| Course | MGT 418 Evaluating New Business Opportunities (MGT/418) |
|---|---|
| Week | 2 |
| Paper type | Market and competitor analysis |
| Length | about 1,054 words, 4 double-spaced pages plus title page and references |
| Format | APA 7 student paper |
| School | University of Phoenix |
| Program | BS in Business |
| Updated | October 2026 |
Free sample paper for MGT 418 Week 2
How Big Is the Treasure Valley Market for Portable Storage, and Who Already Serves It? A Market and Competitor Analysis
[Student Name]
University of Phoenix
MGT/418: Evaluating New Business Opportunities
Week 2 Assignment
[Instructor Name]
[Date]
Summit Ridge Equipment Rental and all market estimates are composites written for a model paper.
In Week 1, the composite Boise firm Summit Ridge screened three new ventures and chose portable storage containers, which use its yards, trucks and customer base. Before investing up to $3 million, the owners need to know how large the local market is and who already serves it. An opportunity can be real and still too small, or real and already well served, so sizing the market and studying rivals are the tests that turn interest into a business case. This paper analyzes the market and competition.
Defining the Market
The market is rentals of portable storage containers, typically 8 by 16 or 8 by 20 feet, delivered to homes, job sites and businesses in Ada and Canyon counties, along with storage of filled containers at a yard. Long-distance moves using containers are excluded at first, since they require partners in other cities.
Demand Drivers
Three drivers create demand: household moves, home renovations and construction projects. The region's population has grown quickly, adding residents from other states. Remodeling is common in older Boise neighborhoods. Contractors on commercial and residential sites need secure storage for tools and materials.
Top-Down Estimate
The two counties have about 330,000 households. If about 12 percent move each year and 4 percent of movers use a container for an average of six weeks, that creates about 1,580 container rentals a year averaging 42 days, or about 180 containers in use on an average day. Renovations requiring storage, estimated at 3,000 a year averaging 60 days, add about 490 containers on an average day. Construction, with about 1,500 active job sites averaging one container each, adds about 1,500. Business uses such as retail inventory add about 300. The total is roughly 2,470 containers rented on an average day.
Bottom-Up Estimate
Competitor research provides a check. Calls and site visits suggest the largest national brand has about 900 containers in the area, two other national brands about 450 each, a regional firm about 600 and several small operators about 400, a total of about 2,800 containers. At typical utilization of 85 percent, about 2,380 are rented on an average day, close to the top-down figure.
Testing the Estimates in the Field
Kerr et al. (2014) argued that entrepreneurs learn most cheaply through small experiments rather than extended analysis. Summit Ridge ran one: it placed ten used containers in its Meridian yard and offered them to existing contractor customers for two months. All ten were rented within three weeks, with an average rental of 74 days, and four customers asked for more. The test is small, but it supports the estimate that contractors are an underserved segment and gives real data on rental length.
What Could Shrink the Market
The estimate depends on construction and moves, both sensitive to interest rates. If housing starts fell by a third, as in some past downturns, contractor demand could drop by about 500 containers on an average day. Renovation demand tends to hold up better, since owners who cannot sell often remodel instead.
Market Growth
Population growth and construction suggest growth of about 4 to 6 percent a year, slower than during the recent housing boom but steady. A slowdown in construction would hurt the contractor segment most.
Customer Segments
Movers want convenience and flexible timing and are price sensitive. Renovators want containers near their homes for weeks and value easy access. Contractors want secure, sturdy containers delivered quickly and often rent for months. Businesses want seasonal inventory storage. Contractors are the segment where Summit Ridge already has relationships.
Competitor One: National Brand Leader
The leading national brand has strong name recognition, online booking and long-distance moves. Its local prices run about $200 to $250 a month plus delivery fees of about $90 each way. Interviews suggest delivery waits of several days in outlying towns.
Competitors Two and Three: Other National Brands
Two other national brands offer similar services at slightly lower prices. One focuses on moves and the other on job-site storage. Both depend on local contractors for delivery.
Competitor Four: Regional Firm
A regional firm based in Nampa serves contractors with steel containers for sale and rent, priced at about $150 a month with lower delivery fees. It has a strong reputation among builders but limited online presence.
Indirect Competitors
Self-storage facilities, with thousands of units in the region, are the largest substitute for movers and renovators. Moving truck rentals compete for short moves. Contractors sometimes buy used shipping containers instead of renting.
Competitor Matrix
Compared on price, delivery speed, coverage of outlying towns, online booking, container quality and relationships with contractors, the national leader wins on brand and booking, the regional firm on contractor relationships and price and Summit Ridge would win on delivery speed, coverage and existing contractor accounts.
Industry Attractiveness
Porter (2008) described five forces that shape profitability: rivalry, the threat of new entrants, buyer power, supplier power and substitutes. Rivalry is moderate; entry barriers are modest, since containers and trucks are available; buyers can switch easily; container suppliers are many; and self-storage is a strong substitute. The market is moderately attractive, more so for firms with existing yards and trucks.
Achievable Share
Summit Ridge's advantages are its three yards, trucks, existing contractor customers and reputation for fast delivery. A target of about 300 containers rented on an average day by year three, about 12 percent of the market, is ambitious but plausible, beginning with contractors and renovators near its yards. Kahneman and Lovallo (1993) recommended taking an outside view, comparing a plan with the record of similar ventures, and the regional firm's history offers one: it took about four years to reach its current fleet of 600.
Where to Start
The first target is contractors, who already rent from Summit Ridge and value fast delivery and security. Renovators come second through homeowner customers. Movers, the most brand-driven segment, come last.
Conclusion
The Treasure Valley market supports about 2,400 to 2,800 rented containers on an average day, growing steadily. Competitors include strong national brands and a respected regional firm, with self-storage as the main substitute. Summit Ridge can realistically win about 12 percent by leading with contractors and fast delivery. Week 3 will test whether that share produces an attractive return.
References
Kahneman, D., & Lovallo, D. (1993). Timid choices and bold forecasts: A cognitive perspective on risk taking. Management Science, 39(1), 17-31. https://doi.org/10.1287/mnsc.39.1.17
Kerr, W. R., Nanda, R., & Rhodes-Kropf, M. (2014). Entrepreneurship as experimentation. Journal of Economic Perspectives, 28(3), 25-48. https://doi.org/10.1257/jep.28.3.25
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93.
What the MGT 418 Week 2 instructions ask
The second MGT 418 assignment generally asks students to analyze the market and competition for a new business opportunity. Typical elements include defining the target market, estimating its size and growth with stated assumptions, segmenting customers, identifying direct and indirect competitors, comparing their offerings, prices and strengths, assessing industry attractiveness and estimating the share the new venture could capture. Some prompts ask for a competitor matrix. Use public data and primary research where possible, show both top-down and bottom-up estimates when you can, be realistic about share and cite sources in APA format. Instructors often want to see how many customers or units the market holds, not just dollars, because unit estimates are easier to check.
How this MGT 418 Week 2 example is built
A rental company entering portable storage must know how many containers the region can absorb and who it will take customers from, and the paper answers both. It defines the market as container rentals in Ada and Canyon counties. A top-down estimate uses household moves and renovation permits; a bottom-up estimate uses competitor fleet sizes and utilization. Both point to about 2,400 to 2,800 containers rented on an average day. Customers are segmented into movers, renovators, contractors and businesses. Three national brands, one regional firm and self-storage facilities are profiled. Competitive forces suggest moderate attractiveness. A share target of 12 percent in three years is set, checked against how other entrants have fared.
MGT 418 Week 2 grading rubric: where the points go
Strong market papers estimate size with transparent assumptions, segment customers usefully and compare competitors specifically. Instructors credit top-down and bottom-up estimates that check each other, segments that differ in needs and willingness to pay, a competitor matrix with real attributes such as price, delivery time and coverage and a reasoned assessment of industry attractiveness. A realistic share target, justified by the entrant's advantages and limits, shows judgment. Clear tables and correct APA citations finish the analysis. Naming the segment where the newcomer can win first is a mark of strategic thinking, and papers that explain how market size would change in a construction slowdown show awareness that demand estimates are not fixed.
MGT 418 Week 2 help: mistakes to avoid
Students often cite a national market size and assume a share of it. Estimate the local market from the ground up. Another frequent gap is listing competitors without comparing them on what customers care about. Use a matrix. Students also forget indirect competitors, such as self-storage or moving trucks. Include them. Avoid optimistic share targets; new entrants rarely win large shares quickly. State every assumption. Check one estimate against another. Finally, name the segment to target first, since a new venture rarely wins everywhere at once. Explain what would change the estimate, such as a drop in home sales, and by how much.
Related MGT 418 sample papers
Other MGT 418 week samples
- MGT 418 Week 1: Screening New Business Opportunities
- MGT 418 Week 3: Financial Projections and ROI
- MGT 418 Week 4: Risk and Investor Considerations
- MGT 418 Week 5: Go or No-Go Recommendation
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MGT 418 Week 2 questions, answered
What does MGT 418 Week 2 usually cover?
It usually covers analyzing the market and competitors for a new opportunity: defining and sizing the market, segmenting customers, profiling competitors, assessing attractiveness and estimating achievable share.
Where can I find a free MGT 418 Week 2 sample paper?
A complete market and competitor analysis for a portable storage venture, with sizing calculations and a competitor matrix, can be read on this page. Send your opportunity and we will write a no-cost first version.
What is the difference between top-down and bottom-up market sizing?
Top-down sizing starts from broad data, such as population or industry totals, and narrows to the target market. Bottom-up sizing builds from units, such as customers or competitor capacity, and adds them up.
Who are indirect competitors?
Businesses that meet the same customer need in a different way, such as self-storage facilities or moving truck rentals competing with portable storage containers.
How much market share can a new venture expect?
It depends on the market and the entrant's advantages, but new entrants in established markets usually start with small shares and grow gradually, so targets should be justified with evidence.
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