Analysis of the Photography Industry in Toronto, Canada

This report analyzes the photography industry in Toronto, Canada, focusing on market potential and market share for small businesses. It begins with an introduction outlining the rapid developments in digital photographic technology and its impact on the industry, particularly the influx of independent photographers and the decline in demand for professional portrait services. The report identifies the primary sources of sales in metropolitan areas like Toronto and secondary areas in less populated regions. It then delves into market potential, using a formula that considers the number of potential consumers, market share, average selling price, and average annual consumption. The report also defines market share and explains how it's calculated, emphasizing the importance of staying competitive. References include works by Marland (2012), Fraser, McMordie & Simmins (2013), and others, providing a comprehensive overview of the sector.

Running head: SMALL BUSINESS MANAGEMENT
Small Business Management
Name of the Student
Name of the University
Author Note

1SMALL BUSINESS MANAGEMENT
Topic- Photography industry service in Toronto Canada
Introduction
This research report is an analysis of current photography industry of Toronto
Canada. The purpose of the report is to analyse the market potential and market share of
photography sector of Toronto in Canada. It has been identified that rapid developments
particularly in the digital photographic technology is most likely to continue to restructure the
photography sector in Canada over last five years to 2019. It is noted that ease of digital
photography has generated a major influx of independent photographers and hence the
inability of taking relative high-quality photos with the smartphone has significantly
decreased the demand for professional portrait services from customers. Considering these
facts, this report identifies current sales from potential consumers who would come from
outlying areas and market share status for the small business.
Market potential
It has been identified that commercial and group portrait photographers are largely
concentrated in heavily populated metropolitan areas like Toronto, Montreal or Vancouver.
Therefore, the major source of the sales are metropolitan areas. On the other side, secondary
area of sales are the non-employer photographers who tend to pay attention on nature as well
as wildlife photography they are relatively concentrated in less populated regions such as
Manitoba, Alberta’s Rockies. On the other side, it has been identified that the sector is largely
concentrated in Ontario which accounts for almost 41.0% of sector development (Marland,
2012). It has also been identified that over the last five years, photography in US has
increased by 1.6% to reach the revenue of 10 billion in 2018. It has also been identified the
number of business has increased by 3.0% (Fraser,McMordie & Simmins, 2013).

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Figure 1: Industry revenue
(Source: Fraser, McMordie & Simmins, 2013).
It has also been identified that relatively slower corporate growth is expected to make the
sector more vulnerable to external competition.
Market Potential:
MP = N × MS × P × Q
MP = market potential
N = total number of potential consumers
MS = market share percent of consumers buying from you
P = average selling price
Q = average annual consumption

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Market share
As put forward by Campaniaris et al., (2015), market share represents the percentage
of an industry or market’s total sales which is earned by a specific organization over a
particular time period. Hence, market share is calculated by taking organization’s sales over
the period and then dividing by overall sales of the sector over the same period. On the other
side, Payne (2013) mentioned that company’s market share is its portion of overall sales with
respect to the market or sector in which the firm runs its operation. So, to calculate
organization’s market share, first it has to determine a time period it wants to examine and it
can also be fiscal quarter or multiple years. Likewise, the next step is to calculate firm’s
overall sales over the period and then total sales of the industry can be investigated.
Eventually, organization needs to divide the total revenue by its sector’s overall sales. Small
business must stay on top of competition as well as year share of the market.
Market share = 100% ÷ number of competing businesses
Market share = 100 ÷ 3
Market share = 33.3% for each of the existing agritourism businesses

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References
Campaniaris, C., Murray, R., Hayes, S., & Jeffrey, M. (2015). Evidence-based development
of a strategy for Canadian apparel SMEs. Journal of Fashion Marketing and
Management, 19(3), 299-314.
Fraser, L., McMordie, M., & Simmins, G. (2013). John C. Parkin, Archives, and
Photography: Reflections on the Practice and Presentation of Modern Architecture.
University of Calgary Press.
Marland, A. (2012). Political photography, journalism, and framing in the digital age: The
management of visual media by the prime minister of Canada. The International
Journal of Press/Politics, 17(2), 214-233.
Payne, C. (2013). The Official Picture: The National Film Board of Canada's Still
Photography Division and the Image of Canada, 1941-1971 (Vol. 10). McGill-
Queen's Press