Industry Analysis Exercise
Objective: This analysis provides an opportunity to learn about how one would go about assessing a business opportunity or evaluating an opportunity that one is interested in. For example, when a business is presented a product it is interested in marketing in Edmonton, it would need to find out whether this product would find acceptance among people the product would appeal to, how large is this group of potential consumers, where are they located, how much would they spend on this product, would they buy this product regularly, and does this product meet various government and environmental regulations. After having answered these questions, a business would then be able to calculate potential revenues and expenses, identify substitute products and potential competition (current and future). The purpose of this exercise is for students to select a product or business (fictitious or real) and try to find our whether this business is a viable or attractive one by answering the above questions. Answers should be based on research (primary or secondary) and analysis of relevant business factors. Once the target market is identified, the four Ps of marketing and the Porter’s Five Forces could be used as an analysis for your analysis.
Guiding Questions: Specifically, if one was interested in selling compact luxury cars in Edmonton, one would look at the following questions:
1. Who would be interested buying a car in this category (demographic factors)?
2. What are these people like i.e. age, gender, income, lifestyle and location?
3. What are the most important features they would be looking for and can I provide them with a profit?
4. How many of these people are there in Edmonton?
5. Where do they live in Edmonton?
6. What is my competition i.e. are there similar cars in the market, how much are they selling for, how are they marketing?
7. How can or would I compete with them?
8. Can I make a profit selling this car i.e. what are my projected revenues and expenses?
9. What is the long –term trend in car consumption? What is the prospect for small luxury cars?
10. Is this a viable business? Will it be around in 5 to 10 years?
(To answer these questions, you may need to conduct some research and make use of the databases available in the library).
Length of Exercise: 5 pages,double space.

Industry Analysis Exercise Objective: This analysis provides an op...