Research Methodology

• Market Estimated Methodology:

  Bottom-up & top-down approach, supply & demand approach are the most important method which is used by HDIN Research to estimate the market size.

  

1）Top-down & Bottom-up Approach

Top-down approach uses a general market size figure and determines the percentage that the objective market represents.

Bottom-up approach size the objective market by collecting the sub-segment information.

2）Supply & Demand Approach

Supply approach is based on assessments of the size of each competitor supplying the objective market.

Demand approach combine end-user data within a market to estimate the objective market size. It is sometimes referred to as bottom-up approach.

• Forecasting Methodology

• Numerous factors impacting the market trend are considered for forecast model:
• New technology and application in the future;
• New project planned/under contraction;
• Global and regional underlying economic growth;
• Threatens of substitute products;
• Industry expert opinion;
• Policy and Society implication.

• Analysis Tools

1）PEST Analysis

PEST Analysis is a simple and widely used tool that helps our client analyze the Political, Economic, Socio-Cultural, and Technological changes in their business environment.

• Benefits of a PEST analysis:
• It helps you to spot business opportunities, and it gives you advanced warning of significant threats.
• It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.
• It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
• It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.

2）Porter’s Five Force Model Analysis

The Porter’s Five Force Model is a tool that can be used to analyze the opportunities and overall competitive advantage. The five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area.

• Threat of New Entrants: Profitable industries that yield high returns will attract new firms.
• Threat of Substitutes: A substitute product uses a different technology to try to solve the same economic need.
• Bargaining Power of Customers: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
• Bargaining Power of Suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
• Competitive Rivalry: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

3）Value Chain Analysis

Value chain analysis is a tool to identify activities, within and around the firm and relating these activities to an assessment of competitive strength. Value chain can be analyzed by primary activities and supportive activities. Primary activities include: inbound logistics, operations, outbound logistics, marketing & sales, service. Support activities include: technology development, human resource management, management, finance, legal, planning.

4）SWOT Analysis

SWOT analysis is a tool used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. The strengths and weakness is the inner factor; the opportunities and threats are the external factor. By analyzing the inner and external factors, the analysis can provide the detail information of the position of a player and the characteristics of the industry.

• Strengths describe what the player excels at and separates it from the competition
• Weaknesses stop the player from performing at its optimum level.
• Opportunities refer to favorable external factors that the player can use to give it a competitive advantage.
• Threats refer to factors that have the potential to harm the player.

• Data Sources