EPS165 - New Venture Feasibility Analysis

When conducting a new venture feasibility analysis in a competitive environment, it’s essential to consider various types of ventures and their unique challenges and opportunities. Here are some common types of new ventures:

1. Product-Based Ventures: These involve creating and selling a new product. The feasibility analysis should focus on product development, market demand, production costs, and competitive differentiation.

2. Service-Based Ventures: These provide a service rather than a physical product. Key factors include service delivery methods, customer service quality, market need, and scalability.

3. Technology Ventures: These are often innovative and involve new technologies. The analysis should consider technological feasibility, intellectual property, market adoption, and potential for rapid scaling.

4. Social Enterprises: These ventures aim to address social issues while being financially sustainable. The feasibility study should evaluate social impact, funding sources, and community engagement.

5. Franchises: These involve buying and operating a branch of an established brand. Important factors include franchise fees, brand reputation, and support from the franchisor.

6. E-commerce Ventures: These focus on online sales. The analysis should cover website development, digital marketing, logistics, and competition from other online retailers.

7. Green Ventures: These focus on sustainability and environmentally friendly products or services. Key considerations include regulatory compliance, market demand for green products, and potential environmental impact.

Each type of venture requires a tailored feasibility analysis that includes market feasibility, financial feasibility, organizational feasibility, and product/service feasibility¹²³.

Do any of these venture types align with your interests or goals?

Learn more:    1. openstax.org    2. leeds-faculty.colorado.edu    3. emerald.com

EXAMPLES :

Market plan research is a crucial step for any business venture. It involves gathering and analyzing information about your target market, competitors, and industry to make informed decisions. Here are the key components:

1. Understanding Your Audience: Identify who your potential customers are, their needs, preferences, and behaviors. This helps in tailoring your product or service to meet their demands¹.

2. Market Segmentation: Divide your broader market into smaller segments based on demographics, psychographics, or behavior. This allows for more targeted marketing strategies².

3. Competitor Analysis: Study your competitors to understand their strengths, weaknesses, and market positioning. This helps in identifying opportunities and threats in the market².

4. Market Size and Growth: Estimate the size of your market and its growth potential. This includes understanding the total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM)².

5. Pricing Strategy: Determine the optimal pricing for your product or service by understanding what customers are willing to pay and analyzing competitors’ pricing¹.

6. SWOT Analysis: Identify your business’s strengths, weaknesses, opportunities, and threats. This helps in strategic planning and decision-making².

7. Data Collection Methods: Use primary research (surveys, interviews, focus groups) and secondary research (industry reports, public databases) to gather relevant data¹.

8. Actionable Insights: Analyze the collected data to extract insights that can guide your business strategy, marketing plans, and product development¹.

Conducting thorough market plan research helps in reducing risks, understanding customer needs, and positioning your business effectively in the market. Do you have a specific business idea in mind that you’re looking to research?

Learn more: 1. online.hbs.edu    2. bplans.com

Conducting a competitor analysis involves several key steps to understand your competitors’ strengths, weaknesses, and strategies. Here’s a step-by-step guide to help you get started:

1. Identify Your Competitors:

   • Direct Competitors: Businesses offering similar products or services in the same market.
   • Indirect Competitors: Businesses offering different products or services that satisfy the same customer needs¹.

2. Gather Information:

   • Website and Online Presence: Analyze their websites, social media profiles, and online reviews.
   • Marketing Strategies: Look at their advertising campaigns, content marketing, and SEO strategies².
   • Customer Feedback: Read customer reviews and feedback to understand their strengths and weaknesses².

3. Analyze Competitors’ Products and Services:

   • Features and Benefits: Compare the features, benefits, and unique selling points of their products or services.
   • Pricing: Evaluate their pricing strategies and how they position their products in the market³.

4. Evaluate Market Positioning:

   • Target Audience: Identify who their target customers are and how they reach them.
   • Brand Positioning: Understand their brand image and market positioning⁴.

5. SWOT Analysis:

   • Strengths: What do they do well?
   • Weaknesses: Where do they fall short?
   • Opportunities: What market opportunities can you exploit?
   • Threats: What threats do they pose to your business?⁵

6. Use Analytical Tools:

   • Tools like SEMrush, Ahrefs, and SimilarWeb can provide insights into competitors’ online traffic, keywords, and marketing strategies².

7. Compile and Analyze Data:

   • Create a competitor matrix to compare key aspects of your competitors side by side.
   • Look for patterns and insights that can inform your business strategy⁶.

By following these steps, you can gain a comprehensive understanding of your competitive landscape and identify areas where you can differentiate your business. Do you have a specific industry or competitor in mind that you’d like to analyze?

¹: AllBusiness.com ²: Antler Academy ³: Ahrefs ⁴: Square ⁵: Crunchbase ⁶: Upmetrics

Learn more

1allbusiness.com2antler.co3upmetrics.co4ahrefs.com5squareup.com6about.crunchbase.com

Here’s an example of a simple competitor matrix for a hypothetical coffee shop business:

This matrix helps you compare key aspects of your business with your competitors, such as location, pricing, product variety, customer service, ambiance, and loyalty programs. By analyzing these factors, you can identify areas where you excel and areas where you might need improvement.