Elements of a feasibility Analysis

1. Industry an Market Feasibility Analysis
2. Product or service Feasibility Analysis
3. Financial Feasibility Analysis

1. Industry and Market Feasibility Analysis :

– Deal with How attractive a project is ?

– Identify possible niches a project can occupy profitability.

5 forces interact with each other to determine attractiveness of the business.

a) Rivalry among the companies.

b) Bargaining power of the buyer an supplier.

c) Threat of new entrants in the industry

d) Threat of substitute products.

2. Product or service Feasibility :

– Are customers willing  to purchase our goods and services.

– Can we provide product at a profit ?

3. Financial feasibility Analysis :

– It includes :-

a) Initial capital requirement

b) Estimated earning

c) Return on investments

– Important for “ go/no go” decisions about projects.