Feasibility Analysis Report

1. ENTREPRENEURSHIP
CORE11-131_142
FEASIBILITY ANALYSIS REPORT
Authors:
Varun Bagla (13320733)
Francisco Benavides (13327446)
Takaaki Haraguchi (13323499)
Lori Wang

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Table of Contents

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DECLARATION
We hereby declare that, this report titled, “Entrepreneurship Feasibility Analysis
Report”, was carried out by us under the supervision of tutor ‘Christian Rose’ from
Executive Summary 6
Founding Team
Gap Analysis
7-9
Business Concept:
Product Description
Value Proposition
Target Market
Route To Market
Competitors
10-14
Market Research:
Primary
Secondary
14-15
Financial:
Pricing
Affordable Loss
15-16
Legal Issues 16
Feasibility Decision 16-17
Referencing 17
Appendices

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Department of Faculty of Business, Bond University, Gold Coast. This work
previously has not formed part of any basis for the award of any degree or diploma
offered by any institution or university.
This is a record of bona fide and original work submitted by us in partial fulfillment
of the requirements for the award of degree of Bachelor of Property (Varun Bagla),
Bachelor of Business (Francisco Benavides) (Takaaki Haraguchi) (Lori Wang).
Place: Gold Coast VARUN BAGLA (13320733)
Date: 25/07/2014 FRANCISCO BENAVIDES (13327446)
TAKAAKI HARAGUCHI (13323499)
LORI WANG
ACKNOWLEDGEMENT

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We would like to express our profound gratitude to all those who have been
instrumental in the preparation of this “Entrepreneurship Feasibility Analysis Report".
We wish to place on records, our deep gratitude to our project guide - CHRISTIAN
ROSE, for guiding us through this project with valuable and timely advice.
We would like to thank our lecturer AUDUN FISKERUD for his excellent teaching
and sharing of real life experiences.
Last but not the least, we would like to thank our dear family and friends for their
constant help and support.
VARUN BAGLA (13320733)
FRANCISCO BENAVIDES (13327446)
TAKAAKI HARAGUCHI (13323499)
LORI WANG

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CERTIFICATE
This is to certify that, this project report titled “Entrepreneurship Feasibility
Analysis Report”, submitted to the Bond University [Department of Faculty of
Business] in partial fulfilment of the requirements for the award of the Degree of
Bachelor of Property, Bachelor of Business is a record of the original and independent
work carried out by VARUN BAGLA (13320733), FRANCISCO BENAVIDES
(13327446), TAKAAKI HARAGUCHI (13323499) AND LORI WANG () under my
guidance and supervision.
This has not previously formed the basis of the award of any degree, diploma awarded
by any institution/ university.
Place: Gold Coast
Date: 25/07/2014 Tutor: CHRISTIAN ROSE

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Executive Summary
This report aims to analyse the feasibility of a new business venture. ‘Sand E’ is a
new concept of manufactured retail product. We aim to target families with children
who are avid or recreational sportsperson or ongoing university students. Our
operational hub will initially be based in Brisbane where Lori owns a garage, which is
currently empty. The product itself is a practical yet innovative shoe capable of
charging electronic items through the use of solar energy. We have used effectuation
techniques to establish our means and find a gap in the market. Our initial starts up
costs are $24380 and well within our affordable losses. Our research suggests our
price range and product are competitive within the industry, and our route to market is
very achievable. By application of the crazy quit principle we have secured a smooth
relationship with our supplier Bloom Energy. We have established the legal
framework for our business to operate transnationally between India, USA, Australia
and New Zealand. We are prepared for all kinds of surprises and expect to reach
break-even point within one and a half years.

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Founding Team:
VarunBagla (Chairman andManaging Director)
- Who I Am:
I am a person of passion and stern believer in
honesty. My line of interests is varied and
expansive giving me a unique competitive edge. I
have showcased leadership and entrepreneurial
skills on various accounts without missing any
opportunity. I have a taste to win and my secret
ingredient is hard work.
- What I Know:
All the decisions taken by me are based on what I
know making me directly responsible for it,
eliminating the scope of playing blame-game. I
have completed my high school in the field of
commerce from an esteemed institution (St.
Xavier’s Collegiate School, Kolkata) in my
country and have high regards for my alma mater.

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Taking a step further in my career I am currently pursuing Bachelor of Property from
Bond University, Gold Coast and strives to leave no stones unturned. The time I have
given to my family business has helped me fill my bucket of experience and stand tall
in the corporate world. This experience has nurtured my negotiation power and thus
made it easier for me to influence and inspire other people.
- Who I Know:
Being a friendly and cooperative person I have managed to maintain a sound
relationship with family and friends. I even have contacts with people responsible in
media, sales, marketing and advertisement, which may turn out as instrumental assets
of our company. In the recent years the social networking websites have proven to be
a fast and reliable way of broadening corporate networks and I intend to capitalize it.
Francisco Benavides (Directorand Chief Operating Officer)
- Who I am:
I’m a 21 year-old Peruvian Bond student looking for a successful future. I consider
myself as means-driven, because I am used to picking up more than one important
fact from a certain situation. One of my ambitions is to make myself a well-balanced
successful businessman, who enjoys what he does. Adrenaline sports make me feel
free; in fact I always enjoy my freedom, doing sports such as Surfing, Moto-cross,
amongst others.
- What I know:
I know how to work as a group encouraging each member to achieve our mission. I
have a wide-range of knowledge in commerce, specifically in exports & imports. I
can convince someone very fast, because I have a good ability to persuade people. I
also know the importance of people’s emotions in a specific situation in life.
- Who I know:
I have a lovely family and great friends, who always support me with my decisions; I
have experienced some “serendipitous encounters”, which has helped me turn the
unexpected into expected. I love to travel therefore I have some useful contacts
overseas who have given me the knowledge of a multicultural world.
Takaaki Haraguchi (Partner andTechnical Advisor)
- Who I am:
I am a 21-year-old Japanese student at Bond University who is highly interested in
foreign cultures and keen to work internationally in the future. I would describe
myself attentive and mentally stimulated. Also, I enjoy taking control of my life with
responsibilities.
- What I know:

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Since I have grown up in japan, I am familiar with advanced technology. I have lived
in many countries and am studying international relations and applied linguistic,
which help me to understand the world including economic, cultural and political
aspects, and work with people who have different backgrounds.
- Who I know:
I have my family and most of my friends in Japan. As I graduated from one of the
most prestigious upper secondary school in Japan, I enjoy great connections to many
intelligent students and scholars. I have attended a language school with around 400
students for 9 months, so made a number of close friends who specialize in
professional fields, which I am not familiar with, from different countries.
Lori Wang(Partnerand Financial Advisor)
- Who I am:
I am a 21- year-old Chinese student at Bond University. I am interested in
advanced things and willing to attempt different works in the future which is a
great way to enrich oneself in my mind. In fact, one of my ambitions is making
various small businesses of advanced and interesting productions and services.
- What I know:
Because I grew up in China and study in Australia, I know western culture,
eastern culture and know how to keep balance in different culture. Not only that,
I know how to balance and mix the old concept and new concept. I have a great
hold on Finance and Accounts as I enjoy calculating risks and developing
strategies.
- Who I know:
I know my family and many friends in China. Since I graduated from foundation
course in Sydney, I have many friends in Sydney belonging to different countries.
Gap Analysis
Even though the “Bird-in-the-Hand” principle has been effectively applied, there is
always a gap left which demands to be filled. The fact that all the founding members
are inexperienced and looking to set a foot in the industry is a major backdrop, but the
extensive research and our innovative product has boosted our confidence and
allowed us to find our hidden talents (The Lemonade Principle). Another major
difficulty was to make sure that the loss we may incur is affordable which involved
taking calculated risks and formulating proper finance and marketing strategies. Here,
the knowledge of the group members became instrumental and we came to a decision,

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which helped us overcome this obstruction. This venture involves partnerships among
the founding members (capital contributors) and the company “Bloom Energy”,
which is the supplier of our core fuel cells. Hence, at all times we have to be careful
in dealing with our differences and maintaining our relationships to ensure smooth
functioning of the venture (Crazy Quilt). Therefore, it can be said that the founding
team is ready to be the pilot who will fly the company high and make it reach great
heights by handling any hindrance on the way.
Business Concept:
ProductDescription – ‘Solar powered shoes capable of charging all
electronic items’.
Through this venture we intend to revolutionise the technological as well as shoes
industry. In order to achieve this we had two prime factors on our agenda –
(i) To make dual purpose shoes i.e. provide maximum comfort and act as a
portable charger, and
(ii) Use of renewable energy so that our product is sustainable.
Our product is a pair of innovative running shoes capable of charging all electronic
devices being carried by our consumers.
At the above, the added depth in toe box and forefoot provides enough space for use
of orthotics and allows extra toe room. Padded tongue portion minimises lacing
pressure over the instep. Foam cushioned collar prevents heel slippage for a snug and
friction-free fit. Extended medial stabilizer provides rear foot walking stability and
minimizes heel slippage. Removable, dual-density cushioned insert with drilex cover
wicks moisture away from the foot to keep it dry and healthy. The molded bottom
provides additional cushioning. Insole bottom has been added for extra support and
stability. Wide shank, which is a very durable part, lightweight polyurethane bottom
provides a wide ball-of -foot base for stability and a “Rocker Bottom” that moves the
foot forward during walking. The design highlights of these running shoes are sand
fuel cells that produce electrodes and electricity attached with shoe sensor that
provides sensing all kinds of electronic devices.
Our product is capable of serving the following purposes - First, while using the
mature shoemaking technology, we provide maximum comfort, mobility and
flexibility to consumers. What’s more, due to the clean sustainable energy, which is
sand fuel cells supplied by our partner Bloom Energy our consumers do not need to

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worry about losing battery in their devices anymore and can expect significant
reduction in their electricity bills.
The shoes have been creatively designed for both males and female in order to gain
instant customer attraction.

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Figure 1:SandEshoedesignforfemaleconsumers.

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Value Proposition –
Sand E products will be the first of its kind to be launched in an era where comfort
and technological advancement holds utmost importance. Our product has been
uniquely designed keeping Maslow’s hierarchy of needs in mind to maximize
customer utility and boost sales. These products solve the problem of sustainable
energy generation by the use of sand fuel cells. Our customers will love the comfort
provided by the shoes while playing any sport, which will improve their performance.
The turning edge of our product is its capability to charge electronics through solar
energy making our customers ‘power ready’ all the time.
Target Market –
Sand E primarily targets teenagers between 14-22 years of age. These include
consumers who are athletic and have a passion for sports and electronics. Most of
them are still pursuing their education so are funded by their parents who have a
disposable income of approximately $50-100k a year. They are impulsive buyers
who like to have the latest and the greatest new gadgets and accessories. The target
themselves are from a relatively good background with strong family values. The
product is available for both male and female. However, research suggests boys are
more likely to purchase this as they get beyond 15 years of age. The users are sports
lovers, professional athletes or university students. We have a growth strategy of
starting formal shoes to hit the office going people as well.
Route to Market –
After establishing all our marketing campaign based on the 4,’ps, we are going to
sell our product in 2 different ways:
1) Selling through a online store (imports/exports):
- Will let us save money being cheaper to create it. Email vs. brochures.
- Online promotion is more precisely aimed at our specific customers.
- Easy to expand geographically: we just need to understand all issues
and terms of exports and imports.
- Open 24/7/365 (very flexible)
- A good marketing source.
- Duplicates the distracting clutter of an actual market.
- Can set-up and alter the tests quickly.
- Production costs are low after set up.
Figure 2:SandEshoedesignformaleconsumers.

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2) Own store or Retail distribution channel:
- Easy to get new customers efficiently.
- Easy to know the advantages and disadvantages of our product
through instant feedback.
- People can try on the shoes and easily pick up the right size.
- People can touch the product and choose the best design they are
looking for.
- Managers train the staff the way they want (how to sell the
product/convince the customer/customer purchase should be
influence by the salesman).
Competitors –
SolePower, who began their business with the support of Carnegie Mellon’s Project
Olympus, would probably be one of the greatest competitors to ours. The firm has
been developing an innovative insole type of electronic chargers. The insole generates
power as its user walks and stores the generated energy into the Power Park. The
Power Park has a feature as a battery charger as connecting any electronic devices
into the Power Park USB port. It originally derives from the project of “energy
harvesting shoes” with embedded LED lights, which was for an assignment at
Carnegie Mellon University to create a product that will benefit students on campus.
The shoes enable users to be travelling during night more safely.
(http://solepowertech.com/)
Also, Rajesh Adhikari has invented a shoe that can even charger a mobile phone
while walking. He explained, “When we raise our feet, the spring gets released and
the dynamo starts revolving, which generates current. We can charge our mobile
phones while we are walking". The shoe can generate enough electricity to light a
bulb at house if necessary. It is under improvement that will transform this shoe to
work as a wireless phone charger wherein the mobile phone will get charged just by
walking with the phone in pocket. (http://www.wallstreetdaily.com/2014/04/21/shoe-
charger/)
Hatem Zeine, has invented the breakthrough technology, named Cota, that can
recharge any of mobile electronic devices without wires or even any physical contact
to a power base. The discovery enables any Cota-synclonised devices to be received
power within the radius of 3 meters from the charger. Zeine states, “The Cota is the
only wireless power technology that can deliver one watt of power at a distance of
30ft safely.” (http://www.ossiainc.com/how.html)
MarketResearch:
Primary Research:

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To understand our target market better, we conducted a survey with asking 6
questions and received 44 responds. Our major objectives of this survey were to
identify the market gap and to evaluate a feasible price range for our product. The
number of people who have experienced running out of their electronic devices’
battery at crucial times accounts for 88%, whereas only 55% carry a portable charger.
The survey also shows that four-fifth of people are dissatisfied with the battery life of
their devices. We figure out that our product may fit our target markets’ demand,
considering another result that more than 85% of respondents have a preference of
listening music with their device while running.
Most people are willing to pay up to $100 for a pair of running shoes, whilst the most
popular cost range for a pair of running shoes that can charge electronic devices is
$150-200. The survey suggests that our business can be feasible if the price is set in
the above price range.
SecondaryResearch:
According to the interviews conducted by us, one with Nike, a sports brand and the
other with Apple, an electronics brand, it has been drawn out that there is a huge
demand by the young population for comfortable sports shoes and portable chargers.
When we asked our friends and family members, even they reported the same view
and hence our product seems feasible in Australian Market, which belongs to a
developed economy promoting sustainability. (Nike, Victory Sports, Robina Town
Centre, interviewed on 2nd July 2014) (Apple Retail Store, Robina Town Centre,
interviewed on 2nd July 2014)
Financials:
Since SolePower, Rajesh Adhikari and Cota are still developing their product, the
prices that their products offered are not certain. Although it depends on its quality of
devices, most of portable wireless chargers are in the range of 16 U.S. dollars to 60
U.S. dollars.
For instance, Samsung’s Wireless Charger pad are being offered at $59.99.
(http://www.samsung.com/us/mobile/cell-phones-accessories/EP-P100IJWUST2)
We also conducted financial research on running shoes, which our product is based
on. Their prices range from around $50 to $160, which differ from brand to brand.
(http://www.consumerreports.org/cro/athletic-shoes/buying-guide.htm#reflectors )
Our product will cost around $180-$220 based on our research conducted through a
critical survey. The costing for our product came around $130-$150 as shown in the
table:
Sand E Product Expenses Price/Charge
Shoe-making $70

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Sand Fuel Cells $50
Trade/Import-Export Export of fuel cells from California to
India
- $5 per unit
Import of complete product from India
to Australia
- $8 per pair
Others (Returns, Exchange, Salaries
etc.)
Around $10 per pair
Affordable Loss –
Every possible effort has been made in order to make our product financially feasible
through effective cost reduction (bootstrapping). Varun, who has a shoe
manufacturing company in India, has volunteered to organise a separate assembling
area for the unit. All the imports and exports will be handled by Francisco’s
distribution channel at a subsidized price. Takaaki’s advanced technical knowledge
has helped us save lot of cost in manufacturing process and the use of materials. Lori
has provided some exceptional financial strategy for our product pricing and
marketing. Bloom Energy, our fuel sand suppliers were impressed with our shoe
design and agreed to partner with us, supplying the fuel sand cells at a very cheap
price. All these contributions collectively have made our efforts successful and
hopefully ‘Sand E’ will turn out to be a great venture.
The initial start up cost was calculated at $24380, and hence all the founding partners
are contributing the capital equally of around $6000.
Legal Issues:
An operational business firm requires a number of basic licenses.
- ABN (Australian Business Number) - National Business Name Registration
- Trade Mark Registration - Commerce Information - Online Sales Certificate
A partnership deed has been signed among the partners to prevent any disputes.
Since, our product is an innovative concept and first to hit the industry we will
apply to patent it via IPA in order to protect our intellectual property on unique
design and creative concept. We are legally able to sell, export and trade
throughout Australia and New Zealand. Australia has a Free Trade Agreement
with ASEAN and open laws with NZ. (Austrade: 2012).
FeasibilityDecision:

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Our product is technologically feasible. The core of our product i.e. Fuel Sand Cells is
being supplied by Bloom Energy, which already has an established clientele network.
Its product has been a widespread success in the field of renewable energy. Our
design was sent to Bloom Energy and enquired if their fuel sand cells would be
compatible with our product and if the combination would be possible, they replied a
positive yes.
Our product being manufactured in India having following advantages:
1. Comparative advantage in shoes manufacture.
2. Cheap labour costs.
3. Companies work in economies of scale which means more output, less cost.
4. Easy supply of environment-friendly materials.
5. High efficiency imported machines for best quality.
In all surprise our product has proved to be financially feasible as we were able to set
the cost of the product according to the price range agreed in the critical survey.
Considering Australian market our product is feasible because of the following
reasons:
1. Drive for environmental sustainability. (Love thy nature!)
2. Athletic in approach. (Sports is a religion)
3. High rate of wages.
4. Cyber-native people thirsty of innovation.
5. Reliability and Durability of our product.
Our product may not be economically feasible as it is not affordable by lower
income earners and only middle to high-income earners would spend on it. It is a
risk for us but keeping our target market and quality of our product in mind it
would not be that difficult to gain customers. We even intend to indulge in
massive marketing and advertisement in order to gain popularity among these
groups.
References:
SolePower. (n.d.). How it works. Retrieved from http://solepowertech.com/how-it-
works/
Cota. (n.d.). How it works. Retrieved from http://www.ossiainc.com/how.html
Samsung. (n.d.). Wireless charging pad. Retrieved from
http://www.samsung.com/us/mobile/cell-phones-accessories/EP-P100IJWUST
Athletic shoe buying guide. (2013). Retrieved from
http://www.consumerreports.org/cro/athletic-shoes/buying-guide.htm#reflectors

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DH gate.com. (n.d.).Wireless charger for mobile phone. Retrieved on 22, July 2014
from http://www.dhgate.com/wholesale/wireless+charger+for+mobile+phone.html
Bloom Energy. (n.d.). Fuel Sand Cells. Retrieved from
http://www.bloomenergy.com/fuel-cell/solid-oxide/
Appendices
Appendix 1 – Smart Licence.
Appendix 2 – Bloom Energy Generation technique.

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Appendix 3 - Survey finding graphs.

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Appendix 4 – SWOT Analysis.
Strengths:
1) Diversified Cultural Preference and Knowledge
As we are using variety of cultural technology and knowledge to produce, we also
considered diversified cultural preference, in order to satisfy the public taste so that
we are able to improve the productions and adapt to market variation.
2) Experience (Shoes, Technology, International Trade, Environmental Issues)
While importing products being supplied by bloom energy from California and sports
shoes from Indian shoe factory, the international trade between multiple countries
bring about extensive experience in producing and lead our company to consider and
consummate more issues for example environmental issues.
3) Capital Resource

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Our company uses existing resources and technology to recreate and reprocess. Hence
our company receives enhanced production capabilities and more efficient control of
production processes.
4) Managerial Skills
In this business, we divide the management into several parts in this diversified
cultural company to reduce the misunderstanding among the multi-cultural
management therefore make staffs perform their respective duties and work in strict
accordance with their respective mandates and promote the efficiency of work.
5) Contacts
While dividing the management, all departments keep close contact at corporational
activities so that the production status is clear at all times.
6) Same goal (partnership)
Our company makes international trade and collaborates with companies in different
countries, which have the same goal to make profit. The partnership can bring about
motivation to produce and incent inspiration of various sales strategies.
7) Excellent Service (design and plan)
Our product has distinctive design with numerous new concept that considered
comfortable issues, environment issues and energy conservation issues that makes the
new product grab consumers’ attention.
Weaknesses:
1) Global Time Difference
While doing the international collaboration, the problem of Jet Lag would inevitably
affect the efficiency of contact and bring about difficulty to coordinate.
2) Hire Agents for marketing and Accounting
Opportunities:
With the distinctive design, which considered comfortable issues, environment issues
and energy conservation issues, makes our new product be different with usual sports
shoes. This difference brings opportunities to get into the market, grab consumers’
attentions and generate revenues.
Threats:
1) Competitions

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2) Disruptive Technology
3) Government policies and Regulations
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