Market opportunity analysis is a kind of business planning that emphasizes on discovering the future opportunities and evaluating the company’s technological, financial and competitive willingness to make use of them. Market analysis includes the identification of the unmet needs of the customers, identification of target markets, and assessing the competitive advantages as well as resource capacity of the company in order to meet the market’s needs.
Steps of Market Opportunity Analysis process
In order to perform a proper Market Analysis, there are five steps. Following procedure involved in analysis of market opportunity
Current Market Trends
In this step you are supposed to look at the growth conditions along with any kinds of social changes or trends that can impact the business. Investigate the regulatory and legal situation because they often change. Therefore you need to be well prepared for such unseen changes. Look in to and update yourself about the latest technological changes and last but not the least, do not overlook the natural environment. See deeply if there are any kinds of limitations or weaknesses that may hinder your growth?
Defining the Industry
This step demands to seek for the market opportunity within the particular industry you are dealing in. Look at the market size and take in to consideration the last 5 years and forecast that how the market grow over the year, 3 years or 5 years. Look at your competitors in marketing practices that they are employing in their businesses. This all will take you towards the analysis of major shifts or trends within that particular industry. Doing all this will enable you to have an idea that you are moving on the right track towards availing the opportunity.
Get each and every detail about your Competitors
You are always in dire need to know that what businesses you are competing with. Also you must be well aware of their products inside and out. Investigate their product mix and make a deep comparison of that with the products that you offer. Make sure that you are identifying the strengths and weaknesses of your products keeping in view the customer’s point of view. Take a deeper look of how your customers are accessing the market, which distribution channels are they using in order to market and distribute their products and the level of the services they are offering.
Define your Target Market
Target market except of you to build a comprehensive customer profile for your product. This will allow you to focus on your sales as well as marketing efforts in order to reach your customers. For this you must seek for the answer to the following questions:
- Who are your potential customers?
- What are your potential customers looking for?
- When do they need the product?
- Which distribution channel will sell the product best?
- How customers decide to buy the product?
- Are there any external factors affecting the buying decision of customers?
- How is the market of the product changing and developing?
Answering these questions will facilitate you in determining the actual market needs.
Create your own Projection
Use several techniques built on the information that you have gathered and forecast your sales. This may take account of the worst as well as best scenario analysis. Moreover any kind of intuition you may have about the market must be taken in to consideration too.
To conclude this article it is stated that Market Opportunity Analysis brings you to a point where you simply answer the question that is the project a go or no.