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Market Analysis and Competitiveness in Project Appraisal

Harvard Institute for International Development, Development Discussion Paper No. 755

49 Pages Posted: 8 Mar 2001  

Savvakis C. Savvides

Queen's University - John Deutsch Institute for the Study of Economic Policy; Cyprus International Institute of Management (CIIM)

Date Written: February 2000

Abstract

The paper highlights the need for a methodological framework on which to base projections in project appraisal applications. Following an initial definition and sizing of the relevant market of the project, the market is analysed in terms of which are the main customer groups, what their needs are, and how well existing suppliers serve these needs. The process should identify market performance gaps against which the project can position itself and develop relevant market competencies so that it can be assessed to be capable of out-performing competitors in meeting market expectations in a sustainable manner. This should be the essence of any project appraisal. The analyst should seek to find those elements of competitiveness that are likely to make the project a successful enterprise in its market. The quantification part of this exercise should lead to the modelling and compilation of the cash flow projections. The projected numbers should be a reflection of the competitive analysis.

Keywords: Market analysis, consumer behaviour, project competitiveness, project appraisal, market competence, market positioning, marketing orientation

JEL Classification: D11, D61, H43, L21, M31

Suggested Citation

Savvides, Savvakis C., Market Analysis and Competitiveness in Project Appraisal (February 2000). Harvard Institute for International Development, Development Discussion Paper No. 755. Available at SSRN: https://ssrn.com/abstract=262014 or http://dx.doi.org/10.2139/ssrn.262014

Savvakis C. Savvides (Contact Author)

Queen's University - John Deutsch Institute for the Study of Economic Policy ( email )

Canada

Cyprus International Institute of Management (CIIM) ( email )

P.O Box 20378
Aglandjia
Nicosia, CY-2151
Cyprus

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