By Pamela Hubbell
In a Market Analysis, your objective is to describe a market's size, history, recent growth trends, expected future growth, and geography. You should also identify who the customers are and what their needs are; barriers to entry; economies of scale; projected changes in the market; methods of distribution and sales; and methods of advertising and promotion.
If your Market Analysis is part of a Business Plan, you should show how the company's product fits into the market.
Writing the Market Analysis
Generally, in your Market Analysis you should do the following:
Describe the customer need
Describe the general characteristics of the customers
Describe the major competitors and their relative positions
State the target market within the overall industry
Provide a brief history of the industry and the major players
Describe how the industry operates (this includes the sales and advertising methods; any factors that determine the nature of the business such as technology; ease of entry into the market; economies of scale; and factors affecting sales such as price, quality, or brand loyalty)
Describe the industry's past growth and expected future growth
Note any applicable government regulations
Lasher, William. The Perfect Business Plan Made Simple. New York: Doubleday, 1994. 66-7.