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Feasibility Analysis Report onfinding the viability of business
- 2. Concept Statement Online watch business which target adult men and women. Luxurious watches gives exact time. Vintage watches are durable with less maintenance. Business should meet customers needs and desires to curb competition. Employment of management team to oversee daily operations.
- 3. Product Desirability and Demand Test Online watch business is very competitive. Apply social media advertising to increase awareness. Manufacture their own watches for uniqueness. Demand test measure the potential customers of a product. Customers prefer high quality and original products. Customers prefer customized products.
- 4. Feasibility Analysis Report Strong business idea should have better advertisement for reaching clients. Should verify products before delivery Should ensure accessibility of products. Online watch business has high growth rate due to high demand. It is convenient to customers. High profit margins.
- 5. Feasibility Analysis Report Cont’n Founders are aware of customers problems in online business. Founders are professional in different fields. Their goals is to meet customers’ needs. Team work among founders encourage inventions. Initial capital for online watch business is through contribution of founders. Source of revenue through sales, rent and authentication fee. Two years to break even.
- 6. Overall Suggestions Ensuring continuous supply chains to sustain high demand and avoid shortage. The company should design and build its watches for uniqueness to increase profit margins. Advertise watches on all social media platforms and sell affordable watches to increase sales. Provide training and other development programs to enhance their knowledge and skills Invite more investors to meet financial requirements fully.
Editor's Notes
- Over the past decades, the development of technology has made many people rely on their smartphones in several activities such as banking, shopping, and time display. Despite these developments, watches remain popular among many people. Classical watches signify design, prestige, and style among people. Luxurious brands such as Rolex have a high demand and also create profits for the company. Selling of watches online leads to increased sales as well as the growth of the country’s economy. This watch business targets consumers who like wearable pieces on their hands. The company will focus on men since they are the majority of buyers of luxury watches followed by women. The primary benefit of having a watch is to tell time. Where one needs the exact time in the daily activities, the luxury watch will reduce lateness. Watches such as Patek Philippe gives accurate time since the manufacturer takes more than ten months to make one watch. The luxurious watch will act as a long term asset as it can serve without breaking down with less maintenance. Wearing classic watch portrays elegancy and decency among people. Although vintage watches have significant importance, they face huge competition in the market. It is essential to position the business to offer better customer service by ensuring it meets their needs and desires. The watch business should also ensure it has reliable manufactures and distributors. The success of the online business depends on the management team overseeing the daily operations. The company will employ experts in E-commerce who will offer guidelines in overall administration. It will also hire Information Technology experts who will handle social media accounts and websites. Social media is the most efficient method of reaching a significant audience to raise brand awareness. However, the business needs to have robust marketing strategies that will enhance business growth. They will market the products on such platforms as well as respond to customers' queries. There is also a need to get an employee in charge of keeping records of sales and stock. This will help in understanding the level of demand to ensure a continuous supply.
- Product Desirability Muhammed -Chie Executive Officer Ali- IT manager Amir- Human Resource Manager Amiina- Marketing Director Stephen- Sales Manager Most of the industrial experts we met warned us about the fierce competition in the online watch business. Online shop requires proper marketing strategies to maximize sales and maintain market share. Watch business is very profitable even in the first year of start. However, the industrial experts suggested that our company should prioritize advertising watches on social media due to a vast audience. The business may increase their profits by building and designing their watches. It will also help in fighting fierce competition in the market as well as making its products unique. Product Demand Test Ahmednasir-Lawyer Aayan- Statistician Racheal- Doctor Steve James- Manager Aden- Veterinary Officer Kayla- Businessman Samuel -Self Employed Aaliyah- Magistrate Leila- Salesperson Will Stone- Humanitarian This segment tests the number of potential customers of the product in the market. The demand test analysis is essential in feasibility, mostly when determining the online business on whether it is potentially feasible (Bam). Most clients the company interacted with claimed that their greatest fear is poor quality and lack of original products from most online shops. Some clients prefer customized watches that fit their tastes and preferences. The target market suggested that the industry may build unique watches different from competitors. Most clients claimed they would buy if the products are unique and original.
- Explanation of Results of Part 1 Several factors determine the strength of the business. In this aspect, the online business idea will focus on how to fit in environmental trends such as the use of social media in advertising and reaching clients. The business idea will provide means of verifying the product sold before delivery, thus ensuring consumers get authentic watches. Despite stiff competition, the entrance of the business into the market is quite timely since there growing need for watches by consumers. The firm will help consumers to access and buy the product at their comfort with minimal movements. The existing competitors do not fully meet the requirement of the consumers since they do not verify the product from the manufacturers before delivery. However, the idea does not change customer behaviors since most people are users of social media and the decision to purchase bases on product advertisements through social media and websites. Explanation of Results of Part 2 The online watch business is very competitive due to its convenience to customers as many prefer purchasing the products without visiting the shop. This industry is still growing due to the emergence of various environmental trends that result from technology. The growth rate is increasing over the years since advertising through social media helps to reach a broader market. Social media enhances interaction among consumers, which raises the trust and motivation to purchase products (Valerio et al.). High demand for designer watches has contributed to industry growth. Despite most people wearing watches as a sense of style or fashion, others choose to wear other jewelry. The online business can make good profits in its first year due to high demand.
- Explanation of Results of Part 4 WATCH2GO founders have gained experience in their previous assignments, which make them aware of the problems the customers go through while purchasing products online. Therefore, they will be able to come up with strategies to curb issues concerning the authenticity of the products. Knowledge and skills founders have on technology will help in carrying out all business operations such as marketing, bookkeeping, and supply chain. The WATCH2GO founders are former employees of various companies, therefore, have extensive social networks that will enhance smooth operations. The founders' goals and objectives are to meet the diverse and changing needs of online consumers effectively and affordably. The unity among the founders will encourage teamwork and sharing ideas, thus very likely to come up with new inventions. Explanation of Results of Part 5 The business idea's initial capital is moderate, therefore, can be raised through contribution by founders. The company will make money through selling its products, partners selling products in their online platform, and fees generated from authentication of watches. The company will take two to three years to get into its initial investment due to the high demand for watches. The competitors have health financial status due to the high growth of the watch business. The availability of potential market of designer watches will attract investor’s funding.