Market Analysis and Competitiveness in Project Appraisal

Savvides, Savvakis C. (2000): Market Analysis and Competitiveness in Project Appraisal.

Abstract

The paper highlights the need for a methodological framework on which to base projections in project appraisal applications. Following an initial definition and sizing of the relevant market of the project, the market is analysed in terms of which are the main customer groups, what their needs are, and how well existing suppliers serve these needs. The process should identify market performance gaps against which the project can position itself and develop relevant market competencies so that it can be assessed to be capable of out-performing competitors in meeting market expectations in a sustainable manner. This should be the essence of any project appraisal. The analyst should seek to find those elements of competitiveness that are likely to make the project a successful enterprise in its market. The quantification part of this exercise should lead to the modelling and compilation of the cash flow projections. The projected numbers should be a reflection of the competitive analysis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Market analysis, consumer behaviour, project competitiveness, project appraisal, market competence, market positioning, marketing orientation
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing; G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O22 - Project Analysis

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