An important part of determining the feasibility of a new idea involves careful research of what is currently available in the marketplace. Ideas for products and services that will fulfill a specific need or occupy an unaddressed niche have the highest probability of success. However, an innovative idea will not always create a successful business, especially in the long term. There are many other factors to consider when evaluating the feasibility and long-term profitability of the idea behind a potential business venture.
Last week, in Chapter 4 of your textbook, you were introduced to Porter’s Five-Forces of Competition in an Industry (Figure 4-1, p. 77), which provides a framework for analyzing the marketplace in a meaningful way. In this Assignment, you will apply Porter’s analysis to the business ideas you identified in Week 1 to determine the superior choice for a business venture. Next, you will develop a preliminary budget.
For this Assignment:
- Using Porter’s Five-Forces Analysis as your lens, research the marketplace for the two ideas you developed. Based on these criteria, which of the ideas is the better option? Write a one-paragraph summary of how and why you selected one option over the other.
- Research the potential costs of launching your venture, and use this research to develop a 1-page start-up and marketing budget for your venture. Your budget should account for marketing and development costs as well as pricing for your goods or services and operational costs (lease, payroll, etc.)