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 evaluation 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 complete a market analysis for your proposed organization and create a report that can be included within a business plan.
Write a 525-word report that includes the following sections:
- Section 1: Business overview, mission, and vision
- Section 2: A Market analysis that includes the following components:
- Section 3: Recommendation
Use the Market Analysis Research document for details on what to include in each section.
Market Value Chart
Expected Market Value: (Place Organization’s Name here)
Probability Number of Number of percentage of the services or units Services
will get you plan to sell Average Unit price multiplied by
monthly based on of Each Service the average unit
the size of your price equals
Assumptions market population market value
pessimistic 0.30 x
Most Likely 0.5 x
Optimistic 0.20 x
$ $ Total Market
Value (includes Y
Value (% you Y
expect to capture).
Instructions on filling out the Market Analysis Chart:
1. The above chart is provided for you to complete. All of the values marked X and the $ signs, and the expected market value at the bottom of the chart (marked Y ) need to be inserted based on your proposed business. You may use this chart to identify the “assumption of the market that you intend to capture.
2. Leave the assumption column as is. The probability column is identified in decimals and actually represents percentages, i.e. pessimistic = 30% of the market; Most likely = 50% of the market; Optimistic equals 20% of the market (with higher pricing for services). You can leave the percentages of the market as they are above.
3. As you read across the first horizontal line, the columns are self-explanatory.
· To compute 30% of the market value, fill in the number of services/products per month, that you expect to sell.
· Insert the average unit price for each unit you plan to sell each month,
· Multiple the average unit price by the number of units, to obtain the market value (for the month) at 30%.
4. Continue to identify the other percentages/market values on the chart in the same way.
5. Once you have identified all three market values (per their percentages), total the market value column. To identify the Total Annual Market Value when you have shown units sold per month, multiply the Total Annual Market Value by 12 (number of months in a year.)
6. The final step is to identify the Expected Market Value. This value represents the portion of the Total Market Value that you intend to capture. For example:
· If the Total Annual Market Value is $2,000,000 and you expect to capture 10% of that market value, the Expected Market Value will be $2,000,000 multiplied by .10.
· Once you have that value, include the percentage of the market that you intend to capture, in your written paper.
· 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.