An industry is a group of firms producing a similar

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Unformatted text preview: Henry is JSOM librarian contact –  Internet searches can often yield important information about the potential viability of a product or service idea. –  Be a gumshoe! 8 9/25/13 Industry/Target Market Feasibility Analysis Purpose Industry/Target Market Feasibility Analysis •  Is an assessment of the overall appeal of the industry and the target market for the proposed business. •  An industry is a group of firms producing a similar product or service. •  A firm’s target market is the limited portion of the industry it plans to go after. Industry/Target Market Feasibility Analysis (continued) Components of industry/target market feasibility analysis Industry ANrac<veness Target Market ANrac<veness 9 9/25/13 Industry Attractiveness 1 of 2 •  Industries vary in terms of their overall attractiveness. •  Depends on the degree to which environmental and business trends are moving in favor rather than against the industry •  IBISWorld, Mintel databases Industry Attractiveness 2 of 2 In general, attractive industries have these characteristics •  Are young rather than old •  Are early rather than late in their life cycle •  Are fragmented rather than concentrated •  Are growing rather than shrinking •  Are selling products and services that customers “must have” rather than “want to have” •  Are not crowded •  Have high rather than low operating margins •  Are not highly dependent on the historically low price of key raw materials 10 9/25/13 Target Market Attractiveness •  The challenge is to find a market that’s large enough for the proposed business but is yet small enough to avoid attracting larger competitors. •  Assessing the attractiveness of a target market is tougher than an entire industry. •  Often, considerable ingenuity must be employed to find information to assess the attractiveness of a specific target market. Organizational Feasibility Analysis Purpose Organizational Feasibility Analysis •  To determine whether a proposed business has sufficien...
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This document was uploaded on 02/03/2014.

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