Market Potential of Cloud Computing
I. Introduction
1. MARKET POTENTIAL ANALYSIS
The Concept of market Potential
It is defined as the maximum demand response possible for a given group of customers within a well-defined geographic area for a given product or service over a specified period of time under well-defined competitive environmental conditions. We will further split up this definition: 1. Market potential is the maximum demand response under certain assumptions (ultimate demand). 2. Relevant customer for the product and service. It is not merely the present consumer but also the potential consumer so that maximum possible demand is achieved. 3. The geographic area for which market potential is to be determined should be well-defined. 4. There should be a clear understanding about the product & service for which the market potential is to be estimated. 5. The time period for which market potential is estimated should be specific. 6. Finally, a clear understanding of environmental & competitive conditions relevant in case of a particular product or service is also necessary. It is important to remember that the estimated market potential sets an upper boundary on the market size and can be expressed in either units and/or sales.
Market potential consists of the upper limit of total demand which would theoretically be converged on at (infinite) rise of marketing expenditures of all relevant providers (see figure).
Why Market Potential Analysis?
Estimating the market or market potential for a new business or business expansion is critical in determining the economic feasibility of a venture. Estimating the market potential for a business is critical in evaluating its viability and provides an estimate of the maximum total sales potential for a given market. Estimating the market potential will determine if the market is large enough to support your businesses. Hence we get precise and reliable information in this area after
1. MARKET POTENTIAL ANALYSIS
The Concept of market Potential
It is defined as the maximum demand response possible for a given group of customers within a well-defined geographic area for a given product or service over a specified period of time under well-defined competitive environmental conditions. We will further split up this definition: 1. Market potential is the maximum demand response under certain assumptions (ultimate demand). 2. Relevant customer for the product and service. It is not merely the present consumer but also the potential consumer so that maximum possible demand is achieved. 3. The geographic area for which market potential is to be determined should be well-defined. 4. There should be a clear understanding about the product & service for which the market potential is to be estimated. 5. The time period for which market potential is estimated should be specific. 6. Finally, a clear understanding of environmental & competitive conditions relevant in case of a particular product or service is also necessary. It is important to remember that the estimated market potential sets an upper boundary on the market size and can be expressed in either units and/or sales.
Market potential consists of the upper limit of total demand which would theoretically be converged on at (infinite) rise of marketing expenditures of all relevant providers (see figure).
Why Market Potential Analysis?
Estimating the market or market potential for a new business or business expansion is critical in determining the economic feasibility of a venture. Estimating the market potential for a business is critical in evaluating its viability and provides an estimate of the maximum total sales potential for a given market. Estimating the market potential will determine if the market is large enough to support your businesses. Hence we get precise and reliable information in this area after