Feasibility Analysis of Crystal Inc. (Essay Sample)

Feasibility Analysis of Crystal Inc.
Name
Institution
Feasibility analysis is important for any start-up business to look at all the involved aspects critically and ensure that the business is heading to the right direction. Many small businesses fail due to lack of carrying out an effective feasibility analysis that identifies the potential opportunities and threats in a start-up business. Crystal Inc. is an e-commerce start-up business that aims to take advantage of the web-based technology to operate and run its business operations. Over the last decade, e-commerce has seen some of the largest business corporations developed and achieving rapid success with effective use of the available technology (Andam, 2014). Crystal Inc. is a web-based shopping platform that provides consumers with varieties of products from electronics, foods, fashion, gadgets, and groceries. Despite the presence of giant corporations in the industry including Amazon, eBay, and Alibaba, the company hopes to get a share of the market as it establishes itself.
Industry and Market Feasibility
The e-commerce industry is experiencing significant growth over the last few years due to the benefits it provides to the consumers. The web-based platforms have revolutionized consumers experience providing them with more options and flexibility when compared to its traditional counterpart. Therefore, this has led to to an increased number of consumers opting to make purchases online compared to going to the stores. Due to this increasing trend, it is expected that the e-commerce industry will continue to grow over the coming years due to the demand fuelled by the consumers (Bam, 2018). Based on this analysis, Crystal Inc. is ready to take part in the growing trend and provide consumers with more options while shopping online. The e-commerce industry is huge and provides various markets for different businesses to operate. Crystal Inc. falls under the home-based products market that also includes some of the largest companies in the e-commerce industry. Companies such as Amazon, eBay, and Alibaba have diversified their business over time to include home-based products. Despite the presence of these giants in the marketplace, the global market is huge and so is the demand for home-products. On the other hand, the market for home products is huge as they bought regularly and consistently. Therefore, based on the above feasibility analysis of the industry and market, Crystal Inc. is well positioned to establish itself in the market.
Product and Service Feasibility
Crystal Inc. operations will be guided on the provision of products and services to its clients. Crystal Inc. is a typical marketplace where a consumer goes to buy various commodities which are determined by the type of service offered and quality of products provided. As a business, Crystal Inc. is focused on ensuring that it competes effectively in the market. One of the ways in which the company is planning to achieve this is through provision of quality products and services to its clients. There are hundreds of e-commerce platforms that operates in the same category as Crystal Inc. Therefore, it is important to differentiate the company from others through quality customer care services and high-quality products. Being based in the U.S., the business will take advantage of the technical advancements within the country along with a large consumer base. The U.S. is one of the largest consumers of goods and services online. Therefore, targeting this market potential is a good approach taken by Crystal Inc. which is offering alternatives to American online shoppers and others from around the world. The products and services offered by Crystal Inc. as a company are based on consumer trends, and so it is expected that the company will take advantage of the large consumer base.
Financial Feasibility
Financial feasibility is critical for a start-up business to evaluate its present and future financial status. Based on the fact that the business is in its early stages, financial resources are limited and so they require extensive planning. Based on the necessary start-up costs, the business is expected to have $300,000 as the start-up revenue plus miscellaneous. The high expenses are based on the large number of products that will be purchased for start-up purpose while determining the purchasing trends of the consumers. At the launching of the business, most of the products will be bought with agreement from manufacturers of delivering them in a demand basis. This is to avoid future costs of purchasing products and storing them on warehouses for long periods of time. Therefore, it is expected that as the business proceeds, most of the expenses are avoidable thus reducing the costs and increasing the profits. Based on the reliance of online platform, this will be possible through contracts with manufacturers of products that receive better response from the clients. The products will be sold with a small marginal profit to ensure that clients are attracted by considerably lower price while at the same time providing good quality products. Therefore, profits from the business are expected from large volume sales and reduced expenses.
Entrepreneurial Readiness
Majority of small start-up business fail due to lack of entrepreneurial skills and knowledge. Therefore, it is crucial for an entrepreneur to get the right skills and knowledge that will enable them take advantage of various business opportunities and turn them into profitable businesses. The team behind Crystal Inc. has acquired the right entrep