Nan presents her plan for a slip-on shoe that is water repellent,inexpensive,and highly fashionable.She believes that the market for the product is "everyone in the city of Seattle." Because of this,she forecasts that she will capture 40 percent of the market.What is the business plan error that Nan is incurring?

Question

Quizplus · Accepted Answer

Nan is making the mistake of using an exaggerated hockey stick forecast, where she is predicting an unrealistic growth rate in the market she is targeting. It is highly unlikely that she will be able to capture 40% of the entire Seattle market for slip-on shoes, especially without any clear product benefits. This shows that the market size has not been properly researched, making her forecast unrealistic.

Nan Presents Her Plan for a Slip-On Shoe That Is