Management of technology innovation and entrepreneurship edited
Management of Technology, Innovation, and Entrepreneurship.
For a successful business adventure, one need to analyze the proposed idea’s feasibility.
Feasibility analysis is the assessment process where one determines the viability of a business idea. It is
vital to analyze since it helps one understand whether it is worth pursuing. The timing of the feasibility
analysis was done at an appropriate time before the resources were spent on the idea. A properly
developed feasibility analysis mainly comprises product or service feasibility, target industry or market
feasibility, organizational feasibility, and financial feasibility.
In product or service, feasibility analysis entails the evaluation of the appeal of the suggested
product or service (reference). It is particularly imperative to ensure that what one intend to offer the
market is what it wants. Otherwise, the need of the business will be invalid. Therefore, product or
service feasibility analysis should assess the desirability and demand of the market. The desirability
aspect of the product should be addressed by determining whether customers will be excited about it
and whether it makes sense to consumers. Besides, evaluate whether it brings a solution to consumers’
problem, does it currently take advantage of a certain trend, or does it exploit a gap in the environment?
Also, it is essential to consider whether it is an appropriate time to introduce the restaurant business and
find out for any flaws within the basic design.
Before starting the restaurant idea, it is crucial to develop a concept test where one present the
concept to potential customers and gather feedback. The advantage of the feedback is that is received
hepls one get the market viability of the business idea, and one get suggestions on how it can be
improved from the consumers’ perspective (reference). From the methods used to collect information
to evaluate the idea’s feasibility, Jennifer may have omitted an important face-to-face contact with the
customers. Surely, it is vital to use online tools and libraries, but the face-to-face encounter gives one
feedback and reaction from the very consumers one will target.
Moreover, the other type of feasibility Jennifer should evaluate is the target market of industry
feasibility. It will help her identify the targeted market and its characteristics, for instance, its size and
attractiveness. Organizational feasibility will assist her in assessing the managerial capacity of the
business, organizational competence, and the resources necessary to start the business (reference).
Finally, the last feasibility analysis to do is the financial capacity. However, Jennifer came to the bank
for a loan to fund the project, other elements of financial feasibility such as the financial performance
of a similar enterprise and the fiscal attractiveness of the project. Therefore, considering the report
offered, the research has lacked vital elements discussed above, and I would suggest that Jennifer to
evaluate those ideas given to substantiate the loan request.
To assess the attractiveness of the retail furniture enterprise, study the business and
environmental trends and use the five competitive forces model. The two types of trends, business and
environmental, determine the attractiveness of a business. Business trends are the enterprise patterns
that are the core nature of the industry. Environmental trends are the patterns that happen around the
business, such as economic, social, technological, and political trends (reference). Therefore, the use of
business trends like outsourcing furniture assembly services to reduce the cost of production may
increase profitability. If the business favors both business and environmental trends, the venture may
Using the five competitive forces model helps one understand the industry’s structure and
determine the profitability of the business. According to (reference), the forces assist the determination
of the business’s rate of return by applying pressure on the business’s profitability—high returns on a
business demand a limited effect of these forces. The forces are as follows: the threat of substitutes,
threat of new entrants, rivalry among existing players, suppliers’ bargaining power, and buyers’
bargaining power (reference).
The threat of substitutes states that the price the customers are willing to pay determines the
availability of substitutes (reference). If they are many, it leads to reduced returns, while low
substitutes promote high profitability. Furthermore, if the likelihood of consumers switching where
they buy from is high, the force will adversely affect the business. Another force is the threat of new
entrants, where the more profitable the industry is, the more it attracts new starters (reference). If the
entry of new competition is not controlled, it may threaten newly started businesses. Some of the
barriers the furniture store may create to hold a competitive advantage in the market are the use of firstmover advantage (reference). Since there is no furniture dealer yet in the town, setting up the first store
may create a name recognition that may be a barrier to possible threats.
The other force to consider is the bargaining power of suppliers. In case suppliers increase the
price of their goods or reduce their quality, the level of profitability drops. It is vital to regard that if the
suppliers for the raw materials are few, switching costs between one supplier and another is high, and
the suppliers are at an advantage, hence a reduction in returns. Similarly, if the attractiveness of
substitutes is low, the threat to the forward industry is high, and the bargaining power of suppliers is
very high, leading to low profits (reference).
Likewise, the high bargaining power of buyers leads to reduced profitability. It can be facilitated
by the small buying group size, low importance of the item to the buyer, low cost of switching
suppliers, and high similarity between products. If these conditions happen, the furniture store might
face a hard time making a profit or enduring success. From the above discussion, Karen should identify
suitable business and environmental trends and use the competitive forces model discussed to avoid
any instances that may disrupt business growth.
Licensing is the process of issuing approval to another corporation to use a certain intellectual
property under defined terms and conditions (reference). It mainly occurs to patented or any property
protected by copyright or a trademark, which may be issued to other third-party companies. The
binding act that enumerates the terms and conditions is known as a license agreement. Mainly, there are
two types of licensing, technology licensing and merchandise and character licensing. As (reference)
stipulates, technology licensing involves the provision of permission for proprietary technology that the
licensor typically controls under a utility patent. Merchandise and character licensing is defined by
(reference) as the issuance of approval of a recognized brand or trademark that is distinctively
controlled by the licensor through trademarks or copyright. Therefore, if Nokia decides to agree with
his company, the full right to ownership of the technology remains with him as protected by trademark
or copyright. Nokia would only have the right to use the technology in their devices as the guidelines in
the licensing agreement stipulate, but does not make the property theirs. In a nutshell, licensing will
protect one’s legal ownership of the technology and formalize any intellectual property’s third-party