Wednesday 28 September 2011
Market Analysis
The size of a market is based upon:
- profits made
- market shares of each business
- value of sales
- number of employees
- volume of sales
Key points: A large market means lots of potential customers
A small market means potential profits could be limited
Market share & market growth
The market share of a firm is the % of what it has of the market sales
Sales of the product x 100 = %
total market size
e.g. 5000 x 100 = 50% (1 in every 2 products)
10 000
Market growth - increase in size of market for a particular type of product
Growing market > more customers, higher demand, more sales, less risk, greater chance of success, competition isn't as fierce, less chance of failiure, benefit from economies of scale, room for expansion
Shrinking market > more competition from existing businesses in market, less customers, prices increase, liquidation, less profit, liquidation, little room for new ventures in market
- profits made
- market shares of each business
- value of sales
- number of employees
- volume of sales
Key points: A large market means lots of potential customers
A small market means potential profits could be limited
Market share & market growth
The market share of a firm is the % of what it has of the market sales
Sales of the product x 100 = %
total market size
e.g. 5000 x 100 = 50% (1 in every 2 products)
10 000
Market growth - increase in size of market for a particular type of product
Growing market > more customers, higher demand, more sales, less risk, greater chance of success, competition isn't as fierce, less chance of failiure, benefit from economies of scale, room for expansion
Shrinking market > more competition from existing businesses in market, less customers, prices increase, liquidation, less profit, liquidation, little room for new ventures in market
Motivation of Entrepreneurs
This blog is aimed at understanding what it takes to become a successful entrepreneur...
- Creativity: Inventing new products, taking existing products and improving them, taking exisitng technologies and finding new uses for them, profit signalling mechanism.
- Taking calculated risks: Doing something completely different to your competitors, re-searching chances of success, making informed decisions.
- Initiative: to gain competitive advantage, finding a gap in the market, to push your idea forward, indentify if your product will work.
- Hard working: Being dedicate to your business/idea and putting in the necessary hours of work.
- Resilience: Being able to take criticism and improving your product, not giving up when your idea is put down by others.
- Self confidence: The ability to believe in yourself, being an outgoing individual who can encourage others to invest or purchase your product/idea, believe that you can make your idea work.
- Creativity: Inventing new products, taking existing products and improving them, taking exisitng technologies and finding new uses for them, profit signalling mechanism.
- Taking calculated risks: Doing something completely different to your competitors, re-searching chances of success, making informed decisions.
- Initiative: to gain competitive advantage, finding a gap in the market, to push your idea forward, indentify if your product will work.
- Hard working: Being dedicate to your business/idea and putting in the necessary hours of work.
- Resilience: Being able to take criticism and improving your product, not giving up when your idea is put down by others.
- Self confidence: The ability to believe in yourself, being an outgoing individual who can encourage others to invest or purchase your product/idea, believe that you can make your idea work.
Thursday 22 September 2011
Introduction post
The reason I have started up my blog is to monitor the state of the economy and how it develops. This blog will also observe how the business world changes.
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