What is the role of past precedents in assessing the opportunity of an existing market?

A business can use several strategies to avoid dedicating further resources to a market with minimal opportunity. First, it can conduct a thorough market assessment to understand the potential value and opportunity in the market. If the market shows minimal to no opportunity, the business should avoid investing further resources. Second, the business can use buyer values visualization to rank different aspects of a product or service based on user value. This can help the business identify areas with high potential and avoid areas with low potential. Lastly, the business can consider the competition in the market. If the market is emerging with less competition, it might be worth the risk to gain a first-mover advantage. However, if the market is saturated with competition and shows minimal opportunity, it would be wise to avoid further investment.

A business can assess the potential of a new market by conducting a thorough market research. This includes understanding the expected value a user wants from a product or service, the opportunity that exists to service that market, and the level of competition. For instance, an existing market may offer high opportunity based on past precedents, while an emerging market may have high potential with less competition, providing a first-mover advantage. A market with minimal to no opportunity should be avoided.

The potential risks of entering an emerging market include lack of established infrastructure, political instability, cultural differences, and potential for economic volatility. However, the rewards can be significant. These include access to a new customer base, potential for high growth, less competition, and the opportunity to establish a strong market presence before others. It's important to conduct thorough market research and risk assessment before entering an emerging market.