Domestic Market Potential

A large and quickly growing domestic market can provide many advantages to companies. When the market is growing quickly, there is less intense competition, because new companies cannot enter the market fast enough to cannibalize growth rates. When there is less competition, there are higher profits for companies, because of higher prices for consumers. … "Domestic Market Potential" has a significant impact, so an analyst should put more weight into it. This statements will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. "Domestic Market Potential" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.