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Feasibility Analysis

Good Essays
In today’s fast-paced, ever changing economy, easy access to business products and services is key to stay competitive. The organization is considering the development of an online shopping application for Blackberry smartphones. Feasibility analysis of this project has been developed per management’s request. The assessment includes feasibility in the following areas: technical, economic, legal, operational, schedule, and market.
Due to Blackberry’s history of challenges in the marketplace, the study focuses on likelihood of risk, magnitude of risk’s impact, and risk avoidance. This analysis is to assess the strengths and weaknesses of this project, determine if it is a viable idea, and present recommendations on if and how this
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Economic
Economic feasibility shows the financial benefits and costs associated with the development of this project. “Analogous estimate is appropriate for preliminary estimation of project cost using the previous project data as the information source for estimation” (Patanakul, Iewwongcharoen, & Milosevic, 2010). Using Uber as an example, cost of developing a middling complex app is approximately $90,000 - $120,000 (Abrosimova, n.d.).
Financial benefits depend on the products sold, marketing efforts, and quality of the app. According to RJ Metrics, an analytical software company, “On average a new ecommerce company can expect to bring in just under $39,000 of revenue in their first month in business, and generate $6.5 million in total revenue after three years” (2015).
Estimated growth of retail worldwide is 5% while estimated growth of e-commerce worldwide is 15% (RJMetrics, 2015).
Legal
Legal feasibility considers intellectual property, contracts and license issues, and privacy issues. Intellectual property refers to copyright laws that may apply as ‘work made for hire’ by employees and contracts with third party vendors that must clarify who retains ownership of software. Contract and license issues may allow software to be licensed or sold. A contract must be a written document signed by both parties and will include information regarding
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