Who should get a CBAP certification?
To get Business Analyst Certification, Individuals start by deciding whether or not to enter the market, called the market entry scenario. Having decided to enter, individuals must then decide how to engage with the market called the market approach scenario. Individuals then strive to grow in the market, called the market growth scenario. The market entry strategic scenario can be divided into market entry and market exit. In market entry we apply our competitive advantages to the characteristics of the proposed market. For example,
Social Networking
Diaspora and other Individuals decided to enter the social networking market when it saw that market growing quickly. In market exit, companies decide to leave flat or shrinking markets or those suffering from intense competition. For example, Siemens decided to leave the radiation therapy market due at least partly to the intense competition it faced from his Medical. Individuals entering markets can enter by growing capabilities in house called organic growth or by acquiring another organization who already has those capabilities called acquisition- driven growth. Having decided to enter a market, companies must now decide how they wish to engage with the market.
According to professor and author Michael Porter, they face three distinct choices, cost leadership, differentiation and focus. In cost leadership, companies strive to leverage low cost operations to keep profits high. For example, Southwest Airlines flies only one type of aircraft, the Flying 737, to keep operations costs low. In differentiation, professionals strive for profitability by convincing buyers that their offerings are unique. For example, the New York Times emphasizes its unique writing style to attract readers. In the focus approach, company strives for profitability by specializing in one particular area. For example, Sunglass Hut specializes in nothing but sunglasses in its retail stores.
After Getting a CBAP Certification
Now that you have earned the CBAP Online Certification and entered the market and decide our approach to it, we must grow if we wish to survive. Igor Ansoff proposed four key growth methods: Market penetration, market development, product service development and diversification. In market penetration, companies grow revenue by increasing sales of existing goods and services to their existing market. We can grow by targeting competitors, by targeting the frequency of usage and by targeting the revenue per order. For example, Expedia encourages shoppers to book hotels at the time they book airlines thus increasing the revenue per order. In market development, employees grow by increasing sales of existing offerings to new markets. For example, Dunkin’ Donuts expanded geographically to increase its sales.
Product services
In product service development, professionals grow by increasing sales of new products and services to existing markets. For example, cosmetics maker L’Oreal markets multiple types of hair color products to customers. In diversification, companies grow by increasing sales of new offerings to new markets. For example, GE markets multiple products to multiple markets. We use different metrics for different strategic scenarios. We cover metrics for each in the next slides. For market entry and exit, we measure market size and market growth rate. To market size we calculate the potential revenue available in the market.
Example, the Smartphone app market is estimated to be about 15 billion dollars in size. To estimate the size of the market, we use the techniques we covered in chapter two. For market growth rate, we conduct a periodic evaluation of the market size to monitor if it’s increasing or decreasing.
For example, word processor company Wang Laboratories failed to notice a shrinking demand for standalone word processors as customers migrated to general purpose personal computers for this task instead. To measure our effectiveness in market approach, we measure revenue and profit. We start with revenue. Individuals typically examine a variety of revenue reports such as the ones listed. Total revenue tracks to see how our company fares against its competitors. Revenue by business Analyst unit is used by large companies to track revenue of its various businesses or business Analyst units to identify the success of each.
Conclusion
There are a lot of benefits of going for a CBAP training before entering a market, this can help one understand the nature of the market. There is a need of elite professionals who can take up major responsibilities and can help their respective companies grow in the market.
Also Read: Effective ways business analytics can boost your business
