Businesses normally have a number of market opportunities, which they initially investigate first of all, then evaluate and subsequently compare with each other. To achieve this they require values such as, the size of the market, the previous growth of the market or the market potential.
For your investment decision you should ask yourself the following questions:
- How large is the market and is the market size defined reasonably?
- How quickly will the market grow?
- Is it part of a trend?
- How is the competitive environment in these markets?
- Is there enough market potential to admit further market participants?
- Are there technical, legal or financial barriers to entry? If yes, how significant are they?