Market Analysis Research

Assignment Content

1. 
   

   Purpose

   
   

   MBA Business Plan component

   
   

   
   
   
   

   
   

   Context

   
   

   One of the most important elements in a business plan is the market analysis. A market analysis is a qualitative and quantitative assessment of a market. It includes data collection and estimation in reference to the market size and value; characteristics of the intended customer base; in-depth understanding of the competition; barriers to entry and the regulatory environment. An accurate and detailed market analysis allows entrepreneurs to determine whether the market is sufficiently large to build a sustainable, profitable business. In this assignment, you will prepare a portion of the market analysis for your proposed business. You will create a report that can be included as part of your digital portfolio.

   
   

   
   
   
   

   
   

   Instructions

   
   

   
   Write
   a 525-word report that includes the following sections:

   
   
   
   
   • Section 1: Business overview, mission and vision
   
   
   • Section 2: Market analysis
   
   
   • Section 3: Recommendation
   
   
   
   

   
   
   
   

   
   

   
   Use
   the
   Market Analysis Research
   document for details on what to include in each section.

   
   

   
   

   
   Cite
   references to support your assignment.

   
   

   
   

   
   Format
   your citations according to APA guidelines.

   
   

   
   

   
   Submityour assignment.

Insert Title DAT/565 v3 Market Analysis Research DAT/565 v3 Page 2 of 2 Wk 3 Market Analysis Research Section 1 - Business overview, mission and vision  Describe the proposed business. Address the following in your summary: · What type of product/service will it offer? · What is the intended market? · What is the business model?  Articulate the business’s mission and vision statements.    Section 2 - Market analysis   Based on your intended product or service, describe the characteristics of your customer base.     Investigate and list your current competitors. For example, if you’re manufacturing and selling exercise equipment, current competitors would be companies like NordicTrack or Nautilus, Inc. To simplify the process, limit yourself to businesses you are competing directly against. If your business is a local bistro, then your competitors are other local similar restaurants.    Research and estimate the size of your intended market. Market size is the number of potential customers or unit sales for your products/services. Consider the nature of your business when researching market size. For instance, if your business is a local bistro, then your market size is determined by the population within a reasonable radius of the restaurant, say, 5-15 miles maximum. On the other hand, if your business intends to sell a low-weight mountain bicycle online, then the market size is the average number of low-weight mountain bicycles sold nationwide annually.     Estimate the value of your market. Market value is the potential revenues the market has to offer. For instance, suppose low-weight mountain bicycles have a market size of 300,000 units a year with a $500 average price. Then the market value would be $150,000,000. It can be difficult to estimate market value as you must make assumptions related to market size and average unit price. Use the expected value concept introduced in Chapter 6 of the textbook and the chart below to do the estimation.   Expected Market Value: Mountain Bicycle Scenario  Assumptions   Probability p(x)   Units ('000)   Avg. Unit Price ($)   Market Value ('$000)   Pessimistic   0.30   200   450   90,000   Most Likely   0.50   300   500   150,000   Optimistic   0.20   375   550   206,250   Expected Market Value ('$000)  102,110  Estimate the total addressable market or TAM. This is the fraction of the total market you realistically estimate to get. Most businesses have a relatively modest market share, well under 20%. For example, if we expect to get a 5% share of the mountain bicycle market, then our TAM would be: 0.05 * $102,110,000 = $5,105,500 or approximately $5.1 million.      Section 3: Recommendation  Based on the information collected, do you feel it is a good idea to continue with the implementation of the business? Explain why or why not. Cite references to support your assignment.   Format your citations according to APA guidelines. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved.