 J. Service Science & Management, 2009, 2: 276-281 doi:10.4236/jssm.2009.24033 Published Online December 2009 (www.SciRP.org/journal/jssm) Copyright © 2009 SciRes JSSM The Research on the Appraisal of Market Opportunity Based on AHP Donghong YANG1, Yujie TAN1, Yanbin SUN1 1School of Economics and Management, Daqing Petroleum Institute, Daqing, China. Email: dqyangdonghong@126.com Received April 21, 2009; revised June 25, 2009; accepted August 2, 2009. ABSTRACT In this article, through analyzing the inner and external environments of the manufacture enterprise, the hierarchy model of the market opportunity has been constructed. Based on the AHP, the mathematics evaluation model of the market opportunity has been established. Take a simulative enterprise as example, according to the hierarchy model and the mathematics evaluation model of the market opportunity, the judgment matrixes of every hierarchy have been established and the weigh t of each market opportunity opposite to the ta rget hierarchy is obtained. The reasonab le de- cision-making method has been provided to choose the market opportunity for the manufacture enterprise. Keywords: Analysis Hierarchy Process, Market Opportunity, Environment Analysis 1. Introduction With the change and development of the market demand and the intense competition environment in the market, any manufacture enterprise can not always rely on the existing products and services. If the manufacture enter- prise wants to survive and develop for a long time, it must look for new market opportunities. In the internal and external enterprise environment, market opportunities are situation and opportunities whi- ch can make the manufacture enterprise get tremendous benefit and develop rapid ly. Market o ppor tun ities exist ing in the internal and external environment are the customer demand which have n ot y e t been met or fully m e t [1] . Market opportunities generally exist in two situations. First, to find the new or potential customers for the ex- isting products and services and to start and develop a new market, or to find the new features and new uses of existing products and guide people to use them. Second, to create, develop, design and produce new products or new services which have new features to meet the changing needs of peopl e. Along with the changes of market environment, de- mand also will be changed. Therefore, market oppo rtuni- ties will emerge or disappear. Any market opportunity objectively exists and any enterprise can find and take advantage of the market opportunities. There are no ex- clusive rights [2]. However, just in the specific conditions one market opportunity can success. Because of the different condi- tions of the manufacture enterprises, in the use of a mar- ket opportunity, the different manufacture enterprises will gain different interests and competitive advantages. Therefore, manufacture enterprises must accurately ana- lyze and evaluate the market opportunities to find one that is suitable for the manufacture enterprise’s develop- ment. 2. The Appraisal of Market Opportunity 2.1 The Appraisal Process of Market Opportunity Market opportunities come from customer demand, and customer demand changes with the internal and external environment of the manufacture enterprise. When look- ing for market opportunities, the manufacture enterprises analyze the enterprise’s suppliers, customers and com- petitors, as well as the internal organizational structure, financial status, professional skills, human resources and network conditions [3]. The optimal market opportunity can be identified after analysis and evaluation. (See Fig- ure 1) 2.2 The Hierarchy Model of Market Opportunity The market gravitation, the enterprise resource, the competitors and the customers are considered to analyze and evaluate a particular market opportunity or some market opportunities which is whether confor m to manu- facture enterprise development needs or not.
 The Research on the Appraisal of Market Opportunity Based on AHP277 Analysis Appraisal External environment Internal environment The enterprise Market opportunities The optimal market opp ortunit y Figure 1. The appraisal process of market opportunity … Market Opportunity M ar ket Gr avitation Competitors Customers Enterprise Resource The Motivation The Ca abilit Com etitor Level Subsection Market The T echnology The Capital The Network The Manpo w e r The Or anization Market Demand Market Pullulating Potential Profit Market Opportunity 1 M ar ket Opport uni ty 2 M ar ket Opport uni ty N Figure 2. The hierarchy model of the market opportunity The market gravitation refers to market attract ability to specific products which are produced by the enterprise. The market gravitation includes market demand, market pullulatin and potential profit. The more the market de- mand of products and services, the market more attract the products and services of enterprise. The market prof- itability of produc ts and services is high, the capital prof- itability is high, which attracts enterprises to product the products and services. The enterprise resource is the useful thing which is worth for the survival and development of enterprise. The enterprise resource is an important foundation con- ditions for production and operation of enterprise. The enterprise resources include the technology, the capital, the network, the manpower and the organization. When the market can effectively and rationally use resources of enterprise, in accordance with the advantages of enter- prise resources into products and management, and get benefit through sale, the market opportunity is fit for the survival and development of enterprise. In a certain degree of market competition environment, when the enterprises analyze and evaluate the market opportunities, the competito r level and subsection market should be consi dered. The products and services will be sold to the custom- ers. So when the enterprises analyze and evaluate the market opportunities, the consumption motivation and the consumption capability should be considered. The hierarchy model of the market opportunity is es- tablished as follow. (See Figure 2) 2.3 The Mathematics Evaluation Model of Market Opportunity 2.3.1 Constr u c ting Judgment Matrixes Through paired comparing the factors, the judgment ma- trix () ijn n Aa is constructed. In determining the value of , the 1-9 and their reciprocals are quoted [4]. ij a 2.3.2 Single-Level Ranking and Consistency Test 1) Single-level ranking The eigenvector Wnormalized corresponding to the judgment matrix is the Sort weights of the factors corre- sponding to the factor on the above hierarchy. When Copyright © 2009 SciRes JSSM
 The Research on the Appraisal of Market Opportunity Based on AHP 278 calculating the maximum eigenvalue max and W, the method is as follows [5]. (a) Each list of matrix elements is standardized. The general element is 1 ij ij n kj k a a a (, 1,2,ij , )n (1) (b) The summation of elements in each row he ju of t dgment matrix standardized is gained. 1 n iij j Wa (1,2,,)in (2) (c) The vector 12 (, ,, ) T n WWW Wis standardized. 1 (1,2,,) n ) T n W m eig i in i i W Wi W (3) The vector n- gl hts, and the maximu is the Si 123 (,, ,,WWWW e-level sort weigenvalue is max 1 () ni ii W nW 4) 2) Consistency test target is ( (a) The consistency max 1 n CI n (5) (b) Find the corresponding averagendom te ns ra consis- ncy targetRI which is shown in Table 1. (c) The coistency proportion is CI CR RI (6) When 0.10CR , the consistency of judgment matrix is acceptable, otherwise, the judgment matrix is modified, and then its consistency is tested. 2.3.3 Sort of Level Ranking and Consistency Test 1) Sort of level ranking The hierarchical model includes target layer , guide- line and project C. The relative weights of target layer B corresponding to guidelines is= B(1) W (1 (1) 3 ,, ) T W ) 12 (,WW (1) (1) , k W The relative weights of the various criteria of guideline corresponding to projectis BC (2) (2) 1 (, jj WW(2) 2, W (2 3) (2) ,, ) T jnj WW(1,2,,jk) . The relative weights of projects corresponding to tar- get layer is calculated in the Table 2. 2) Consistency test 1 1 m j j m j j CI a CR RI a (7) When 0.10CR , the consistency of judgment matrix is acceptable, otherwise, the judgment matrix is modified, and then its consistency is tested. The vector is the relative weights of the projects. The policy-makers choose the project whose weight is the greatest as the optimal project. 123 (,, ,,) T n WWWW W 3. Empirical Analysis The market opportunities are identified by application of the model. The simulative manufacture enterprise is now facing three chances to choose, to be known as A, B and Table 1. Th ranm consistency target of judgment matrix [6] 2. Sort of level ranking B1Bk e average do Table B2 … H. B H.C W2 k Sort of level Ranking W1… WW W11 W12…W1k WW… W 21 22 2k C1 C2 Cn WW ij n1 W n2 … nk (1) (2) k ij j WWW (1,2, )in Rank 1 4 5 6 7 8 9 2 3 RI 0.00 0.90 1.12 1.24 1.32 1.41 1.45 0.00 0.58 Copyright © 2009 SciRes JSSM
 The Research on the Appraisal of Market Opportunity Based on AHP 279 C. The basic steps of identifying aaluating thar- dgment matrix of A-B A W nd eve m ket opportunities are as follows. First, the hierarchy model of the market opportunity is drawn. (See Figure 2) Then, the judgment matrixes are constructed. (See Ta- ble 3 to Table 19) Table 3. The ju B1 B 2 B 3 B 4 B1 1 1/3 3 2 0.246 B2 3 B 1 1/4 4 1 3 2 0.497 0.142 31/3 B4 1/2 1/3 1/2 1 0.115 max 1 () n i Wi nWi =4.215, max 1 n CI n =0.072, CI CR I < 0.1,the consistency is satisfactory. of B1-C B1 W =0.080 Table 4. The judgment matrix C 11 C 12 C 13 C11 1 1/3 1/4 0.120 C 12 C 3 1 1/3 0. 0.608 272 13 4 3 1 max 3.074, 0.037,0.064<0.1,e consistesat- isfactory. Table 5. The judgment matrix of B2-C B2 W CI CR thncy is C 21 C 22 C 23 C 24 C 25 C21 1 1/2 3 4 5 0.301 C 22 C 2 1 3 4 5 0.397 0.146 23 1/3 1/3 1 3 2 C24 1/4 1/4 1/3 1/3 1 3 0.097 C25 1/5 1/5 1/2 1 0.059 ma isfactory. x5.280, 0.07 <0e cistent- Table 6. The judgment matrix of B3-C B3 CI 0, CR 0.062.1, thonscy is sa C 31 C 32 W C0.333 31 1 1/2 C32 2 1 0.667 max 2, CI 0, 0<0.1,the consistency is satisfactory . Table 7. The judgment matrix of B4-C B4 CR C 41 C 42 W C41 C42 1 1/3 3 0.250 0.750 1 max 2, 0,0<0.1, the consistency is satisfactory. Table 8. The judgment matrix of C11-D C11 DDD 3 W CI CR 1 2 D1 12 3 0.539 D2 D3 164 297 1/2 1 2 0. 1/3 1/2 1 0. max 3.009, CI 0.005, CR 0.008<0.1, consistency isfacto Table 9. The judnt matr12-D D 1 23 the is sat- ry. gmeix of C C12 D D W D 11 1/3 1/4 0.123 D2 320 D3 557 3 1 1/2 0. 4 2 1 0. max 3.018, CI 0.009, CR 0.016<0.1, isfacto TableThe judgment matr13-D D 1 23 the consistency is sat- ry. 10.ix of C C13 D D W D1 1 1/3 1/3 0.141 D2 .525 D3 .334 3 1 2 0 3 1/2 1 0 max 3.054, CI 0.027, CR 0.046<0.1, consistency isfacto Table 11.The judgment matrof C21-D D 1 D 2 D 3 W the is sat- ry. ix C21 D1 1 1/3 1/2 0.164 D2 .539 D3 .297 3 1 2 0 2 1/2 1 0 max 3.009, CI 0.005, CR 0.008<0.1, consistenc isfact Table 12. The judgment matr-D D 1 D 2 D 3 W the y is sat- ory. ix of C22 C22 D1 1 1/4 1/3 0.120 D2 D3 4 1 3. 0.608 3 1/3 1 0.272 max 3.074, CI 0.037, CR 0.064<0. consistenc sat- isfactory. Table judgment matr-D D 1 23 1, they is 13. Theix of C23 C23 D D W D 11 1/3 2 0.252 D2 3 1 3 589 D3 159 0. 1/2 1/3 1 0. max 3.054, CI 0.027, CR 0.046<0.1,consistency the is sat- isfactory. Copyright © 2009 SciRes JSSM
 The Research on the Appraisal of Market Opportunity Based on AHP Copyright © 2009 SciRes JSSM 280 Table. The judgment matr of C24-D C 14ix 24 D 1 D 2 D 3 W D1 2 0.525 1 3 D2 1/3 1 1/3 0. 1/2 3 1 0. 142 D3 334 max 3.054, 027, 046<0.1, consistency isfact Table The judgment matr of C-D D 1 D 2 D 3 W CI 0. CR 0. the is sat- ory. 15.ix25 C25 D1 1 1/3 1/2 0.159 D2 589 D3 252 3 1 3 0. 2 1/3 1 0. max 3.054, 027, 046<0.1, consistency isfact Table. The judgment matr of C-D D 1 D 2 D 3 W CI 0. CR 0. the is sat- ory. 16ix31 C31 D1 1 1/5 1/3 0.106 D2 633 D3 261 5 1 3 0. 3 1/3 1 0. max 3.039, 019, .033<0.1, consistenc isfact le 17 32 W Tab. The judgment matrix of C32-D C D 1 D 2 D 3 D 1 4 3 0.620 1 D2 1/4 1 0.224 2 D3 1/3 1/2 1 0.156 max CI 0. CR 0 the y is sat- ory. 3.109, CI 0.055, CR 0.094<0.1,e consist isfact 18. The judgment matrix of C41-D C41 W thency is sat- ory. Table D 1 D 2 D 3 D 1 4 5 0.665 1 D2 1/4 1 0.231 3 D3 1/5 1/3 1 0.104 max 3.087, CI 0.043, CR 0.075<0.1,e consist isfact 19. The judgment matrix of C42-D C42 W thency is sat- ory. Table D1 D2 D3 D1 1 4 3 0.620 D2 10.2 1/3 1/2 /4 1 2 24 D3 1 0.156 max 3.109, CI 0.055, CR 0.094<0.1, consistat- isfact Tablet of leg B1 B2 B3 B4 theency is s ory. 20. Sorvel rankin 0 0 0 0 W .246.497.142 .115 H. B C11 0.120 C13 0.608 C21 0.301 C22 0.397 C24 0.097 C25 0.059 C31 0.333 32 667 C41 0.250 42 750 H. D C12 0.272 C23 0.146 C 0. C 0. D1 0.0.539 0.123 0.141 0.164 0.120 0.252 0.5250.1590.1060.620 0.665 0.620 278 D2 0.297 0.320 0.525 0.539 0.608 0.589 0.1420.5890.6330.224 0.231 0.224 0.453 D3 0.164 0.557 0.334 0.297 0.272 0.159 0.3340.2520.2610.156 0.104 0.156 0.269 The single-level ranking is done. The consistency of ll the judgment matrixes is satisfactory. (See Table 20) aThe relative weights of projects corresponding to tar- get layer is calculated in the Table 6. The correspond- in rtuni- tie 4. The Significance of Market Opportunity Evaluation and evaluating market opportunities, o - ture enterprise can maintain the normal production and g average random consistency proportion of hierarchy B isCR =063<0.10, the consistency is satisfactory. According to the comprehensive analysis of market opponities, the ranking of the three market opportu 0. s is Market Opportunity2, Market Opportunity1, Mar- ket Opportunity3. Through analyzing the manufacture enterprise can expand reproduction t promote the enterprise to a higher stage. The manufac operation, but also can seeks to growth and progress. The survival and development of manufacture enter- prises can not be separated from environment. From the macro-environment, the survival and development of
 The Research on the Appraisal of Market Opportunity Based on AHP281 and le demand the products which can fully meet needs an ENCES [1] L. Q. Meng, market op- portunity of eanyungang College ina, ize market opportunities,” Northern Economy and oratories of fundamental n the AHP-Fuzzy evaluation,” manufacture enterprises is restricted mainly by the changes of the demographic, economic, political gal, scientific and technological, natural, social and cultural environment. From the micro-environment, the survival and development of manufacture enterprises is closely influenced and affected by their own internal factors, place affiliated companies, customers, competi- tors, the public and so on. To adapt to the environment is the most basic issues of manufacture enterprises survival. Only concerning any change from the environment at any time, finding out the problems timely, evaluating the favorable market opportunities timely and avoiding the risk, the manufacture enterprise can get better living space to enhance the capacity of adapt to the environ- ment. The development assurances can not be separable from the relatively stable profits and revenue. Through con- tinuously analyzing and evaluating market opportunities, the manufacture enterprise can excavate new growth point to d desires for market. Co mbined with reasonable prices, convenient place and appropriate promotion, the manu- facture enterprise will be able to expand revenues, en- hance its effectiveness, so as to stabilize the profitability of manufacture enterprises. REFER “Distinguishing and evaluating nterprise,” Journal of Li of Chemical Technology, Vol. 3, No. 2, pp. 57, 1997. [2] J. C. Li, “The study and analysis of national market chance of printing enterprise,” Wuhan University, Ch 2005. [3] J. Gao and M. Zhang, “Marketing skill for enterprise to recogn Trade, Vol. 12, pp. 109, 2001. [4] J. Tang and J. Tian, “Application of AHP in the evalua- tion system on teaching lab courses,” Research and Exploration in Laboratory , Vol. 25, No. 3, pp. 282, 2006. [5] Q. F. Geng, “Research on the selection of the supply chain cooperators based o Value Engineering, Vol. 10, pp. 39, 2005. [6] H. Q. Zhang and Z. Q. Li, “The application of AHP to network plan evaluation, ” Construction and Design for Project, Vol. 10, pp. 84, 2004. Copyright © 2009 SciRes JSSM
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