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3) ED Feasibility_Study_week 3

The document outlines the process of conducting a feasibility study and crafting a business plan, focusing on financial, industry, and product/service feasibility analyses. It emphasizes the importance of understanding market dynamics through tools like Porter's Five Forces Model and highlights the necessity of primary and secondary research to assess customer demand and profitability. Additionally, it discusses the components of a business model, including value proposition, customer segments, and key resources, as essential for developing a successful business strategy.

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sabbirulahsan006
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2 views25 pages

3) ED Feasibility_Study_week 3

The document outlines the process of conducting a feasibility study and crafting a business plan, focusing on financial, industry, and product/service feasibility analyses. It emphasizes the importance of understanding market dynamics through tools like Porter's Five Forces Model and highlights the necessity of primary and secondary research to assess customer demand and profitability. Additionally, it discusses the components of a business model, including value proposition, customer segments, and key resources, as essential for developing a successful business strategy.

Uploaded by

sabbirulahsan006
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Conducting a Feasibility

Study and Crafting a


Business Plan
Chapter 4
https://
www.youtube.com/watch?
v=ZDt_XoS5RFM&feature=
related
Feasibility Analysis
Financial Feasibility

Industry and Product or


Market Feasibility Service Feasibility

 The process of determining whether an


entrepreneur’s idea is a viable foundation for
creating a successful business
Industry and Market
Feasibility Analysis
 To determine how attractive an
industry is overall as a ‘home for a
new business
 To identify possible niches a small
business can occupy profitably
Industry and Market
Feasibility Analysis
 Sociocultural
 Technological
 Demographical
 Economical
 Political and legal
 Global
Five Forces Model
Potential
Entrants

Threat of new entrants

Rivalry among Bargaining


Suppliers Bargaining Buyers
existing firms Power of
Power of
suppliers buyers

Substitutes
Rivalry
 Number of competitors is large or few
(less than 5)
 Competitors are not similar in size or
capability
 The industry is growing at a fast pace
 The opportunity to sell a differentiated
product or service is present
Suppliers
 Many suppliers sell a commodity product
to the companies in it
 Substitute products are available for the
items suppliers provide
 Companies in the industry find it easy to
switch from one supplier to another
 The items suppliers provide account for a
relatively small portion of the cost of
finished products
Buyers
 Switching costs to competitors is high
 Number of buyers is large
 Customers demand differentiated products
 Customers find it difficult to gather info on
suppliers costs etc
 The items account for a relatively small
portion of the customers’ finished products
New Entrants
 Advantages of economic scale are
not present
 Capital requirements to enter are low
 Cost advantages are not related to
company size
 Buyers are brand-loyal
 Governments do not restrict entry
Substitute Products
 Quality substitute products are not
readily available
 Prices of substitute products are not
lower
 Buyers’ cost of switching to
substitute products is high
https://www.youtube.com/watch?
v=OWwSS6nrfQM&t=85s
Assignment
 Analyze the Industry of your business
using porters five forces model.
 Discuss the opportunity and threat
for your business.
Product or Service
Feasibility Analysis
 Are customers wiling to purchase our
goods and services?
 Can we provide the product or
service to our customers at a profit?
Research
 Primary research
 Customer surveys and questionnaires
 Focus groups (8-12)
 Prototypes: an original, functional model of a new product that entrepreneurs can
put into the hands of potential customers so they can see it, test it and use it
 In-home trials: a research technique that involves sending researchers into
customers’ homes to observe them as they use the company’s product or service
 Windshield Research
 Secondary research
 Trade associations
and business
directories
 Industry database
 Demographic data
Research  Census data
 Forecasts
 Market research
 Articles
 Local data
 The internet
Financial Feasibility Analysis
 Capital Requirements
 Estimated Earnings
 Time out of cash
 Return on Investment
A Business Plan

 A written summary of an
entrepreneur’s proposed business
venture, its operational and financial
details, its marketing opportunities
and strategy, and its managers’ skills
and abilities
https://www.youtube.com/watch?v=IP0cUBWTgpY
Business Model
 Value proposition –collection of product and
services ( all the things that will set the
business apart from its competitor, such as
pricing, quality, features, product availability,
and other features.
 Customer – demographic, geographic,
socioeconomic
 Channels – communication channel and
distribution channel
 Customer relationship –customer services
Business Model
 Key activity – activities needs to be performed to
open and sustain the business
 Key resources – human, capital, intellectual
resources
 Key partners – key suppliers, key outsourcing
partners, investors, industry partners, advisor,
all other external entities
 Revenue
 Cost
https://www.youtube.com/watch?v=ZKrtUB-
kMJc
Class Activity
 Develop the business model using
nine components for your business
idea that you have developed for the
Entrepreneurship Development
course

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