Ensuring the growth and expansion of a business calls for a market opportunity analysis (MOA) to be conducted at regular intervals. It serves as a tool for understanding the position of a business in the market, the new range of offerings, and the target customer base.
A MOA is also helpful in recognizing potential threats to an enterprise and developing effective strategies for addressing them. As you research prospective clients and revenue-earning opportunities, you understand the competition. Besides, a market survey allows you to prioritize business ideas depending on various profitability and risk factors.
What is a Market Opportunity Analysis?
A market opportunity analysis involves recognizing and assessing potential market opportunities. The focus of this approach is to guide business owners to make better decisions on whether to venture into new markets.
MOA is essentially a business tool for the assessment of markets. The analysis comprises market size evaluation, growth potential assessment, competition, and other related factors.
The procedure typically starts with a comprehensive assessment of the present market landscape. It involves the assessment of customer preferences, industry trends, and competition. The company can recognize new opportunities once the analysis is complete.
Next, the company can conduct a complete evaluation. MOA is vital for any enterprise to sustain itself in a competitive environment. By conducting a full survey analysis, businesses can find new business opportunities and decide on pursuing them.
Hence, it is crucial to guide businesses in assessing the potential of a market. Conducting an MOA can help you prevent costly mistakes by entering into markets that are not viable or by taking advantage of markets with good prospects.
Who Needs to Conduct a Market Opportunity Analysis?
Regardless of their type and size, all businesses can gain valuable knowledge from MOA. It is beneficial in understanding the industry, its approaches, and opportunities simultaneously. Whether an enterprise is catering to B2C, B2B, non-profits, or the government — you need to define and analyze the market for effective decision-making.
This type of analysis is helpful in the expansion of existing businesses and entering new markets. Moreover, you can reach a larger customer base.
Steps Necessary for a Market Research Analysis
Identification and Assessment of a New Market
Conduct market research through interviews, surveys, focus groups, etc. Secondary research usually takes place through market reports and desk research. It provides a clear understanding of growth potential and market size.
Competition Analysis
Learning about the prevailing competitive environment and ways of gaining a good foothold is necessary.
Assessment of Business Capabilities
A thorough assessment of your business capabilities helps you understand whether you have the necessary capabilities and resources to enter a market.
Business Case Study
It provides an outline of potential revenue, profitability, and expenses.
Assessment of Data to Recognize Key Market Trends
Analysis of data over time to recognize patterns and customer trends is imperative. Additionally, market analysis identifies threats and the scope of a business, while a comparative study can help understand the differences and similarities.
Evaluation of MOA Results
There are several ways to evaluate the results of a MOA. One simple way is to monitor the number of new leads generated post-MOA. Another effective way is checking sales and revenue from new clients and customers. Moreover, you can keep track of your workforce using MOA results.
Benefits of a Market Opportunity Analysis
- Recognition of effective marketing strategies.
- Evaluation of offerings based on demand.
- Assistance in the identification and removal of threats.
- Aid with long-term decisions.
- Analysis of areas for further research.
Example of MOA
Case Study of Ipsos Business Consulting Automotive
Ipsos Business Consulting Automotive is a global conglomerate interested in venturing into the Indian EV market, particularly three-wheelers. The company analyzed the market through customer interviews, government research, and business models. At the end of the survey analysis, they gained valuable data on the location of charging stations, purchase and lease options, and other infrastructural requirements.
Case Study of Elder Care
A business started an MOA to explore and expand its operations in the elder care industry. There was a detailed evaluation of the customer journey for caring for elderly parents alongside the decision points.
By evaluating market forces, one can uncover various options in elder care. Post MOA, the company entered segments like in-home care, retirement homes, etc.
Conclusion
Every business owner needs to remember that only some ideas are worth investment. A proper market survey teaches you critical aspects and strategies for growing and sustaining a business.
Never make the mistake of introducing a new product or service without MOA. It is an essential tool for businesses gearing up to venture into new markets. With market opportunity analysis, one can identify potential customers, evaluate the competition, and determine the best way to reach new customers. By taking time to conduct a MOA, one can increase the chance of success in a new market.
