Market Analysis Research<\/p>\n
DAT\/565 v3<\/p>\n
Page 2 of 2<\/p>\n
DAT\/565 v3<\/p>\n
Wk 3 Market Analysis Research<\/p>\n
Section 1 –\u00a0Business overview, mission and vision<\/p>\n
Describe a proposed business of your choice. Address the following in your summary:<\/p>\n
What type of product\/service will it offer? <\/p>\n
What is the intended market? <\/p>\n
What is the business model?\u00a0<\/p>\n
Articulate the business\u2019s mission and vision statements.\u00a0<\/p>\n
\u00a0<\/p>\n
Section 2\u00a0– Market analysis\u202f\u00a0<\/p>\n
Based on your intended product or service, describe the characteristics of your customer base.\u00a0\u00a0<\/p>\n
\u00a0<\/p>\n
Investigate and list your current competitors. For example, if you\u2019re manufacturing and selling exercise equipment, current competitors\u00a0would 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.\u00a0<\/p>\n
\u00a0<\/p>\n
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\u00a0the 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.\u00a0<\/p>\n
\u00a0\u00a0<\/p>\n
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 $150,000,000. <\/p>\n
It can be difficult to estimate market value as you\u00a0must\u00a0make assumptions related to market size and average unit price. Use the expected value concept introduced in Chapter 6 of the textbook and the chart below to do the estimation. \u00a0<\/p>\n
Expected Market Value: Mountain Bicycle Scenario\u202f <\/p>\n
Assumptions\u202f<\/p>\n
Probability p(x)\u202f<\/p>\n
Units (‘000)\u202f<\/p>\n
Avg. Unit Price ($)\u202f<\/p>\n
Market Value (‘$000)\u202f<\/p>\n
Expected Market Value (‘$000)<\/p>\n
Pessimistic\u202f\u00a0<\/p>\n
0.2<\/p>\n
100<\/p>\n
450<\/p>\n
45,000<\/p>\n
9,000<\/p>\n
Most Likely\u202f\u00a0<\/p>\n
0.5<\/p>\n
100<\/p>\n
500<\/p>\n
50,000<\/p>\n
25,000<\/p>\n
Optimistic\u202f\u00a0<\/p>\n
0.3<\/p>\n
100<\/p>\n
550<\/p>\n
55,000<\/p>\n
16,500<\/p>\n
Totals<\/p>\n
1.0<\/p>\n
300<\/p>\n
500<\/p>\n
150,000<\/p>\n
50,500<\/p>\n
Expected Market Value: Scenario\u202f <\/p>\n
Assumptions\u202f<\/p>\n
Probability p(x)\u202f<\/p>\n
Units (‘000)\u202f<\/p>\n
Avg. Unit Price ($)\u202f<\/p>\n
Market Value (‘$000)\u202f<\/p>\n
Expected Market Value (‘$000)<\/p>\n
Pessimistic\u202f\u00a0<\/p>\n
0.30\u202f\u00a0<\/p>\n
200\u202f\u00a0<\/p>\n
450\u202f\u00a0<\/p>\n
90,000\u202f\u00a0<\/p>\n
27,000<\/p>\n
Most Likely\u202f\u00a0<\/p>\n
0.50\u202f\u00a0<\/p>\n
300\u202f\u00a0<\/p>\n
500\u202f\u00a0<\/p>\n
150,000\u202f\u00a0<\/p>\n
75,000<\/p>\n
Optimistic\u202f\u00a0<\/p>\n
0.20\u202f\u00a0<\/p>\n
375\u202f\u00a0<\/p>\n
550\u202f\u00a0<\/p>\n
206,250\u202f\u00a0<\/p>\n
41,250<\/p>\n
Totals<\/p>\n
1.0<\/p>\n
875<\/p>\n
500<\/p>\n
446,250<\/p>\n
143,250<\/p>\n
Calculations:<\/p>\n
Probability, P(x) must sum to 1.0 (100%)<\/p>\n
Market Value = Units * Ave. Unit Price ($)<\/p>\n
Expected Market Value = Market Value * Probability<\/p>\n
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.\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Section 3:\u00a0Recommendation\u00a0<\/p>\n
Based on the information collected, do you feel it is a good idea to continue with the implementation of the business?\u00a0Explain why or why not.<\/p>\n
Cite references to support your assignment.<\/p>\n
\u00a0<\/p>\n
Format your citations according to APA guidelines.<\/p>\n
Copyright 2021 by University of Phoenix. All rights reserved.<\/p>\n
Copyright 2020 by University of Phoenix. All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"
Market Analysis Research DAT\/565 v3 Page 2 of 2 DAT\/565 v3 Wk 3 Market Analysis Research Section 1 –\u00a0Business overview, mission and vision Describe a proposed business of your choice. Address the following in your summary: What type of product\/service will it offer? What is the intended market? What is the business model?\u00a0 Articulate the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-81021","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/81021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=81021"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/81021\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=81021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=81021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=81021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}