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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.

Architecture firm business plan, market analysis summary chart image

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.