Industry/Market Feasibility
Issues Addressed in This Part
1. Industry Attractiveness
2. Target market attractiveness
3. Timeliness of entry in target market
Industry attractiveness tool.
( used to access the broad industry, rather than the specific target market)
Low potential Moderate potential High potential
No. of compitators Many Few(8-10) none
Age of industry Old Middle age Young
Growth rate of industry Little growth Moderate growth High growth
Average net income for the Low Medium High
firms in industry
Degree of industry Concentrated Neither Fragmented
concentration concentrated nor
fragmented
Stage of industry life cycle Maturity or decline Growth phase Emergence phase
phase
Number of exciting new product Low Medium High
and services emerging from the
industry
Long term prospect Weak neutral Strong
Target market attractiveness
Low potential Medium potential High potential
Number of competitors in Many few none
target market
Growth rate of firms in the Little or no growth Slow growth Rapid growth
target market
Average net income of firms in Low Medium High
the target market
Ability to create “barriers to Unable to create May or may not able Can create
entry” for potential competitors to create
Degree to which customers feel Satisfied Neither satisfied nor Unsatisfied
satisfied by the current dissatisfied
offerings in the target market
Excitement surrounding new Low Medium High
product/service offerings in the
target market
Market timeliness:
Low potential Moderate potential High potential
Buying mood of customers Customers are not in Moderate buying Aggressive buying
buying mood mood mood
Momentum of the market Stable to loosing Slowly gaining Rapidly gaining
momentum momentum
Extent to which business and Low Medium High
environmental trends are
moving in favor of the target
market
Need for a new firm in the Low Moderate High
market with your offerings or
geographic location
Recent or planned entrance of Large firms entering Rumors that large No large firms
large firms into the market the market firms may enter the entering the market
market
Conclusion:
Industry attractiveness: The business is attractive because there are less competitors, but in the trend
also this was fit to customer’s demand.
Target market attractiveness: The business market is to target on students, children and those who are
having abnormalities Moreover, our business idea quite match to their needs.
Market timeliness: this was a perfect time to entire into this market because of the trend and customers
needs, and now the market trends are growing up rapidly and situation matches the product.
Organizational feasibility:
Issued addressed in this are:
1. Management prowess
2. Resource sufficiency
Management prowess assessment tool:
Low potential Moderate potential High potential
Passion for the business idea Low Moderate High
Relevant industry experience None Moderate Extensive
Prior entrepreneurial experience None Moderate Extensive
Depth of professional and social Weak Moderate Strong
networks
Creativity among management team Low Moderate High
members
Experience and expertise in cash flow None Moderate High
management
College graduate No college Some college Graduated and
education education but not currently in
currently in college college
Resource Sufficiency
An explanation of the rating system used in the first portion of the table is as follows:
1 Available
2 Likely to be available: will probably be available and will be within my budget
3 Unlikely to be available: will probably be hard to find or gain access to, and may exceed my budget
4 Unavailable
5 NA: not applicable for my business
Ratings Resource Sufficiency
1 2 3 4 5 Office space
1 2 3 4 5 Lab space, manufacturing space, or space to launch a service business
1 2 3 4 5 Contract manufacturers or outsource providers
1 2 3 4 5 Key management employees (now and in the future)
1 2 3 4 5 Key support personnel (now and in the future)
1 2 3 4 5 Key equipment needed to operate the business (computers, machinery, delivery
vehicles)
1 2 3 4 5 Ability to obtain intellectual property protection on key aspects of the business
1 2 3 4 5 Support of local and state government if applicable for business launch
1 2 3 4 5 Ability to form favorable business partnerships
Conclusion:
Management prowess : This business still don’t have a fix financial management, so we still have to
search and think new idea for promoting and managing. Maybe we can take this opportunities to learn
more experience from our suppliers and customers
Resource sufficiency : Most of the land is already available near college , but we still have to spend
money on building and to spread to different areas.
Sole tracker
Income statement
For the year ended January 31st 2019
. Rs. Rs. Sales
18000
Cost of Goods Sold (4000)
Gross Profit 12000
Operating expenses
Advertisement expenses 2000
Sales Commission expenses 1000 3000
Administrative expenses
Office supplies expenses 800
Utilities expenses 1000 1800
Total operating expenses 4800
operating income 7200
New operating income
Increase revenue . 1500
Going on sale investment 1000
Interest expenses (700)
Total non-operating income 1800
Net income 9000
Sole tracker
Income statement
For the year ended January 31st 2019
. Rs. Rs.
Net income 9000
Adjustment to convert net income to basis:
Depreciation and amortization 1000
Increase in account receivables (2000)
Increase in account payables 2000 1000
Net cash provided by operating activities 10,000
Cash flow from investing activities
Sales of long term investment 1500
Net cash provided investment activities 1500
Cash flow from financing activities
Sales of common stock 00
Payment of cash dividends 00 00
Net cash provided by financing activities
Net increase in cash 11,500
Cash at beginning of period 7000
Cash at end of period 18,500
