Definition for : Market risk - strategic positioning of the company

Market risk measures the Risk of fall in Sales of the company's product. Market risk varies according to whether the product in question is original equipment or a replacement item, the latter characterised by higher Risk. Market risk also depends on the nature of Barriers to entry to the company's market and whether or not alternative products exist. The analysis of Market risk is very important in a Project financing.

(See Chapter 8 How to perform a financial analysis of the Vernimmen)

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