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How To Analyze Market feasibility

today I will tell you about the  market feasibility  study, and how market feasibility play important role in success of business.In a previous article we discuss the term entrepreneur  as you know the entrepreneur is a person  who start his own business so how entrepreneur  select the suitable market for his or her business, for that purpose we have to analyze the market so there is necessary to understand the market feasibility.

Market feasibility 

market feasibility  helps in assessing viability of new ventures or business and provide information to make critical decisions regarding going forward or starting new business.

how to analyze market feasibilty

Market feasibility involves following important factors or models

Before going forward i want to tell you about the word enterprise because for market feasibility is necessary for your business venture or enterprise.


it refers to entity  or company which is made to gain commercial goals or business ventures.

how to analyze market feasibility

What is term market feasibility?

Market feasibility or market analysis   involves following important factors or models

Pest analysis

Swot analysis

Porter s model

Now what is pest analysis?

Pest is abbreviation of political economical social technological analysis

Now how political factors play important role in feasibility study or market analysis

Political factors includes

Legislative factors

Legal terms which support your business. and also business laws such as labor laws and international trade laws

Political and government   stability

Political stability has a great impact on economic situation of a country take the example of stock exchange index points which get affected by political scenario

and some time stock market may get crashed, if political situation of a country is too much bad. Foreign investors also observer the political situation of a countries. Investors show hesitation in  investment in case of bad political scenario.

how to analyze market feasibility

Taxation policies

Taxation policies usually involve sale taxes value adds taxes by government sometimes government shows flexibility in taxation policies. Which simply means relaxing entrepreneurs in taxes?

how to analyze market feasibility

Trade union

Labor unions and their involvement in decision making bodies , a successful  entrepreneur make good relations with his labors

Labor laws

labor laws include the medical facilities bonus annual pay act and  which an entrepreneur can give to his labors. These laws are provided by united nations organization.

how to analyze market feasibility

Foreign trade regulations

Laws which are important for export and import regulations.


Basically word Swot is abbreviation of strength weakness opportunities and threat of an entrepreneur enterprise.


The strength of enterprise  is  that ability   of enterprise that make the strong  position in the market.and that strong position helps in gaining success the better advertisement of the product ,good quality of the products these are  the basic keys which make an enterprise strong .strength is also  ability of taking advantages from the opportunities available in the market such as lack of competent and product suitability for specific market or region.

how to analyze market feasibility


weakness is just the opposite of strength actually weakness is that inability which lead to the disadvantage’s  for the enterprises such  as failure of taking advantages  that are available in market for example not to provide a better quality of products to customers even if there is other competent in the market.

how to analyze market feasibility


it refers to that advantages which an   enterprise can easily gain from market such as  relaxation in tax polices from the government  legal support of business by the government ,extra demand of specific product in the market and technological factors these are the opportunities which an enterprise can avail easily from the market

how to analyze market feasibility


Threats are the most important factor in Swot analysis because if the precautions are not made against threats than it will make a lot of difficulties for an enterprise. Mostly the threats for enterprise is the Competitive rivalry in the markets, lack of the market for the specific products strict taxation polices from the government and strict regulations. Political instability   a bad political scenario is also considered as threat.

how to analyze market feasibility


the porter model is also known as porter five forces model a best tool use for industry analysis

it generally consist of

Threat of new entrants

Bargaining powers of suppliers

Bargaining power of buyers

Threat of s substitute products.

Competitive rivalry among competitor

how to analyze market feasibility

Threats of new entrants

this factor act as barrier for an enterprise if the barrier is strong then chances of new entrants in market are very low the barrier is strong in that case when enterprise offers better packages to customers and better quality of product to the customers. If the entry barrier is not strong then there are much chances that new entrants played there role in the market.

how to analyze market feasibility

Threat of substitute products

Substitute products are refer to those products which are similar to original product in every aspect but different in price .so substitute of different product also made threats for enterprises take a example of coffee and tea which are substitute of each other so high prices of tea  may switch customers towards coffee. so in that scenario an enterprise get loss when there the substitute of product   is available in market.

how to analyze market feasibility

Competitive rivalry among competitors

Competitive rivalry is that factor which forces an enterprise to bring changes in the product continuously. This can be define by a simple example of mobiles phones. new models of   are introduced  in market   continuously .the cell phone companies try their best to bring changes in their products which are mobile phones to make them compatible with other brands . Enterprises usually done strong advertisement of their products.an d also shows flexibility in there products for  better edge over there competitors.

how to analyze market feasibility


Bargaining power of buyers

Bargaining power of buyers is that ability of buyers to bring down the price of products and services they buy. The profitability in industry is affected a lot if the bargaining power of buyers is high there are two main reasons when bargaining power of buyer is high if the buyer purchases a large portion of specific product or he can easily switch to other enterprise.

Bargaining power of suppliers

Bargaining power of suppliers is basically that ability of suppliers to increase the price of products supplied to enterprises in the market there is only one reason when bargaining power of suppliers if the few suppliers supply products to relatively large number of enterprises in the market or if the product or service is unique.

how to analyze market feasibility

the above article helps you in way that how your enterprise can achieve success and how you analyze the market by using above important tools.




About khizar malik


  1. nice article. i really liked it

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