Market analysis for MocFish web development services

Market Analysis

MocFish Market Analysis

Current principle customers are retail businesses that are trying to expand to online sales, or to improve existing websites to increase online sales. Current research shows that purchasers of new technological innovations still make up less than half of all business in Canada in the goods production sector, which includes retail sellers, meaning there is a large market for the purchase of such products if they can be efficiently developed and effectively marketed (Urbach et al. 2009). Large companies are even less likely to have purchased such technologies, yet focusing on large-scale contracts could prove difficult and limiting for the MocFish team (Urbach et al. 2009). Instead, small- and mid-sized retailers in areas of high growth, such as the automotive, personal care, and home furnishings sectors that can be reached through direct marketing efforts will be focused on (Mohammed 2008).

Market Trends

The number of regular Internet users in Canada, the overall rate of use for each user, and the use of the Internet to research and purchase products have all risen dramatically in the past decade (Office of Consumer Affairs 2011). Increasing ease of Internet access and its affordability have been major drivers of this trend, and have created fast-growing retail markets in a number of different industries (Office of Consumer Affairs 2011; Mohammed 2008). Current trends suggest a rapidly expanding market with a significant portion of market share attainable even by a small business; share will be limited only by capabilities at this point.

Market Share and Sales

As stated above, it is impossible to predict total market share in terms of a percentage or direct proportion. The growth in the demand for web development services vastly outstrips supply, and with a large part of the retail sector still untapped in terms of website sales it will be impossible for any small competitor to capture a major portion of market share (Urbach et al. 2009; Mohammed 2008). Sales will only be limited by the potential of the company to produce the products sold, however, meaning a substantial amount of revenue can be generated.

Ongoing Market Evaluation

Statistics and market trends are regularly calculated, compiled, and published by a variety of individuals and organizations, including the Canadian national government, which will allow for the continuous monitoring of relevant data and potential impacts on the market (Office of Consumer Affairs 2011). The company's planned move back to China within a few years will of course dramatically impact its marketability and the market in which it is operating, and achieving reliable statistical information regarding the market in China could prove much more difficult than in Canada. With appropriate access to information and/or to individuals that have access to accurate information, however, conducting and completing useful market research in China should prove quite possible. Market trends are expected to follow similar lines across the globe in the next decade, with potentially even more dramatic increases in China due to lower levels of current use and infrastructure development.

Conclusion

In the company's first three years of operation, it is expected that a total of slightly over one hundred contracts (an average of three per month) will be completed, with sales reaching between $275,000 and $350,000. As processes improve, efficiency grows, and the company expands, these numbers could be increased significantly. Market size will not be the limiting factor in this growth, but rather business management will be the primary driver of success.