Market Opportunity Analysis
One of the best feelings is watching your business grow, and see customers enjoying your products. After a while, you will likely have new ideas you want to explore or new markets you want to look into. While not all of your ideas are going to be successful, doing a market opportunity analysis can help you decide which ideas are worth pursuing right now.
What Is a Market Opportunity Analysis?
A Market Opportunity Analysis is a process that researches where you can gain more potential customers. It allows you to break down where a potential new client base is, helps you identify competitors, potential risks, and helps you gain a deeper understanding of the audience you are looking into.
Market Opportunity Analysis Benefits:
There are many benefits to running a market opportunity analysis. One of the best, and most obvious, reasons is to see what the demand is for the product or service you want to offer. If you are going into a market that is already over-saturated, or where there is no demand for the product then it is probably wise to put your efforts elsewhere.
If you do find a demand, running an analysis will help you to create a long-term strategy. Examine current market trends, and map out what they are expected to look like over the next few years. If the focus is shifting off of the market you are looking to break into, how will you change your product to keep up? If it appears that the market is growing, how will you grow with it? Having answers to these questions will help you make smart, confident decisions.
Running a market opportunity analysis can help you gain a deeper understanding of your target audience. What does their budget look like, what are the best channels to reach them on, and how can you encourage them to purchase your product? Knowing how to price your products and how to promote them will give you a huge edge over your competition, and help you reach your target audience effectively.
How To Run A Market Opportunity Analysis:
Your first step is to identify a potential opportunity. Where do you want to expand? What does your target customer look like? What does the competition look like? Knowing how to want to enter this new market, and who you want to target, will help you with your research moving forward. Figure out how your product will meet their needs, if your target customers will spend enough to bring in a profit, how they make purchasing decisions, and how you can best connect with them. You also need to be aware of internal and external factors. How is the economy doing, and does your target customer have the means to purchase your product? What environmental impacts are there? Do you have the resources and skills to successfully launch this product? These are all important factors to research before you dive into a new market!
Running a market opportunity analysis is important when deciding to enter a new market. Take your time to carefully consider if the market in question is a good fit for you and if you want to spend the time and resources on it. Expanding your company to new markets is a very exciting adventure, so take your time running your market opportunity analysis!