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Royal's Software
Market Analysis Summary
Software products for inventory management are a $1 billion dollar industry. The lions share of the sales are with the largest companies with billions of dollars of inventory. This is where there is the greatest competition between inventory software products.
This category of the industry also faces competition from the enterprise resource planning software vendors. At the low end, with small and emerging businesses, there is very little competition.
Usually, the smaller businesses will spend no more than $5,000 on an inventory solution which will include software and hardware. Royal’s Software believes this a tremendous opportunity for a software product with a $2,500 price tag.
Another opportunity area is the growing demand for software interfaces that improve the portability of data. The interface improves the ability of businesses to move data between systems. In an age where new management products are introduced each year, a company’s ability to move its data quickly and efficiently is becoming essential to a successful business.
MAS 90 portable data collection interface is designed to be used by accounting firms to improve the portability of data the firms stores for customers.
4.1 Market Segmentation
Royal’s Software is targeting small- and medium-sized businesses. Specifically it will focus on these two target groups:
- Smaller businesses that will spend no more than $5,000 on an inventory solution, including software and hardware.
- Accounting firms demanding MAS 90 portable data collection interface.

Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Smaller Businesses | 10% | 5,000 | 5,500 | 6,050 | 6,655 | 7,321 | 10.00% |
Accounting Firms | 15% | 150 | 173 | 199 | 229 | 263 | 15.07% |
Total | 10.16% | 5,150 | 5,673 | 6,249 | 6,884 | 7,584 | 10.16% |