For this project, you must research the existing (or potential) market you plan to enter (or create). Your goal should be to identify your position in the market, this will help you know what your business needs to be doing to identify customers. Think about what you are really offering. Who is your consumer? For example, all restaurants serve people, but some places serve atmosphere first, food second (e.g., Dave & Busters). So, I might be opening a restaurant, but my customers are probably going to be “gamers” and “gatherers”, not “foodies.” You will need to identify with a specific industry and recognize the corresponding SIC code. This will allow you to gather general market/industry data. Many organizations (including the US government) use SIC codes to record and organize industry and market data.
Requirements
VIDEO:
You must update your Elevator Pitch. You must update and record a new elevator pitch. Incorporate what you have learned! Upload your video to Canvas. Use the Canvas provided media platform to record your videos. This 2-5 minute segment is all that needs to be recorded on video.
WRITTEN SYNOPSIS:
You must identify your business with an SIC code. Your business may seem to relate to many of the codes, but you choose the one code that best fits your business. Then detail why you chose this code to represent your industry and guide your research.
You must research the industry you have identified with. You need to figure out how much your industry is worth annually – locally, nationally, and globally. You must identify trends in your industry by gathering at least three data points per trend.
HOW TO IDENTIFY A TREND: If I am starting a restaurant, I would want to know how much people spend (in general) for a dinner at a restaurant. To find the trend, I need at least three data points. So, I might find the average spent on a restaurant meal in 2019, 2018, & 2017. Let’s say the amount was $80 in 2017, $90 in 2018, and $100 in 2019. I would then be able to say there was an obvious upward trend in the amount spent on a restaurant meal over the past three years. Seems like that could be good news for my restaurant! This example would represent one industry trend. You will need to find at least three industry trends (see rubric for more details). Be sure to detail why you thought the trends you chose were important to know for your business.
You must research the people that are in your target market. It is important to know who the people are that you will be serving/affecting with your business. You will need to do research to identify trends relating to the people and environment surrounding your industry and business.
You must research your local competitors. You will compare what you will be doing to what is already out there. If there is no direct comparison, find something that has similar characteristics and justify your decisions. For example, if you are planning a restaurant that revolves around a certain theme or process, compare your restaurant to other restaurants that have capitalized on a theme or process. It does not necessarily need to be the same theme, but the closer the better. However, you must be able to justify your comparison (this will take some thought). Interview local entrepreneurs (by phone or email).
TIPS: Search the internet to identify popular press trends, these can give you ideas of what might be important to know about your industry. Use the library. The University of Memphis Library subscribes to many databases with industry data, get in touch with your favorite UM Librarian if you need help finding these resources. Your textbook has a good section on industry analysis, check it out. Document your efforts in your synopsis.
Synopsis Format:
Use MS Word, 12-point font, 1” margins, left justification. Your name and course number (MGMT 2820) should appear in the header. You must submit the MS Word document (.doc/.docx) file, not a link to your work.
All projects must be uploaded to the Canvas dropbox folder titled: Industry Analysis
The synopsis should include all the information you find and want graded. Include/describe all work/effort you put into the project. Be comprehensive. I expect your synopsis to reflect the weeks of work time allotted to complete this project. The synopsis can be an essay or an outline, but it must include everything you want the professor to review for your project grade.
See the External Feasibility (Industry Analysis) Project Rubric for more details.
Your effort is reflected in the details of your analysis. In other words, the more you report, the more effort I can see went into your thought experiment and data collection – which leads to more credit!
This assignment must be uploaded to Canvas, Industry Analysis folder.No late assignments will be accepted. Be sure to address any submission issues well in advance of the deadline (including how to upload your work).
Industry Analysis (External Feasibility) Project Rubric
Elevator Pitch 30%
- BE ENTHUSIASTIC OR BE IGNORED!
- Record and upload your video to Canvas – You must be on camera!
- What are your competitive advantages?
- What do you have (or do) that is: Rare – Valuable – Inimitable – Non-substitutable
- Update with industry and market data highlights geared toward further enticing your dream investor.
- 300 seconds or less
- Include your script (verbatim) in the synopsis!
Industry Description 20%
- What is your industry?
- Identify with one SIC code that best fits your business.
- How much is the market for this industry worth? Locally? Globally?
- What are three industry TRENDS you think are important to know before starting your venture?
- Why are each of these trends important?
- How does your opportunity fit in with the trends you identified?
- Describe how the industry is ripe (or not) for your business.
- Accessibility?
- What are the barriers to entry in the market for your business?
Market Demographics & Environment 20%
- Where will you start your business?
- Who are the people in the area where you selected to start your business?
- What percentage of people live where you will start your business?
- Age
- Education
- Income
- What percentage of people live where you will start your business?
- What are three demographic (e.g., population changes) trends surrounding businesses like yours?
- How could these trends affect your business?
- What are three environmental (e.g., culture changes) trends surrounding businesses like yours?
- How could these trends affect your business?
- Are there any recent events that could affect the startup of your business? How?
Competition 20%
- Who is your local competition?
- Find 3 businesses that compete for the same resources as you.
- Describe your competition with a modified SWOT analysis for each local competitor you found.
- What are THEIR strengths? Weaknesses?
- What are YOUR opportunities for exploiting THEIR weaknesses?
- What threats do THEIR strengths pose to YOUR business?
Synopsys (writing) Clarity & Accuracy 10%
