Posted in Marketing and Strategy Terms, Total Reads: 507
Definition: Market Opportunity
They are newly identified demand that a firm can exploit since it is not being satisfied by the competitors. The business can capitalize on this new opportunity or favorable condition and can satisfy this increasing demand for a product by a demographic group. The company should identify its potential customers, their specific needs that need to be met, market size, and its capacity to gain market share.
A market analysis is generally done to identify the market opportunity. The market analysis researches about the attractiveness and dynamics of a market in an industry. SWOT analysis is generally done to see the market opportunity.
Sometimes a market opportunity is identified even when there are substitute products but are not good enough to satisfy the need. A market opportunity of a product or a service should be within the given environmental frame (e.g. society, politics, legislation, etc.).
There are many other things like market size, market trend, market growth rate, market profitability, industry cost structure, distribution channels, key success factors, etc which are calculated to identify the market opportunity