Feasibility studies establish a logical, defensible analysis of market potential and key operating concerns regarding the products and/or services offered.

Many studies are provided as due diligence background and validated product/concept market potential for internal/external capital investment and/or public stock offerings, for business expansion, goodwill evaluation or business site relocation. Feasibility studies are sometimes referred to as Market Studies, Market Potential Studies, Industry Analysis Studies and similar titles.

The core of the feasibility study is analyzing secondary research materials and the gathering of primary research information.

Secondary research includes such sources as published industry data, government reports, trade association reports, University research studies, business journals and major business publications, and other numerous database sources.

Primary research identifies the specific types of market and industry data required.

For example, the scope of the study may identify the parameters to maximize market acceptance of a new product, company or service; or the study may be designed to quantify business expansion projections for depth or breadth extension of current products or operations. The studies document expected industry trends and provide justification for company sales and market share predictions.

The following general categories typically comprise a feasibility study.

• Industry Overview
• Market Potential for this product/service
• Barriers/obstacles to market entry

• Target markets
• Marketing and sales
• Distribution methods

• Competition
• Pricing strategy
• Operating profitability

• Investment/budget parameters
• Return on investment
• International expansion