why do we undertake market opportunity analysis

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Market Opportunity analysis is in depth analysis for a new business opportunity. This analysis helps to answer the question like whether the proposed business is attractive in terms of growth, profit margin, regulatory norms etc. Market opportunity analysis is for the planning of proposed investment in a new business line.

Market opportunity analysis basically helps in setting up forecasted demand of a product or service. The strategic decisions can then be taken from this analysis like whether this is Profitable segment, Growth rate, competitors , economic trends etc. This analysis also helps to reduce the risk of business failures as it aims at providing the relevant information before the inception of business line.

The needs of customers can be planned and forecasted based on certain tools which in turn helps to deliver products and services with higher customer satisfaction. It ensures a clear vision with the competitive analysis to take decisions on desirability of a new business opportunity.

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