Market analysis is the process of assessing the viability of a new product or service in a specific market. It involves understanding the market dynamics, including competitors, target audience, and market trends. This analysis helps businesses make informed decisions about product development, pricing strategies, and marketing approaches. By conducting a thorough market analysis, companies can identify opportunities and threats within the market landscape. This information is crucial for developing effective business strategies and ensuring long-term success. Ultimately, market analysis serves as a foundation for strategic planning and resource allocation.