1-Product/ Service Feasibility

The document discusses the feasibility analysis for launching a mobile app that connects local businesses to rickshaw drivers and other transport services for advertising purposes. It analyzes the product/service feasibility, finding desirability and need for such a platform. It also examines the attractiveness of the advertising industry and target market segment of small local businesses. Finally, it evaluates the organizational feasibility in terms of management experience and sufficient resources to develop and run the app initially.

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1-Product/ Service Feasibility

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usama ilyas

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Assignment 02

Feasibility Analysis:

Introduction:

The idea is to launch a mobile app or website to provide a platform between business owners,
product manufactures, service providers or event organizers and the advertisers such as local
rickshaw owners, local buses, private car owners and hawkers. Our app will be like a bridge
between business owners and local transport owners (rickshaws, buses etc.)

Before starting the business, it is recommended to perform a detailed feasibility analysis of the
concerned business. We have used Primary and Secondary research to conduct the feasibility
analysis of our business.

There are four areas of feasibility analysis:

1- Product/ Service Feasibility

2- Industry/ Target Market Feasibility
3- Organizational Feasibility
4- Financial Feasibility

We will discuss each one of them one by one:

1- Product/ Service Feasibility:

There are two sub categories of this Feasibility analysis:

 Product/ Service Desirability:

We have conducted primary research in this regard to get the response from our potential
customers about our idea. The rickshaw drivers found this idea very unique as there are no
such online platform where they can contact with small business owners to give their services
for advertisement purposes to earn money.
On the other hand, small business/ product owners were agreed upon the fact that there is a
gap in the market in this field. These local business owners faced difficulty in bargaining with
rickshaw drivers for advertising. So this app will solve their problem in many ways. By all these
discussion we have come to a conclusion that our idea of creating such an app is perfectly
making sense.
 Product/ Service Need:
We conducted a secondary research to know about the need of our business. We used GOOGLE
search to carry our secondary research on the topic. By viewing different websites, we came to
know that the need for advertisement through rickshaws/ buses is quite high.

Official statistics released by the government of Pakistan in 2010, state that there are
almost 100,000 registered rickshaws in Pakistan roaming around various cities. Looking at the
cost, a Rickshaw driver charges a meager amount of Rs200-300 per month for its available
space. Thus, if a marketer places its ad on 10 rickshaws, it will only cost Rs2000-3000 per
month. Therefore, this medium is highly suitable for those with limited marketing budgets,
mainly small businesses or service startups. ( https://aurora.dawn.com/news/1141882 )

We have also checked on internet whether there are websites or apps available for hiring
rickshaws or buses for advertisement. In our research we found very few facebook pages or
websites for this purpose like https://www.adshor.com/ (outdoor advertizing on rickshaws mainly
in Karachi). But there is no such platform for small business owners in the form of mobile app
where they can easily hire rickshaws/ buses on their own at low rates without physical
bargaining.

So for the local businesses and product manufacturers, there is definitely need to have a mobile
app where they can find these local transport owners to achieve the goal of low cost
advertisement.

2- Industry/ Target Market Feasibility:

Industry/ Target Market Feasibility is divided in two sub categories:

 Industry Attractiveness:
There should be at least three characteristics of an industry to be attractive. The industries
which are younger in their life cycle are usually attractive. If we talk about advertisement
industry, it has been escalating day by day for the past many years. But if we add an online
platform to act as a match maker between advertisers and local transport, it will be a new
concept in its nature. Online apps have been very popular in the market for the past 15 years.
So we can say that the business through online apps is younger in its life cycle.
Advertisement industry is highly fragmented as it is distributed between Print media, Electronic
media, Social media, bill board and local transport and many more.

 Target Market Attractiveness:

Advertisement market is too vast to capture for the new entrants. So we are just focusing on a
small group in the industry as our target market. We are focusing only on small/ local
businesses that have small budget for their product/ service advertisement. We will be focusing
to provide online platform for these local/ small businesses to access the local transport like
rickshaws for their advertisement at low rates.

3- Organizational Feasibility Analysis:

There are two aspects of Organizational Feasibility Analysis:

 Management Prowess:
We are the team of two members who are going to start this venture as the founders. We both
are engineers and have been serving as the professionals for the five years. We have strong
social network which will surely helpful for our future business endeavors. To start this
business, we need to develop a mobile app. Though, we cannot develop the app on our own,
but we have such contacts by which we can easily get the app development done. After the app
is developed, we can easily run and manage the app on our own. So we have sufficient
management prowess to start and run this business smoothly.

 Resource Sufficiency:
If we make a list of our non financial resources, it will include mobile app, office place and key
employees. To have a perfect mobile app for the start of our business, we can hire a third party
to develop an app for us. We own a place that can be shaped as our first office and it will be our
key resource. In the start we can work as the founders and also as the employees because we
only need to run the app in the start. So we have sufficient resources to start this business.