Trend Analysis is used to identify market trends, market opportunities and market risks. It can help businesses adjust to market changes more easily and to achieve competitive advantage. Moreover, Trend Analysis can help management better understand the short-term liquidity position as well as the long-term solvency position of the company.
In order to improve business and to generate more growth, trend analysis can be used as a perfect tool to develop the strategy correspondent to these trends and business goals. In addition, the Trend Analysis could be used for investment purposes, because it gives an overview of the financial position of the business, as well as to predict the future events such as the future cash flow based on past data.
The first step is to identify trends from the macro environment and based on that to make trend evaluation regarding influence, impact intensity as well as probability of occurrence and subsequent scenarios. After the trend identification and evaluation, we evaluate opportunities and risks of current trends and market drivers and based on that we examine the potential courses of action.