Market Analysis

Drafting the market analysis part of our business plan was slightly complicated for our group. We didn’t understand exactly the objectives of the task and we also did not know the exact format, even after having visited the links. We were also unsure if we were supposed to be writing from the perspective of second life or real life. We overcame these obstacles, however, and were able to draft a complete market analysis for our water sports business.

When we visited similar businesses in second life, we could explore the business but it was difficult to obtain concrete information about the business and geographic location. After having visited several more locations however, we decided to choose a location that was higher in traffic, or people, we figured out, because that means more people as customers. Because of this, we chose Key West, where we will form a partnership with a resort.

Each group member worked hard in completing the market analysis, as we determined our target market, the strengths and weaknesses we will likely face, our competitors, etc. Our target market is vacationing families and individuals of the middle to upper classes who are looking to gain memorable experiences. I think our market analysis was very thorough and explained our strategy to gain business well. Our idea to partner with a resort was created so that it will make it easier for us to attract customers initially, since we will immediately acquire the guests of the resort as customers. This means, however, that we could become dependent, at least initially, on the success of the resort to gain business, which could be seen as a weakness.

This market analysis was a good exercise for our group to complete because it demonstrated the work and research that is necessary for drafting a business plan. It also enabled us to work as a group and understand more thoroughly what each other’s ideas were.