Understanding Relevant Markets in the Development of Organisational Strategies

Posted by John Puttick in Apr, 2024

Develop organisational strategies

Relevant markets refer to the specific markets that a business operates in or is planning to enter. In the context of developing organisational strategies, understanding relevant markets is crucial for making informed decisions about where to compete, how to position products or services, and how to allocate resources effectively.

People in enterprises need to understand relevant markets in order to conduct comprehensive market analysis, identify growth opportunities, assess competitive dynamics, and develop successful strategies that align with market demand. By understanding relevant markets, businesses can also mitigate risks, anticipate changes, and adapt their strategies to external market forces.

Key components of relevant markets include market boundaries, customer segments, competitor analysis, market trends, regulatory factors, and market dynamics. Understanding the size, growth rate, and profitability of relevant markets is essential, along with comprehending the needs and preferences of target customer segments and the strategies of key competitors..

Key terms related to relevant markets include:


1. Market boundaries: The specific parameters that define the scope of a market, such as geographical, product/service, or demographic boundaries.
2. Customer segments: Subgroups of potential customers with distinct needs, characteristics, or purchasing behavior.
3. Competitor analysis: The process of evaluating the strengths, weaknesses, strategies, and performance of current and potential competitors.
4. Market trends: Long-term shifts or short-term fluctuations in market conditions, customer behavior, technology, or regulations.

Business leaders, marketing professionals, strategic planners, and market analysts are typically engaged in operating or implementing relevant markets in the development of organisational strategies. They use market research, competitive intelligence, and strategic analysis to inform decision-making and shape the direction of the business.

Understanding relevant markets aligns with other components within the sphere of influence of strategic management, such as industry analysis, business model development, and marketing strategy. It integrates with market segmentation, product positioning, and strategic targeting to create a holistic approach to strategic planning.

Students can find more information about relevant markets in academic journals, business publications, industry reports, and market research databases. Additionally, industry conferences, professional associations, and business consulting firms offer valuable insights and resources related to relevant markets and strategic development.  Click to see Industry Professor John Puttick’s articles on organisational strategies.

Job roles that would be knowledgeable about relevant markets include market research analyst, strategic planner, marketing manager, business development manager, and competitive intelligence specialist. These professionals are equipped with the skills and tools to assess relevant markets and formulate effective strategies.

In relation to sports, understanding relevant markets is akin to a team analyzing the strengths and weaknesses of their opponents, identifying the demographics and preferences of their fan base, and strategizing on how to attract and retain supporters. Similarly, in family or schools, understanding relevant markets would involve identifying the needs and interests of family members or students, understanding the dynamics of the community or educational environment, and developing tailored strategies to meet their requirements.

(The first edition of this post was generated by AI to provide affordable education and insights to a learner-hungry world. The author has edited, endorsed, and published it, updating it with additional rich learning content.)

Related Posts: