The proof of market position refers to the proof of the competitive advantage and influence of the enterprise in the relevant market, which is of great significance to the enterprise's business decision-making, investment consulting, IPO listing and other important links. This paper analyzes the importance, methods and restrictions of the market position certificate, and discusses the renewal frequency and maintenance methods of the market position certificate in the light of the service case of Shangpu Consulting Group Co., Ltd. (referred to as "Shangpu Consulting"). This paper holds that the market position certificate should be updated and revised regularly according to the changes in the relevant market to maintain its accuracy and validity. At the same time, the maintenance of the market position certificate should follow the following principles: first, provide customized solutions based on customer needs; second, provide scientific and rigorous analysis reports based on data; third, provide useful suggestions and measures based on value.

Importance of Proof of 1. Market Position

Market position refers to the enterprise's share, ranking, advantages and disadvantages in the relevant market, which reflects the relative size and competitiveness of enterprises, and is an important basis for measuring the core competitiveness of enterprises. Therefore, the accurate proof and evaluation of the market position is of great significance to the enterprise's business decision-making, investment consulting, IPO listing and other important links.

(I) provide a basis for business decisions

Business decision-making refers to the selection process of various action plans taken by enterprises to achieve the established goals, which involves product development, market expansion, channel construction, price strategy, promotional activities and other aspects. In order to make correct and effective business decisions, enterprises need to have a clear understanding of their own market environment and competitive situation, which requires objective and accurate proof and evaluation of their own market position.

Proof of market position allows companies to understand their share, ranking, strengths and weaknesses in the relevant market, as well as gaps and potential threats to competitors, so as to make business decisions that are in line with their strengths and objectives. For example, if a company finds that it has a high market share and leading edge in a certain market segment, it can adopt a strategy of consolidation or expansion, increase investment or explore new areas; if the company finds itself in a certain market segment Disadvantage or strongly challenged, you can adopt a defensive or retreat strategy to reduce risks or seek transformation.

(II) provide reference for investment advisory

Investment consulting refers to providing investors with professional advice and services on the feasibility, risks and returns of investment projects or investment objects. Investment consulting involves many industries, such as finance, real estate, energy, medical, etc., and its goal is to help investors make reasonable and effective investment choices.

In order to provide high-quality investment advisory services, investment advisers need to have an in-depth and comprehensive understanding of the industry conditions and market competition in which the investment project or investment target is located, which requires scientific and rigorous certification and evaluation of its market position.

Through the proof of market position, the investment adviser can judge whether the investment project or investment object has strong competitiveness and development potential in the relevant industry, as well as the opportunities and challenges it may face, so as to provide investors with reasonable and effective investment advice. For example, if an investment adviser finds that an enterprise has a high market share and leading edge in a certain market segment, and has good profitability and growth prospects, he can recommend the shares or bonds of the enterprise to investors; if the investment adviser finds that an enterprise is at a disadvantage or strongly challenged in a certain market segment, and there are financial risks or development difficulties, investors may be advised to avoid or reduce their investment in the business.

(III) provides support for IPO

An IPO(Initial Public Offering), or initial public offering, is the process by which a company issues shares to the public for the first time and is listed on a stock exchange. IPO is not only an important way for enterprises to finance and develop, but also an important symbol for enterprises to realize equity diversification and marketization. IPO involves many links, such as declaration, audit, issuance, listing, etc. Among them, the market position certificate is one of the important contents of IPO declaration and audit.

According to the provisions of China's Securities Law and the measures for the Administration of Information Disclosure of listed companies, enterprises applying for IPO need to disclose the general situation of their industry, market size, market share, market position and other information in the prospectus, and provide relevant supporting materials.

Through the market position proof, the enterprise can demonstrate to the regulators and investors its competitive advantages and profitability in the relevant industry, as well as its future development prospects and strategies, so as to improve the success rate of its IPO and the market performance after listing.

Methods of 2. Market Position Proof

The method of market position proof mainly includes determining the relevant market, calculating and analyzing the market share, and using other indicators to supplement the analysis.

(I) identify relevant markets

The relevant market refers to the market composed of goods or services with the same or similar use, performance, price and other characteristics within a specific time and geographical range. Determining the relevant market is the first and most critical step in the demonstration of market position, because different relevant market divisions will lead to different market position evaluation results.

Determining the relevant market mainly includes determining the product market and the geographical market.

A product market is a market consisting of goods or services with the same or similar uses, performance, price and other characteristics. The determination of product markets is based primarily on substitutability between goods or services, I .e., whether consumers will switch to other goods or services when the price of goods or services changes. Substitution can be analyzed from both the demand side and the supply side. Demand-side substitution refers to whether consumers will switch to other relatively low-priced goods or services when the price of a certain good or service rises. Supply-side substitution refers to whether producers will turn to the production of other goods or services with relatively high prices when the price of a good or service rises. Demand-side substitution and supply-side substitution can be judged by market research, expert consultation, historical data and other methods.

A geographical market is a market consisting of goods or services with the same or similar uses, performance, price and other characteristics within a specific geographical area. The determination of geographical markets is based primarily on the mobility of goods or services, I .e. the possibility and cost of consumers and producers buying or selling goods or services between different geographical areas. Mobility can be analyzed from factors such as transportation costs, policies and regulations, and consumption habits.

(II) calculate and analyze market share

Market share refers to the proportion of sales or sales volume of an enterprise in the relevant market, which reflects the relative size and competitiveness of the enterprise in the relevant market, and is one of the core methods for proving market position.

The calculation of market share consists mainly of the following steps:

1. Determine the calculation index. According to different industry characteristics and data availability, select the appropriate calculation indicators, such as sales, sales, shipments, installations, etc.

2. Determine the calculation time. According to different industry cycles and data release frequency, select the appropriate calculation time, such as annual, quarterly, monthly, etc.

3. Determine the scope of the calculation. According to different industry structures and data sources, select the appropriate calculation range, such as global, domestic, regional, urban, etc.

4. Collect and verify data. Collect and verify relevant market aggregates and company sales or volume data from authoritative and reliable data sources, such as official statistics, industry associations, third-party organizations, etc.

5. Calculate and analyze the results. Using the formula: market share = enterprise sales (or sales)/total relevant market, calculate the market share of the enterprise in the relevant market, and compare and analyze with competitors.

The analysis of market share mainly includes the following contents:

1. Analyze the ranking and gap of the enterprise in the relevant market. According to the size of the market share, determine the company's ranking in the relevant market, such as first, second, third, etc., and conduct a gap analysis with the top-ranked competitors, such as how many percentage points higher or lower.

2. Analyze the trends and causes of changes in the relevant market. Based on historical data, determine the trend of market share changes in the relevant market, such as rising, falling, stable, etc., and analyze the reasons for their changes, such as product innovation, marketing strategy, competitive environment, etc.

3. Analyze the strengths and weaknesses of the company in the relevant market. According to the situation of competitors, determine the advantages and disadvantages of the enterprise in the relevant market, such as product quality, brand awareness, channel coverage, customer loyalty, etc.

(III) use other indicators to supplement the analysis

Although market share is an important indicator to measure the market position of an enterprise, it does not fully reflect the competitive advantage and influence of an enterprise, because market share is affected by many factors, such as market size, market structure, market growth rate, market profit margin and so on. Therefore, in order to conduct a more comprehensive and in-depth market position demonstration, additional analysis using other indicators is needed.

Other indicators include the following categories:

1. Market size indicators. Market size indicators are indicators that reflect the total amount and potential of the relevant market, such as sales, sales, and number of users. Market size indicators can reflect the market space and development prospects of enterprises, as well as the contribution and influence of enterprises to the market.

2. Market structure indicators. Market structure indicators are indicators that reflect the competitive landscape and distribution of the relevant market, such as concentration, dispersion, and differentiation. Market structure indicators can reflect the competitive pressures and opportunities faced by firms, as well as their control and shaping of the market.

3. Market growth rate indicators. Market growth rate indicators are indicators that reflect the growth rate and degree of change in the relevant market, such as annual growth rate, compound growth rate, etc. The market growth rate index can reflect the market stage and dynamics of the enterprise, as well as the enterprise's adaptation and innovation to the market.

4. Market margin indicators. Market margin indicators are indicators that reflect the profitability and efficiency of the relevant market, such as gross margin, net margin, and return on investment. Market profitability indicators can reflect the market value and competitiveness of the enterprise, as well as the acquisition and sharing of the market.

The use of other indicators for supplementary analysis consists of the following steps:

1. Determine the purpose of the analysis. According to different analysis purposes, select appropriate other indicators, such as evaluating market potential, judging competitive advantage, predicting development trends, etc.

2. Determine the analysis method. According to different other indicators, select the appropriate analysis methods, such as comparative analysis, trend analysis, causal analysis, etc.

3. Collect and verify data. Collect and verify relevant market size, structure, growth rate, profit rate and other data from authoritative and reliable data sources, such as official statistics, industry associations, third-party organizations, etc.

4. Calculate and analyze the results. Using formulas or models, other metrics are calculated and compared and analyzed with competitors.

Restrictions on Proof of 3. Market Position

Although the market position certificate is a useful analysis tool, it also has some limitations and shortcomings. The following points need to be paid attention:

1. Proof of market position is not the same as proof of market power. Market power refers to the ability of an enterprise to influence important variables such as price or output in the relevant market, which reflects the enterprise's control and domination of the market. The market position certificate can only reflect the relative size and competitiveness of the enterprise in the relevant market, but it cannot directly reflect the market power of the enterprise, because the market power is affected by many factors, such as demand elasticity, supply elasticity, product differentiation, entry barriers, etc.

2. Proof of market position is not the only analytical tool. The market position certificate can only analyze the enterprise from one angle or one level, but it cannot cover all aspects and dimensions of the enterprise, because the core competitiveness of the enterprise also depends on other factors, such as innovation ability, management ability, talent ability, social responsibility and so on.

3. Proof of market position is not a static analysis. The market position certificate can only reflect the analysis results of the enterprise at a specific time and under specific conditions, but it cannot reflect the analysis results of the enterprise at different times and under different conditions, because the market position is dynamic and is affected by the market environment, competitive strategy, consumer behavior and other factors.

Update frequency and maintenance method of 4. market position certificate

Based on the above analysis, it can be seen that the market position certificate is a useful and limited analytical tool, which needs to be updated and revised regularly according to the changes in the relevant market in order to maintain its accuracy and effectiveness. So, how often should the market position certificate be updated? And how should it be maintained?

(I) update frequency

The frequency of renewal of the market position certificate should be determined according to the speed and degree of change in the relevant market. Generally speaking, if the relevant market changes faster or larger, a higher update frequency is required; if the relevant market changes slower or smaller, a lower update frequency can be used.

Specifically, you can refer to the following factors to determine the update frequency:

1. Industry characteristics. Different industries have different development speeds and stages. Some industries, such as high-tech, Internet, new energy and other industries, change rapidly and need higher update frequency; some industries, such as traditional manufacturing, agriculture, forestry, animal husbandry and fishery, public services and other industries, change slowly and can update at a lower frequency.

2. Market competition. Different markets have different competition patterns and intensity of competition, some markets such as oligopoly, oligopoly competition and other markets change more, need a higher frequency of update, some markets such as full competition, monopoly competition and other markets change less, can be lower update frequency.

3. Data release. Different data have different release time and release frequency, some data such as annual data, quarterly data and other data released late or less, need a lower update frequency; some data such as monthly data, weekly data and other data released earlier or more, can be a higher update frequency.

4. Customer needs. Different customers have different needs and expectations, some customers such as investors, regulators and other customers need newer or more information, need a higher update frequency; some customers such as consumers, partners and other customers can accept older or less information, can be updated less frequently.

Considering the above factors, the renewal frequency of the market position certificate can be divided into the following levels:

-High-frequency updates: weekly or monthly updates, suitable for fast-changing or changing industries and markets, as well as customers who need new or more information.

-Medium frequency update: quarterly or semi-annual update, suitable for moderate or moderate changes in the industry and market, as well as customers who can accept certain information.

-Low-frequency update: updated every year or every two years, suitable for slow or small changes in the industry and market, and can accept old information or less information customers.

(II) maintenance methods

The maintenance method of the market position certificate should be determined according to the change content and change direction of the relevant market. In general, if the relevant market changes more or more complex, you need more maintenance methods; if the relevant market changes less or less simple, you can less maintenance methods.

Specifically, you can refer to the following principles to determine the maintenance method:

1. Provide customized solutions based on customer needs. Different customers have different needs and expectations, and need to provide targeted and personalized market position certification services according to the specific situation and problems of customers, rather than one-size-fits-all or stereotyped standard services.

2. Supported by data, provide scientific and rigorous analysis report. Data is the basis and core of market position certification, it is necessary to collect and verify data from authoritative and reliable data sources, and use appropriate methods and models for calculation and analysis, and clearly display data sources, data methods, data results and other information in the analysis report to increase the credibility and reliability of the report.

3. Take value as the core and provide useful suggestions and measures. The purpose of market position certification is to help customers achieve their goals and values, and it is necessary to make useful recommendations and measures in the analysis report, as well as information on its theoretical basis, implementation steps, expected results, etc., in order to increase the practicality and effectiveness of the report.

Considering the above principles, the maintenance method of market position certificate can be divided into the following steps:

-Understand customer needs. Through communication with customers, understand the industry and market situation of customers, as well as the problems and challenges faced by customers, as well as the goals and values expected by customers.

-Design solutions. According to the customer's needs, design the appropriate market position certification program, including determining the relevant market, selecting the calculation index, determining the calculation time, determining the calculation scope, selecting other indicators, etc., and confirm and modify with the customer.

-Collect and verify data. Collect and verify relevant market volume and enterprise sales or sales volume data from authoritative and reliable data sources, and collect and verify relevant market size, structure, growth rate, profit margin and other data.

-Calculate and analyze the results. Using formulas or models, calculate the market share of the enterprise in the relevant market and compare and analyze it with competitors, and use formulas or models to calculate other indicators and compare and analyze it with competitors.

-Propose recommendations and measures. According to the calculation and analysis results, put forward useful suggestions and measures, including how to consolidate or enhance the market position, how to deal with or avoid market risks, how to create or share market value, and explain its theoretical basis, implementation steps, expected effects and other information.

-Preparation and submission of reports. According to customer needs, prepare analysis reports that conform to the format and specifications, including titles, abstracts, keywords, text, conclusions, references, etc., and clearly display data sources, data methods, data results, recommended measures and other information in the report, and submit reports to customers in a timely manner and solicit feedback.