Decisions are the pillars on which the fate of enterprises rests. As a business consultant, I often witness the puzzle that many business owners and executives face when it comes to making strategic choices that can steer their businesses towards success. One powerful tool that can aid in this process is Cluster Analysis.
What is Cluster Analysis?
Cluster Analysis is a method used to identify patterns in data by organizing them into groups based on similarities. To illustrate its potency, let's consider an example in market research. Imagine a company wants to understand potential customer segmentations. By applying cluster analysis, the company can uncover commonalities among different customer groups. This assists in selecting target customer segments that align with the company's strengths and value propositions.