Importance of Market Research for Business Expansion

This presentation discusses the importance of market research for identifying and capturing business expansion opportunities. It includes a case study of Amazon and explores the risks associated with entering new markets. The presentation also recommends ways in which Amazon can introduce new products in new markets for successful business expansion.

Introduction
Literature review
Results
Conclusion and Recommendations
Abstract


Background: In order to enter into a new market or expand business globally it is
important for an organization to focus upon developing an appropriate strategy though
which they can expand their overall business. In order to identify and capture business
opportunity it is important for organizations to conduct market research as it helps them to
identify market in which they can focus upon expansion of their business (Park and Chung,
2019). Products and services that can be focused upon by them so that they can
successfully expand in the new market.
• Aim: To identify ways in which expansion of business opportunity can be identified and
captured by an organization. A case study of Amazon


Objectives: Main objectives of this research study are as follows
 To analyse importance of market research for launching new product and service
 To evaluate risk associated with business expansion opportunity for entering into new market
 To analyse ways in which new business model can be used new opportunities for Amazon
 To recommend ways in which Amazon can introduce a new product in new market for
expanding business.


Research Questions: Main research questions of this study are as follows
 How important is market research for launching new product and service?
 What are the risks associated with business expansion opportunity for entering into new
market?
 What are the ways in which new business model can be used new opportunities for Amazon?
 Recommend ways in which Amazon can introduce a new product in new market for
expanding business
 Research type
In this research qualitative research type has been focused upon by the researcher
 Research Approaches
Inductive research approach has been selected by the research in this research as it is a
qualitative type of research.
 Research design
Exploratory research design has been chosen by the researcher for this research as this design
has directly helped researcher in achieving main objectives of research and answer main
research questions in an appropriate manner.
 Data Collection
Researcher has focused upon collecting primary data for this research though survey in which
20 employees working in Amazon were asked to fill questionnaire
 Data Analysis
With the help of thematic data analysis researcher has analysed all the primary collected by the
researcher from all the selected respondents.
 Sampling
Non- probability sampling method has been selected by the researcher in which only few
numbers of participants had a chance to participate in this research. 20 employees working in
Amazon were selected for this research.
Theme 1 Importance of market research
Theme 2 Risk associated with business expansion opportunities
Theme 3 Important to develop a new business strategy
From the above research it has been analysed that market research plays a vital role in
capturing busines expansion opportunities. Market research can directly help an organization like
Amazon to identify risk and opportunities associated with business expansion in global market. It
has also been concluded that with the help of market research organizations can develop new
effective business strategy that can be used by them in order to enter into a new market.
Amazon can use PESTLE Analysis model in order to analyse identified global market in which
they can expand their business. Amazon should focus upon conducing market research for
development of effective marketing strategy that can be used by them for entering into a new
market for successful expansion of business.
References
Books and journals
• Park, H. and Chung, C.C., 2019. The role of subsidiary learning behavior and absorptive
capacity in foreign subsidiary expansion. International Business Review. 28(4). pp.685-695.
• Canace, T.G. and Juras, P.E., 2020. Pikesville lightning: Evaluating strategic business
expansion opportunities. Management Accounting Case Book: Cases from the IMA Educational
Case Journal, p.129.
• Yang, M.H. and Yaoyungyong, G., 2020. The Impact of Culture on Multinational Business
Expansion: A Case Study Evaluating Merchandising in Asian 7-Eleven Franchises.
• Todeschini, B.V., and et. al., 2017. Innovative and sustainable business models in the fashion
industry: Entrepreneurial drivers, opportunities, and challenges. Business Horizons. 60(6).
pp.759-770.
APPENDIX
Question 1: Do you think market research is important to be conducted for capturing correct
business expansion opportunity for entering into a new market?
 Strongly Agree
 Agree
 Disagree
 Strongly Disagree
Question 2: Risk associated with business expansion opportunity for entering into new market?
 Failing to fulfil needs and requirement of new target customers
 Failing to identify appropriate and suitable market
 Others
Question 3 Do you think it is important to develop a new business strategy for expanding business
in new market?
 Strongly Agree
 Agree
 Disagree
 Strongly Disagree
Research methods
According to the view of Canace and Juras, (2020), market research plays a vital role for a
company in entering into new market with products and services. Market research helps an
organization to identify suitable market to enter, current competition, need of products and
services within chosen market. It further helps an organization to identify different kinds of risk
associated with identified business expansion opportunity that can work as a barrier for
organization for entering into new chosen market. There are various ways though which risk
associated with business expansion opportunity can be reduced. One of the ways is to focus
upon developing a new business model as per the new chosen market. New business model
can help an organization to bring changes within their business operation technologically,
operationally and many other kinds of changes that can help the company in easily adopting as
per the new market and bring necessary changes within them.
Question 1: Do you think market research is important to be conducted for capturing correct
business expansion opportunity for entering into a new market?
Options Respondents
Strongly Agree 10
Agree 18
Disagree 1
Strongly Disagree 1
Question 2: Risk associated with business expansion opportunity for entering into new
market?
Options Respondents
Failing to fulfil needs and requirement of new
target customers 8
Failing to identify appropriate and suitable
market 9
Other 3
Question 3 Do you think it is important to develop a new business strategy for
expanding business in new market?
Options Respondents
Strongly Agree 12
Agree 6
Disagree 2
Strongly Disagree 0