Dat565 V3 Market Analysis Research Page 2 Of 2 Week 3 156519

Dat565 V3market Analysis Researchdat565 V3page 2 Of 2wk 3 Market Ana

Complete a comprehensive business analysis report for a proposed business of your choice, including a business overview, mission and vision statements, market analysis, and a recommendation on whether to proceed with the business. Your report should cover the following topics:

- Describe the type of product or service your business will offer.

- Identify the intended market for your business.

- Outline the business model.

- Articulate your business’s mission and vision statements.

- Describe the characteristics of your customer base based on the intended product or service.

- Investigate and list current competitors, focusing on direct competitors.

- Research and estimate the size of your market in terms of potential customers or unit sales.

- Estimate the market value, representing potential revenue, using assumptions and probability analysis for market size and average unit price.

- Calculate the total addressable market (TAM) and estimate your business’s share of the market.

- Based on your findings, provide a reasoned recommendation on whether it is advantageous to proceed with implementing the business, supported by relevant references.

Paper For Above instruction

Building a sustainable and profitable business requires thorough market and strategic analysis. For this study, I propose a business that offers eco-friendly, reusable coffee cups targeted at environmentally conscious consumers within urban areas. The core of this business model revolves around producing durable, biodegradable coffee cups that cater to cafes, restaurants, and direct consumers via e-commerce platforms, aligning with the rising awareness of sustainability and waste reduction.

The intended market comprises urban dwellers aged 18-45 who frequent coffee shops and are motivated by eco-conscious lifestyle choices. The primary competitors include established brands like KeepCup, Foldit, and local alternatives offering reusable cups. Direct competition includes any companies selling reusable coffee mugs on local or national online marketplaces. Understanding this landscape entails analyzing how these competitors market their products, their pricing strategies, and their distribution channels.

Estimating the market size involves considering the total number of coffee consumers within a specified radius, say, a 10-mile radius of downtown urban centers, which can be approximated at 1 million potential customers based on population data. Assuming that about 30% of these consumers purchase coffee daily, and approximately 10% of them purchase reusable cups as an environmentally friendly alternative, the potential customer base is roughly 30,000 individuals. If the average consumer purchases 2 reusable cups annually at an average price of $15 each, the potential unit sales are estimated at 60,000 cups per year.

Calculating the market value involves multiplying unit sales by the average price:

Market Value = 60,000 units * $15 = $900,000 annually.

Applying the expected value concept, with optimistic, most likely, and pessimistic scenarios, we might estimate probabilities of 20%, 50%, and 30%. For example, in the most likely scenario, if we secure a 5% market share of the broader market—considering the total market size of 1 million customers—then TAM is 50,000 customers. A 5% spike of this TAM results in an estimated revenue of $750,000.

Based on these analyses, the potential market appears sizable, niche but growing, driven by environmental concerns and increasing coffee consumption trends. Entering this market could be advantageous because it taps into a sustainable and socially responsible sector, aligning with current consumer preferences for eco-friendly products. Furthermore, branding strategies emphasizing environmental impact and quality can differentiate the business in a competitive landscape.

Therefore, it is recommended to proceed with the business implementation, investing in market research, targeted marketing, and partnerships with coffee shops to capture early adopters. This approach leverages the increasing demand for sustainable alternatives and positions the business for long-term growth within the expanding eco-friendly product market.

References

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• Chiovato, L., et al. (2019). Overview of hypothyroidism and its management. Endocrine Reviews, 40(1), 3–51.
• Wexler, D. J. (2022). Pharmacology of metformin. Diabetes Care, 45(Supplement 1), S104–S107.
• Joseph, P., et al. (2022). Hypertension and cardiovascular risk management in diabetic patients. Journal of the American College of Cardiology, 79(24), 2455–2467.
• Stoica, S., et al. (2019). Contraindications for metformin therapy. BMJ Open Diabetes Research & Care, 7(1), e000693.
• Ross, D. S. (2022). Management of hypothyroidism. American Family Physician, 105(3), 186–192.