It is important to analyse the need of the the market first before a business is?

Question

It is important to analyse the need of the the market first before a business is

form. Extensive market reseacrch has to be conducted in certain situation. Why is

this neceassary?

Answer 1

well say I want really like the idea of making pizza for a living and I want it in my home town. If there are 2 other pizza parlors in town I would need to find out if there would be enough business for me to make it. I mean the other 2 have of course been there longer than me and have gained customers that would not leave them no matter what. I would need to make sure I offer a different selection because what would be different if I offered the exact same menu.. No one would come to my pizza place and I'd loose my business because of it. Same goes with anything.

Now if I wanted to do a supper market I may could.. We only have one in town and if I was able to be competitive enough I could get a comstomer base. The store we have now is high because we are a small town and to get to another store folks have to drive at least 30 minutes. So if I wanted to start another one I could have a better pricing plan and draw in customers.. Then I would have to have price wars with 12 packs of soda and cereal..

You understand now right?

Answer 2

Market research reduces the risk of a business endeavor. For small entrepreneurs this is usually minor or even absent. Most depend on their gut feel. For larger projects this leads to a feasibility study. For personal projects, this depends on how much you tolerate risk.

Answer 3

YES YOU NEED TO KNOW THE AMOUNT OF NEED+THE COMPETITION