How to Conduct a Market Opportunity Analysis


I’ve most of my finest concepts at 3:00 AM or within the bathe. But turning these bathe concepts into a enterprise alternative requires additional investigation. That’s the place market alternative evaluation is available in.

While you and your workforce could have many new enterprise concepts you need to discover, you don’t have time to head down each path. Some of these paths could even find yourself being dead-ends.

How do you select which concepts to pursue, and which of them to let go of? Market alternative evaluation might help you slender down your choices to those with the best potential.

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Who ought to conduct a market alternative evaluation?

That reply is, “everybody.” All sizes of organizations will profit from higher understanding the trade during which they’re working or approaching. Whether you’re employed in B2B, B2C, authorities, or non-profit organizations, defining and analyzing the market will show you how to make higher selections.

This form of evaluation might help you develop your present enterprise, pivot into new markets and alternatives, or develop into the periphery of your present market.

There are many causes to take the time and study the complete vary of choices earlier than forging forward. Here are 5 necessary advantages you’ll get from market evaluation.

1. Make higher long-term strategic selections.

Your enterprise is impacted by many exterior components. Without taking the time to study the present market tendencies, you’ll be flying blind.

A market alternative evaluation can present the perception you want to see into the longer term. What will the market appear like in a 12 months? Five years? 10 years? What forces are appearing available on the market right this moment? How is the demographic of your audience shifting?

2. Evaluate services or products demand.

You could have invented the subsequent Google Glass: a nice product with powerful, area of interest demand. A market evaluation will present the potential for promoting your services or products. This evaluation will show you how to consider if increasing into a potential new market is worth it to your firm.

You could discover that there isn’t a present market to your thought, main to a “Blue Ocean Strategy.” “Blue oceans,” explain authors W. Chan Kim and Renee Mauborgne, “denote all the industries not in existence today — the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid.”

While that may be the case, you may also fail to create the market, or want to spend time and vitality educating clients on the worth of your new thought.

3. Identify potential advertising methods.

The 4 P’s of your advertising combine are worth, place, product, and promotion. Through the method of a market alternative evaluation, organizations can acquire a deeper understanding of who their goal clients are, what they need, and the way they make their selections.

After assessing the present market, you’ll give you the chance to worth your product successfully and know which promotion methods will work finest. Are there partnerships you need to pursue? Will direct gross sales or inbound marketing work best?

4. Uncover areas for additional analysis.

When you start to higher perceive the market, it’s possible you’ll establish much more new alternatives to discover. As the saying goes, “You don’t know what you don’t know.” You could uncover a new authorities initiative that encourages sustainable companies.

A buyer analysis venture could establish a new ache level that you just didn’t understand existed. The good thing about figuring out your market actually deeply is that you just’ll be prepared to leverage any new alternatives that pop up.

5. Identify and navigate potential roadblocks.

A SWOT evaluation appears on the strengths, weaknesses, alternatives, and threats of a potential technique. Identifying the weaknesses and the threats to your market alternative is vital to your success. No enterprise thought is ideal. But figuring out the place you would possibly run into hassle earlier than you even start might help you propose forward and mitigate these dangers.

Examples of Market Opportunity Analysis

Before we get into the step-by-step directions of how to do your personal evaluation, let’s have a look at the outcomes of two very totally different case research. The objective of each of those analysis tasks was to establish new alternatives, nonetheless, they have been completed in two totally different industries: aged care choices and the automotive trade.

1. Say Yeah! ElderCare Case Study

Consulting company Say Yeah! conducted a market opportunity analysis for a firm wanting to develop its enterprise mannequin into the aged care trade. They started by mapping the shopper journey for an grownup baby caring for his or her aged dad or mum, together with all the choice factors they encounter.

By analyzing market forces — reminiscent of authorities subsidies, the altering demographics, and all of the choices older adults have — Say Yeah! was ready to uncover a number of totally different choices by which ElderCare might enhance their income.

Notably, they advisable ElderCare develop its referral enterprise to embrace retirement houses, in-home care, and different social providers.

“Their initial business premise is validated: by shifting the industry to a subscription-based model, led by an online marketplace, this business could carve out a significant piece of profit in the elder care industry by providing far more value to retirement homes at less cost.”

comparison of options in a market opportunity analysis

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2. Ipsos Business Consulting Automotive Case Study

A world automotive conglomerate was within the rising digital automobile (EV) market, particularly three-wheelers in India. Ipsos conducted a study of the EV market by buyer interviews, enterprise mannequin evaluation, and authorities analysis. At the top of the examine, they offered suggestions round charging station areas, leasing vs buying choices, and different infrastructure necessities.

Market Opportunity Analysis Example

Market Opportunity Analysis for Electric Vehicles

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How To Conduct a Market Opportunity Assessment

1. Identify potential alternatives.

Your first step is to lay out the potential alternatives you need to examine. What phase are you hoping to develop into? What sort of buyer are you hoping to appeal to? Are you wanting to purchase or companion with one other enterprise? Have present occasions created a potential alternative?

Knowing whether or not you need to develop, pivot, make investments, create, or reposition your choices will inform the subsequent steps of your market analysis.

Once you’ve recognized market alternatives, you’re prepared to start researching their potential.

2. Understand the shopper.

In each alternative, the shopper will inform your success. Does this product meet their wants? Do they’ve the buying energy to make this concept worthwhile? How do they make their buying selections? The second step within the evaluation is to actually, deeply perceive your potential clients and their wants. This analysis could embrace any of the next instruments:

3. Research opponents.

Next, you’ll need to perceive who all of the gamers within the present market are. Competitor analysis might help you perceive how huge the market share is, how present merchandise are positioned out there, and the way crowded the market is. Here are some questions you may want to ask:

  • What is their worth proposition?
  • How is their product providing totally different from ours?
  • Who are their companions?
  • What do their opinions say about their services or products?
  • Are there any gaps we might fill?
  • How probably are new opponents?

4. Consider exterior components.

External components are all the time shaping and altering {the marketplace}. The acronym “STEEP” might help us dive into the 5 foremost forces we’d like to concentrate on.

Social

How is tradition altering the market? For instance, extra staff working from residence throughout the pandemic has opened up a complete sector of the market that didn’t exist earlier than. Jumping on tendencies may be a profitable technique until the tendencies disappear too shortly.

Technical

What new improvements have influenced the market? Can you apply this know-how in different methods or in new industries?

Economic

What is the present financial local weather like? Will you give you the chance to get a mortgage if wanted? Do your clients have disposable revenue? How does the market forecast search for the subsequent 12 months? Five years?

Ecological

What impression does this concept have on the setting? Can you enhance the sustainability of the services or products?

Political

You could also be pleasantly shocked to be taught that your native authorities is providing grants, tax breaks, or different incentives for companies in your trade. Alternatively, it’s possible you’ll discover that there are regulatory roadblocks in your means that you just’ll want to account for in your evaluation.

STEEP Market Opportunity Assessment

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5. Be conscious of inner forces.

Finally, dive into your personal enterprise’ capabilities. Do you’ve the talents, workforce, know-how, and monetary assets to put money into a new product? If you’re launching a very modern product, are you going to give you the chance to rent individuals with the mandatory expertise? What new departments or groups will you want to create to handle this new alternative?

Make higher selections with market alternative evaluation.

Not each thought is price pursuing — however many are. With market alternative evaluation, you’ll be taught which enterprise methods will show you how to develop, together with their potential dangers. Don’t launch your subsequent services or products with out doing all your homework.New Call-to-action

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