Spatial dimension-it is very important to choose industries with large market space. Concept of market space: market space is actually demand, or expected total sales. The significance of market space: for enterprises in the industry, market space represents the maximum possible boundary of their business and is at the end of a certain process; It will only affect their business strategy.
For investors, there is a huge difference between "the sea is wide and the fish jumps" and "the Dojo is made in the snail shell". It is very important to choose an industry with a large market space. After all, it is easy to fish where there are many fish.
How to analyze the size of market space? To analyze the market space of an industry, we should not only look at the current market stock, but also start with the stock and increment. And in a sense, it may be more important to analyze the incremental market. The concepts of stock and increment are relative and absolute. They represent both absolute quantity and relative quantity compared with alternative industries.
Whether the business model of the industry is to G, to B or toC, it is ultimately for people. The customs, population, age structure and income structure in different regions are the key factors that affect the market space. Therefore, the market space is not static, it will change with the change of time and space.
Methods of analyzing market space
The methods of analyzing market space can generally be divided into top-down and bottom-up two categories. The difference between the two methods is that the top-down calculation method is from a macro perspective, and its main calculation methods are active deduction algorithm and related data deduction algorithm.
The bottom-up measurement method is from the micro perspective, including demand measurement method and post-industry speculation algorithm.