Market Analysis and Competitiveness in Project Appraisal

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.

Factors influencing seed cotton marketing decisions by smallholder farmers in Zimbabwe

“…This will necessitate the thinking of possibilities of forging ahead and current opportunities linkages within the conceptual framework which guided this study. A handful of researches were done to explore the cotton marketing in southern Africa (Machethe, Jagwe, & Ouma, 2008;Musara, Musemwa, Mutenje, Mushunje, & Pfukwa, 2018;Savvides, 2000). In Zimbabwe, the cotton market is not stable due to factors like inflation and disparities between the formal and informal USD exchange rates.…”