Market Analysis

When developing a procurement strategy, most procurement processes reconcile analysis of demand for the category with the attributes of the supply market to develop an appropriate strategy. Market analysis is the systematic review of the characteristics, capacity and capability of the supply market in order to understand the extent to which the market meets the needs of the buying organisation. For example, the definition of market requires decisions about two key dimensions: the geographical scope of the market, (is it a local, regional, national or global market?), and the technical scope of the market. Technical scope addresses the range of solutions that meet substantially the same need. Once the market is defined, tools of analysis may be used to profile the market, such as life cycle, trends, technology road map, the relative bargaining power of buyers and sellers, the threat of new entrants etc. See also Five Forces Analysis.

Have your Procurement Knowledge evaluated at Skills Gap Analysis.

Opportunity & Supply Market Analysis training is available at Academy of Procurement.

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With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.