Feasibility Study Template
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Upgraded technological capability will be required for ABC to move toward offering an
online marketplace from which customers may purchase our products. Customers demand a
simple and easy way by which to conduct online transactions and it is imperative that all
transactions are conducted in a secure manner. While ABC maintains a web site with
product lists and descriptions, it does not currently allow for purchasing to be done online.
This functionality must be integrated with our current web site to allow for secure purchases
to be made. Additionally, new online marketing functionality must be considered in order to
target existing and potential customers through methods such as e-mailing lists, promotional
advertisements, and loyalty discounts.
While ABC maintains a small information technology (IT) group, the expertise does not
currently exist internally to design, build, and implement the sort of extensive online
platform required for this effort. Therefore, the recommendation is to contract this work out
to an internet marketplace provider who can work with ABC to meet its needs within the
determined timeframe and budget. It should be noted that while ABC does not have this
expertise internally, the technology exists and is in use throughout the marketplace which
lowers the risk of this concept considerably.
ABC currently maintains a high speed internet connection, web server, and the latest
software. With the addition of an e-commerce portal it is expected that there will be an
overall cost increase of 5-10% for web server operations and maintenance costs.
4. PRODUCT/SERVICE MARKETPLACE
This section describes the existing marketplace for the products and/or services the
organization is considering. It may describe who the target market consists of for these
products or services, who the competitors are, how products will be distributed, and why
customers might choose to buy our products/services. Most marketplaces are dynamic
environments in which things change constantly. To enter a new marketplace blindly will
usually result in an organization not fully understanding its role and not maximizing its
resulting benefits.
The online marketplace for chocolates and confections has been thriving for many years. In
FY20xx online chocolate sales accounted for approximately $20 million or 20% of total
chocolate sales worldwide. While chocolates and confections are available in almost every
store, our primary marketplace consists of specialty chocolates and confections. All of
ABC’s current major competitors already have an established online presence of at least 3-5
years. The top 3 competitors are currently: Smith’s Chocolates, Worldwide Candy, and
Chocolate International. A large majority of ABC’s customer base are returning customers
and referrals from existing customers. By providing a more convenient means of purchasing
our products online it is expected that we will retain these customers while conducting an
online marketing campaign for new customers as well.
ABC will distribute online purchases via direct shipping from the nearest store location. This
will allow ABC to provide timely shipping and eliminate the need for a central warehouse or