The business analysis stage of product development changes the focus from whether a product would be popular to whether the product would be
feasible and profitable. This stage involves conducting an in-depth analysis of the market, competitors, target audience, and feasibility of the product. The main objective is to assess whether there is a demand for the product and if it can generate enough revenue to be profitable.
During the business analysis stage, several key factors are considered, including:
1. Market analysis: Assessing the size, growth potential, and dynamics of the target market. This involves analyzing consumer trends, competitive landscape, and potential barriers to entry.
2. Customer analysis: Identifying and understanding the target audience's needs, preferences, and buying behavior. This involves conducting market research, surveys, and focus groups.
3. Competitor analysis: Evaluating existing and potential competitors in the market. This involves analyzing their products, pricing strategies, distribution channels, and marketing efforts.
4. Technical feasibility: Assessing whether the product can be developed within the specified time, budget, and available resources. This involves evaluating the technical requirements, infrastructure, and capabilities needed for the product development.
5. Financial analysis: Projecting the potential revenue, costs, and profitability of the product. This involves creating financial models, analyzing pricing strategies, estimating production costs, and forecasting sales.
6. Risk analysis: Identifying and mitigating any potential risks or challenges that may arise during the product development process. This involves assessing market risks, technical risks, financial risks, and operational risks.
The ultimate goal of the business analysis stage is to provide valuable insights and data-driven recommendations to decision-makers. This helps them make informed decisions about whether to proceed with the product development or make necessary adjustments to ensure its success in the market.