Before entering a market, businesses need to examine aspects like existing value propositions, regulations, demand, and competition, among other potential influencers. A market opportunity analysis helps identify and evaluate such aspects to develop a strategic plan for market growth and expansion.
A major infotech solutions provider, eager to launch an indirect taxation software, sought to understand its market opportunity across 3 countries. Realizing they would need an in-depth analysis to assess external market factors, identify gaps, and gauge the scope for growth opportunities, they sought our research expertise.
About the Client
Our client is a major information services and technology solutions provider. They are a global leader in professional information, software solutions, and services across health, governance, risk and compliance, tax and accounting, and legal and regulatory sectors. Headquartered in the EU, the group maintains operations in 40 countries across Europe, Asia Pacific, the United States, Canada, and South America and serves customers in over 180 countries.
Objective and Scope
To aid in a comprehensive assessment of the indirect taxation system, our client sought to conduct a market opportunity analysis of indirect tax software across 3 countries – the US, UK and Brazil.
This study would help them assess external market factors, identify gaps and gauge the scope for growth opportunities in the market, providing a detailed purview of the indirect taxation market structure and outlook.
Solution and Approach
To help our client gain adequate market intelligence of the indirect taxation software market, Netscribes employed a blend of comprehensive secondary research and a triangulation approach of economic forecasts and indicators to conduct a detailed market opportunity analysis. The following market research and analysis approach was employed to help the client zero in on a go-to-market strategy for its indirect taxation software across sectors:
- Data collation: An in-depth secondary research and analysis was carried out to understand the economic and policy frameworks, tax compliance environment, tax determination complexity, drivers and challenges, technology adoption and market footprints of major players across applicable markets.
- Data triangulation: Considering limited data availability from secondary sources, Netscribes used a triangulation approach – collating and analyzing data from multiple sources to strengthen research credibility. Information based on economic indicators, forecasts and viewpoints from economists and market experts, was gathered and studied to arrive at the market size figures.
- Extensive research across premium databases: Finally, leveraging inputs from reports published by government bodies, international monitoring agencies, consulting industry players, trade publications, market participants and academic research published by scholars, we were able to conduct an in-depth market analysis study.
Results Delivered
For each focus sector, Netscribes provided the client with a report that identified opportunities and offered an in-depth view on three major parameters:
- Sector-wise contribution of indirect tax revenues
- Propensity to adopt technology solutions and services catering to business processes
- Complexity of the respective value chains leading to complexity in indirect tax determination
Benefit
Armed with these insights the firm was able to holistically assess and evaluate growth opportunities in target markets and define its go-tomarket strategy for its indirect taxation software solutions across sectors.
Read more: Benefits of conducting a market opportunity analysis
