its maximum extent. In other words business research is study of various aspects of business in detail These aspects include cost efficiency and effectiveness
Business research relates to economics ethics and changes of society. Business research is important for every business because it helps in formulation of business strategies and resources.If executed properly maay do wonders for a business by providing information regarding difficulties that might be faced in future
Why business research is important for a business?
- Help in discovering difficulties: With research you analyse what kind of difficulties you might face in working of business. With that you make plan for your business and decide how to overcome the difficulties .Understanding the difficulties in adane is huge advantage for a person who wish to pursue the business It always give an added advantage to the person
- Research on New products: When you do business research for a new product you analyse your target market demographics and what your customer actually want from the product. And from business perspective you get to know the customer demographics . This creates basic layout how the new product will function. This makes business research important for a new product launch .
- Understanding possibilities of failure:Business research help in understanding failure of a product or full business . Understanding demographics of business failure helps a business(you) when is the right to expand the business or close it down .This understanding of business failure through business research is a important step of business research
- Understanding the competition: Business research also help you understand the competition A brief detail about strength weakness opportunities and threats of the competition can be of great importance to a business. A business can take advantage from swot analysis of the competition and can be well aware about mistakes of the competitor.
- Defining distribution channel: While launching a new product a company has to define its distribution channel . A well research about the product can define the business to decide its distribution channel . A solid layout of distribution channel can help business to grow exponentially from its competitors. Thus making a new mark in market. It can also be used as first movers advantage. Thus business research helps in identification of distribution channel
- Forecasting future sales: A well conducted business research helps in forecast sales of future. Big companies rely of sales forecast and through sales forecast market value of company is defined . Sales forecasting is an important step in business research . It helps a business decide whether it will pursue it business or not . Through sales forecast profits of business can be determined
- Development of company:For development of a company there is always a need for continuous innovation for continuous innovation companies conduct business research on continuous basis .
First movers advantage: While doing business research companies get to know about various data which is very useful for targeting the customers and take advantage over others .So this makes business research to take first movers advantage.