Industry Target Market Feasibility

Introduction

Industry is the collection of firms or group pf business that produce particular kind of goods or services.
Firm is the single business unit of the industry. Industry target market feasibility is an assessment of
the overall appeal of the industry and the target market for the purposed business.

Parts of industry target market feasibility

Industry target market feasibility contain two important parts which help us to attract industry and to
achieve our goal.

 Industry Attractiveness
 Target Market Attractiveness

Industry Attractiveness

Industry attractiveness contain five important forces which are used to attract the industry for beneficial
results. Without these forces we cannot attract the industry. Porter gave the five forces model.

Porter’s Five Forces Model

It is the dominant mean for understanding the competitiveness of our business environment. This is useful
because we understand the industry that can affect our profitability. Porter’s five forces are as follows.

 Supplier power
 Buyer power
 Competitor Rivalry
 Threat of substitutes
 Threat of new entry

Supplier power

Suppliers are the persons who provide us raw material for the production of product. Suppliers power can
increase our profitability. It depends on the following things.

 Number of suppliers
 Size of suppliers
 Uniqueness of service
  Cost of changing

Number of Suppliers

If the number of suppliers are more than it increases the chance of our profit. As our product is wallet so,
if the raw material providers are more than it is cheaper than other products whose suppliers are less. Raw
material used for electronic wallet is silica chips so, we get it from the waste of the materials like
refrigerator, TV, LCD etc.

Size of Suppliers

Size of suppliers mean the scope of suppliers. If the raw material providers have high scope than it
increases the chance of our success. So, the size of suppliers should also be good for the profitability
purpose.

Uniqueness of Service

Uniqueness of service means our product should be unique in market. Because of uniqueness product sale
increases. Our product which is the electronic wallet is unique in market so, it increases the chance of
profitability.

Cost of Changing

The cost of the product should be low for the better sale because if less money spends on the product
making process than its price is automatically low and its sale increases. Electronic wallet has low cost
because the raw material used for this product is very cheap. Silicon chip can be obtained from any
cheaper store.

Buyer Power

Buyer power means number of customers. Number of customers should be high for the best results. We
can increase the buyer power by telling all the benefits of electronic wallet. This wallet is very beneficial
for the person who has expensive mobile because this wallet increases the safety of his mobile.

Competitor Rivalry

Competitor rivalry means some opposite industries came in ground with the same product at same time
this decreases the chance of product sale. But these industries have quality differences which nominate
the best industry. Our product (Electronic wallet) has no any competitor because it is new in market.
Therefore, its chance of sale is high.
Customer loyalty also increase the chance of product sale. Some customers are faithful with the industry
they always buy product from same country. In this way in opposite industry product sale decreases.

So, quality difference and customer loyalty decrease the competitor rivalry.

Threat of Substituents

Our product is unique in the market but there is risk for alternative product. Some other industries may
launch a new wallet with more important features. This decrease the sale of the electronic wallet.

So, threat of substituents should be less for the better product sale.

Threat of New Entry

If some product which is closely resembled with wallet enter in the market than there is chance of shifting
of customers to that product. Because of threat of new entry, we add unique features in electronic wallet
that attract the customers efficiently.

Target Market Attractiveness

Target market attractiveness is defined as the particular group of consumers at which business aims, its
marketing efforts and its resources target.

Target Market

A target market is a subset of total market for a product or service.We can target the market in two ways.

 Age wise
 Income wise

Age Wise Target

As our product is electronic wallet so, we target the customers age wise. Young generation is targeted for
this product because young people has more expensive mobiles so, they need electronic wallet for their
mobile’s safety.

Income Wise Target

Income wise we can target the upper class, middle class and lower class. But at starting we target the
upper class because they have more resources to buy the product. When product sale increases in the
market than we target the middle class by decreasing the price of the electronic wallet and when product
sale is so high than we target the lower class also to buy the electronic wallet by providing them
opportunity.