What does a well-conducted feasibility study assess regarding a new product idea?

A well-conducted feasibility study is a critical step in evaluating a new product idea, and it primarily assesses the technology availability and demand. This aspect is essential because it ensures that the proposed product can be developed with the existing technologies and meets a market need. Understanding technology availability involves analyzing whether the necessary resources, tools, and expertise are accessible to create the product. Additionally, assessing demand determines whether there is a sufficient market for the product, which is crucial for its potential success.

By focusing on technology and demand, a feasibility study helps entrepreneurs understand if their product idea is viable in the current economic and technological landscape, ultimately guiding them in making informed decisions about moving forward with the product development. This assessment influences not only the likelihood of success but also the strategic planning for the launch and marketing of the product.

Other areas like competition levels, potential sales techniques, and the cost of production are certainly important in the broader context of business planning, but they do not capture the fundamental basis of whether the product can be developed and whether it fulfills a market need, which is at the core of a feasibility study's focus.