Commercial analysis in project appraisal

An adequate analysis of investment projects should provide a knowledge of the commercial factors that are critical to the success of the project. The evaluation of a project should identify the problems associated with the market where the project will be placed and develop the relevant market competencies to allow the project to meet the market’s expectations and face its competition. As such, project appraisal should analyse the aspects associated with the project’s commercial dynamic and, therefore, this work supports the idea that project appraisal should include an analysis of the commercial area.