All About Feasibility
Feasibility Analysis is an endeavour to analyze the possibility that can be made, done, or achieved, or is reasonable. Feasibility analysis can include all about the incoming project including its strengths, weaknesses, opportunities, threats, and even a very basic one, venture of a business. The main function of this is to estimate whether a business will continue or not. It is important and also have a big influence to start a business for the reason that it aims a marketing strategies to convince investors, manage finance of the business, and considering all crucial factors.
Next step is about product desirability anylisis. On this step, we are researching about the potential customers which will assess the desirability of our new product/service. We also estimate the demand of a product we are about to release. We able to obtain information about the demand in the marketplace by library database or any online resource.
Things we need to ask ourself:
- What problem do my potential customers have?
- What’s the solution to that problem?
- Why would people pay money for my product?
The possibility questions we have to ask stakeholders:
“SWANs :What do our various stakeholders want and need?
Strategies :What strategies are we pursuing to satisfy these wants and needs?
Processes :What processes do we need to put in place to enable us to achieve these strategies?
Capabilities :What capabilities do we require if we are to operate these processes?
OWANs :What do we want and need from our stakeholders to enable all of this to happen?”
Market Research
There are several problems that need to be solved in our daily life. Owing to the fact that we need to solve these problems, we need to conduct market research to understand and identify customers problems as the business itself is also to make a problem-solving. Therefore, market research is one of business core.
There are many ways to test the demand of our new product/service. Joining an online forum to have a conversation is one of it. Then create a list of places that potential customers spend their time at most. By this list, we could sort any possibilities becomes less. Then, we should identify a specific customers, for example the range of children, teenagers, or adults, or even seniors. Ways of conduct demand research:
- Surveys.
- Interviews.
- Focus groups.
- Observation.
Industry Attractiveness
Industry attractiveness is magnitude and ease of making profit, in comparison with the risks involved, that an industrial sector offers. It is based on the number of competitors, their relative strength, width of margins, and rate of growth in demand for its goods or services.
There are five forces analysis according to Michael E. Porter. It includes:
- Rivalry. This mean how intense a competition in an industry. The factors affecting rivalry are: number of competitors, slow market growth, low levels of product differentiation, and how aggressive competing companies are.
- Threat of substitutes. Substitutes always refer to a main product and can be sold with less price. As example a marker called Copic can be substituted by Finecolours.
- Supplies power. This component is important. As the supply power is high, then it can influence to the price and limit the quantity of a product.
- Buyer power. The power of buyers is the impact that customers have on a producing industry. When buyer power is strong, the buyer has the ability to set the price.
- Barriers to entry. Barriers to entry are unique offerings of companies in an industry that any company wishing to enter that industry must be prepared to overcome.
Organizational feasibility analysis is conduct to determine proposed business has sufficient management and organizational competence, and manage the human resource. Two aspects to consider include management ability and resource sufficiency.
Finansial Feasibility Analysis
Finansial Feasibility Analysis (FFS) is a research to a finance of the project or a business. This analysis improves project reliability. By this analysis, we estimate of a business continuity and its finance. The aspects of FFS are:
- Company Expenses
- Revenues.
- Assets
- Liabilities
- Cash flow (money in, and money out).
After all the discussion, in my opinion feasibility analysis is extremely important to start a business. This analyze includes all the main part of a business. Feasibility analysis can improve a realiability of a business, future finance, a continuity of a business, and resource sufficiency.
Reference:
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5. Jeffery, Neil. 2009. Doughty Centre, Cranfield School of Management. [http://fundacionseres.org/lists/informes/attachments/1118/stakeholder%20engagement.pdf]. Accessed 28 September 2020.
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