Shaping the Evolution of the Company Products Market by Applying Markov Chains Method

Abstract

This article present the Markov chains method, stages of implementation, the advantages and disadvantages of using it in the market analysis context of a company products. A Markov chain represents the stochastic process as such, its state being present, future conditions are independent of the past. In a Markov process, at every moment, the system can keep or change the status, according to some probability distributions. The case study presents the real situation of a furniture production company who wishes to identify the consumers number, their preferences at any time, their loyalty and how to shift them in the future. After conducting a market study on clients, data processing was performed using MARKOV process module of the WinQSB software, decizional analysis software. After the completion of such analysis and dragging over it findings, the company can develop a new strategy for the future, growth of investments or change some products, in order to attract a larger number of clients.
Keywords: Modeling, Markov chains, Market share, Markov processes, Win QSB software.