“Feasibility analysis is the process of determining whether a business idea is viable”.
What does this statement mean?
What are the main components of a feasibility analysis?
Why is industry and market analysis critical to any business feasibility study?
The following characteristics of industries have been identified as characteristics of attractive industries from an emtrepreneurial perspetive.
Explain why these characteristics are attractive to an entrepreneur seeking to start up a new venture in an industry.
Are young rather than old
Are rather early than late in their life cycle
Are growing rather than shrinking
Are fragmented rather than concentrated
Are not crowded Have higher than lower operating margins
Are selling products ad services that consumers "must have" rather than "want to have".
Are not highly dependent on the historically low price of raw materials
As per policy, I have answered one question.
Answer:- "Feasibility analysis is the process of determining whether a business idea is viable" this statement means that before investing funds in any new business it is important to initially analyze the business idea to determine if the idea is feasible or worth investing. The company should have in-depth knowledge about its product or services, market structure, competitors, and the cost involved in starting the business. This will help to highlight the important areas or possible risks involved with the business which must be taken into consideration. Thus, for a successful business, the company initially needs an achievable idea.
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