BBA220 Lecture Notes - Lecture 3: Target Market
8 Jun 2018
School
Department
Course
Professor
WEEK 3
Feasibility Analysis!
-process of determining whether a business idea/ opportunity is viable!
-Preliminary evaluation conducted for the purpose of determining if idea is worth pursuing!
when?!
-conduct a feasibility analysis in early thinking !
-screen ideas before spent to many resources!
1. desirability "
- does it make sense?"
-advantage of an environmental trend? Solve a problem? Gap or niche?"
- good time to go on market?"
-fatal flaws in product or basic design?"
—> concept test: A concept statement is a one-page description of a business that is
distributed to people who are asked to provide feedback on the potential of the business idea."
- feedback will provide: sense of viability "
-suggestions how idea can de strengthened or tweaked!
2. Demand"
- talking face to face to potential customers"
- using online tools to asses demand, feedbacktools, google ads, etc.!
"
3. Industry attractiveness"
- characteristics for attractiveness: young, early lifecircle, growing, must have products, not
crowded, high operation margins, not dependent on raw material "
4. Target market attractiveness"
- identify an attractive market thats large enough for you business, but too small for
competitors "
-!
5. Organizational feasibility"
-focus on non-financial resources"
- sufficient management expertise, organizational competence, and resources to successfully
launch a business"
6. Management prowess"
- evaluate the prowess or ability, of its management team to satisfy itself —> passion"
- what does a team brings to a venture?!
7. Resource sufficiency"
- sufficient resources? "
- list 6-12 most critical non financial resources that will be needed to move forward:"
- office space, lab space, key management employees, key support personnel, business
partnership, etc"
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Process of determining whether a business idea/ opportunity is viable. Screen ideas before spent to many resources: desirability. > concept test: a concept statement is a one-page description of a business that is distributed to people who are asked to provide feedback on the potential of the business idea. Suggestions how idea can de strengthened or tweaked: demand. Talking face to face to potential customers. Using online tools to asses demand, feedbacktools, google ads, etc. Characteristics for attractiveness: young, early lifecircle, growing, must have products, not crowded, high operation margins, not dependent on raw material: target market attractiveness. Identify an attractive market thats large enough for you business, but too small for competitors: organizational feasibility. Su cient management expertise, organizational competence, and resources to successfully launch a business: management prowess. Evaluate the prowess or ability, of its management team to satisfy itself > passion. What does a team brings to a venture: resource su ciency.
