Market Opportunity Analysis

Table of Content

Market opportunity analysis refers to the realistic and careful assessment into the market conditions, the opportunities and trends. Its usually occurs at different levels of business strategic processes. It is used to study the levels of feasibility that are within the market that can provide success in case of market entry. It is applied when launching new services or products, re-branding as well as strategizing for exploring new market opportunities. This process is a compound of seven steps which are presumed essential in making a feasible study (Robert, et al, 2006).

These are:

  1. Assessment of the business opportunities: This is the evaluation of the feasibility of the various opportunities that are held in the market. It helps the entrepreneur to make the most viable option (Robert, et al, 2006)
  2. Strategic planning and management: This involves the evaluation and assessment of the most valuable business strategies that could help to provide competitive advantages to the others competitors.
  3. Analysis of market demand: This involves evaluating the levels of market demand conditions that would be able to describe the market characteristics of demand and supply. It evaluates which best option would yield the highest demand.
  4. Competitive analysis: This involves evaluating the existing level of competition in the market for the different lines business activities. This important in providing the output for the demand and supply factors (Robert, et al, 2006)
  5. Financial analysis: This is the detailed analysis of the financial requirements and derivatives that are in the market. It helps the investor to evaluate the required financial requirements.
  6. Profitability Analysis: It involves evaluating the probable levels of profits that the business would gain considering the existing market conditions.
  7. Internal analysis: It seeks to evaluate the internal strength and capacities that an entrepreneur has as advantages in choosing to enter a certain business.


  1. Robert, S, et al (2006) Market Opportunity Analysis: Text and Cases. London, Haworth Press

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