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% of the market.What is the business plan error that Nan is incurring?

Question

Quizplus · Accepted Answer

Nan is committing the error of an exaggerated hockey stick, which means she is forecasting an unrealistic growth curve or market share without taking into account the actual demand, competition, and other factors that may affect her product's success in the market. Without proper market research and analysis, it is not reasonable to assume that she can capture 40% of the entire shoe market in Seattle, especially considering that there may be many other established and emerging shoe brands that also cater to various segments of customers in the city. Therefore, Nan needs to revise her business plan and make it more grounded in reality by conducting a thorough market analysis and testing the product's appeal and feasibility before making any bold projections.

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