OINP – A Good Market Research
The Ontario Immigrant Nominee Program (OINP) is a provincial economic immigration program. It allows the government of Ontario to nominate individuals for immigration to Ontario. OINP – Entrepreneur Stream is specific to entrepreneurs interested in starting a business in Ontario. It allows you to apply for Canadian permanent residency once you establish and run the company in Ontario.
This article explains the elements of market research that should be present in your business concept.
What is market research?
Market research is a systematic approach to collect information about your business concept. The objective of this activity is to determine the viability of your proposed business. Under the OINP-Entrepreneur stream, you must demonstrate how your proposed business will be successful in Ontario. If you consider purchasing an existing business, you should be able to explain how it will grow and expand under your management.
What is good market research from the OINP-standpoint?
For OINP, proper market research can get you up to 15 points. Good market research has the following characteristics;
- Provides a clear and reasonable explanation of research activities and link market research to the proposed business.
- Demonstrates a clear understanding of the target market with credible research sources.
- Provides a clear summary of critical market factors and how the management will address it.
Key industry statistics – market research
The first step is to find out that under what industry does your business fall? Then it would help if you research the crucial statistics about the industry size in Canada, e.g.;
- Annual revenue during the past three years
- Revenue trends – whether increasing or decreasing.
- Industry historical and anticipated growth rate for the past and the next five years
- Industry profit margin
- Net increase in new business
- How many people are employed in the industry?
Industry trends – market research
Key trends show a gradual change in the industry. It is essential to look at these trends to see the industry’s tendency to move in a specific direction. It would help if you researched whether;
- Is the demand for industry services increasing or decreasing?
- Has industry profitability been relatively stable?
- Will operators need to incorporate new techniques to remain competitive?
- Is the industry becoming increasingly fragmented?
SWOT analysis – market research
A SWOT analysis is a method used to understand the strengths, weaknesses, opportunities and threats an industry faces. A detailed industry SWOT analysis can help you strategize ways to capitalize on opportunities and allocate business resources to mitigate any potential risks.
Products and services – market research
This section of the market research talks about the products and services offered in the industry. You must include an analysis of why this product or service has a strong demand in the local market. It would help if you also discussed how your products and services shall be of significance when compared with your competitions.
Major markets – market research
Detailed research about all the markets where the industry sells its goods or services is essential. Additional research about each market segment and why the sector performs so-well or poorly in different markets is also necessary. Based on this research, you can strategically position your products in different markets using the principles of price elasticity of demand.
Business locations – market research
First, you should map out where businesses in the industry are concentrated across Canada compared to the population. It would be great if you also researched why certain regions have better-operating conditions than others. You must explain your business’s geographical location in the context of this research and the rationale behind establishing your business in that specific region.
Demand determinants and key external drivers – market research
It is imperative to find out a list of economic factors that significantly influence the industry’s performance and demand. This may include elements such as; price of products, product segmentation, consumer sentiment, and growth direction, which can be a good indicator of how the industry is likely to perform in the future. It also empowers you to take advantage of the opportunities that come with the changing economic drivers.
Market share concentration – market research
The market concentration estimates the market share of all the major players in the industry. You can calculate it by analyzing sales, employment statistics, consumer base, number of outlets etc. If significant market players are continually gaining market share, then the industry is highly concentrated. Generally, it isn’t easy for a new business to sustain itself in a highly concentrated market. Based on the industry concentration, you should formulate a strategy to penetrate your target market.
Cost structure benchmarks – market research
It is the measurement and analysis of your cost of goods sold in comparison with your competition. Cost benchmarks identify the competitiveness of pricing in the industry. This analysis helps you learn how much competitive advantage you have and how you can achieve high-performance levels.
Other Factors – market research
It is also necessary to research on other factors of your market such as;
- Basis of competition
- Barriers to entry
- Key success factors
- Operating conditions
- Revenue volatility
- Industry capital intensity
- Regulation and policy
- Available industry assistance
Research sources – market research
You can use any credible source of data to complete your market research such as;
- Industry reports issued by the Federal, Provincial and Municipal Governments
- Trade associations and chambers of commerce
- Research repositories of universities
- D&B’s regional business directories
- Independent research organizations
- Annual reports of publicly listed companies
Regardless of what source of information you use, it must be credible and adequately referenced in your business research report. You may also read my other article about good business models.
OINP Entrepreneur points calculator
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Business Development Manager, Parsai Immigration Services
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