Question5: - Please Visit the “DEVINCI” website http://www.devinci.com/home.html

Question

Question5: - Please Visit the “DEVINCI” website http://www.devinci.com/home.html and do other internet research to explain the Market analysis for the company “DEVINCI " especially in Florida in U.S.A as they are looking to export to Florida to expand their operatins in U.S.A.

Please answer in point form and remember to include your list of references.

Answer hint: - Market analysis may include: -

- Market size

- Market profitability

- Cost structure

- Distribution systems

- Market trends and developments

- Market Key Success Factor

Explanation / Answer

“DEVINCI” is the website which is dedicated to the bikers Its mission to help riders to grow in the sports domain and at the same time to have fun.

Market analysis:

It is the study of how well a business runs in a dynamic and static market of a particular Industry. It is used to analyze which group of people will be attracted to the business. Through market analysis we can identify SWOT (strengths, weaknesses, opportunities and threats.

The various elements of market analysis are mentioned below:

1. Market size :

The market size can be determined either in quantities or qualities. The size of the market can be defined as number of customers which are likely to be attracted for that particular business.The expected number of customers is the market potential and number of sales is the market volume.

The Florida is the place where there is a bike path on the MacArthur causeway, a road connecting Miami Beach with the city of Miami proper. It has six wide lanes of traffic and a speed limit of 50mph. Hence, the market potential and market volume will be ideally good.

2. Market profitability:

The market profitability depends on the attractiveness to business and market volume. The other factors include as below:

A) How much the buyer is willing to pay:

Few people will pay the standard amount and few will bargain and be willing to pay less amount.

The bike riders in the Florida will be combination of both kind of people. Hence, it is good to go

B) How many products can the supplier supply:

There might be a situation or the season when there are lot of customers. Hence, the supplier should be able to supply to every individual to gain profits and not to loose customers

As Florida has world famous bike path, the number of customers will be ideally high. Hence, the supplier should be able to provide enough bikes to every individual.

C) What if there is any damage to substitute products:

The supplier should be able to afford if there is any damage to substitute products and it should not have any negative effect in the profits.

As the bicycle are not really of high range and as the reach of customers will be good in Florida, supplier will be able to afford it

3. Cost structure:

Investment should be done based on the expected profit. It should always be less than the expected profit so that the possibility of loss is low. Also, cost to the product should be given based on the investment and the competition in the market.

As Florida has world famous bike path, the competition will be already high. However, as the reach of customers is also high, this will not effect the business- provided rent of the bike should be affordable by most of the individuals.

4. Distribution systems:

The distribution system consists of existing business, trends and branding.

As Devinci business if running from long time the business will run well as there is little branding and the existing business also runs well. Bike racing is always trend in Florida.

References:

https://en.wikipedia.org/wiki/Market_analysis

https://www.entrepreneur.com/article/78002

http://www.economist.com/blogs/democracyinamerica/2014/10/cycling-florida

https://www.thebusinessplanshop.com/blog/en/entry/market_analysis_for_business_plan

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.