Market opportunity analysis is a form of business planning that incorporates market forecasting techniques and development of a plan that assesses the organization’s financial capability and identifies future opportunities. It gives the company competitive and technological preparedness in exploiting future opportunities, and includes identifying underserved client needs and assessing the company’s resources. It also analyzes the competitive advantages of the business and identifies target markets.
Market opportunity analysis shows how the forecasted factors influence the demand of the product or service. A market opportunity is the product influenced by existing market factors. It consists of a market segment, which when analyzed and forecasted shows the potential for using the product. A market segment is a group of individuals sharing one or more characteristics and similar product needs. An analysis of the market opportunity helps in estimating the size and sales potential of a specific market segment. It also assists in assessing the ability of competitors in a given market segment. The sales potential of a market segment shows an estimated amount of products that can be sold in a given market segment, allowing a company to assess the possible quantity of products that a business can sell within a specified time.