Market Risk Case Study

MARKET RISKS

Market risks refer to the instability of market rivalry points of interest lead by internal and external factors including market prospects, product competitiveness, potential contenders, advertising capacities, etc. [16]

1. Market prospects

The investment incomes of high-tech projects are nearly related with market prospects. The better the business prospects of items are, the more prominent the degree of profitability will be. [17]

2. Product competitiveness

The way to whether any project can bring speculation advantages is to take a look at the competitiveness of the project items in the commercial market. [18]

3. Potential competitors

This is chiefly chosen by the conditions, for example, the number of contenders, the quality of contenders and shoppers ' dependency on rival products. In the event that more than contenders, the market will be extraordinary exceptional and the

Marketing abilities

The natural inclination to devour reflected by the customers confirms that just the items with solid showcasing abilities draw in purchasers in the short term, and tap the capability of customer requests. [20]

MANAGEMENT RISKS

Management risks refer to the risks created by whether the initiative has uniform concession to high-tech projects speculation or not and the non-materialness of managers and staff quality, which incorporate managers ' quality and encounters, the objectivity of project organization, the scientific of choice making and project administration systems etc.

1. Managers’ quality and experiences

The high-tech projects have some qualities which make the project manager to be the data center of project administration, so the project manager 's position is vital. In the event that the learning level of project manager is not high, don 't have a solid feeling of advancement, or absence of encounters, these undoubtedly have a negative effect on the results of high-tech investment projects. [21]

2. The rationality of project