 Dr.
J Vasanthakumari is an executive director of a public limited company. Her
various duties include motivating the employees, conducting orientation and
awareness programmes and imparting self-development training amongst various
other things.
She
has further responsibilities as a Managing Trustee of an NGO. She is a member
of various entrepreneurial organisations and plays an active part in helping
women set up their own business units.
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Market
Feasibility Analysis Skill
After a business idea is generated and a business opportunity
identified, marketing studies are conducted to find out the feasibility of the
idea.
Components
of the feasibility Analysis
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Business Concept Analysis.
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Industry Analysis.
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Market/Customer Analysis.
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Economic feasibility Analysis.
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Technical feasibility Analysis.
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Management competency analysis (founding team analysis).
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Product/Service development analysis.
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Financial feasibility analysis.
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Feasibility finalization.
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Action plan with deadlines.
1. Business Concept Analysis
A business concept has four components
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What is the business - Product or Service or Trading
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Who is the customer - A person or business
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What is the value - The benefit to the customer
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How will the benefit be delivered - The distribution channel i.e how to reach
the customer and deliver the benefits.
2.
Industry Analysis
It is to test whether or not the industry in which you will be operating, will
support your business concept.
-
To find out the carrying capacity - The extent to which the industry can accept
more business
- To know the extent of uncertainty - Stability or instability
of the industry
- To identify complexity in the market - About the number and
diversity of inputs and outputs in the industry
- To identify threats to new
entrants - Various barriers in the form of high capital requirements, economies
of scale, industry hostility, etc.
- To identify threats from substitute
products or services - Competition from companies that have substitute products
or services
- To identify threats from buyer's bargaining power - Buyer's have
the power to force down prices
- To identify threat from supplier's bargaining
power - Suppliers have the power to raise prices or change the quality of
products
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To find out rivalry among existing firms - Highly competitive industries force
prices and profits down.
3. Market / Customer Analysis
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To identify a niche that is not being served so that you can have an entry
strategy - with lowest barriers possible and with the highest possibility of
success.
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To look at what your potential customers want.
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To know want the demand for your product or service is.
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To consider a variety of different distribution channels to deliver the
benefits to the customers and select the best.
4.
Economic Feasibility Analysis
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Total demand and supply.
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Price level.
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Product suitability.
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Competition.
5.
Technical Feasibility Analysis
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Location.
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Land and building.
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Plant and machinery.
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Technical competence.
6.
Management Competency Analysis - (Founding Team Analysis)
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To consider the qualification, expertise and experience of your founding team.
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To consider business outsourcing because no one person has all the skills, time
and resources to do everything himself/herself.
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To consider a board of directors.
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To consider an advisory board.
7.
Product/ Service Development Analysis
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To identify tasks to be completed to prepare the product or service for the
market - protect your patents, copyrights, logo or trademark and trade secrets.
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To figure a time line for completion of the tasks.
8.
Financial Feasibility Analysis
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To figure out how much money you need to start the business - For fixed assets,
for working capital, for contingency.
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To forecast your cash flows - cash inflows and cash outflows.
9.
Feasibility Finalization
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Define the conditions under which you go forward.
10.
Action Plan with deadlines
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Identify a list of task to be completed.
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Fix a deadline to complete the tasks.
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Finalize specific time segments for each activity.
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