City College of Angeles

Institute of Business and Management

Feasibility Analysis

Founders:
 Sole Line's Shoe Boots
"Shoe innovation:The right selection"
Sole line will sell unique but in affordable price shoes in the market namely "Shoe Boots",where
it has 2 styles in 1 shoe ,it can be boots or a rubber shoes.For the reason that today's generation
look for trendy and unique shoes,where it can be useful in many activities or events.

Compared to other regular shoes ,Sole Line will produce a hand made and a high quality shoes
to fulfill/provide our future clients expectation and needs at having an affordable price.We will
look forward to become a benchmark in the market that are admired and favoured to its
uniqueness and creativity.
Part 1: Product/Service Feasibility

Assessment Tools

Concept Statement Test (Summarize)

* Strengths of the product or service idea—

* Suggestions for strengthening the idea—

* Overall feasibility of the product or service concept—

 The number of people who thing the idea is feasible-

 The number of people who think it isn ’t feasible -

* Other comments and suggestions—

Conclusion:

A. Product/Service Desirability

B.Product/Service Demand

C.Product/Service Feasibility

_Not Feasible

_Unsure

_Feasible
Part 2: Industry/Market Feasibility

Assessment Tools

Industry Attractiveness

Figure 1 shows the different locations of the footwear establishments. Most of them are located in the
CALABARZON and the National Capital Region because of the availability of the materials needed in
manufacturing the merchandise.

Figure 1: Location of Footwear Establishments

Source: NSO 2009 List of Establishments

Local Demand

Most of the footwear manufacturers seem to be contented with the local market for the following
reasons: (1) higher profit margin, (2) lesser paper work, (3) lesser people to deal with and (4) no pressure
on the delivery time. Local markets rely on direct selling, boutiques, and department stores to sell their
products. Few enterprises have their own stores. The industry’s highest production is during the months
of October, November and May. This can be attributed to Christmas and school opening seasons. The
lowest is during the month of July, caused by clearance and inventory sales.

Source: National Statistics Office 2010

Top Footwear Manufacturers

1. Nike Philippines Inc.

2. SS Ventures International, Inc.

3. Paramount Footwear Co., Inc.

4. Production Village Corporation

5. Stefano Footwear Corporation

6. Beach Rubber Co., Inc.

7. Philippine Shoe Expo Marketing Corporation

8. Soltec Inc.

9. Islander Footwear Manufacturing Corporation

10. Mendrez Shoes Manufacturing Corporation

Industry Attractiveness Assessment Tool

Low Potential Moderate Potential High Potential

1. Number of competitors Many Few None

2. Age of industry Old Middle aged Young

3. Growth rate of industry Little or no Moderate growth Strong growth

growth

4. Average net income for Low Medium High

firms in the industry

5. Degree of industry Concentrated Neither Fragmented

concentration concentrated nor
fragmented

6. Stage of industry life cycle Maturity phase Growth phase Emergence

or decline phase
phase

7. Importance of industry’s “Ambivalent” “Would like to have” “Must have”

products and/or services
to customers

8. Extent to which business Low Medium High

and environmental trends
are moving in favor of the
industry

9. Number of exciting new Low Medium High

product and services
emerging from the
 Low Potential Moderate Potential High Potential

industry

10. Long-term prospects Weak Neutral Strong

Target Market Attractiveness Assessment Tool

Low Potential Moderate Potential High Potential

1. Number of competitors in Many Few None

target market

2. Growth rate of firms in the Little to no Slow growth Rapid growth

target market growth

3. Average net income for Low Medium High

firms in the target market

4. Methods for generating Unclear Somewhat clear Clear

revenue in the industry

5. Ability to create “barriers to Unable to May or may not be Can create

entry” for potential create able to create
competitors

6. Degree to which customers Satisfied Neither satisfied or Unsatisfied

feel satisfied by the current dissatisfied
offerings in the target
market

7. Potential to employ low cost Low Moderate High

guerrilla and/or buzz
marketing techniques to
promote the firm’s product
or services

8. Excitement surrounding new Low Medium High

product/service offerings in
the target market
Market Timeliness Assessment Tool

Low Potential Moderate Potential High Potential

1. Buying mood of customers Customers are Customers are in a Customers are in

not in a buying moderate buying an aggressive
mood mood buying mood

2. Momentum of the market Stable to losing Slowly gaining Rapidly gaining

momentum momentum momentum

3. Need for a new firm in the Low Moderate High

market with your offerings
or geographic location

4. Extent to which business and Low Medium High

environmental trends are
moving in favor of the target
market

5. Recent or planned entrance Large firms Rumors that large No larger firms
of large firms into the entering the firms may be entered the
market market entering the market market or are
rumored to be
entering the
market
Conclusion

A. Industry attractiveness

Target market attractiveness

B.

Market timeliness

C.

D. Industry/market feasibility

Not Feasible Unsure Feasible

Part 3: Organizational Feasibility

Assessment Tools

Management Prowess Assessment Tool

Low Potential Moderate Potential High Potential

1. Passion for the business Low Moderate High

idea

2. Relevant industry None Moderate Extensive

experience

3. Prior entrepreneurial None Moderate Extensive

experience

4. Depth of professional and Weak Moderate Strong

social networks

5. Creativity among Low Moderate High

management team
members

6. Experience and expertise None Moderate High

in cash flow management

7. College graduate No college Some college Graduated or

education education but not are currently in
currently in college college

Resource Sufficiency

An explanation of the rating system used in the first portion of the table is as follows:

1 Available

2 Likely to be available: will probably be available and will be within my budget

3 Unlikely to be available: will probably be hard to find or gain access to, and may
exceed my budget

4 Unavailable
1 Available

5 NA: not applicable for my business

Resource Sufficiency Assessment Tool

Ratings Resource Sufficiency

1 2 3 4 5 Office space

1 2 3 4 5 Lab space, manufacturing space, or space to launch a service

business

1 2 3 4 5 Contract manufacturers or outsource providers

1 2 3 4 5 Key management employees (now and in the future)

1 2 3 4 5 Key support personnel (now and in the future)

1 2 3 4 5 Key equipment needed to operate the business (computers,

machinery, delivery vehicles)

1 2 3 4 5 Ability to obtain intellectual property protection on key

aspects of the business

1 2 3 4 5 Support of local and state government if applicable for

business launch

1 2 3 4 5 Ability to form favorable business partnerships

Ratings: Strong, Neutral, or

Weak

Weak Proximity to similar firms (for the purpose of knowledge

sharing)

Neutral Proximity to suppliers

Strong Proximity to customers

Neutral Proximity to a major research university (if applicable)

Conclusion

A. Management prowess

B. Resource sufficiency

C. Organizational feasibility (circle the correct response)

Not Feasible Unsure Feasible

D. Suggestions for improving organizational feasibility

PART 4: FINANCIAL F EASIBILITY

ASSESSMENT TOOLS

Total Start-up Cash Needed

• The total startup cash needed can be estimate using the following table.

Total Startup Cash Needed (to Make First Sale)

Capital Investments Amount

Labor 700PHP

Sewing materials 100PHP

Insole/outsole Fabric,PVC,Man-made leather 1000PHP

Transportation 200PHP
TOTAL START UP CASH NEEDED 2000PHP

Operating Expenses Amount

Legal, accounting, and professional services

____________________________________

Advertising and promotions

____________________________________

Deposits for utilities ____________________________________

Licenses and permits ____________________________________

Prepaid insurance ____________________________________

Lease payments ____________________________________

Salary and wages ____________________________________

Payroll taxes ____________________________________

Travel ____________________________________

Signs

Tools and supplies ____________________________________

Starting inventory ____________________________________

Cash (working capital) ____________________________________

Other expense 1 ____________________________________

Other expense 2 ____________________________________

Total Startup Cash Needed ____________________________________