NEWS RELEASE June 2021
Profit Margin Potential Depends on the Competition
A new program from McIlvaine leverages lowest total cost of ownership validation (LTCOV) to increase profits and sales in the most attractive niches.
An attractive niche is one where the supplier can persuade customers that he has a better solution than competitors. So the activities of competitors now and in the future need to be assessed.
What is needed? The following questions need to be answered
- Precise definition of the niche in terms of the competitive leadership is important. Is this a process used in multiple industries or is it unique to one industry?
- How big is the market niche now and in the future?
- What are the shares of major participants?
- Why are they leaders?
- How profitable are these niches for the leaders?
Where can the needed information be found?
Analyzing the market shares is challenging and needs to be continuous. McIlvaine has market shares for thousands of companies in its reports on filters, pumps, and valves. This is a good starting point. But it is necessary to segment global shares by industry and product.
McIlvaine can provide these niche shares because of decades of following these markets. There are also some McIlvaine tools available free of charge.
Many thousands Flow and Treat suppliers have been assigned a number. This avoids confusion over name changes or the Chinese language. http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/UnivDB/company_classification.asp
A listing of products for each supplier in each location is displayed at http://www.mcilvainecompany.com/Decision_Tree/subscriber/product/instructions.htm
The definition of the niche can be based on the NAICS code.
The advantages for using this code include the ability to identify all the plants in this classification.
One of the ways to analyze market share is to track exhibition activity. Examples of this and queries for specific companies are found at http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/Default.htm
McIlvaine is making a special effort to identify TCO factors and market shares in two industries on a weekly basis.