The business concept of marketing handcrafted hats and scarves is now in the feasibility analysis stage (Scarborough, 2011). The feasibility analysis will either support the idea or show the reasons as to why the idea should not be pursued (Scarborough, 2011). The analysis will include the following areas: Market Analysis, Product or Service Analysis, and Financial Analysis (Scarborough, 2011).
According to Kuehn, Grider and Sell (2009), the focus of the market analysis is,
“evaluating the likelihood and degree of success possible in the target market” (p. 5). In order to create a viable analysis the Five Forces Model will be utilized (Scarborough, 2011).
The first force is rivalry among competing companies (Scarborough, 2011). The competition is other businesses that create handcrafted products customized to the individual. Research found websites that sold handcrafted items but few offered different variations to meet the customer’s preferences. This provides a unique product that is not currently being offered (Scarborough, 2011).
Forces two and three reference the bargaining power of suppliers and buyers (Scarborough, 2011). Products will be purchased via retail so neither area is a factor at this time. Once the business reaches a level of profitability that will support items being bought at wholesale, these two sections of the model will be reevaluated (Kuehn, Grider & Sell, 2009).
The fourth force is the threat of new entrants (Scarborough, 2011). If the concept of customizing products to the individual is noticed by other crafters, their current business may be modified or inspire an idea in someone new to the industry to provide the same service (Scarborough, 2011). If the b...
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...k involved (Scarborough, 2011).
In conclusion, the feasibility plan shows the need of the product in the market place, the uniqueness of the product will set it aside from other products available and the cost of starting the business is low with a relatively quick return on investment (Scarborough, 2011).
Kuehn, K., Grider, D., & Sell, R. (2009). New venture assessment: Moving beyond business plans in introductory entrepreneurship courses. Journal Of Entrepreneurship Education, 1267-1278. Retrieved from EBSCOhost.
Scarborough, N. (2011). Essentials of entrepreneurship and small business management (6th ed.). Upper Saddle River, New Jersey: Prentice Hall.
Woodham, O., & Cort, K. (2013). Service quality versus product quality: Which is more important to consumers? Society For Marketing Advances Proceedings, 262-263. Retrieved from EBSCOhost.
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Technology has steadily evolved to develop more innovative and productive techniques in the making of various crafts. In addition to enhancing the quality of products, the ability to create them at a higher rate has been discovered. However, quality and quantity are usually inversely proportional to each other. In more recent times consumers have begun to desire Japanese artifacts. Most producers attempt to sate this desire through mass production. While this alternative may be inexpensive, it lacks the high quality that true artisans can deliver. In these cases, consumers are also at fault as they let their desire for instant gratification outweigh their desire for superior creations. Largely, in the production of crafts, producers sacrifice optimal quality for a high output in order to fill the demand for inexpensive products by the consumer.
It is not possible to research the accuracy of their assumption of their target market due to the fact that they do not clarify the exact details of their target market. It is not clearly documented where the market size of “two million potential customers” is derived from, therefore, cannot be tested.
Commercial products have been around since the beginning of time. Manufacturing millions of products such as Ketchup for consumers to use daily. One might argue that buying house hold items can be such a hassle even for consumers who barely have time to get ready for work, let alone clean after themselves. The need for more items influences consumers to evolve from prehistoric cave dwellers into item entrepreneurs through introducing multiple platforms to spread news about a product, appealing visually for customers to go buy it, and demonstrating why traditional ways of doing things helps improve modern cultures to expand newer ideas for buyers to sell or buy as they please.
Traditionally, Dansk Designs followed a strategy of differentiation. When a firm follows this strategy, they create differences in the firm’s product or service by creating something that is perceived as unique and valued by customers. Differentiation can take many forms, including prestige or brand image, which Dansk decided to implement. Their product line consists of eight product categories, which include flatware, china, linen, glass, decorator cookware, and wooden bowls and trays. Their products are of high quality and are highly priced. Dansk was able to achieve a differentiation advantage because their price premiums exceeded the extra costs of being unique. Dansk is able to create these unique products because of the talented designers they employ, including Jens Quisrgaard, Niels Refsgaard, and Gunnar Cyren. Another competitive advantage of a strategy of differentiation is the ability to deal with supplier power. There is a certain amount of status associated with being the supplier to a producer of differentiated products. Dansk’s principal supplier, Richard Nissen, has enjoyed working with Dansk because he believes they have been able to “preserve the handcrafted nature of the products”.
List and discuss the 4 most important lessons that you have learned about entrepreneurial thinking this semester in this class. Describe why you find these lessons important and how this knowledge has impacted you. Use specific examples from our class – readings, videos, discussions, activities, etc. Don’t forget to elaborate on your thoughts as you fully discuss your ideas and opinions. (Long answer – multiple paragraphs
Lange, J., Mollov, A., Pearlmutter, M., Singh, S. and Bygrave, W 2007, ‘Pre-start-up formal business plans and post-start-up performance: A study of 116 new ventures’, Venture Capital, vol. 27, no. 3, pp. 385-399.
... B&D’s products. This strategy would be able to give B&D’s consumers an experience that is customized to their liking. For example, a tradesman uses an ordinary circular saw blade from B&D to cut wood, and uses a Piranha sub-brand by B&D to cut another piece of wood almost three times as efficient than with the ordinary blade. The efficiency associated with the Piranha blade becomes conditioned to the user that by using that blade, he would be able to experience improved efficiency compared to using an ordinary blade. Tradesmen would also be given a number of choices to make their work experience truly their own, in desires to reach a highly likeable work experience. These tradesmen are getting more than just value for their tools, they are buying the comfortable or unforgettable experience that they can only truly get when they purchase B&D’s power tools options.
A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it? Feasibility studies provide in-depth details about the clinic to determine if and how it can succeed, and serve as a valuable tool for developing a winning plan.
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I am gratified to reflect on my Entrepreneurial Potential Self-Assessment. I have always enjoyed learning the concepts of running and managing a business. Personally, what I enjoy generally is implying these concepts in real life situations. Seeing the ‘real life’ effects are stimulating to me. I always saw myself running a stable/well- establish business; however, I never saw myself running my own business. For my part, I find that I do not have all the characteristics an entrepreneur should have. Therefore, the results are not surprising, but assuring of what my strengths and weaknesses are.
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The other day I walked into the supermarket to buy a box of Kleenex. I was faced with a variety of colors, textures, box designs, and even the option of aloe. All these features designed for a product to blow my nose into! Selection wasn't limited to the Kleenex section, either…I found abundance in every aisle. We seem to always want more - more choices, more variety, more time. In fact, even the word "supermarket" implies a desire for more than just a simple market.