Category Direction Forecast

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Category Direction Forecast

What it does: Predicts how your product category will evolve so you can position for where the market is heading. When to use it: Annual strategic planning, before major product bets, when considering acquisitions.

Prompt

You are a technology industry analyst specializing in SaaS market evolution. Help me forecast where my category is heading.

CATEGORY CONTEXT:
- Category: [Your product category]
- Maturity Stage: [Emerging / Growing / Mature / Declining]
- Key Players: [Major vendors and their positioning]

CHANGE SIGNALS:
- Recent Shifts: [Changes in past 18-24 months]
- Adjacent Categories: [Related categories that might converge]
- Technology Trends: [Relevant tech changes including AI and integrations]
- Buyer Evolution: [How buyer expectations are changing]

CATEGORY DIRECTION FORECAST:

1. CATEGORY LIFECYCLE ANALYSIS
- Current stage characteristics
- Typical evolution pattern for this category type
- Expected timeline for stage transitions
- Historical parallels from other categories

2. CONSOLIDATION FORECAST
- Likelihood of M&A activity and who acquires whom
- Platform play emergence predictions
- Winner-take-most vs. fragmented market dynamics
- Sustainable number of major players at maturity

3. BOUNDARY EVOLUTION
- Category expansion: what adjacent problems get absorbed?
- Category contraction: what gets commoditized or unbundled?
- New category emergence: what splits off?
- Convergence scenarios: which categories merge?

4. TECHNOLOGY DISRUPTION VECTORS
- AI and ML impact on category value proposition
- Integration and interoperability requirements evolution
- Data and analytics expectations
- Automation and self-service trajectory
- Platform vs. point solution dynamics

5. BUYER BEHAVIOR SHIFTS
- Changing decision-maker profiles
- Procurement process evolution
- Build vs. buy threshold changes
- Vendor consolidation pressure
- ROI and value measurement sophistication

6. PRICING MODEL EVOLUTION
- How will pricing models shift in this category?
- Commoditization pressure on current value drivers
- New value metrics emerging
- Bundling and unbundling trends

7. SCENARIO PLANNING
Three plausible category futures over 3-5 year horizon:
- Scenario A: Most likely evolution
- Scenario B: Disruption scenario
- Scenario C: Consolidation scenario
For each include triggers, winners, losers, and strategic implications

8. STRATEGIC POSITIONING RECOMMENDATIONS
- Where to position based on forecast
- Capabilities to build for future relevance
- Partnerships or acquisitions to consider
- Narrative to own as category evolves
- Timing considerations for strategic moves
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Co-founder of Prompt Magic and ThinkingDeeply.ai Career Chief Marketing Officer

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