19 SAMPLE COMPANY Ademify LLC I Business Plan Competition The territory adjacent to the Sample Company is considered a local market; the residents can become customers due to their convenient location. The Isochron method can be used to analyze the local market potential. Following this method, three areas of residence are considered: the near one within a X-minute walk radius, the middle one within a XX-minute radius, and the far one - up to XX minutes. Accordingly, they provide XX%, XX%, and XX% of local sales. The intersection of zones with similar competitor zones allows us to estimate the "average" potential loss (with similar advertising and promotion costs). The method also allows us to consider the influence of natural obstacles such as a railway or a river. For the analysis, existing competitors in the area where the Sample Company was located were mapped. The result is shown in the diagram below. The Sample Company is located in Manhattan. Since the far-field boundaries XX minutes walk away, we used the Area Calculator2 service to estimate the area used in the isochron method accurately. Next, we multiplied the area of the territory by the population density in Manhattan. Thus, the number of the population in the zone was obtained. Manhattan's population density is XX.X thousand people / sq. mile. 2 https://www.mapsdirections.info/en/
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