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Module 2 - Objective 3 - Difference Between Market Research & Feasibility Analysis

Market research focuses on understanding market dynamics and customer needs, while feasibility analysis assesses the viability of a specific project by evaluating technical, financial, legal, and market factors. Market research employs various data collection methods to inform marketing strategies, whereas feasibility analysis serves as a decision-making tool to evaluate risks and opportunities. Additionally, SWOT analysis is introduced as a method to assess strengths, weaknesses, opportunities, and threats related to a business venture, aiding in strategic planning.

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211 views2 pages

Module 2 - Objective 3 - Difference Between Market Research & Feasibility Analysis

Market research focuses on understanding market dynamics and customer needs, while feasibility analysis assesses the viability of a specific project by evaluating technical, financial, legal, and market factors. Market research employs various data collection methods to inform marketing strategies, whereas feasibility analysis serves as a decision-making tool to evaluate risks and opportunities. Additionally, SWOT analysis is introduced as a method to assess strengths, weaknesses, opportunities, and threats related to a business venture, aiding in strategic planning.

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Antonia Pierre
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We take content rights seriously. If you suspect this is your content, claim it here.
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CAPE Entrepreneurship Unit 2

Module 2 – Objective 3
Lecture Notes – Difference between Market Research & Feasibility Analysis

Objective 3 – Difference between the Market Research and Feasibility Analysis


While both market research and feasibility analysis gather information to inform business
decisions, the key difference is that market research focuses on understanding the broader market
dynamics and customer needs, while a feasibility analysis specifically assesses the viability of a
proposed project or business idea by considering various factors like technical, financial, legal,
and market aspects to determine if it's worth pursuing.

Market Research Feasibility Analysis


Broad scope: • Specific focus:

Analyzes market trends, consumer behavior, Evaluates the potential success of a specific
competition, and target demographics to gain project or business idea by examining its
a comprehensive understanding of the market technical feasibility, financial viability, legal
landscape. considerations, and market demand.

• Data collection methods: • Decision-making tool:


Utilizes surveys, focus groups, interviews, Provides a structured framework to assess the
and secondary data analysis to gather insights potential risks and opportunities associated
about customer preferences and buying with a proposed venture before committing
habits. significant resources.

• Goal: • Components:
Inform marketing strategies, product May include market analysis (as a part of the
development, and positioning to effectively overall assessment), financial projections,
reach the target market. operational feasibility, and regulatory
compliance analysis.

In summary, market research is a broader exploration of the market to understand customer


needs and competitive landscape, while feasibility analysis is a focused assessment of a specific
project's potential for success based on various factors including market considerations.
SWOT analysis (alternatively SWOT Matrix) is an acronym for strengths, weaknesses,
opportunities, and threats and is a structured planning method that evaluates those four elements
of an organization, project or business venture.
A SWOT analysis can be carried out for a company, product, place, industry, or person. It involves
specifying the objective of the business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieve that objective. The degree to which the
internal environment of the firm matches with the external environment is expressed by the
concept of strategic fit.
• Strengths: characteristics of the business or project that give it an advantage over others
• Weaknesses: characteristics of the business that place the business or project at a disadvantage
relative to others
• Opportunities: elements in the environment that the business or project could exploit to its
advantage
• Threats: elements in the environment that could cause trouble for the business or project
Identification of SWOTs is important because they can inform later steps in planning to achieve
the objective. First, decision-makers should consider whether the objective is attainable, given the
SWOTs. If the objective is not attainable, they must select a different objective and repeat the
process.

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