Question

What kinds of analyses are conducted in a feasibility study for new products?

Answer 1

While introducing a new product into the market, the organization needs to study the various types of feasibility required for the product to be successful in the market. The types of studies requires are:

1. Technical feasibility - While analyzing the feasibility of a product the organization needs to understand the technical details of the product and the various aspects which will make the product technically feasible with the requirements of the customer or client.

2. Market Feasibility - The product in order to be successful has to generate revenue which is the only way through which the market feasibility of the product is determined. The demand of the product, how the product creates an impact in the market, etc. needs to be analyzed which has to be good or else there is no point introducing such a product in to the market.

3. Economic Feasibility - While introducing any product the organization needs to calculate the return of the investment regarding the product and if the product can actually incur profit for the organization. The margin of the profit that the organization may earn is also important in this context.