Think of a business you may be contemplating creating or already own and perform a market analysis based on the questions shared.
Think of a business you may be contemplating creating or already own and perform a market analysis based on the questions shared.
Answer the following questions in 350 to 525 words:
Using the Internet information sources in Topic 1, section 1.3, what are the approximate annual sales for this industry?
Evaluate the percentage of growth or decline for this industry for each of the past five years and the expected growth rate for the next five years.
Describe the external factors that might shape the growth and nature of this industry during the next five years (social trends, economic forces, technology, competition, government regulations, etc.).
Assess possible channels for product distribution in this industry (retail, wholesale, Internet, catalog, resellers, agents, etc.).
Analyze the critical factors for success in this industry.
Evaluate 2 of your major competitors in this industry. Consider in your evaluation where the companies are located, how many years they have been in business, and their strengths and weaknesses.
Determine, based on your evaluation, whether this industry is a viable business opportunity or too big of a risk.
Internet Information Sources
http://www.naics.com: This site is the home of the North American Industry Classification System (NAICS). It provides codes and descriptions of all industries. This site is important because you have to know what industry you are in to gather information about it.
http://www.referenceforbusiness.com/industries: The site provides codes and descriptions of all industries.
http://www.sbdcnet.org: You will find free information on small business, industries, and demographics here.
http://www.bizstats.com: This is an excellent source for free industry data, small business statistics, and financial ratios. For more detailed data you can buy an annual membership for $99.
http://www.investopedia.com: This site contains excellent free information on a number of industries.
http://www.hoovers.com: Hoovers provides excellent information on thousands of companies and industries. Some basic information is free—more detailed reports sell for $129. You can sign up for a free trial and collect a great deal of data. You can also pay for a monthly membership.
http://www.marketresearch.com: This is the world’s largest and continuously updated collection of market research for sale. The site has thousands of industry and company reports; some are very pricey, others are more reasonable.
http://www.thomasnet.com: This site provides excellent regional and national information for locating and evaluating suppliers, vendors, and various service providers.
http://www.census.gov: This site provides free economic census data on a number of industries.
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