Question
(This is an Opportunity Analysis for an imaginary company, with made up numbers and made up facts regarding the company. If need be, more numbers
(This is an Opportunity Analysis for an imaginary company, with made up numbers and made up facts regarding the company. If need be, more numbers can be created to help build the Opportunity Analysis)
For this analysis, we will be addressing an imaginary company that sells a device that allows people to determine if they have bad breadth just by breathing into the device. Each device sells for $15.00 at gas stations and smoke-shops, costs $5 to assemble and is sold to retailers for $10.
Introduction: Describe your product or service. What are you offering? Then perform the following analysis.
1. Industry Analysis: this should include identification of the industry your business will fall within. No matter how unique you think your product or service is, it falls within some industry. This analysis should include numerical data for your industry. This may include annual sales volume for the industry, trends in sales over last 3-5 years, # businesses, # customers served, sales per customer, gross profit margins, etc. The goal is to demonstrate the financial viability of the industry you are entering. This tells the reader that your industry has a proven track record for fulfilling a need or want for customers.
2. Environmental Analysis: this should demonstrate the 1. business opportunity the external environment presents for the business, including the target market or any other external factors that make it ripe for the business to prosper, and 2. identify potential external threats and how you would address them to stay in business. This might include weather related events, an economic recession, government regulations, traffic patterns, etc.
3. Competitive Analysis for this section, identify at least two direct competitors and describe how the business will gain market share; which of the 6 competitive advantage factors will the business be able provide to penetrate the market against competitors.
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