While assessing the market, an entrepreneur has to prepare details on four factors one of them being 'project innovation and change'. Explain briefly the other three.

Question

Accepted Answer

**1. Demand** — The demand assessment is based on the size of the market being targeted — local, state level or national/international — along with a study of the target groups of consumers, their preferences, tastes and other related variables.

**2. Supply and nature of competition** — The complete picture of the quantities of the product made available in the market by all existing players is studied, including future supplies from possible entrants in the field.

**3. Cost and price of product** — The cost of the product is determined and compared with the available products in the market. The cost variables of competitors such as transportation delays, wastage and storage are studied to spot a cost advantage, which influences the delivery mechanism of the product or service.