Tues Sept 14

Review of Definitions...and a few more

Supply and Demand

Group Creative Assignment and Presentation: 5 marks

 What is market viability? 

Market viability refers to the business potential of a specific market. A market viability analysis will help you determine whether starting a business in that particular market makes sense financially. 

To evaluate market viability, you need to consider these three factors:

• Market size: Is the market large enough to accommodate new sellers? Is there room for growth?
• Target audience: Do potential customers have a discretionary income? Can they afford to buy your product? 
• Competition: Who are the most important retailers in this market? What are their strengths and weaknesses? How can you compete with them?

Your goal is to weed out markets that are too small, too competitive or made up of customers that can’t or won’t pay your prices. 

2. What is product viability? 

Product viability refers to the business potential of a specific product — that is, how relevant and interesting the product will be to the target buyer. 

When evaluating products, analyze these factors: 

• Demand: Is there enough interest in this product for you to build an entire business around it or add it to your product mix?
• Profit margin: Can you sell this product at a price point that is both competitive and allows you to generate a profit?

Stay away from products with too little demand or too low a profit margin. 

Supply and demand, in economics,  is the relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. In equilibrium the quantity of a good supplied by producers equals the quantity demanded by consumers.