Market opportunity analysis to determine attractiveness and probability of success

It is important for companies to evaluate opportunities so as to grow their business and to sustain in a competitive world where competitors  don’t forget to trap opportunities available in market (termed as : Market opportunity Analysis MOA ).

Companies need to do a Opportunity Analysis in order to arrive in effectiveness and success probability. Following is the Opportunity Matrix that can be used to analyze opportunity.

Market Opportunity Analysis is a prime tool to determine attractiveness and probability of success in the growing market. It helps in understanding:

• If the opportunity can be articulated in order to benefit companies target market(s)
• Can cost-effective channels to reach the target market be figured out (cost effective media and various channels)
• Is the company internally capable of delivering what’s expected by customers
• What will the effect be on companies financial Return On Investment (ROI)

  Here 1 determines opportunity that is High on Attractiveness as well as high on Success Probability.

  2 on the other hand is opportunity that is High on Attractiveness and Low on Success Probability.

  3 determines opportunity that is Low on Attractiveness and High on Success Probability.

  4 on the other hand is case where Attractiveness is Low and even probability is very Low.

  Case 4 should not be termed as opportunity as it has low attractiveness and even low success probability.

  We need to understand that different companies at different point in time may opt different opportunities and marketing strategies. Its important to understand that marketing opportunity collectively involves a thorough business and business environment analysis (Internal Analysis and External Analysis)

  SWOT Analysis is a tool used to analyze both internal and external environment. (External is the threat from competition and external are opportunities)

  Internal environment analysis may involve analysis of a company in terms of Marketing, Finance, Manufacture, HR and other discipline. There are chances of better outputs if the analysis is detailed. Say, analyzing marketing capabilities involve understanding major strengths in performance and there importance to the business. This will give company a details internal analysis. Marketing capabilities of company can be analyzed in terms of:

• Company reputation
• Market share
• Customer satisfaction
• Product quality
• Service quality
• Pricing efficiency
• Promotional efficiency etc.