Project Management

Chapter 7 : Market and Technical Analysis

Market and Demand Analysis

Situational Analysis and Specification of Objectives
Collection of Secondary Information
Market Survey
Market Description
Demand Forecasting
Uncertainities in Demand Forecasting
Market Planning

Technical Analysis

Technology Selection
Input Requirements and Utilities
Product Mix
Plant Capacity and Functional Layout
Location of the Project
Machinery and Equipment
Consideration of Alternatives

Chapter Summary

Market and demand analysis and technical analysis are carried out by the project manager in the process of evaluating a project idea. There are six steps in the market and demand analysis: situational analysis and objectives specification, collection of data, market survey, market description, demand forecasting and market planning. The market and demand analysis helps the project manager to understand how the firm's abilities can be synchronized with market requirements. Market analysis studies market needs and consumer preferences for a given project idea and demand analysis aims at calculating the aggregated demand for a particular product or service.

Technical analysis of a project idea includes designing the various processes, installing equipment, specifying material and prototype testing. The project manager has to be careful in finalizing the technical aspects of the project as the decision is irreversible and the investments involved may be high. The project manager has to select the technology required in consultation with technical experts and consultants.

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