How do companies determine the feasibility of a new product idea?

Question

As the global market gets more competitive, companies are always looking for new ways to stay ahead. A key part of this is figuring out if a new product idea is worth the investment before going all in.

For example, consider Apple's iPhone. When it launched in 2007, it changed the game for smartphones. But before putting it out there, Apple did a lot of homework to see if it was a good idea. They checked out market trends, what consumers wanted, and if they had the tech needed to make it happen.

What do you think about this?

Marc-Oliver Gewaltig · Accepted Answer

For startups primary market research is a must BEFORE starting to building things.
Step 1, sketch out your product idea and who would use it (beachhead market)
Step 2, design a brochure (or website) that advertises the product AS IF it already existed
Step 3, present the brochure to people in your BHM and collect feedback
Step 4, use feedback to iterate your brochure
Step 5 repeat from step 3 until you have 5-10 customers in your BHM who would be willing to buy. 
Step 6, build a simple prototype and repeat from 3

AuroraW · Answer

They conduct thorough market research to understand consumer demand and analyze competitors to identify market gaps. Additionally, they create a prototype to test the concept and gather feedback, helping to refine the idea before making a final decision.

Noora Mccluskey · Answer

I think companies  assess feasibility through market research, cost analysis, and prototype testing to ensure alignment with consumer needs and financial viability.

Saturnina Brigante · Answer

They evaluate market trends, perform competitive analysis, and test concepts with focus groups to refine ideas and reduce risk.

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From my experience  Feasibility checks involve analyzing market demand, technical requirements, and potential ROI, often with prototypes or pilot tests.

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I have noticed that companies usually evaluate feasibility by checking market demand and potential competition. They also look at technical requirements and financial projections to ensure the idea is worth pursuing.

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Companies check feasibility by analyzing market demand, costs, potential returns, and technical requirements.

Billy Boy · Answer

From my perspective, companies often start by digging into market trends and consumer preferences. They use surveys and focus groups to see if the idea resonates before making a big investment.

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Its common for companies to start with a pilot or prototype phase to test a new product idea. This approach helps them gauge interest and address any technical challenges before going all in.

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I’ve seen companies start with market research to gauge demand and identify potential competitors. It’s crucial to understand if there’s a real need for the product before diving into development.

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I’ve noticed that some companies involve key stakeholders and potential customers early on. Their input can help refine the product concept and ensure it aligns with market needs.

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Businesses often test idea with focus groups and check market trends to avoid wasting resources. It’s a smart approach.

Olive Loren · Answer

I think companies start with market research to see if there's demand before investing. Even big names like Apple do this!

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Companies usually research market needs and prototypes to validate new ideas. It’s impressive how thorough the process can be!

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In my experience, companies test product ideas through prototypes and pilot programs. Gathering feedback from these early tests can provide valuable insights into the product's potential success.

How do companies determine the feasibility of a new product idea?

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