Market analysis

This market analysis is prepared to learn about the specific methodologies required to conduct a sound market analysis for a self-selected market segment. For this purpose, a hypothetical virtual business that serves as a gathering place for Australian breakfast or fresh bread lovers and bakeries has been created. To prove the profitably of this potential opportunity, influencing factors within the Australian baking industry as well as the ecommerce industry are researched.

According to Cravens (2000), it is essential to gain an understanding of the market to become market driven. Therefore, the first part of this analysis is often referred to as the PEST analysis, which identifies the external factors that influence the baking and ecommerce industry and thus change the size and composition of the market overtime.

The second part is concerned with obtaining internal information about the baking and ecommerce industry, its customers, suppliers, and direct and indirect competitors. The assessment of both the internal and external forces that drive the market, lead to the definition of the critical success factors for this virtual venture. A summary of the findings is then given through Porter′s model of market profitability to potentially serve as the basis for developing a market driven strategy for the virtual opportunity. Despite the high thread of substitute products, it is believed that the trend towards more convenience will make this business successful. With respect to the analysis provided and given that business partners are willing to cooperate, this business concept is considered a sound investment.