DAT/565 v3
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:
—hat type of product/service will it offer?
—hat is the intended market?
—hat is the business model?
Articulate the businessàmission 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¥ 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
(‘$000)
Pessimistic
0.2
100
450
45,000
9,000
Most Likely
0.5
100
500
50,000
25,000
Copyright 2021 by University of Phoenix. All rights reserved.
Market Analysis Research
DAT/565 v3
Page 2 of 2
Expected Market Value: Mountain Bicycle Scenario
Assumptions
Probability p(x)
Units (‘000)
Avg. Unit
Price ($)
Market Value
(‘$000)
Expected
Market
Value
(‘$000)
Optimistic
0.3
100
550
55,000
16,500
Totals
1.0
300
500
150,000
50,500
Calculations:
Probability, P(x) must sum to 1.0 (100%)
Market Value = Units * Ave. Unit Price ($)
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 * $50,500,000
= $2,525,000 or approximately $2.5 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.

Purchase answer to see full
attachment