BSBSMB301

Investigate Micro Business Opportunities

Term 3, 2019
Week: 4
Element 2: Identify Market Needs
SWOT analysis
SWOT is an acronym used to describe
particular Strengths, Weaknesses,
Opportunities, and Threats for a micro
business.  
Conducting a SWOT analysis requires
extensive research into the internal factors
of the business, as well as the external
environment in which it operates.
Element 2: Identify Market Needs
SWOT Matrix
When analysing SWOT information you have
gathered, it is important to understand how
these elements work together.
When a micro business matches internal
strengths to external opportunities, it meets the
needs of its customers.
In addition, a micro business should act to
convert internal weaknesses into strengths and
external threats into opportunities.
Element 2: Identify Market Needs
Micro business SWOT analysis
Assess your market
What is happening externally and internally that will affect
your micro business?
Who are your customers?
What are the strengths and weaknesses of each of your
competitors?
What are the driving forces behind sales trends?
What are important and potentially important markets?
What is happening in the world that might affect your micro
business?
What does it take to be successful in this market?
Element 2: Identify Market Needs
Micro business SWOT analysis
Assess your business
What does your micro business do best?
What are your micro business resources -
assets, intellectual property, and people?
What are your key capabilities functions
of the business?
Element 2: Identify Market Needs
Micro business SWOT analysis
Assess your competition
How are you different from the competition?
What are the general market conditions of your micro
business?
What needs are there for your products and services?
What are the customer-market-technology
opportunities?
What are the customer's problems and complaints with
the current products and services available?
What "If only…." statements do customers make?
 Element 2: Identify Market Needs

-positive factors influencing your sales WEAKNESSES

List your:
-unique resources
-disadvantages
-advantages

-areas of improvement
List your:
STRENGTHS -negative factors impacting on sales

SWOT
-the activities of your competitors
OPPORTUNITIES
-obstacles faced in the business
List your:
-chances to improve List your:
-good opportunities that can be THREATS
beneficial for your business
Element 2: Identify Market Needs
Why is it important to collect market size
information?
It is important to collect market size information to
work out whether the market is large enough to
justify further investigation and exploration. 
If the market too small, it may be too risky to
pursue a potential business. Perhaps the market is
already well serviced by existing market players. 
The market may be sufficient in size, but declining
at a rate that makes it too risky for a new market
entrant.
Element 2: Identify Market Needs
Market Research
Do people want my product?
Is the market big enough?
How often will the market use my services?
Will the market continue to exist in a year or five
years?
How much will the market pay for my product?
Is the market ready for my idea?
Are there already competitors offering the same
or similar products or services?
Element 2: Identify Market Needs
Element 2: Identify Market Needs