News Conducting a Feasibility Analysis

Conducting a Feasibility Analysis

-

A feasibility analysis mainly includes three interrelated components: an industry and market feasibility analysis, a product or service feasibility analysis, and a financial feasibility analysis.

Industry and Market Feasibility Analysis
When assessing the feasibility of a business idea, entrepreneurs find a basic analysis of the industry and targeted market segments a good starting point. The focus in this phase is twofold: 1. to determine how attractive an industry is overall as a “home” for a new business and 2. to identify possible niches a small business can occupy profitably.

The primary step in assessing industry attractiveness is to paint a picture of the industry with broad strokes, assessing it from a “macro” level.

  • Answering the following questions will help to determine:
  • How large is the industry?
  • How fast is it growing?
  • Is the industry as a whole profitable?
  • Is the industry characterized by high profit margins or razor-thin margins?
  • How essential are its products or services to customers?
  • What trends are shaping the industry’s future?
  • What threats does the industry face?
  • What opportunities does the industry face?
  • How crowded is the industry?
  • How intense is the level of competition in the industry?
  • Is the industry young, mature, or somewhere in between?
  • Addressing these questions would aid entrepreneurs determine whether sufficient demand for their products and services exists or not.

A highly useful tool to analyze an industry’s attractiveness is the five-forces model. Five forces interact with one another to determine the setting in which companies compete and hence the attractiveness of the industry: The rivalry among the companies competing in the industry, the bargaining power of suppliers to the industry, the bargaining power of buyers, the threat of new entrants to the industry, and the threat of substitute products or services.

However, the strongest of the five forces in most industries is the rivalry, which exists among the businesses competing in a particular market. Businesses in a market are jockeying for position in an attempt to gain a competitive advantage. When a company creates an innovation or develops a unique strategy that transforms the market, competing companies must adapt or run the risk of being forced out of business. This force makes markets a dynamic and highly competitive place. Generally, an industry is more attractive when the following conditions exist:

  • The number of competitors is large or, at the other extreme, quite small (fewer than five).
  • Competitors are not similar in size or capability.
  • The industry is growing at a fast pace.
  • The opportunity to sell a differentiated product or service exists.

It is all about opting for the best opportunity in the business!

Conducting a Feasibility Analysis
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.

Latest news

Japanese Owl Meaning and Symbolism

If you're wondering about the Japanese owl meaning and symbolism in Asian cultures, the Owl, along with Maneki Neko...

What Are the Signs of Depression in Women

Gender and depression have long been the scope of research in the field of emotional disorders; most authors believe...

Top 7 Superfoods for Men to Stay Young

Superfoods are generally regarded as targeted foods that provide the maximum nutritional benefit - thus these foods are nutritionally-dense...

Best Brain foods for Kids – Boost Brain Power and Keep Sharp

A child's brain is developing rapidly and if you want them to improve their performance in school and their...

7 of the Best Brain Foods for Studying

The foods that you eat can improve the functioning of your brain. Just like drugs, foods have amino acids,...

B12 Shots for Dogs – 10 Key Benefits

The end of 2010, my little dog -- a 7-pound Papillon -- became very stressed after a flood in...

Must read

Treasure Every Thing with our Best Baby Gifts

“You’ve seen him before he was just an “it”.  Oh and you love it how every month you two visited the little tidy clinic on the 3rd street, and how glad you were when you heard his first heartbeat. Then months passed by inside he learned to move, and every now and then he’d kick. A little more you waited, and alas! The first cry you heard that rainy dawn on the hospital bed was his. He’s now your little bundle of bliss.” Exactly, excited first time parents can relate the same. The joy of having a little babe in one’s arms the moment after the delivery is totally unexplainable.  Not just moms and dads are the ones who should be excited, because for sure aunts, uncles, close friends and relatives are also waiting for that little babe. Of course, moments like this deserves to be welcomed perfectly and that’s why babygiftsstuff.com comes like a magic along the way. The online shop with its wide collection of baby stuff such personalized baby clothes, diapers, hats and blankets assure our valued clients of quality, love and comfort that our best baby gifts are made of. These cute baby stuff are made and designed carefully with wonderful eye-pleasing colors and styles to fashion your little angel just the way you like it. If you want to extravagantly spend for and babe’s gift, we also have customized sets of in forms of baby clothes that we are sure newborns and babies would definitely love to. As we all know, keeping all the “first” memories of a little kid who is of one’s own blood and genes is a valuable thing that most parents, or relatives want to do, we are here to help you do the job extra wonderful and easy. That’s why we have all the variety being offered to you at exactly affordable and reasonable prices. Our best new arrivals at the same time best sellers are those that comes in bundles. We have our little pup -personalized layette baskets in baby blue baskets the same as just ducky personalized layette baskets which offer complete and perfect baby gifts. The designs features lovable puppies and ducklings which surely match the happiness you and the babe feel.  This Newborn gift set includes thick cotton toweling velour plushy towel, warm cotton blanket decorated with a bow, short sleeved cotton bodysuit in available in two sizes). They also include burp cloth - prettily decorated with a blue bow, soft bib available with a changeable snap closure plus cute Pastel Bear made by North American Bear. We all love to appreciate blessings that are given to us, and having a bundle of joy in a family is definitely one of those. Thus birthdays, holidays and other merry occasions require extra special gifts for a little babe. And we are the exact solution gift givers are looking for. Spoil your angel and make her or him feel all your love with our wide selection to choose from. Make all the first experiences more memorable and extra special as you shop with us for your baby’s needs and wants. Because in Baby Stuff Gifts, we love to care and we love to treasure the joys of having babies and kids in the family and we understand how much you value them. Make the best out of every option, make the most of the memories with the best baby gifts we have for your kiddos!

Holiday Gift Baskets With Free Shipping

Considering the rise in popularity of green teas...
- Advertisement -

You might also likeRELATED
Recommended to you