Market attractiveness

Market attractiveness covers all aspects related to the identified market need, including size, growth, needs, trends, and competitors. The purpose of these criteria is to analyze the general market conditions into which the product will be introduced and determine how well the organization will perform in that market. 

Examples of what could make a market attractive include ... 

The market attractiveness criterion assumes that it is possible for one to become one of the top three companies serving the chosen market. This relates directly to the fact that the profit impact of an innovation is tied closely to its market share. Empirical studies show that this normally constitutes an attainable market share of between 10 and 40%. 

While market attractiveness focuses on identifying a market need, competitive market position is aimed at proving that the product actually meets this need. 

The project team must indicate that our product meets the market need as opposed to competitive products (see market attractiveness). This indication should be based on feedback from potential customers. If the project s target customer is a customer of one s business, feedback should come from the end user. 

The project team must also address the future revenue potential. A team may use the market potential presented under market attractiveness and use 40% of that amount as the maximum revenue potential (40% is the typical share of a market leader, according to empirical studies). 

Again the project team must consider the points menhoned in the previous stages. Market Attractiveness... 

Atmospheric Updraft Gasifiers (AUG) have practically no market attractiveness for power applications due to the high concentration of tar in the fuel gas and the subsequent problems in gas cleaning. Also the technology is considered weak for the same reasons. There is no company proposing AUG for power at present. 

Atmospheric Cyclonic Gasifiers (ACG) have only recently been tested for biomass feedstocks and although they have medium market attractiveness due to their simplicity, they are still unproven. No well known company is promoting ACG. 

Finally, Atmospheric Entrained Bed Gasifiers (AEBG) are still at the very early stage of development and since they require feedstock of very small particle size, their market attractiveness is very low. 

Country Portfolio Analysis (CPA) An analysis of country market attractiveness using statistics like income, population, and product consumption. It is recommended that this analysis be adjusted for cultural, administrative, geographic, and economic distance. (Distance still matters. Harvard Business Review, September 2001, pp. 129-147)... 

In conjimction with McKinsey, GE developed a nine cell portfolio model to measure the relative attractiveness of a company s multiple business for investment purposes based on market attractiveness (high/medium/low) and competitive position (strong/medium/weak). Alternate investment strategies are advised for the portion of business contained within each cell of the matrix. 

This three-by-three matrix was developed by Royal Dutch Shell Group as a portfolio-planning tool. It integrates business sector prospects with a company s competitive capabilities (Figure 2.5). Positioning is determined in a similar manner to the competitive position-market attractiveness matrix. Though developed by Shell with specific reference to the petrochemical industry, the model is generally applicable in relation to all diversified enterprises. Shell uses four criteria to assess business sector prospects ... 

Figure 4-3. For more marketable attractive colors and toughness, the Sunbeam Appliance Co. assembles its irons with a skirt molded from a glass-reinforced isopolyester (Amoco s resin) bulk molding compound (BMC). The skirt, which is located just above the sole plate, must be able to withstand a continuous operating temperature of 232 C (450 F). 

Many plastic products fall into a category of this type. Enclosures, covers, and consumer items often require not only a basic function to be provided but considerable aesthetic appeal to enhance market attractiveness. CAD/CAM and surface modeling provide the means not only to define a surface but also to evaluate the aesthetic appeal of the product and directly control the finished product by an unambiguous description of all surface curvatures and radii. 

The developmental and commercial successes of the early 1980s, and the perceived large market, attracted many companies into the field. As the technology matured and the market became extremely competitive, some companies dropped out and others changed ownership. Companies offering commercial scale membrane systems are listed in Table 15-1. The table also identifies the principal areas of application for each company s products. 

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