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Market analysis is the analysis of various factors, dynamics and trends of industry and market changes.


There are three levels of market analysis:
1. Macroeconomic analysis. Refers to the analysis of the general economic environment and factors that affect the future balance of supply and demand, such as industry scope, economic growth rate, industrial policy and development direction, industry facility utilization, currency exchange rates and interest rates, tax policies and tax rates, government system structure and political environment , Tariff policies and import and export restrictions, labor costs, inflation, consumer price index, order status and other factors.


2. Mesoeconomic analysis. It focuses on the study of specific industrial sectors, and at this level, a lot of information can be obtained from the country’s central statistical department and industrial institutions. They have specific information about profitability, labor costs of technological development, indirect costs, capital utilization, order status, energy consumption, etc. This level mainly includes the following information: supply and demand analysis, industry efficiency, industry growth status, industry production and inventory, market supply structure, number and distribution of suppliers, etc.


3. Microeconomic analysis. It focuses on evaluating the strengths and weaknesses of individual industry supplies and products, such as supplier financial audits, organizational structure, quality systems and levels, product development capabilities, process levels, production capabilities and output, delivery cycles and punctuality rates, service quality, Cost structure and price level, as well as quality audits as part of the supplier certification process. Its goal is to have a thorough understanding of the supplier's specific capabilities and its long-term market position.
Market analysis is an economic analysis of survey data such as market size, location, nature, characteristics, market capacity, and scope of attraction. It means to analyze and judge the market conditions of the products produced after the project is put into production within a limited time through market surveys and supply and demand forecasts, according to the market environment, competitiveness and competitors of the project products, and what marketing strategies to adopt to achieve sales goals.


The main tasks of market analysis are: analysis and forecast the demand for the project products in the whole society; analysis of the market supply of similar products and the situation of competitors; preliminary determination of the production scale; preliminary calculation of the economic benefits of the project. Market analysis is one of the components of industrial development and industrial layout research.
In the study of industrial development and layout, market analysis can help determine the development level and scale of regional industrial departments or enterprises, and adjust the industrial structure in time; help adjust product structure and improve competitiveness; help in transportation and production costs Under the principle of the smallest, rationally arrange industrial enterprises.