How do you conduct a market analysis for a new healthcare service?

1 Define your service

The first step is to clearly define your service and its value proposition. What problem does it solve, what benefits does it offer, and how does it differ from existing services? You should also identify your target market segments, such as age, gender, income, location, health status, and preferences. This will help you narrow down your scope and focus on the most relevant and profitable customers.

2 Research the demand

The next step is to research the demand for your service in your target market. You can use various sources of data, such as census, surveys, interviews, focus groups, industry reports, and online platforms, to estimate the size, growth, and characteristics of your potential customers. You should also analyze the factors that influence their demand, such as needs, preferences, awareness, affordability, accessibility, and quality.

3 Analyze the supply

The third step is to analyze the supply of similar or substitute services in your target market. You should identify and evaluate your direct and indirect competitors, such as hospitals, clinics, pharmacies, telehealth providers, and wellness centers. You should also examine their strengths, weaknesses, opportunities, and threats, as well as their market share, pricing, distribution, and marketing strategies.

4 Evaluate the competition

The fourth step is to evaluate the competition and your competitive advantage in your target market. You should compare your service with your competitors' services in terms of quality, price, value, features, and benefits. You should also identify your unique selling proposition (USP), which is the main reason why customers would choose your service over others. You should highlight how your service meets the unmet or underserved needs of your target market better than your competitors.

5 Identify the opportunities

The fifth step is to identify the opportunities and challenges for your service in your target market. You should analyze the external factors that affect your service, such as political, economic, social, technological, environmental, and legal (PESTEL) factors. You should also consider the trends, gaps, and niches that create opportunities for your service to grow and succeed. You should also anticipate the potential risks and threats that could hinder your service, such as regulations, competition, customer behavior, and market saturation.

6 Create a feasibility matrix

The final step is to create a feasibility matrix for your service in your target market. A feasibility matrix is a tool that helps you summarize and visualize your market analysis results. It consists of four quadrants that represent different levels of feasibility based on demand and supply. The upper right quadrant is the most feasible, where demand is high and supply is low. The lower left quadrant is the least feasible, where demand is low and supply is high. The other two quadrants are moderately feasible, depending on the degree of demand and supply. You should plot your service and your competitors' services on the matrix and assess your relative position and potential.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?