FEASIBILITY ANALYSIS

Unit 3.2

Barringer, B. R. (2015). Entrepreneurship: successfully launching new ventures.

Pearson Education India
 Forms of Feasibility Analysis

Industry/Target Market
Product/Service Feasibility
Feasibility

Organizational Feasibility Financial Feasibility

Barringer, B. R. (2015). Entrepreneurship: successfully launching new ventures.

Pearson Education India
Product/Service Feasibility Analysis

• An assessment of the overall demand of the product or service

being proposed by a prospective firm
• Although there are many important things to consider when launching a ne
w venture, nothing else matters if the product or service itself doesn’t sell.
• There are two components to product/service feasibility analysis: product/
service desirability and product/service demand.
Product/Service Feasibility Analysis

Purpose:
• To evaluate the viability and worth of the product or service
being proposed before a prospective firm introduces a new
product or service into development.

• To ensure that the product or service is what potential customers

want.
Product/Service Feasibility Analysis
Components of product/service feasibility analysis

1. Product/Service Desirability

2. Product/Service Demand
Product/Service Desirability
The first component of product/service feasibility is to affirm that the propose
product or service is desirable and serves a need in the marketplace
You should ask yourself, and others, the following questions to determine the
basic appeal of the product or service:
■ Does it make sense? Is it reasonable? Is it something real customers will buy?
■ Does it take advantage of an environmental trend, solve a problem, or fill a
gap in the marketplace?
■ Is this a good time to introduce the product or service to the market?
■ Are there any fatal flaws in the product or service’s basic design or concept?
Product/Service Demand
The second component of product/service feasibility analysis is to determine if
there is demand for the product or service. Three commonly utilized methods
for doing this include
1. Talking face-to-face with potential customers,
2. Utilizing online tools, such as Google Adwords, Trends etc
3. Library, Internet, and research