This is a written report that shows your individual contribution and research to the business idea based on your domain. The script is no longer than 2 sides of A4. It will be marked against the script marking criteria (see separate document titled “Assessment Marking and Feedback Rubric”).
2. Market Domain/Macro Level: Market Attractiveness
This domain looks at market attractiveness from a macro (large-scale) perspective.
Look at the whole market. How big is it, in terms of the number of customers, the value of sales, and the quantity of units sold? Then, look at trends within the market. Has it grown in recent years? If so, is this growth likely to continue?
What you’re doing here is checking that the market is big enough to give you the growth you want, and that it’s growing healthily – after all, it’s much easier to grow a business in a growing market than it is in a declining one.
This is a point, as trying to enter a market that isn’t big enough to sustain your intended business is a venture that is destined to fail. You don’t necessarily want to be trying to create the market on your own – you want to fill a need where the market is waiting to spend. Is the market that you are targeting on the rise, or is it already in decline? Chasing a fading market is going to be tough in the long run.
Also, use PEST analysis to explore the large-scale factors that affect your market. Do these look healthy?
Information from secondary sources – library materials, internet, newspapers, and publications on recent industry trends should suffice to answer the following questions.
The macro market test
1. What sort of business is sought? One with potential to become a huge business, or a small lifestyle operation? This along with the answers to the following question will determine the need for venture capital. A high potential business in a huge, rapidly growing market will require venture capital whereas a small lifestyle operation in a niche market will not need any.
2. How large is the market?
3. How fast can it grow?
4. How quickly can it grown in the next six months or two/three/five years?
5. What economic, demographic, socio cultural, technological, regulatory or natural trends can be identified and how will it affect the business?
