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Feasibility analysis is the process to know and make sure that the ideas of the business is right. Identifying and feasibility a business ideas is important before we start and jump into our business. Product and services desirability is knowing the value of what products or services we sell. So we can make a conclusion either our product is valuable or not. We also need to ask our self first ‘is it something real customers will buy or use?’, ‘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?’. We have to explore the product or service demand to check is there any demand for the product or service. Talking face to face with potential customer is the only way to discover if our product is really what they want. We can use online tools to assess demand. Industry attractiveness analysis is an assessment from the overall attractiveness of the product or the service. Porter’s 5 forces analysis:
1. Competitive rivalry : scanning about our competitors ability (the quality, etc) . When rivalry is intense we can cut our price off to attract the customers but when it’s minimal, we can have a full strength and have a maximum profits of our products and services.
2. Supplier power : it depends on how easy our supplier to increase their prices. How many potential supplier that we have. It’s good to choose a cheaper alternative with the same uniqueness of the products or services. We also need to have a lot of supplier because the fewer they are, the more we need them and they have more power that can impact our profits.
3. Buyer power : we need to know how many customers that we have. If we only have a few customers than they will be more powerful than us. But if we have a lot of customers, the less power that they got.
4. Threat of substitution : this prefers to how our customers finding a different way of doing what we do. A substitution that is easy and cheap to make can weaker out position and profits
5. Threat of new entry : our position can be affected by people’s ability to enter our market.
Management prowess (evaluate the prowess or ability of team’s entrepreneur) and resource sufficiency (find out either the resource is enough to develop our product or service) are important in doing organizational feasibility analysis. Total start up cash needed (total cash that we prepared to make our first sale) and financial performance of similar business (compare the financial to the similar business) are important to explore in doing financial feasibility analysis.
In my opinion having a business needs to find the best strategy that can improve and develop the business it self.
