Final answer:
Mary's identification of a business opportunity to produce hand warmers in Minnesota and her decision to capitalize on it is described as a gap analysis. This strategic business approach involves recognizing and exploiting market gaps to meet customer demands. Hand warmers, which utilize thermochemistry to generate heat, are an example of a product that can fill such a market gap in colder regions.
Step-by-step explanation:
The process described in the scenario, where Mary identifies an opportunity in northern Minnesota to produce hand warmer packets, is indeed called a gap analysis. This business strategy involves recognizing a market opportunity (a gap in the market) that a business can exploit by offering a product or service that is not currently available to meet customer demand.
Mary's decision to meet the customer need for hand warmers in a cold region is part of pursuing a business opportunity based on her knowledge and capability.
Hand warmers are common in areas with cold climates, and they utilize thermochemistry to generate heat. One type of hand warmer uses a supersaturated solution of sodium acetate which, when activated by bending a metal disc inside, initiates an exothermic reaction. This crystallization releases heat and provides warmth to the user. Another type of hand warmer operates by an exothermic oxidation reaction involving iron, oxygen, and water with salt acting as a catalyst.
Gap analysis is an important concept in business, as it guides entrepreneurs and businesses in identifying potential areas for growth by meeting unfulfilled customer needs. When businesses carry out a gap analysis, they can position themselves strategically in the market to capture market share and differentiate themselves from competitors.