CH3 Feasibility analysis Flashcards
BUS304 (11 cards)
What is the purpose of Product/Service Feasibility Analysis?
An assessment of the overall appeal of the product or service being proposed
It ensures the product or service aligns with what prospective customers want.
What are the components of product/service feasibility analysis?
- Product/Service Desirability
- Product/Service Demand
What questions should be asked to determine Product/Service Desirability?
- Does it make sense?
- Is it reasonable?
- Is it something consumers will get excited about?
- Does it solve a problem or take advantage of a gap in the marketplace?
- Is this a good time to introduce the product or service?
- Are there any fatal flaws in the product or service’s basic design or concept?
What are the three steps to assessing Product/Service Demand?
- Talking Face-to-Face with Potential Customers
- Using Online Tools
- Library, Internet and Gumshoe Research
What is the purpose of Industry/Target Market Feasibility Analysis?
An assessment of the overall appeal of the industry and the target market for the proposed business
It evaluates the industry and the specific market segment the firm plans to target.
What defines an industry in the context of feasibility analysis?
A group of firms producing a similar product or service
What is the challenge in identifying an attractive target market?
Finding a market that’s large enough for the proposed business but small enough to avoid attracting larger competitors
What is the focus of Organizational Feasibility Analysis?
Determining whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch
It focuses on non-financial resources.
What is the purpose of Financial Feasibility Analysis?
The final component of a comprehensive feasibility analysis
A preliminary financial assessment is often sufficient.
Fill in the blank: An industry is a group of firms producing a similar _______.
[product or service]
True or False: Assessing the attractiveness of a target market is easier than assessing the attractiveness of an entire industry.
False
