Market Research and Business Strategy

What did Jake discover during his market research?

A. he would have to offer lower prices.
B. his marketing should stress quality and service.
C. the competition gave up too soon.
D. there was no market for his product.

Answer:

As Jake began his market research, he discovered that there wasn't another retail boating supply business for more than 100 miles. In fact, there was no large lake or river, either. Jake concluded that there was no market for his product - D.

Market research plays a crucial role in determining the viability and success of a business. In the case of Jake, he discovered some key information that shaped his business strategy. The absence of any competitors within a 100-mile radius and the lack of a significant water body pointed to a potential challenge in finding a market for his boating supply business.

With this insight, Jake had to make strategic decisions on how to position his business in the market. While the options of offering lower prices or emphasizing quality and service were considered, the conclusion that there was no market for his product led him to reevaluate his business plan.

Understanding the market landscape and identifying potential obstacles early on allowed Jake to pivot his strategy and explore other opportunities. It highlights the importance of thorough market research in guiding business decisions and optimizing chances for success.