1f Market research & Initial feasability studies

Question 1

What is market research?

Answer 1

The process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry.

Question 2

What is qualitative data?

Answer 2

Non numerical data. This can include information such as opinions or written survey responses.

Question 3

What is quantitative data?

Answer 3

Numerical data, such as figures and statistics

Question 4

What is initial feasibility study?

Answer 4

An initial feasibility study is a researched evaluation of how viable a business concept is.

Question 5

What are 5 areas of feasibility to consider?

Answer 5

Market feasibility (market research)
Operational feasibility
Commercial feasibility
Legal feasibility
Technical feasibility

Question 6

What is Market feasibility (market research)?

Answer 6

Using market research to develop an understanding of the market conditions will help determine if the business concept has the potential to be successful in the long term. If it is unlikely to be successful, then the business should not proceed with starting up.

Question 7

What is Operational feasibility?

Answer 7

To determine the operational feasibility of a business, an individual will have to research what kind of employees they will require, what equipment is needed and if these resources are accessible. In some instances, the technology required to turn a business idea into a reality may not exist.

Question 8

What is Commercial feasibility?

Answer 8

Commercial feasibility has two distinct features. Firstly, an individual must be able to afford the cost of setting up the business. Costs may include hiring the required employees and purchasing the necessary equipment to run business operations. Secondly, the individual will need to determine if the industry is in the position to support the opening of this specific business idea. This research can involve examining market conditions and assessing the profitability of operating in the market.

Question 9

What is Technical feasibility?

Answer 9

Technical feasibility examines the current skills of the individual starting the business and their ability to help the business achieve its aim. Identifying the technical feasibility can also help establish what kind of resources will be required to support the owner.

Question 10

What is Legal feasibility?

Answer 10

An individual will need to understand the legal regulations associated with starting their business and determine if it is possible to start a business while complying with applicable laws and legislation.

Question 11

What are market conditions?

Answer 11

The factors that make up and influence a specific industry.