Assignment On Feasibility Study of A Sun

AN ASSIGNMENT ON
FEASIBILITY STUDY OF A SUNGLASS BRAND

Table of Contents
1.1 Review of the country ...................................................................................................... 3
1.2 Feasibility study ............................................................................................................... 3
1.2.1 Product or service feasibility analysis....................................................................... 3
1.2.2 Industry or target market analysis ............................................................................. 4
1.2.3 Organizational feasibility .......................................................................................... 4
1.2.4 Financial feasibility................................................................................................... 5
1.3 Industry and competitor analysis...................................................................................... 5
References ....................................................................................................................................... 7
1.1 Review of the country
Target market for sunglasses is Scotland. Capital of this country is Edinburg. Climate is
temperate and oceanic which is changeable. Most of the population about 54% is Christian.
Economy of this country is open mixed economy. Population estimated at around 54 million.
GDP of Scotland is $245267 billion whereas per capita income is $45,904. Employment rate is
74.8%. People of Scotland are very stylish and love to wear sunglasses. Demand of sunglasses is
uprising in Scotland. Besides, population growth is normal. As the per capita income is high,
customers will buy luxury sunglasses. So, it is reasonable to choose Scotland customers.
Moreover company focuses on the young generation.
1.2 Feasibility study
Business plan is a written document to accomplish a business idea and design strategy to achieve
the goal. For developing a business plan company should analyze the industry, analyze the
market, develop economics of business, design marketing plan, analyse management team &
company structure and finally make the financial projections (Barringer and Ireland, 2006).
Feasibility analysis is related with determining the viability of a business unit and it is a
preliminary business evaluation whether the idea is worth pursuing (Barringer and Ireland,
2006). Proper time for feasibility analysis is the early in thinking. There are four areas of
feasibility analysis. Such as
1.2.1 Product or service feasibility analysis
As the produced product is high quality, it has a competitive advantage. Consumers are excited
to avail and eagerly waiting to use the sunglasses. Though it has to compete with the world
renowned sunglasses brand like PRAD and Oakley it has a great desirability to the customers.
Moreover company is going to introduce the product by focusing the young generation of
Scotland. In recent times per capita income is growing and economy growth rate is 1.5% as it
already reaches the maximum (Cuervo-Cazurra, 2011). Demand for sunglasses is ever increasing
in Scotland market. Because of rapid technological advances the world is getting closer. Besides
a number of factors plays vital role in globalizing the business (Few, 2011). Technology,
political, market, cost, competitive forces has impact on the business globalization. As the
globalization of business increase the demand for sunglasses also increase. Though it has to face
competition, it can capture the market due to high quality.
1.2.2 Industry or target market analysis
Industry or target market analysis is related with the evaluation of the overall industry or the
target portion of the market. Industry analysis is related with similar company and target market
is related with specific group of customers. For analyzing the industry or target market
globalization strategy is very essential. As the company is going to launch the sunglasses outside
the country then the global business issue is very essential. This company can lead the global
sunglasses market (Harris and Fraser, 2010). As the product quality is high then it is easy to
access to foreign market. There are many international business strategy are available. Such as
global strategy which is related with standard product, economics of scale, cross cultural
learning. The company will go for global strategy to capture the market. Besides, sunglasses
industry is very promising industry in the European country as it has become the necessary daily
commodity (Siciliano et al., 2016). In this feasibility study of the company the target market is
the young generation of the Scotland. Then it has to focus on the other segment. For leading the
market if will follow the global strategy. Besides this strategy, there several international or
global business strategy are international strategy which is related with export import,
transitional strategy relating to sharing material, people, idea and multi domestic strategy which
is related with implementing one single model globally such as Heinz brand (Kußmaul and
Junker, 2000). As we will produce the high quality sunglasses we will uses global strategy to
capture the target industry.
1.2.3 Organizational feasibility
Organizational feasibility is related with the business capability to run the business unit
successfully. As the company is already producing high quality product the company has the
organizational capability to run the business unit successfully. This is related with management
prowess and resource sufficiency (Kußmaul and Junker, 2000). The company has expertise
management body to run and capture the market. Besides the company has enough resource to
produce the quality sunglasses. Management prowess and resource sufficiency makes the
sunglasses to competitively advantageous position. Besides, this company has sufficient online
selling and marketing expert and equipment.
1.2.4 Financial feasibility
Financial projection is done by the company management. Company has estimated all the
relevant cost associated with the producing and marketing to reach the target customers. For
financial projection company has made some assumption. Besides this, it measures the total start
up cash needed and similar business expense. For simplicity company is assuming unchanged
sales unit and all the transaction are carried out in the year end and there would be no carry over.
1.3 Industry and competitor analysis
Porters five forces model is designed to address the profitability probability of the company.
How much the company is vulnerable to the future scenario? By this analysis company strength
and weakness can be easily be understood. There is several factors influence on the industry
attractiveness or profitability such as:
Threat of new entrants: Threat of new entrance in sunglass industry is moderate. For that reason
the company gets extra benefits. As sunglass industry is a mature industry and it requires
medium initial investment, it discourage to entry new company. Here the company produces a
high quality sunglass which is much differentiated. So, the new entry threat is comparatively
low. Besides, there are no barriers to entry by the government.
Rivalry among competitor: Rivalry among competitor is high as all the company is producing
high quality sunglass. Besides, the number of sunglass producer is high. Rivalry among industry
is a great detrimental to the industry profitability (Westney, 2011). To avoid this competitions
company has chosen Scotland country and the target group of customers are young generation.
Strength of the company is the target market economy is upward trend.
Threat of substitute product: The threat of substitute is low in the sunglass industry as there is no
substitute product in the market to replace the sunglass. As there is no substitute product in the
near future the attractiveness of the company is high (Westney, 2011). But a concern is that there
may have invented substitute product which will reduces the profitability.
Bargaining power of supplier: Bargaining power of suppliers is medium as there is the company
can purchase raw materials to many sources. The raw materials to produce sunglass are different
silicon powder and metal substance (Wong and Tong, 2011). These materials are available in the
market. Besides, the company purchases raw materials from diverse group of suppliers. So the
bargaining power of suppliers is low means high attractiveness of industry.
Bargaining power of customers: As the company need to compete with the renowned brand like
Prada and Oakley customers has the competitive advantage (Wong and Tong, 2011). Besides
there many renowned brand available in the Scotland. Customers can purchase sunglasses any of
them. Moreover, customers of Scotland are quite informing about the market. So, the bargaining
power of customers is medium meaning that profitability is comparatively competitive.
References
1. Barringer, B. and Ireland, R. (2006). Entrepreneurship. Upper Saddle River, N.J.:

Pearson Prentice Hall.
2. Cuervo-Cazurra, A. (2011). Global strategy and global business environment: the direct
and indirect influences of the home country on a firm's global strategy. Global Strategy
Journal, 1(3-4), pp.382-386.
3. Few, W. (2011). Integrating competitor identification and organisational identity: a new
framework of competitor sensemaking. International Journal of Business Environment,
4(4), p.315.
4. Harris, H. and Fraser, K. (2010). Towards virtual manufacturing: an implementation
framework from feasibility to product development. IJPD, 11(1/2), p.136.
5. Kußmaul, H. and Junker, A. (2000). Business Plan. WIST, 29(9), pp.531-534.
6. Monnet, E. (n.d.). Has Globalization Really Increased Business Cycle Synchronization?.
SSRN Electronic Journal.
7. Siciliano, V., Mezzasalma, L., Scalese, M., Doveri, C. and Molinaro, S. (2016). Drinking
and driving among Italian adolescents: Trends over seven years (2007–2013). Accident
Analysis & Prevention, 88, pp.97-104.
8. Westney, D. (2011). Global strategy and global business environment: changing models
of the global business environment. Global Strategy Journal, 1(3-4), pp.377-381.
9. Wong, S. and Tong, C. (2011). The Mediating Effects of Customer and Competitor
Orientations on New Product Success. IJBM, 6(8).

Assignment On Feasibility Study of A Sun

Uploaded by

Copyright:

Available Formats

Assignment On Feasibility Study of A Sun

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Assignment On Feasibility Study of A Sun

Uploaded by

Copyright:

Available Formats

AN ASSIGNMENT ON

FEASIBILITY STUDY OF A SUNGLASS BRAND

1.2 Feasibility study ............................................................................................................... 3

1.2.1 Product or service feasibility analysis....................................................................... 3

1.2.2 Industry or target market analysis ............................................................................. 4

1.2.3 Organizational feasibility .......................................................................................... 4

1.2.4 Financial feasibility................................................................................................... 5

1.3 Industry and competitor analysis...................................................................................... 5

1.2 Feasibility study

1.2.1 Product or service feasibility analysis

1.2.2 Industry or target market analysis

1.2.3 Organizational feasibility

1.2.4 Financial feasibility

1.3 Industry and competitor analysis

1. Barringer, B. and Ireland, R. (2006). Entrepreneurship. Upper Saddle River, N.J.:

You might also like