Proof of market position refers to documents or materials provided by an enterprise to relevant departments or institutions to prove its position and influence in the target market in order to participate in certain market activities or obtain certain market benefits. The standards and processes for proving market position vary for different industries and purposes, but generally need to include the following: market definition, market share, market concentration, competitor analysis, competitive barrier analysis, key success factor analysis, etc. This paper takes Shangpu Consulting Group as an example, introduces its methods and steps in providing market position certification services to customers, and gives some specific case studies.

Proof of market position refers to documents or materials provided by an enterprise to relevant departments or institutions to prove its position and influence in the target market in order to participate in certain market activities or obtain certain market benefits. For example, when an enterprise makes mergers and acquisitions, investments, listings, applies for policy support, etc., it may need to provide proof of its competitive position in the relevant market to anti-monopoly authorities, financial regulatory authorities, industry associations, government agencies, etc., in order to assess its impact on the order of market competition and the public interest. Proof of market position can not only help enterprises obtain more market opportunities and advantages, but also help regulators and social parties to better understand and supervise market behavior.

Shangpu Consulting Group is one of the most leading and authoritative independent third-party research and investment and financing consulting institutions in China, with rich professional experience and customer resources.5000Our clients have provided professional market research and related consulting services, including market position certification services. Champ Consulting Group generally follows the following steps when providing market position certification services to customers:

Step 1: Identify the target market. The target market refers to the scope of the product or service involved in the enterprise in space, time and function, and is the basis for assessing the competitive position of the enterprise. Determining the target market requires a comprehensive consideration of factors such as the attributes, uses, substitutability, price elasticity, and consumer preferences of the product or service, as well as industry characteristics, legal requirements, and technological changes. The target market can be subdivided by product type, region, time period, etc., in order to more accurately reflect the competition of enterprises in different market segments.

Step 2: Calculate market share. Market share refers to the proportion of sales or sales in the total sales or total sales in the target market, and is an important indicator of the competitiveness of enterprises. Calculating market share requires the collection and collation of sales data for the firm and its competitors in the target market, which can be obtained using active surveys or passive acquisition. The results of the calculation can be expressed in terms of percentages or rankings.

Step 3: Analyze market concentration. Market concentration refers to the distribution of market share of each enterprise in the target market and is an important indicator of the degree of market competition. Analyzing market concentration requires the use of mathematical methods and statistical indicators, such as Herfindahl-Hirschman index (HHI), Kraft Index (CRn), Lorenz curve (Lorenz Curve), etc., in order to more objectively assess the degree of monopoly or the intensity of competition in the market.

Step 4: Evaluate your competitors. Competitors are other enterprises that provide the same or similar products or services as the enterprise in the target market, and are an important factor affecting the competitive position of the enterprise. Evaluating competitors requires identifying direct and indirect competitors and analyzing their size, strength, strategy, strengths, weaknesses, trends, etc. in order to understand their threats or opportunities to the business.

Step 5: Analyze barriers to competition. Barriers to competition refer to the obstacles or constraints that affect the entry or exit of enterprises in the target market, and are important factors to protect or challenge the competitive position of enterprises. The analysis of barriers to competition requires consideration of the following aspects: policies and regulations, technological innovation, branding, economies of scale, capital requirements, channel control, customer loyalty, etc., in order to assess the strengths or weaknesses of the firm in the target market.

Step 6: Identify key success factors. The key success factor refers to the most important factor or ability that affects the success of the enterprise in the target market, and is an important factor to improve or maintain the competitive position of the enterprise. Identifying key success factors requires a comprehensive analysis based on industry characteristics, customer needs, and the competitive environment to identify factors or capabilities that create core value and differentiating advantages, such as product quality, service levels, innovation capabilities, cost control, and brand building.

Step 7: Write a market position certification report. The market position certification report is to organize the above analysis results and conclusions into a complete document or material, which is used to provide evidence and basis to relevant departments or institutions. The following principles need to be followed in writing a market position certification report: complete content, clear logic, accurate data, sufficient argumentation, standardized format, concise language, etc. The report generally includes the following parts: title, abstract, table of contents, body (including introduction, main body and conclusion), references, appendices, etc.

When providing market position certification services to customers, Shangpu Consulting Group adopts different methods and steps according to different industries and purposes, and gives some specific case studies. The following is a brief introduction of some cases:

Case 1: A home appliance enterprise applies for policy support

In order to apply for the government's energy-saving subsidy policy, it needs to provide the relevant departments with proof of its competitive position in the air-conditioning market. Champ Consulting Group provides the following services to the enterprise:

The target market of air-conditioning products in the whole country is defined, and subdivided according to product type (such as wall-mounted, vertical cabinet, central air-conditioning, etc.), regional division (such as eastern, central, western, etc.) and time period division (such as quarter, year, etc.), so as to more accurately reflect the competition situation of the enterprise in different market segments.

The market shares of the enterprise and its main competitors in various market segments are calculated and expressed in percentage and ranking in order to show the advantages and disadvantages of the enterprise in the air-conditioning market.

analyzed the market concentration in the various segments and applied Herfindahl-Hirschman index (HHI) and the Kraft index (CRn) and other statistical indicators in order to assess the degree of monopoly or competition in the air conditioning market.

The direct and indirect competitors of the enterprise are evaluated, and its size, strength, strategy, advantages, disadvantages, trends, etc. are analyzed in order to understand its threats or opportunities to the enterprise.

The competition barriers in the air-conditioning market are analyzed, and the policies and regulations, technological innovation, brand effect, scale economy, capital demand, channel control, customer loyalty and so on are considered in order to evaluate the advantages or disadvantages of the enterprise in the air-conditioning market.

The key success factors in the air-conditioning market are identified, and a comprehensive analysis is carried out according to industry characteristics, customer needs, and the competitive environment, and the factors or capabilities that can create core values and differentiated advantages are identified, such as product quality, service level, innovation ability, Cost control, brand building, etc.

A market position certification report was prepared, and the above analysis results and conclusions were compiled into a complete document for providing evidence and basis to relevant departments.

Case 2: M & A of an automobile enterprise

An automobile enterprise intends to acquire another automobile enterprise. Before the merger and acquisition, it needs to provide the antitrust department with proof of its competitive position in the automobile market, so as to evaluate the impact of the merger and acquisition on the market competition order and public interest. Champ Consulting Group provides the following services to the enterprise:

Defines the target market for automotive products worldwide, and by product type (e. g., cars,SUV、MPVetc.), regional divisions (e. g., Europe, America, Asia, etc.), and time periods (e. g., quarterly, annual, etc.) are broken down to more accurately reflect the competition of the business and its acquisitions in different market segments.

The market share of the company, its acquisition target and its main competitors in each market segment is calculated and expressed in percentage and ranking in order to show the advantages and disadvantages of the company in the automotive market before and after the merger.

analyzed the market concentration in the various segments and applied Herfindahl-Hirschman index (HHI) and the Kraft index (CRn) and other statistical indicators in order to assess the degree of monopoly or fierce competition in the automotive market and to predict changes in market concentration after mergers and acquisitions.

Evaluated the direct and indirect competitors of the enterprise and its acquisition target, analyzed its size, strength, strategy, advantages, disadvantages, trends, etc., in order to understand its threats or opportunities to the enterprise and its acquisition target, and to predict changes in the competitive landscape after the acquisition.

This paper analyzes the competition barriers in the automobile market, and considers the policies and regulations, technological innovation, brand effect, scale economy, capital demand, channel control, customer loyalty and so on, so as to evaluate the advantages or disadvantages of the enterprise and its acquisition objects in the automobile market, and predict the changes of competition barriers after merger and acquisition.

The key success factors in the automobile market are determined, and comprehensive analysis is carried out according to industry characteristics, customer needs, competitive environment, etc., to find out the factors or capabilities that can create core values and differentiated advantages, such as product quality, service level, innovation ability, Cost control, brand building, etc., and predict the changes of key success factors after mergers and acquisitions.

A market position certification report was prepared, and the above analysis and conclusions were compiled into a complete document to provide evidence and basis to the antitrust department.

Case 3: A pharmaceutical company applies for a patent

A pharmaceutical company has developed a new type of anti-cancer drug. Before applying for a patent, it needs to provide the patent office with a certificate of its competitive position in the anti-cancer drug market in order to evaluate its impact on the market competition order and public interest. Champ Consulting Group provides the following services to the enterprise:

It defines the target market of anti-cancer drugs in the world, and subdivides them by product type (such as targeted therapy, immunotherapy, etc.), region (such as Europe, America, Asia, etc.), and time period (such as quarter, year, etc.), so as to more accurately reflect the competition of the company and its new anti-cancer drugs in different market segments.

The market share of the company and its new anti-cancer drugs and its main competitors in various market segments was calculated and expressed in percentage and ranking in order to show the advantages and disadvantages of the company and its new anti-cancer drugs in the anti-cancer drug market.

analyzed the market concentration in the various segments and applied Herfindahl-Hirschman index (HHI) and the Kraft index (CRn) and other statistical indicators in order to assess the degree of monopoly or fierce competition in the anti-cancer drug market, and to predict changes in market concentration after patent authorization.

The direct and indirect competitors of the company and its new anti-cancer drugs were evaluated, and its scale, strength, strategy, advantages, disadvantages, trends, etc. were analyzed in order to understand its threats or opportunities to the company and its new anti-cancer drugs, and to predict changes in the competitive landscape after patent authorization.

This paper analyzes the competition barriers in the anticancer drug market, considering the policies and regulations, technological innovation, brand effect, scale economy, capital demand, channel control, customer loyalty and so on, in order to evaluate the advantages or disadvantages of the enterprise and its new anticancer drugs in the anticancer drug market, and predict the changes of competition barriers after patent authorization.

The key success factors in the anti-cancer drug market are identified, and comprehensive analysis is carried out according to industry characteristics, customer needs, and competitive environment, and the factors or capabilities that can create core values and differentiated advantages, such as product quality, service level, and innovation Ability, cost control, brand building, etc., and predict changes in key success factors after patent authorization.

A market position certification report was prepared, and the above analysis and conclusions were compiled into a complete document for providing evidence and basis to the Patent Office.