# Market Analysis
## Purpose
Generate a comprehensive market analysis that provides data-driven insights into the market opportunity, competitive landscape, and strategic positioning. This section should validate the business case and inform go-to-market strategy decisions.
## Required Information
Before generating this section, ensure you have:
- [ ] Market size and growth data from credible sources
- [ ] Competitive intelligence and analysis
- [ ] Customer research and market validation data
- [ ] Industry trends and market drivers
- [ ] Regulatory and economic factors
- [ ] Geographic market considerations
## Section Structure
### 1. Market Size & Opportunity
**Template:**
**Total Addressable Market (TAM)**: $[X] billion globally
**Serviceable Addressable Market (SAM)**: $[Y] billion in target regions
**Serviceable Obtainable Market (SOM)**: $[Z] million realistic capture
**Market Growth Rate**: [X]% CAGR over [timeframe]
**Key Growth Drivers**: [3-4 primary factors driving market expansion]
**Requirements:**
- Credible data sources with citations
- Clear methodology for market sizing
- Realistic market capture assumptions
- Geographic and segment breakdowns
- Historical and projected growth data
**Data Sources to Consider:**
- Industry research reports (Gartner, IDC, Forrester)
- Government statistics and census data
- Trade association publications
- Public company financial reports
- Academic research studies
**Validation Questions:**
- Are market size calculations based on bottom-up or top-down analysis?
- Do growth projections align with historical trends?
- Are assumptions about market capture realistic?
### 2. Market Segmentation & Targeting
**Template:**
**Primary Segment**: [Segment name] - $[size], [growth rate], [key characteristics]
**Secondary Segments**: [Additional segments with sizing and characteristics]
**Segment Attractiveness**: [Analysis of each segment's appeal]
**Targeting Strategy**: [Which segments to prioritize and why]
**Segment-Specific Needs**: [Unique requirements for each segment]
**Requirements:**
- Clear segmentation criteria (demographic, behavioral, needs-based)
- Quantified segment sizes and growth rates
- Assessment of segment attractiveness and accessibility
- Prioritized targeting strategy with rationale
- Segment-specific value propositions
**Validation Questions:**
- Are segments mutually exclusive and collectively exhaustive?
- Is each segment large enough to be commercially viable?
- Can segments be effectively reached and served?
### 3. Competitive Analysis
**Template:**
**Direct Competitors**:
- [Competitor 1]: [Market share], [strengths], [weaknesses], [strategy]
- [Competitor 2]: [Market share], [strengths], [weaknesses], [strategy]
**Indirect Competitors**:
- [Alternative solutions and their market impact]
**Competitive Positioning Map**:
- [Visual representation of competitive landscape]
**Market Share Analysis**:
- [Current market share distribution and trends]
**Requirements:**
- Comprehensive competitor identification
- Objective assessment of competitive strengths/weaknesses
- Market share data with sources
- Competitive strategy analysis
- Positioning differentiation opportunities
**Competitive Intelligence Sources:**
- Company websites and marketing materials
- Customer reviews and feedback
- Industry analyst reports
- Patent filings and technical documentation
- Social media and press coverage
- Employee LinkedIn profiles and job postings
**Validation Questions:**
- Have all relevant competitors been identified?
- Is competitive intelligence current and accurate?
- Are competitive assessments objective and evidence-based?
### 4. Customer Analysis & Market Validation
**Template:**
**Customer Demographics**: [Age, income, location, company size, etc.]
**Customer Psychographics**: [Values, attitudes, lifestyle, motivations]
**Buying Behavior**: [Purchase process, decision criteria, budget cycles]
**Pain Points**: [Current problems and frustrations]
**Market Validation**: [Evidence of customer demand and willingness to pay]
**Requirements:**
- Detailed customer persona development
- Evidence-based customer insights
- Quantified market validation data
- Customer journey mapping
- Price sensitivity analysis
**Market Validation Methods:**
- Customer interviews and surveys
- Focus groups and user testing
- Market research studies
- Pilot programs and beta testing
- Pre-order campaigns or landing page tests
**Validation Questions:**
- Is customer data based on primary research?
- Do customers actually experience the identified pain points?
- Is there evidence of willingness to pay for the solution?
### 5. Market Trends & Drivers
**Template:**
**Technology Trends**: [Relevant technological developments]
**Social Trends**: [Demographic and behavioral shifts]
**Economic Trends**: [Economic factors affecting the market]
**Regulatory Trends**: [Policy and compliance changes]
**Industry Trends**: [Sector-specific developments]
**Impact Assessment**: [How trends affect market opportunity]
**Requirements:**
- Identification of relevant macro and micro trends
- Analysis of trend impact on market opportunity
- Timeline for trend development and market impact
- Quantification of trend effects where possible
- Consideration of trend interdependencies
**Validation Questions:**
- Are identified trends supported by credible data?
- How do trends specifically impact the target market?
- What is the timeline for trend realization?
### 6. Market Entry Strategy
**Template:**
**Entry Approach**: [How to enter the market - direct, partnership, acquisition]
**Geographic Strategy**: [Which markets to enter first and expansion plan]
**Channel Strategy**: [How to reach customers - direct, retail, online, etc.]
**Timing Strategy**: [When to enter and key timing considerations]
**Resource Requirements**: [Investment needed for market entry]
**Requirements:**
- Clear market entry methodology
- Prioritized geographic expansion plan
- Multi-channel go-to-market approach
- Timing optimization based on market conditions
- Resource allocation and investment planning
**Validation Questions:**
- Is the entry strategy aligned with company capabilities?
- Are timing assumptions realistic and well-founded?
- Have regulatory and cultural barriers been considered?
### 7. Market Risks & Opportunities
**Template:**
**Market Opportunities**:
- [Opportunity 1]: [Description, size, timeline, probability]
- [Opportunity 2]: [Description, size, timeline, probability]
**Market Risks**:
- [Risk 1]: [Description, impact, probability, mitigation]
- [Risk 2]: [Description, impact, probability, mitigation]
**Scenario Analysis**: [Best case, base case, worst case market scenarios]
**Requirements:**
- Comprehensive opportunity and risk identification
- Quantified impact and probability assessments
- Specific mitigation strategies for key risks
- Scenario planning with different market conditions
- Contingency planning for major market shifts
**Validation Questions:**
- Are risk assessments realistic and comprehensive?
- Do mitigation strategies address root causes?
- Are scenarios based on reasonable assumptions?
## Quality Criteria
### Data Quality
- [ ] **Credible Sources**: All data from reputable, cited sources
- [ ] **Current Information**: Recent data reflecting current market conditions
- [ ] **Relevant Scope**: Data specific to target market and geography
- [ ] **Consistent Methodology**: Uniform approach to data collection and analysis
- [ ] **Transparent Assumptions**: Clear statement of all assumptions made
### Analysis Quality
- [ ] **Objective Assessment**: Unbiased evaluation of market conditions
- [ ] **Comprehensive Coverage**: All relevant market factors considered
- [ ] **Strategic Insights**: Analysis leads to actionable strategic recommendations
- [ ] **Risk Awareness**: Honest assessment of challenges and limitations
- [ ] **Opportunity Focus**: Clear identification of market opportunities
## Cross-Reference Requirements
Ensure consistency with:
- **Product Overview**: Target market and competitive positioning
- **User Research**: Customer insights and persona validation
- **Product Requirements**: Market-driven feature prioritization
- **Implementation Plan**: Market entry timeline and resource allocation
- **Success Metrics**: Market-based KPIs and benchmarks
- **Risk Assessment**: Market risk identification and mitigation
## Information Gathering Questions
If market data is missing, ask:
### Market Sizing
1. What is the total market size for this product category?
2. How is the market growing year-over-year?
3. What geographic markets are being targeted?
4. How is the market segmented?
### Competitive Intelligence
5. Who are the main direct and indirect competitors?
6. What are their market shares and growth rates?
7. What are their key strengths and weaknesses?
8. How do they position themselves in the market?
### Customer Insights
9. Who are the target customers and what are their characteristics?
10. What are their main pain points and needs?
11. How do they currently solve these problems?
12. What is their willingness to pay for a solution?
### Market Dynamics
13. What trends are shaping the market?
14. What regulatory or economic factors affect the market?
15. What are the barriers to entry?
16. How is technology changing the market?
## Common Pitfalls to Avoid
### Data Pitfalls
- **Outdated information**: Using old market data that doesn't reflect current conditions
- **Unreliable sources**: Citing questionable or biased data sources
- **Cherry-picking data**: Selecting only data that supports desired conclusions
- **Conflating markets**: Mixing data from different market segments or geographies
- **Assumption stacking**: Building conclusions on multiple unvalidated assumptions
### Analysis Pitfalls
- **Overoptimism**: Unrealistic market capture assumptions
- **Competitive blindness**: Underestimating competitive threats
- **Trend extrapolation**: Assuming current trends will continue indefinitely
- **Market timing errors**: Misjudging market readiness or timing
- **One-size-fits-all**: Ignoring market segment differences
## Edge Case Handling
### Limited Market Data
- Use proxy markets and analogous industries
- Conduct primary research to fill data gaps
- Clearly label estimates and assumptions
- Provide ranges rather than point estimates
- Document methodology for future validation
### Rapidly Changing Markets
- Focus on leading indicators rather than lagging data
- Include multiple scenarios with different assumptions
- Plan for frequent market analysis updates
- Emphasize adaptability in strategy recommendations
- Monitor key market signals continuously
### Emerging Markets
- Use bottom-up market sizing approaches
- Focus on market development potential
- Consider infrastructure and adoption barriers
- Plan phased market entry strategies
- Include market education in go-to-market plans
### Regulated Markets
- Include regulatory analysis in market assessment
- Consider compliance costs in market sizing
- Plan for regulatory approval timelines
- Monitor policy changes and their market impact
- Include regulatory risk in scenario planning
## Validation Checklist
Before finalizing, verify:
- [ ] **Source Credibility**: All data sources are reputable and cited
- [ ] **Data Currency**: Information is current and relevant
- [ ] **Methodology Transparency**: Analysis methods are clearly explained
- [ ] **Assumption Clarity**: All assumptions are explicitly stated
- [ ] **Competitive Objectivity**: Competitor analysis is fair and evidence-based
- [ ] **Strategic Relevance**: Analysis supports strategic decision-making
## Output Format
markdown
# Market Analysis
## Market Size & Opportunity
[Market sizing content with data sources]
## Market Segmentation & Targeting
[Segmentation analysis content]
## Competitive Analysis
[Competitive landscape content]
## Customer Analysis & Market Validation
[Customer insights content]
## Market Trends & Drivers
[Trends analysis content]
## Market Entry Strategy
[Entry strategy content]
## Market Risks & Opportunities
[Risk and opportunity assessment]
---
_Market data sources: [List all sources used]_
_Analysis date: [Date of analysis]_
_Next review date: [When analysis should be updated]_
## Success Indicators
A successful market analysis should:
- Provide data-driven validation of the market opportunity
- Enable informed strategic and tactical decisions
- Identify specific competitive advantages and positioning opportunities
- Support realistic business planning and forecasting
- Serve as a foundation for go-to-market strategy development