How do companies determine the feasibility of a new product idea?
Udaya Sri
14 replies
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?
Replies
Rajesh Chopra@rajesh_chopra_
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.
Share
I think companies start with market research to see if there's demand before investing. Even big names like Apple do this!
Businesses often test idea with focus groups and check market trends to avoid wasting resources. It’s a smart approach.
Companies usually research market needs and prototypes to validate new ideas. It’s impressive how thorough the process can be!
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
I think companies assess feasibility through market research, cost analysis, and prototype testing to ensure alignment with consumer needs and financial viability.
They evaluate market trends, perform competitive analysis, and test concepts with focus groups to refine ideas and reduce risk.
From my experience Feasibility checks involve analyzing market demand, technical requirements, and potential ROI, often with prototypes or pilot tests.
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.
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.
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.
In essence, it's about the ratio of budget to expected returns. Expand on these two points by collecting data: the user group corresponding to the product idea can generate how much value, the cost of copying the product by others is, how long it will take to achieve the desired effect, and whether the cost invested during this period can be less than the target.
If it's not achievable, then it can't be considered a good idea.
Companies check feasibility by analyzing market demand, costs, potential returns, and technical requirements.