Market Analysis Research - Management
Purpose
MBA Business Plan component
Context
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.
Instructions
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:
Market overview/needs analysis
Target market
Competitive analysis
Value proposition
Section 3: Recommendation
 
Use the Market Analysis Research document for details on what to include in each section.
DAT/565 v3
Market Analysis Research
DAT/565 v3
Page 2 of 2
Wk 3 Market Analysis Research
Section 1 - Business 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? 
Articulate the business’s mission and vision statements. 
 
Section 2 - Market analysis  
Based on your intended product or service, describe the characteristics of your customer base.  
 
Investigate and list your current competitors. For example, if you’re manufacturing and selling exercise equipment, current competitors would 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. 
 
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 the 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. 
  
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. 
It can be difficult to estimate market value as you must make 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.  
 
Expected Market Value: Mountain Bicycle Scenario  
 
Assumptions 
 
Probability p(x) 
 
Units (000) 
 
Avg. Unit Price ($) 
 
Market Value ($000) 
 
Expected Market Value ($000)
 
Pessimistic  
 
0.2
 
100
 
450
 
45,000
 
9,000
 
Most Likely  
 
0.5
 
100
 
500
 
50,000
 
25,000
 
Optimistic  
 
0.3
 
100
 
550
 
55,000
 
16,500
 
Totals
 
1.0
 
300
 
500
 
150,000
 
50,500
 
Expected Market Value: Scenario  
 
Assumptions 
 
Probability p(x) 
 
Units (000) 
 
Avg. Unit Price ($) 
 
Market Value ($000) 
 
Expected Market Value ($000)
 
Pessimistic  
 
0.30  
 
200  
 
450  
 
90,000  
 
27,000
 
Most Likely  
 
0.50  
 
300  
 
500  
 
150,000  
 
75,000
 
Optimistic  
 
0.20  
 
375  
 
550  
 
206,250  
 
41,250
 
Totals
 
1.0
 
875
 
500
 
446,250
 
143,250
Calculations:
Probability, P(x) must sum to 1.0 (100\%)
Market Value = Units * Ave. Unit Price ($)
Expected Market Value = Market Value * Probability
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. 
 
 
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.
 
Format your citations according to APA guidelines.
Copyright 2021 by University of Phoenix. All rights reserved.
Copyright 2020 by University of Phoenix. All rights reserved.
DAT/565 v3
 
Copyright 202
1
 
by University of Phoenix. All rights reserved.
 
 
Wk 3 
M
arket Analysis Research
 
Section 1 
-
 
Business
 
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?
 
 
 
Articulate
 
the business’s mission and vision statements.
 
 
 
 
Section 2
 
-
 
Market analysis
 
 
 
Based on your intended product or service, describe the 
characteristics of your customer base.
 
 
 
 
Investigate
 
and list your current competitors. For example, if you’re manufacturing and selling exercise 
equipment, current competitors
 
would 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.
 
 
 
 
Research
 
and estimate the size of your intended market. Market size is the number of potent
ial 
customers or unit sales for your products/services. Consider
 
the 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.
 
 
 
 
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. 
 
 
It can b
e difficult to estimate market value as you
 
must
 
make 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. 
 
 
 
Expected Market Value: Moun
tain Bicycle Scenario
 
 
 
Assumptions
 
 
Probability p(x)
 
 
Units (000)
 
 
Avg. Unit 
Price ($)
 
 
Market Value 
($000)
 
 
Expected 
Market 
Value 
($000)
 
Pessimistic
 
 
 
0.2
 
100
 
450
 
45,000
 
9,000
 
Most Likely
 
 
 
0.5
 
100
 
500
 
50,000
 
25,000
 
DAT/565 v3 
Copyright 2021 by University of Phoenix. All rights reserved. 
 
Wk 3 Market Analysis Research 
Section 1 - Business 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?  
 
Articulate the business’s mission and vision statements.  
 
Section 2 - Market analysis   
Based on your intended product or service, describe the characteristics of your customer base.   
 
Investigate and list your current competitors. For example, if you’re manufacturing and selling exercise 
equipment, current competitors would 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.  
 
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 the 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.  
 
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.  
 
It can be difficult to estimate market value as you must make 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.   
 
Expected Market Value: Mountain Bicycle Scenario   
Assumptions  Probability p(x)  Units (000)  
Avg. Unit 
Price ($)  
Market Value 
($000)  
Expected 
Market 
Value 
($000) 
Pessimistic   0.2 100 450 45,000 9,000 
Most Likely   0.5 100 500 50,000 25,000
				    	
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