Question

I need help figuring out what to write for the Industry and Market Analysis  part of a business plan for my class and I have to go based off of a paragraph description of the vision of the business/ Here is basically the gist of it.

The business is a swimming pool service in which customers can go on an app and find pool related products they would need or request installation for an additional cost and they would have the products delivered to them in a day because there would stock on demand provided.

This is what I would need help with.

1. 1. Discuss strategic issues, such as ease of market entry and exit, ability to achieve economic of scale/scope, cyclical or seasonal trends.
2. 2. Discuss the current industry trends and key success factors and future outlook of the industry. Is the industry growing, is the industry crowded, what opportunities or threats does the industry face?

Answer 1

For a new business plan, you should first look after the following points like

1. Who will be your customers?
2. how much they will pay for your product?
3. what are their buying habits, like they are regular customers or not?
4. who is your competition ?

Industry and market analysis is very important before you start anything new, because there might be many challenges and hurdles you might face. All these are necessary as many competition will be there and without knowing this you might face hurdles and difficulties. It is better to know your potential customers and their buying habits, because the products you will launch in the market might not be interest to them or may be it is already in the market with cheaper rates. therefore, your products might not be favorable one.

Before entering to a market you do not know, is a huge risk. many competitors are already exist. Therefore, better you first have a depth knowledge for the market and what new you can introduce or any new innovative thing you can introduce.

For example, if you want to start a travel agency or transport business. Already many competitors are there. but what new you can do? Suppose no one provide the free service for every transport in a year, but you advertise that everybody will get a free service once in a year. It might happen that customers will be attracted to your offer and try to do business with you. Like this many new things you can start.

Your first target should be first attract the customers to remain in the competition then automatically your business will be better off.