Question

why do we study business research

Answer 1

Research on aspects related your business, such as your target customer, marketplace trends, production processes, and financial practices, can help you predict trends, project sales, spot opportunities, and avoid potential problems. Understanding the nature of different types of business research will help you use data to maximize your sales and profits.

Business research is the process of gathering the necessary data for an industry to be successful. Business research is synonymous with market research, but companies typically use every type of market research available to fully analyze their business situation: industry analysis, product research, and even identifying key customer groups. The business research process is necessary to assist managers in making major business decisions.

Business research can help you determine what potential customers want, which can guide you toward development of better products and services. It can keep you abreast of what your competition is doing and help you spot marketplace and industry trends. Research lets you analyze how your departments are performing, and then compare their performance against projections to determine if you need to make adjustments.

Before a business can start operating, it first must define its business. For example, a new discount health-care company may define its objective as providing affordable health care to individuals and families. After a company defines its main objective, it then is ready to study the industry and competition. The process of defining a business objective is necessary for managers to properly align their business plans with the right customers.