Last updated on 2/6/20
- Analyze the strategies of an existing business venture
- Understand the basic actions and reactions in a market environment
Remember the Sweetch business case, about exchanging parking spots in real time in San Francisco, through an app for 5$. When the founders describe their market as: 247 000 drivers in San Francisco with a smartphone x 2 sweetches per week: 100 M sweetch per year in SF.
What do they describe?
Their target market
The size of the opportunity they are addressing
The growth potential of their venture
The addressable market
Their typical customer as a driver with a smartphone
Nothing really useful
Market assessment has to be approached as a difficult and slippery question for an innovative venture, why that?
Because often customers don’t even know what they want
Because it’s very easy to be wrong about if and where is your market
Because the entrepreneur has a vision of what customer wants
Because it’s often a waste of time and resource
Because as long as the product is not there it’s pointless
Because it is costly
What does the following sentence “The set of potential buyers who have a common need that your product or service could satisfy” describe?
Your potential market
Your addressable market
Your target customers
The long-term potential of your venture
How large is the competitive landscape