NW Architecture
Market Analysis Summary
NW Architecture will provide it’s service to home owners who are looking to remodel, as well as developers, contractors and government agencies in the domestic and international markets. Although we are going to cater to a relatively broad scope of customers, the company will decide what the target market is based on sales and trends experienced in the initial months of operation.
4.1 Market Segmentation
Potential clients for NW Architecture’s market is broken down into four categories: home owners, developers, government, and contractors. Home owners are the largest group based on shear population and this will be emphasized in all of the firm’s marketing and promotional efforts. Targeting the remaining three groups will be dependant upon establishing meaningful relationships, and responding and qualifying for request for proposals.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Home Owners/Remodels | 15% | 200,000 | 230,000 | 264,500 | 304,175 | 349,801 | 15.00% |
| Developers | 30% | 5,000 | 6,500 | 8,450 | 10,985 | 14,281 | 30.00% |
| Government | 1% | 30,000 | 30,300 | 30,603 | 30,909 | 31,218 | 1.00% |
| Contractors | 40% | 5,000 | 7,000 | 9,800 | 13,720 | 19,208 | 40.00% |
| Total | 14.64% | 240,000 | 273,800 | 313,353 | 359,789 | 414,508 | 14.64% |
4.2 Service Business Analysis
The architecture business across the country is primarily made up of small- to mid-sized firms specializing in a particular architectural type. But there are also a few large firms that have almost dominated the design of large commercial and industrial facilities. NW Architecture’s main competitors will be the larger firms. The reason for this is that the larger firms have more capital to work with, which enables them to keep up with technological changes much quicker than a small firm.
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