market research feasibility analysis

What Is a Feasibility Study and How to Conduct It? (+ Examples)

Appinio Research · 26.09.2023 · 28min read

Are you ready to turn your project or business idea into a concrete reality but unsure about its feasibility? Whether you're a seasoned entrepreneur or a first-time project manager, understanding the intricate process of conducting a feasibility study is vital for making informed decisions and maximizing your chances of success.

This guide will equip you with the knowledge and tools to navigate the complexities of market, technical, financial, and operational feasibility studies. By the end, you'll have a clear roadmap to confidently assess, plan, and execute your project.

What is a Feasibility Study?

A feasibility study is a systematic and comprehensive analysis of a proposed project or business idea to assess its viability and potential for success. It involves evaluating various aspects such as market demand, technical feasibility, financial viability, and operational capabilities. The primary goal of a feasibility study is to provide you with valuable insights and data to make informed decisions about whether to proceed with the project.

Why is a Feasibility Study Important?

Conducting a feasibility study is a critical step in the planning process for any project or business. It helps you:

• Minimize Risks: By identifying potential challenges and obstacles early on, you can develop strategies to mitigate risks.
• Optimize Resource Allocation: A feasibility study helps you allocate your resources more efficiently, including time and money.
• Enhance Decision-Making: Armed with data and insights, you can make well-informed decisions about pursuing the project or exploring alternative options.
• Attract Stakeholders: Potential investors, lenders, and partners often require a feasibility study to assess the project's credibility and potential return on investment.

Now that you understand the importance of feasibility studies, let's explore the various types and dive deeper into each aspect.

Types of Feasibility Studies

Feasibility studies come in various forms, each designed to assess different aspects of a project's viability. Let's delve into the four primary types of feasibility studies in more detail:

1. Market Feasibility Study

Market feasibility studies are conducted to determine whether there is a demand for a product or service in a specific market or industry. This type of study focuses on understanding customer needs, market trends, and the competitive landscape. Here are the key elements of a market feasibility study:

• Market Research and Analysis: Comprehensive research is conducted to gather market size, growth potential , and customer behavior data. This includes both primary research (surveys, interviews) and secondary research (existing reports, data).
• Target Audience Identification: Identifying the ideal customer base by segmenting the market based on demographics, psychographics, and behavior. Understanding your target audience is crucial for tailoring your product or service.
• Competitive Analysis : Assessing the competition within the market, including identifying direct and indirect competitors, their strengths, weaknesses, and market share.
• Demand and Supply Assessment: Analyzing the balance between the demand for the product or service and its supply. This helps determine whether there is room for a new entrant in the market.

2. Technical Feasibility Study

Technical feasibility studies evaluate whether the project can be developed and implemented from a technical standpoint. This assessment focuses on the project's design, technical requirements, and resource availability. Here's what it entails:

• Project Design and Technical Requirements: Defining the technical specifications of the project, including hardware, software, and any specialized equipment. This phase outlines the technical aspects required for project execution.
• Technology Assessment: Evaluating the chosen technology's suitability for the project and assessing its scalability and compatibility with existing systems.
• Resource Evaluation: Assessing the availability of essential resources such as personnel, materials, and suppliers to ensure the project's technical requirements can be met.
• Risk Analysis: Identifying potential technical risks, challenges, and obstacles that may arise during project development. Developing risk mitigation strategies is a critical part of technical feasibility.

3. Financial Feasibility Study

Financial feasibility studies aim to determine whether the project is financially viable and sustainable in the long run. This type of study involves estimating costs, projecting revenue, and conducting financial analyses. Key components include:

• Cost Estimation: Calculating both initial and ongoing costs associated with the project, including capital expenditures, operational expenses, and contingency funds.
• Revenue Projections: Forecasting the income the project is expected to generate, considering sales, pricing strategies, market demand, and potential revenue streams.
• Investment Analysis: Evaluating the return on investment (ROI), payback period, and potential risks associated with financing the project.
• Financial Viability Assessment: Analyzing the project's profitability, cash flow, and financial stability to ensure it can meet its financial obligations and sustain operations.

4. Operational Feasibility Study

Operational feasibility studies assess whether the project can be effectively implemented within the organization's existing operational framework. This study considers processes, resource planning, scalability, and operational risks. Key elements include:

• Process and Workflow Assessment: Analyzing how the project integrates with current processes and workflows, identifying potential bottlenecks, and optimizing operations.
• Resource Planning: Determining the human, physical, and technological resources required for successful project execution and identifying resource gaps.
• Scalability Evaluation: Assessing the project's ability to adapt and expand to meet changing demands and growth opportunities, including capacity planning and growth strategies.
• Operational Risks Analysis: Identifying potential operational challenges and developing strategies to mitigate them, ensuring smooth project implementation.

Each type of feasibility study serves a specific purpose in evaluating different facets of your project, collectively providing a comprehensive assessment of its viability and potential for success.

How to Prepare for a Feasibility Study?

Before you dive into the nitty-gritty details of conducting a feasibility study, it's essential to prepare thoroughly. Proper preparation will set the stage for a successful and insightful study. In this section, we'll explore the main steps involved in preparing for a feasibility study.

1. Identify the Project or Idea

Identifying and defining your project or business idea is the foundational step in the feasibility study process. This initial phase is critical because it helps you clarify your objectives and set the direction for the study.

• Problem Identification: Start by pinpointing the problem or need your project addresses. What pain point does it solve for your target audience?
• Project Definition: Clearly define your project or business idea. What are its core components, features, or offerings?
• Goals and Objectives: Establish specific goals and objectives for your project. What do you aim to achieve in the short and long term?
• Alignment with Vision: Ensure your project aligns with your overall vision and mission. How does it fit into your larger strategic plan?

Remember, the more precisely you can articulate your project or idea at this stage, the easier it will be to conduct a focused and effective feasibility study.

2. Assemble a Feasibility Study Team

Once you've defined your project, the next step is to assemble a competent and diverse feasibility study team. Your team's expertise will play a crucial role in conducting a thorough assessment of your project's viability.

• Identify Key Roles: Determine the essential roles required for your feasibility study. These typically include experts in areas such as market research, finance, technology, and operations.
• Select Team Members: Choose team members with the relevant skills and experience to fulfill these roles effectively. Look for individuals who have successfully conducted feasibility studies in the past.
• Collaboration and Communication: Foster a collaborative environment within your team. Effective communication is essential to ensure everyone is aligned on objectives and timelines.
• Project Manager: Designate a project manager responsible for coordinating the study, tracking progress, and meeting deadlines.
• External Consultants: In some cases, you may need to engage external consultants or specialists with niche expertise to provide valuable insights.

Having the right people on your team will help you collect accurate data, analyze findings comprehensively, and make well-informed decisions based on the study's outcomes.

3. Set Clear Objectives and Scope

Before you begin the feasibility study, it's crucial to establish clear and well-defined objectives. These objectives will guide your research and analysis efforts throughout the study.

Steps to Set Clear Objectives and Scope:

• Objective Clarity: Define the specific goals you aim to achieve through the feasibility study. What questions do you want to answer, and what decisions will the study inform?
• Scope Definition: Determine the boundaries of your study. What aspects of the project will be included, and what will be excluded? Clarify any limitations.
• Resource Allocation: Assess the resources needed for the study, including time, budget, and personnel. Ensure that you allocate resources appropriately based on the scope and objectives.
• Timeline: Establish a realistic timeline for the feasibility study. Identify key milestones and deadlines for completing different phases of the study.

Clear objectives and a well-defined scope will help you stay focused and avoid scope creep during the study. They also provide a basis for measuring the study's success against its intended outcomes.

4. Gather Initial Information

Before you delve into extensive research and data collection, start by gathering any existing information and documents related to your project or industry. This initial step will help you understand the current landscape and identify gaps in your knowledge.

• Document Review: Review any existing project documentation, market research reports, business plans, or relevant industry studies.
• Competitor Analysis: Gather information about your competitors, including their products, pricing, market share, and strategies.
• Regulatory and Compliance Documents: If applicable, collect information on industry regulations, permits, licenses, and compliance requirements.
• Market Trends: Stay informed about current market trends, consumer preferences, and emerging technologies that may impact your project.
• Stakeholder Interviews: Consider conducting initial interviews with key stakeholders, including potential customers, suppliers, and industry experts, to gather insights and feedback.

By starting with a strong foundation of existing knowledge, you'll be better prepared to identify gaps that require further investigation during the feasibility study. This proactive approach ensures that your study is comprehensive and well-informed from the outset.

How to Conduct a Market Feasibility Study?

The market feasibility study is a crucial component of your overall feasibility analysis. It focuses on assessing the potential demand for your product or service, understanding your target audience, analyzing your competition, and evaluating supply and demand dynamics within your chosen market.

Market Research and Analysis

Market research is the foundation of your market feasibility study. It involves gathering and analyzing data to gain insights into market trends, customer preferences, and the overall business landscape.

• Data Collection: Utilize various methods such as surveys, interviews, questionnaires, and secondary research to collect data about the market. This data may include market size, growth rates, and historical trends.
• Market Segmentation: Divide the market into segments based on factors such as demographics, psychographics , geography, and behavior. This segmentation helps you identify specific target markets .
• Customer Needs Analysis: Understand the needs, preferences, and pain points of potential customers . Determine how your product or service can address these needs effectively.
• Market Trends: Stay updated on current market trends, emerging technologies, and industry innovations that could impact your project.
• SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to identify internal and external factors that may affect your market entry strategy.

In today's dynamic market landscape, gathering precise data for your market feasibility study is paramount. Appinio offers a versatile platform that enables you to swiftly collect valuable market insights from a diverse audience.

With Appinio, you can employ surveys, questionnaires, and in-depth analyses to refine your understanding of market trends, customer preferences, and competition.

Enhance your market research and gain a competitive edge by booking a demo with us today!

Book a Demo

Target Audience Identification

Knowing your target audience is essential for tailoring your product or service to meet their specific needs and preferences.

• Demographic Analysis: Define the age, gender, income level, education, and other demographic characteristics of your ideal customers.
• Psychographic Profiling: Understand the psychographics of your target audience, including their lifestyle, values, interests, and buying behavior.
• Market Segmentation: Refine your target audience by segmenting it further based on shared characteristics and behaviors.
• Needs and Pain Points: Identify your target audience's unique needs, challenges, and pain points that your product or service can address.
• Competitor's Customers: Analyze the customer base of your competitors to identify potential opportunities for capturing market share.

Competitive Analysis

Competitive analysis helps you understand the strengths and weaknesses of your competitors, positioning your project strategically within the market.

• Competitor Identification: Identify direct and indirect competitors within your industry or market niche.
• Competitive Advantage: Determine the unique selling points (USPs) that set your project apart from competitors. What value can you offer that others cannot?
• SWOT Analysis for Competitors: Conduct a SWOT analysis for each competitor to assess their strengths, weaknesses, opportunities, and threats.
• Market Share Assessment: Analyze each competitor's market share and market penetration strategies.
• Pricing Strategies: Investigate the pricing strategies employed by competitors and consider how your pricing strategy will compare.

Leveraging the power of data collection and analysis is essential in gaining a competitive edge. With Appinio , you can efficiently gather critical insights about your competitors, their strengths, and weaknesses. Seamlessly integrate these findings into your market feasibility study, empowering your project with a strategic advantage.

Demand and Supply Assessment

Understanding supply and demand dynamics is crucial for gauging market sustainability and potential challenges.

• Market Demand Analysis: Estimate the current and future demand for your product or service. Consider factors like seasonality and trends.
• Supply Evaluation: Assess the availability of resources, suppliers, and distribution channels required to meet the expected demand.
• Market Saturation: Determine whether the market is saturated with similar offerings and how this might affect your project.
• Demand Forecasting: Use historical data and market trends to make informed projections about future demand.
• Scalability: Consider the scalability of your project to meet increased demand or potential fluctuations.

A comprehensive market feasibility study will give you valuable insights into your potential customer base, market dynamics, and competitive landscape. This information will be pivotal in shaping your project's direction and strategy.

How to Conduct a Technical Feasibility Study?

The technical feasibility study assesses the practicality of implementing your project from a technical standpoint. It involves evaluating the project's design, technical requirements, technological feasibility, resource availability, and risk analysis. Let's delve into each aspect in more detail.

1. Project Design and Technical Requirements

The project design and technical requirements are the foundation of your technical feasibility study. This phase involves defining the technical specifications and infrastructure needed to execute your project successfully.

• Technical Specifications: Clearly define the technical specifications of your project, including hardware, software, and any specialized equipment.
• Infrastructure Planning: Determine the physical infrastructure requirements, such as facilities, utilities, and transportation logistics.
• Development Workflow: Outline the workflow and processes required to design, develop, and implement the project.
• Prototyping: Consider creating prototypes or proof-of-concept models to test and validate the technical aspects of your project.

2. Technology Assessment

A critical aspect of the technical feasibility study is assessing the technology required for your project and ensuring it aligns with your goals.

• Technology Suitability: Evaluate the suitability of the chosen technology for your project. Is it the right fit, or are there better alternatives?
• Scalability and Compatibility: Assess whether the chosen technology can scale as your project grows and whether it is compatible with existing systems or software.
• Security Measures: Consider cybersecurity and data protection measures to safeguard sensitive information.
• Technical Expertise: Ensure your team or external partners possess the technical expertise to implement and maintain the technology.

3. Resource Evaluation

Resource evaluation involves assessing the availability of the essential resources required to execute your project successfully. These resources include personnel, materials, and suppliers.

• Human Resources: Evaluate whether you have access to skilled personnel or if additional hiring or training is necessary.
• Material Resources: Identify the materials and supplies needed for your project and assess their availability and costs.
• Supplier Relationships: Establish relationships with reliable suppliers and consistently assess their ability to meet your resource requirements.

4. Risk Analysis

Risk analysis is a critical component of the technical feasibility study, as it helps you anticipate and mitigate potential technical challenges and setbacks.

• Identify Risks: Identify potential technical risks, such as hardware or software failures, technical skill gaps, or unforeseen technical obstacles.
• Risk Mitigation Strategies: Develop strategies to mitigate identified risks, including contingency plans and resource allocation for risk management.
• Cost Estimation for Risk Mitigation: Assess the potential costs associated with managing technical risks and incorporate them into your project budget.

By conducting a thorough technical feasibility study, you can ensure that your project is technically viable and well-prepared to overcome technical challenges. This assessment will also guide decision-making regarding technology choices, resource allocation, and risk management strategies.

How to Conduct a Financial Feasibility Study?

The financial feasibility study is a critical aspect of your overall feasibility analysis. It focuses on assessing the financial viability of your project by estimating costs, projecting revenue, conducting investment analysis, and evaluating the overall financial health of your project. Let's delve into each aspect in more detail.

1. Cost Estimation

Cost estimation is the process of calculating the expenses associated with planning, developing, and implementing your project. This involves identifying both initial and ongoing costs.

• Initial Costs: Calculate the upfront expenses required to initiate the project, including capital expenditures, equipment purchases, and any development costs.
• Operational Costs: Estimate the ongoing operating expenses, such as salaries, utilities, rent, marketing, and maintenance.
• Contingency Funds: Allocate funds for unexpected expenses or contingencies to account for unforeseen challenges.
• Depreciation: Consider the depreciation of assets over time, as it impacts your financial statements.

2. Revenue Projections

Revenue projections involve forecasting the income your project is expected to generate over a specific period. Accurate revenue projections are crucial for assessing the project's financial viability.

• Sales Forecasts: Estimate your product or service sales based on market demand, pricing strategies, and potential growth.
• Pricing Strategy: Determine your pricing strategy, considering factors like competition, market conditions, and customer willingness to pay.
• Market Penetration: Analyze how quickly you can capture market share and increase sales over time.
• Seasonal Variations: Account for any seasonal fluctuations in revenue that may impact your cash flow.

3. Investment Analysis

Investment analysis involves evaluating the potential return on investment (ROI) and assessing the attractiveness of your project to potential investors or stakeholders.

• Return on Investment (ROI): Calculate the expected ROI by comparing the project's net gains against the initial investment.
• Payback Period: Determine how long it will take for the project to generate sufficient revenue to cover its initial costs.
• Risk Assessment: Consider the level of risk associated with the project and whether it aligns with investors' risk tolerance.
• Sensitivity Analysis: Perform sensitivity analysis to understand how changes in key variables, such as sales or costs, affect the investment's profitability.

4. Financial Viability Assessment

A financial viability assessment evaluates the project's ability to sustain itself financially in the long term. It considers factors such as profitability, cash flow, and financial stability.

• Profitability Analysis: Assess whether the project is expected to generate profits over its lifespan.
• Cash Flow Management: Analyze the project's cash flow to ensure it can cover operating expenses, debt payments, and other financial obligations.
• Break-Even Analysis: Determine the point at which the project's revenue covers all costs, resulting in neither profit nor loss.
• Financial Ratios: Calculate key financial ratios, such as debt-to-equity ratio and return on equity, to evaluate the project's financial health.

By conducting a comprehensive financial feasibility study, you can gain a clear understanding of the project's financial prospects and make informed decisions regarding its viability and potential for success.

How to Conduct an Operational Feasibility Study?

The operational feasibility study assesses whether your project can be implemented effectively within your organization's operational framework. It involves evaluating processes, resource planning, scalability, and analyzing potential operational risks.

1. Process and Workflow Assessment

The process and workflow assessment examines how the project integrates with existing processes and workflows within your organization.

• Process Mapping: Map out current processes and workflows to identify areas of integration and potential bottlenecks.
• Workflow Efficiency: Assess the efficiency and effectiveness of existing workflows and identify opportunities for improvement.
• Change Management: Consider the project's impact on employees and plan for change management strategies to ensure a smooth transition.

2. Resource Planning

Resource planning involves determining the human, physical, and technological resources needed to execute the project successfully.

• Human Resources: Assess the availability of skilled personnel and consider whether additional hiring or training is necessary.
• Physical Resources: Identify the physical infrastructure, equipment, and materials required for the project.
• Technology and Tools: Ensure that the necessary technology and tools are available and up to date to support project implementation.

3. Scalability Evaluation

Scalability evaluation assesses whether the project can adapt and expand to meet changing demands and growth opportunities.

• Scalability Factors: Identify factors impacting scalability, such as market growth, customer demand, and technological advancements.
• Capacity Planning: Plan for the scalability of resources, including personnel, infrastructure, and technology.
• Growth Strategies: Develop strategies for scaling the project, such as geographic expansion, product diversification, or increasing production capacity.

4. Operational Risk Analysis

Operational risk analysis involves identifying potential operational challenges and developing mitigation strategies.

• Risk Identification: Identify operational risks that could disrupt project implementation or ongoing operations.
• Risk Mitigation: Develop risk mitigation plans and contingency strategies to address potential challenges.
• Testing and Simulation: Consider conducting simulations or testing to evaluate how the project performs under various operational scenarios.
• Monitoring and Adaptation: Implement monitoring and feedback mechanisms to detect and address operational issues as they arise.

Conducting a thorough operational feasibility study ensures that your project aligns with your organization's capabilities, processes, and resources. This assessment will help you plan for a successful implementation and minimize operational disruptions.

How to Write a Feasibility Study?

The feasibility study report is the culmination of your feasibility analysis. It provides a structured and comprehensive document outlining your study's findings, conclusions, and recommendations. Let's explore the key components of the feasibility study report.

1. Structure and Components

The structure of your feasibility study report should be well-organized and easy to navigate. It typically includes the following components:

• Executive Summary: A concise summary of the study's key findings, conclusions, and recommendations.
• Introduction: An overview of the project, the objectives of the study, and a brief outline of what the report covers.
• Methodology: A description of the research methods , data sources, and analytical techniques used in the study.
• Market Feasibility Study: Detailed information on market research, target audience, competitive analysis, and demand-supply assessment.
• Technical Feasibility Study: Insights into project design, technical requirements, technology assessment, resource evaluation, and risk analysis.
• Financial Feasibility Study: Comprehensive information on cost estimation, revenue projections, investment analysis, and financial viability assessment.
• Operational Feasibility Study: Details on process and workflow assessment, resource planning, scalability evaluation, and operational risks analysis.
• Conclusion: A summary of key findings and conclusions drawn from the study.

Recommendations: Clear and actionable recommendations based on the study's findings.

2. Write the Feasibility Study Report

When writing the feasibility study report, it's essential to maintain clarity, conciseness, and objectivity. Use clear language and provide sufficient detail to support your conclusions and recommendations.

• Be Objective: Present findings and conclusions impartially, based on data and analysis.
• Use Visuals: Incorporate charts, graphs, and tables to illustrate key points and make the report more accessible.
• Cite Sources: Properly cite all data sources and references used in the study.
• Include Appendices: Attach any supplementary information, data, or documents in appendices for reference.

3. Present Findings and Recommendations

When presenting your findings and recommendations, consider your target audience. Tailor your presentation to the needs and interests of stakeholders, whether they are investors, executives, or decision-makers.

• Highlight Key Takeaways: Summarize the most critical findings and recommendations upfront.
• Use Visual Aids: Create a visually engaging presentation with slides, charts, and infographics.
• Address Questions: Be prepared to answer questions and provide additional context during the presentation.
• Provide Supporting Data: Back up your findings and recommendations with data from the feasibility study.

4. Review and Validation

Before finalizing the feasibility study report, conducting a thorough review and validation process is crucial. This ensures the accuracy and credibility of the report.

• Peer Review: Have colleagues or subject matter experts review the report for accuracy and completeness.
• Data Validation: Double-check data sources and calculations to ensure they are accurate.
• Cross-Functional Review: Involve team members from different disciplines to provide diverse perspectives.
• Stakeholder Input: Seek input from key stakeholders to validate findings and recommendations.

By following a structured approach to creating your feasibility study report, you can effectively communicate the results of your analysis, support informed decision-making, and increase the likelihood of project success.

Feasibility Study Examples

Let's dive into some real-world examples to truly grasp the concept and application of feasibility studies. These examples will illustrate how various types of projects and businesses undergo the feasibility assessment process to ensure their viability and success.

Example 1: Local Restaurant

Imagine you're passionate about opening a new restaurant in a bustling urban area. Before investing significant capital, you'd want to conduct a thorough feasibility study. Here's how it might unfold:

• Market Feasibility: You research the local dining scene, identify target demographics, and assess the demand for your cuisine. Market surveys reveal potential competitors, dining preferences, and pricing expectations.
• Technical Feasibility: You design the restaurant layout, plan the kitchen setup, and assess the technical requirements for equipment and facilities. You consider factors like kitchen efficiency, safety regulations, and adherence to health codes.
• Financial Feasibility: You estimate the initial costs for leasing or purchasing a space, kitchen equipment, staff hiring, and marketing. Revenue projections are based on expected foot traffic, menu pricing, and seasonal variations.
• Operational Feasibility: You create kitchen and service operations workflow diagrams, considering staff roles and responsibilities. Resource planning includes hiring chefs, waitstaff, and kitchen personnel. Scalability is evaluated for potential expansion or franchising.
• Risk Analysis: Potential operational risks are identified, such as food safety concerns, labor shortages, or location-specific challenges. Risk mitigation strategies involve staff training, quality control measures, and contingency plans for unexpected events.

Example 2: Software Development Project

Now, let's explore the feasibility study process for a software development project, such as building a mobile app:

• Market Feasibility: You analyze the mobile app market, identify your target audience, and assess the demand for a solution in a specific niche. You gather user feedback and conduct competitor analysis to understand the competitive landscape.
• Technical Feasibility: You define the technical requirements for the app, considering platforms (iOS, Android), development tools, and potential integrations with third-party services. You evaluate the feasibility of implementing specific features.
• Financial Feasibility: You estimate the development costs, including hiring developers, designers, and ongoing maintenance expenses. Revenue projections are based on app pricing, potential in-app purchases, and advertising revenue.
• Operational Feasibility: You map out the development workflow, detailing the phases from concept to deployment. Resource planning includes hiring developers with the necessary skills, setting up development environments, and establishing a testing framework.
• Risk Analysis: Potential risks like scope creep, technical challenges, or market saturation are assessed. Mitigation strategies involve setting clear project milestones, conducting thorough testing, and having contingency plans for technical glitches.

These examples demonstrate the versatility of feasibility studies across diverse projects. Whatever type of venture or endeavor you want to embark on, a well-structured feasibility study guides you toward informed decisions and increased project success.

In conclusion, conducting a feasibility study is a crucial step in your project's journey. It helps you assess the viability and potential risks, providing a solid foundation for informed decision-making. Remember, a well-executed feasibility study not only enables you to identify challenges but also uncovers opportunities that can lead to your project's success.

By thoroughly examining market trends, technical requirements, financial aspects, and operational considerations, you are better prepared to embark on your project confidently. With this guide, you've gained the knowledge and tools needed to navigate the intricate terrain of feasibility studies.

How to Conduct a Feasibility Study in Minutes?

Speed and precision are paramount for feasibility studies, and Appinio delivers just that. As a real-time market research platform, Appinio empowers you to seamlessly conduct your market research in a matter of minutes, putting actionable insights at your fingertips.

Here's why Appinio stands out as the go-to tool for feasibility studies:

• Rapid Insights: Appinio's intuitive platform ensures that anyone, regardless of their research background, can effortlessly navigate and conduct research, saving valuable time and resources.
• Lightning-Fast Responses: With an average field time of under 23 minutes for 1,000 respondents, Appinio ensures that you get the answers you need when you need them, making it ideal for time-sensitive feasibility studies.
• Global Reach: Appinio's extensive reach spans over 90 countries, allowing you to define the perfect target group from a pool of 1,200+ characteristics and gather insights from diverse markets.

Get free access to the platform!

Join the loop 💌

Be the first to hear about new updates, product news, and data insights. We'll send it all straight to your inbox.

Get the latest market research news straight to your inbox! 💌

Wait, there's more

07.05.2024 | 28min read

Interval Scale: Definition, Characteristics, Examples

03.05.2024 | 29min read

What is Qualitative Observation? Definition, Types, Examples

02.05.2024 | 32min read

What is a Perceptual Map and How to Make One? (+ Template)

• Search Search Please fill out this field.
• Building Your Business
• Operations & Success

What Is a Marketing Feasibility Study?

How to write a market feasibility study, how to identify potential customers, clients, and contract sources, how a market feasibility study differs from a marketing plan, frequently asked questions (faqs).

Hero Images / Getty Images

Market feasibility studies are documents that help businesses assess their likelihood of success. These studies include an analysis of the industry, competitors, and more.

Key Takeaways

• A market feasibility study helps businesses set expectations and plans.
• A good market feasibility study assesses the market environment while also identifying potential customers and other sources of revenue.
• Unlike marketing plans, which aim to make your business look as good as possible, market feasibility studies should be an objective assessment.

Market feasibility studies should include a description of the industry, current market analysis, competition, anticipated future market potential, potential sources of revenue, and sales projections.

Industry Description

Give a brief description (one or two paragraphs) of the industry your business is in, according to the U.S. Department of Labor. Determining your industry is essential for receiving government contracts,  attracting investors , and for receiving grants if you form a nonprofit.

For example, Fictitious Business Example (FBE) is being established to produce and provide quality industrial first aid kits to the U.S. Government and both private and public companies to improve worker safety on the job. FBE's services are classified under the U.S. Department of Labor Standard Industrial Classification (SIC) as SIC Code 5047 and classified as being in the "Medical, Dental, and Hospital Equipment and Supplies" industry. Your company's SIC can be found on OSHA's SIC search tool .

Current Market Analysis

This section of a market feasibility study describes the current market for your product or service. If you are offering something so unique that there are few market statistics, you can either use related industry information or conduct your own independent study. Several ways to conduct your research for new ideas include polling internet forums, sending out questionnaires addressed to targeted consumer groups or the general population, and even customer surveys.

Any solid evidence you have that there is a demand (or market) for your product or services will help you sell your idea. It is particularly important if you are marketing something unique or within a small, specialized market.

You need to show that your ideas are novel because you have found a niche and not because there is no existing market for the idea.

A good source for finding out what is selling (and what is not) is the Department of Labor. Industries showing employee growth is often a good indicator of an industry's overall stability, and massive layoffs indicate fewer business opportunities. Where there is a demand for something, there should be correlating employment growth, the number of new companies being formed, or in the industry's overall combined revenue.

Competition

If you are planning only to serve a local market, start by identifying every competitor within a 50-mile radius. List each competitor by location and distance from you, as well as their distances from each other. You should closely examine all competing businesses that are within 15 miles of your location. Consider their locations, business hours, and how long they have been in business. These things can help you determine how hard it will be to establish a similar business in the same geographic area.

You should also make a note of any similar businesses in your area that have recently gone out of business. There may be a reason such as poor location, high taxes, operating restrictions, or not enough demand for the product or service in that area to sustain a business. Researching local competitor information can tell you two things: what works now and what has not worked for other businesses.

If you are planning to sell your products or services on a larger scale through franchise development or internet sales, you need to look beyond the local competition. To find smaller competition, use a search engine to find businesses by keywords related to your industry. The return will show you companies selling similar products that are ranking high in search engine results and possibly getting more business.

Visit their websites to see what they are selling and what they are not selling.

If you are not sure what keywords relate to your industry, use free, online keyword search tools to help you know what most people are searching for in your related field.

Anticipated Future Market Potential

This section should include a narrative description, as well as attached spreadsheets, graphs, or tables showing trends, statistics, or projections. There are no surefire ways to tell if an industry will have measurable growth in the future, but you can make logical and reasonable predictions based on trends, past growth, and the current markets.

It is critical in this section that your projections are fact-based as much as possible. Every business takes risks; the key is to minimize those risks by carefully studying already successful companies. Rather than targeting the entire industry, try to isolate similar businesses and study what they are doing, how they are doing it, and their financial track record.

Potential Sources of Revenue

You can obtain a lot of information by visiting company websites and looking over product lines. Look for discontinued products or services and high-priced items. Somewhere in between these two things are probably the most stable long-term items. Discontinued means consumers no longer demand the product, while high-priced items may indicate a fad.

Since big companies spend big bucks on market research, take advantage of their money spent and public information. For example, if you are trying to crack the pet market, look at PetSmart and Petco. Examine the new product lines or services they are offering; chances are good that they spent millions researching industry trends to develop new product ideas.

Look for press releases about businesses in your industry. Press releases are an advertisement, but they also often tell why a company is branching out, closing a division, or changing its product line. They have already done the research for you, so do not hesitate to take clues from other businesses.

Sales Projections

Sales projections can be a challenge for any new business owner because there is little or no track record to support how fast you will grow or what products or services will sell best. Sales projections should factor in how much time and money will be invested in the business and the markets you will be targeting.

For example, if you get your product in the door at Walmart or Target, your sales are more likely to grow faster than if you sell your product in local mom-and-pop stores.

That's why it is important that you write a market feasibility study first. Your market study will help you decide where to sell your product or services and what products and services are most likely to generate the most revenue. 

If you have an internet-based business, you should estimate the total traffic (number of visitors) to your website each month, project anticipated site traffic volume over time, use traffic projections to estimate the average number of sales per every 10,000 visits to your site, and calculate the average amount of each sale.

The more traffic you can drive to your site, the more opportunities you have for making a sale—and it helps to have good search engine optimization (SEO) skills. This is important for all internet businesses because, as your site becomes more popular, you can project an increase in sales. A good rule of thumb is to summarize sales projections in the content but attach a spreadsheet showing actual numbers based on sales projections.

This component of your small business market feasibility study should be descriptive. Your potential customers, clients, and contract sources should include a list of current customers, clients, and contracts, as well as possible new or renewed contracts. Make a note of any sales lead that may generate new customers or clients, a list of government contracting agencies—with a brief description of what type of contracts they solicit and how they pertain to your industry—and a list of market types you currently target or intend to target, such as senior citizens, working mothers, organizations, specialty retailers, etc.

Depending on the nature of your business, it may not be possible to associate specific amounts of revenue with a particular market, but you can at least try to estimate the percentage of total revenue expected from each source. For example, if you plan to sell products to five specialty stores, list each store you plan to sell to, and total overall revenue for the specialty stores, rather than an amount for each individual store.

Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses, and they look at how things work, if they will work, and if there are potential problems. Feasibility studies are assessment tools, not just reports to try and sell your business to investors. They should consider both the pros and cons and analyze a variety of potential business scenarios.

A marketing plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations, and is intended to be implemented. Think of market feasibility studies as a logistical study, and a marketing plan as a specific, planned course of action to take.

What is the importance of the market feasibility study?

Market feasibility studies give you a more realistic sense of whether or not your business can survive. Marketing efforts, pitch decks, and similar documents will always highlight your company's best potential. A market feasibility study helps you gauge your probability of success after reviewing all of the issues and competitors.

What are the main parts of a market feasibility study?

The main parts of a market feasibility study are the executive summary , the description of the product or service, the technology considerations, the product or service marketplace, the identification of a specific market, the marketing strategy, the organization structure, the schedule, and the final projections.

Bureau of Labor Statistics. " Industries at a Glance ."

Department of Labor. " Description for 5047: Medical, Dental, and Hospital Equipment and Supplies ."

Department of Labor. " Standard Industrial Classification (SIC) Manual ."

Bureau of Labor Statistics. " Employment Projections ."

Google. " Search Engine Optimization (SEO) Starter Guide ."

Iowa State University. " What Is a Feasibility Study? "

Advisory boards aren’t only for executives. Join the LogRocket Content Advisory Board today →

• Product Management
• Solve User-Reported Issues
• Find Issues Faster
• Optimize Conversion and Adoption

How to conduct a feasibility study: Template and examples

Opportunities are everywhere. Some opportunities are small and don’t require many resources. Others are massive and need further analysis and evaluation.

One of your key responsibilities as a product manager is to evaluate the potential success of those opportunities before investing significant money, time, and resources. A feasibility study, also known as a feasibility assessment or feasibility analysis, is a critical tool that can help product managers determine whether a product idea or opportunity is viable, feasible, and profitable.

So, what is a feasibility analysis? Why should product managers use it? And how do you conduct one?

What is a feasibility study?

A feasibility study is a systematic analysis and evaluation of a product opportunity’s potential to succeed. It aims to determine whether a proposed opportunity is financially and technically viable, operationally feasible, and commercially profitable.

A feasibility study typically includes an assessment of a wide range of factors, including the technical requirements of the product, resources needed to develop and launch the product, the potential market gap and demand, the competitive landscape, and economic and financial viability.

Based on the analysis’s findings, the product manager and their product team can decide whether to proceed with the product opportunity, modify its scope, or pursue another opportunity and solve a different problem.

Conducting a feasibility study helps PMs ensure that resources are invested in opportunities that have a high likelihood of success and align with the overall objectives and goals of the product strategy .

What are feasibility analyses used for?

Feasibility studies are particularly useful when introducing entirely new products or verticals. Product managers can use the results of a feasibility study to:

• Assess the technical feasibility of a product opportunity — Evaluate whether the proposed product idea or opportunity can be developed with the available technology, tools, resources, and expertise
• Determine a project’s financial viability — By analyzing the costs of development, manufacturing, and distribution, a feasibility study helps you determine whether your product is financially viable and can generate a positive return on investment (ROI)
• Evaluate customer demand and the competitive landscape — Assessing the potential market size, target audience, and competitive landscape for the product opportunity can inform decisions about the overall product positioning, marketing strategies, and pricing
• Identify potential risks and challenges — Identify potential obstacles or challenges that could impact the success of the identified opportunity, such as regulatory hurdles, operational and legal issues, and technical limitations
• Refine the product concept — The insights gained from a feasibility study can help you refine the product’s concept, make necessary modifications to the scope, and ultimately create a better product that is more likely to succeed in the market and meet users’ expectations

How to conduct a feasibility study

The activities involved in conducting a feasibility study differ from one organization to another. Also, the threshold, expectations, and deliverables change from role to role.

For a general set of guidelines to help you get started, here are some basic steps to conduct and report a feasibility study for major product opportunities or features.

1. Clearly define the opportunity

Imagine your user base is facing a significant problem that your product doesn’t solve. This is an opportunity. Define the opportunity clearly, support it with data, talk to your stakeholders to understand the opportunity space, and use it to define the objective.

2. Define the objective and scope

Each opportunity should be coupled with a business objective and should align with your product strategy.

Over 200k developers and product managers use LogRocket to create better digital experiences

Determine and clearly communicate the business goals and objectives of the opportunity. Align those objectives with company leaders to make sure everyone is on the same page. Lastly, define the scope of what you plan to build.

3. Conduct market and user research

Now that you have everyone on the same page and the objective and scope of the opportunity clearly defined, gather data and insights on the target market.

Include elements like the total addressable market (TAM) , growth potential, competitors’ insights, and deep insight into users’ problems and preferences collected through techniques like interviews, surveys, observation studies, contextual inquiries, and focus groups.

4. Analyze technical feasibility

Suppose your market and user research have validated the problem you are trying to solve. The next step should be to, alongside your engineers, assess the technical resources and expertise needed to launch the product to the market.

Dig deeper into the proposed solution and try to comprehend the technical limitations and estimated time required for the product to be in your users’ hands.

5. Assess financial viability

If your company hasa product pricing team, work closely with them to determine the willingness to pay (WTP) and devise a monetization strategy for the new feature.

Conduct a comprehensive financial analysis, including the total cost of development, revenue streams, and the expected return on investment (ROI) based on the agreed-upon monetization strategy.

6. Evaluate potential risks

Now that you have almost a complete picture, identify the risks associated with building and launching the opportunity. Risks may include things like regulatory hurdles, technical limitations, and any operational risks.

7. Decide, prepare, and share

Based on the steps above, you should end up with a report that can help you decide whether to pursue the opportunity or not. Either way, prepare your findings, including any recommended modifications to the product scope, and present your final findings and recommendations to your stakeholders.

Make sure to prepare an executive summary for your C-suite; they will be the most critical stakeholders and the decision-makers at the end of the meeting.

Feasibility study example

Imagine you’re a product manager at a digital software company that specializes in building project management tools.

Your team has identified a potential opportunity to expand the product offering by developing a new AI-based feature that can automatically prioritize tasks for users based on their deadlines, workload, and importance.

To assess the viability of this opportunity, you can conduct a feasibility study. Here’s how you might approach it according to the process described above:

• Clearly define the opportunity — In this case, the opportunity is the development of an AI-based task prioritization feature within the existing project management software
• Define the objective and scope — The business objective is to increase user productivity and satisfaction by providing an intelligent task prioritization system. The scope includes the integration of the AI-based feature within the existing software, as well as any necessary training for users to understand and use the feature effectively
• Conduct market and user research — Investigate the demand for AI-driven task prioritization among your target audience. Collect data on competitors who may already be offering similar features and determine the unique selling points of your proposed solution. Conduct user research through interviews, surveys, and focus groups to understand users’ pain points regarding task prioritization and gauge their interest in the proposed feature
• Analyze technical feasibility — Collaborate with your engineering team to assess the technical requirements and challenges of developing the AI-based feature. Determine whether your team has the necessary expertise to implement the feature and estimate the time and resources required for its development
• Assess financial viability — Work with your pricing team to estimate the costs associated with developing, launching, and maintaining the AI-based feature. Analyze the potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
• Evaluate potential risks — Identify any risks associated with the development and implementation of the AI-based feature, such as data privacy concerns, potential biases in the AI algorithm, or the impact on the existing product’s performance
• Decide, prepare, and share — Based on your analysis, determine whether the AI-based task prioritization feature is a viable opportunity for your company. Prepare a comprehensive report detailing your findings and recommendations, including any necessary modifications to the product scope or implementation plan. Present your findings to your stakeholders and be prepared to discuss and defend your recommendations

Feasibility study template

The following feasibility study template is designed to help you evaluate the feasibility of a product opportunity and provide a comprehensive report to inform decision-making and guide the development process.

Remember that each study will be unique to your product and market, so you may need to adjust the template to fit your specific needs.

• Briefly describe the product opportunity or feature you’re evaluating
• Explain the problem it aims to solve or the value it will bring to users
• Define the business goals and objectives for the opportunity
• Outline the scope of the product or feature, including any key components or functionality
• Summarize the findings from your market research, including data on the target market, competitors, and unique selling points
• Highlight insights from user research, such as user pain points, preferences, and potential adoption rates
• Detail the technical requirements and challenges for developing the product or feature
• Estimate the resources and expertise needed for implementation, including any necessary software, hardware, or skills
• Provide an overview of the costs associated with the development, launch, and maintenance of the product or feature
• Outline potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
• Identify any potential risks or challenges associated with the development, implementation, or market adoption of the product or feature
• Discuss how these risks could impact the success of the opportunity and any potential mitigation strategies
• Based on your analysis, recommend whether to proceed with the opportunity, modify the scope, or explore other alternatives
• Provide a rationale for your recommendation, supported by data and insights from your research
• Summarize the key findings and recommendations from your feasibility study in a concise, easily digestible format for your stakeholders

Overcoming stakeholder management challenges

The ultimate challenge that faces most product managers when conducting a feasibility study is managing stakeholders .

Stakeholders may interfere with your analysis, jumping to conclude that your proposed product or feature won’t work and deeming it a waste of resources. They may even try to prioritize your backlog for you.

Here are some tips to help you deal with even the most difficult stakeholders during a feasibility study:

• Use hard data to make your point — Never defend your opinion based on your assumptions. Always show them data and evidence based on your user research and market analysis
• Learn to say no — You are the voice of customers, and you know their issues and how to monetize them. Don’t be afraid to say no and defend your team’s work as a product manager
• Build stakeholder buy-in early on — Engage stakeholders from the beginning of the feasibility study process by involving them in discussions and seeking their input. This helps create a sense of ownership and ensures that their concerns and insights are considered throughout the study
• Provide regular updates and maintain transparency — Keep stakeholders informed about the progress of the feasibility study by providing regular updates and sharing key findings. This transparency can help build trust, foster collaboration, and prevent misunderstandings or misaligned expectations
• Leverage stakeholder expertise — Recognize and utilize the unique expertise and knowledge that stakeholders bring to the table. By involving them in specific aspects of the feasibility study where their skills and experience can add value, you can strengthen the study’s outcomes and foster a more collaborative working relationship

Final thoughts

A feasibility study is a critical tool to use right after you identify a significant opportunity. It helps you evaluate the potential success of the opportunity, analyze and identify potential challenges, gaps, and risks in the opportunity, and provides a data-driven approach in the market insights to make an informed decision.

By conducting a feasibility study, product teams can determine whether a product idea is profitable, viable, feasible, and thus worth investing resources into. It is a crucial step in the product development process and when considering investments in significant initiatives such as launching a completely new product or vertical.

LogRocket generates product insights that lead to meaningful action

Get your teams on the same page — try LogRocket today.

Share this:

• Click to share on Twitter (Opens in new window)
• Click to share on Reddit (Opens in new window)
• Click to share on LinkedIn (Opens in new window)
• Click to share on Facebook (Opens in new window)
• #product strategy

Stop guessing about your digital experience with LogRocket

Recent posts:.

Drive growth with these 7 customer feedback tools

A customer feedback tool is a software solution or platform designed to collect, analyze, and manage feedback from customers.

Leader Spotlight: Motivating teams to hit customer-centric outcomes, with Kristina Bailey

Kristina Bailey discusses the careful balance of knowing the business outcomes you want to achieve while balancing customer outcomes.

Exploring augmented products: Beyond the core offering

Augmented products leverage technology and additional services to provide enhanced functionality, convenience, and value to users.

A guide to acceptance test-driven development (ATDD)

ATDD is an agile methodology involving collaboration to define acceptance criteria before starting any development.

Leave a Reply Cancel reply

• school Campus Bookshelves
• menu_book Bookshelves
• perm_media Learning Objects
• login Login
• how_to_reg Request Instructor Account
• hub Instructor Commons
• Download Page (PDF)
• Download Full Book (PDF)
• Periodic Table
• Physics Constants
• Scientific Calculator
• Reference & Cite
• Tools expand_more
• Readability

selected template will load here

This action is not available.

11.3: Conducting a Feasibility Analysis

• Last updated
• Save as PDF
• Page ID 50688

• Michael Laverty and Chris Littel et al.

Learning Objectives

By the end of this section, you will be able to:

• Describe the purpose of a feasibility analysis
• Describe and develop the parts of a feasibility analysis
• Understand how to apply feasibility outcomes to a new venture

As the name suggests, a feasibility analysis is designed to assess whether your entrepreneurial endeavor is, in fact, feasible or possible. By evaluating your management team, assessing the market for your concept, estimating financial viability, and identifying potential pitfalls, you can make an informed choice about the achievability of your entrepreneurial endeavor. A feasibility analysis is largely numbers driven and can be far more in depth than a business plan (discussed in The Business Plan ). It ultimately tests the viability of an idea, a project, or a new business. A feasibility study may become the basis for the business plan, which outlines the action steps necessary to take a proposal from ideation to realization. A feasibility study allows a business to address where and how it will operate, its competition, possible hurdles, and the funding needed to begin. The business plan then provides a framework that sets out a map for following through and executing on the entrepreneurial vision.

Organizational Feasibility Analysis

Organizational feasibility aims to assess the prowess of management and sufficiency of resources to bring a product or idea to market Figure 11.12 . The company should evaluate the ability of its management team on areas of interest and execution. Typical measures of management prowess include assessing the founders’ passion for the business idea along with industry expertise, educational background, and professional experience. Founders should be honest in their self-assessment of ranking these areas.

Resource sufficiency pertains to nonfinancial resources that the venture will need to move forward successfully and aims to assess whether an entrepreneur has a sufficient amount of such resources. The organization should critically rank its abilities in six to twelve types of such critical nonfinancial resources, such as availability of office space, quality of the labor pool, possibility of obtaining intellectual property protections (if applicable), willingness of high-quality employees to join the company, and likelihood of forming favorable strategic partnerships. If the analysis reveals that critical resources are lacking, the venture may not be possible as currently planned. 47

Financial Feasibility Analysis

A financial analysis seeks to project revenue and expenses (forecasts come later in the full business plan); project a financial narrative; and estimate project costs, valuations, and cash flow projections Figure 11.13 .

The financial analysis may typically include these items:

• A twelve-month profit and loss projection
• A three- or four-year profit-and-loss projection
• A cash-flow projection
• A projected balance sheet
• A breakeven calculation

The financial analysis should estimate the sales or revenue that you expect the business to generate. A number of different formulas and methods are available for calculating sales estimates. You can use industry or association data to estimate the sales of your potential new business. You can search for similar businesses in similar locations to gauge how your business might perform compared with similar performances by competitors. One commonly used equation for a sales model multiplies the number of target customers by the average revenue per customer to establish a sales projection:

T×A=ST×A=S

Target(ed) Customers/Users×Average Revenue per Customer=Sales ProjectionTarget(ed) Customers/Users×Average Revenue per Customer=Sales Projection

Another critical part of planning for new business owners is to understand the breakeven point , which is the level of operations that results in exactly enough revenue to cover costs (see Entrepreneurial Finance and Accounting for an in-depth discussion on calculating breakeven points and the breakdown of cost types). It yields neither a profit nor a loss. To calculate the breakeven point, you must first understand the two types of costs: fixed and variable. Fixed costs are expenses that do not vary based on the amount of sales. Rent is one example, but most of a business’s other costs operate in this manner as well. While some costs vary from month to month, costs are described as variable only if they will increase if the company sells even one more item. Costs such as insurance, wages, and office supplies are typically considered fixed costs. Variable costs fluctuate with the level of sales revenue and include items such as raw materials, purchases to be sold, and direct labor. With this information, you can calculate your breakeven point—the sales level at which your business has neither a profit nor a loss. 48 Projections should be more than just numbers: include an explanation of the underlying assumptions used to estimate the venture’s income and expenses.

Projected cash flow outlines preliminary expenses, operating expenses, and reserves—in essence, how much you need before starting your company. You want to determine when you expect to receive cash and when you have to write a check for expenses. Your cash flow is designed to show if your working capital is adequate. A balance sheet shows assets and liabilities, necessary for reporting and financial management. When liabilities are subtracted from assets, the remainder is owners’ equity. The financial concepts and statements introduced here are discussed fully in Entrepreneurial Finance and Accounting .

Market Feasibility Analysis

A market analysis enables you to define competitors and quantify target customers and/or users in the market within your chosen industry by analyzing the overall interest in the product or service within the industry by its target market Figure 11.14 . You can define a market in terms of size, structure, growth prospects, trends, and sales potential. This information allows you to better position your company in competing for market share. After you’ve determined the overall size of the market, you can define your target market, which leads to a total available market (TAM) , that is, the number of potential users within your business’s sphere of influence. This market can be segmented by geography, customer attributes, or product-oriented segments. From the TAM, you can further distill the portion of that target market that will be attracted to your business. This market segment is known as a serviceable available market (SAM) .

Figure 11.14

Projecting market share can be a subjective estimate, based not only on an analysis of the market but also on pricing, promotional, and distribution strategies. As is the case for revenue, you will have a number of different forecasts and tools available at your disposal. Other items you may include in a market analysis are a complete competitive review, historical market performance, changes to supply and demand, and projected growth in demand over time.

ARE YOU READY?

You’ve been hired by a leading hotel chain to determine the market and financial potential for the development of a mixed-use property that will include a full-service hotel in downtown Orlando, located at 425 East Central Boulevard, in Orlando, Florida. The specific address is important so you can pinpoint existing competitors and overall suitability of the site. Using the information given, conduct a market analysis that can be part of a larger feasibility study.

WORK IT OUT

Location feasibility.

You’re considering opening a boutique clothing store in downtown Atlanta. You’ve read news reports about how downtown Atlanta and the city itself are growing and undergoing changes from previous decades. With new development taking place there, you’re not sure whether such a venture is viable. Outline what steps you would need to take to conduct a feasibility study to determine whether downtown Atlanta is the right location for your planned clothing store.

Applying Feasibility Outcomes

After conducting a feasibility analysis, you must determine whether to proceed with the venture. One technique that is commonly used in project management is known as a go-or-no-go decision . This tool allows a team to decide if criteria have been met to move forward on a project. Criteria on which to base a decision are established and tracked over time. You can develop criteria for each section of the feasibility analysis to determine whether to proceed and evaluate those criteria as either “go” or “no go,” using that assessment to make a final determination of the overall concept feasibility. Determine whether you are comfortable proceeding with the present management team, whether you can “go” forward with existing nonfinancial resources, whether the projected financial outlook is worth proceeding, and make a determination on the market and industry. If satisfied that enough “go” criteria are met, you would likely then proceed to developing your strategy in the form of a business plan.

WHAT CAN YOU DO?

Love beyond walls.

When Terence Lester saw a homeless man living behind an abandoned, dilapidated building, he asked the man if he could take him to a shelter. The man scoffed, replying that Lester should sleep in a shelter. So he did—and he saw the problem through the homeless man’s perspective. The shelter was crowded and smelly. You couldn’t get much sleep, because others would try to steal your meager belongings. The dilapidated building provided isolation away from others, but quiet and security in its own way that the shelter could not. This experience led Lester to voluntarily live as a homeless person for a few weeks. His journey led him to create Love Beyond Walls (www.lovebeyondwalls.org), an organization that aids the homeless, among other causes. Lester didn’t conduct a formal feasibility study, but he did so informally by walking in his intended customers’ shoes—literally. A feasibility study of homelessness in a particular area could yield surprising findings that might lead to social entrepreneurial pursuits.

• What is a social cause you think could benefit from a formal feasibility study around a potential entrepreneurial solution?

• Designing & Implementation of Loyalty & Rewards program
• News & Report
• Case Studies

Here are some tips for structuring and presenting your findings with finesse:

• Keep your report succinct and to the point. Avoid unnecessary jargon or technical language.
• Use charts, graphs, and visuals to bring your data to life and make complex information more digestible.
• Provide actionable recommendations based on your analysis. Your final document is supposed to guide decision-makers on the path to success.

Step-by-Step Guide on How to Conduct a Feasibility Study

Clarify your mission and vision for the feasibility study. Define the scope of your study. Outline what you hope to achieve and the boundaries of your analysis.

Gather information from various sources—surveys, interviews, and existing research. Conduct thorough market research to understand your customer needs, market trends, and competitor landscapes.

Crunch the numbers and assess the financial feasibility of your project. Conduct a cost-benefit analysis to weigh the potential costs against the anticipated benefits of your venture.

Evaluate the operational feasibility of your project. Consider factors such as resource availability, technology requirements, and logistical challenges. Identify potential risks and develop risk management strategies to minimize their impact.

Compile your findings and recommendations into a comprehensive Feasibility Study report. Present your analysis, insights, and recommendations clearly and concisely, ensuring stakeholders can easily understand and act upon the information provided.

In conclusion, feasibility studies serve as a compass to guide businesses through the turbulent seas of uncertainty. Prioritizing these studies helps you chart a course towards success with confidence and clarity.

Ready to embark on your feasibility journey? Dive deeper with Researchers.me and unlock the insights you need to navigate the waters of business ventures. Start your journey now!

• Azhar Siddique
• No Comments

Share Post -

Contact us today

Let us assist you in making the best decision and handling the work. Your company deserves the best. We make your vision a reality!

TECHNOLOGIES

● strategy & consultation, ● business consultation & implementaion, ● on chain ecosystem consulting, ● blockchain infra consulting, ● asset tokenization, ● defi consultation, ● web 3.0 strategy & consultation, ● tokenzation, ● market making, ● feasibility studies, ● data story telling, ● mystery shopping, ● customers experience & happiness, ● employee satisfaction & engagement, ● qualitative & quantitative surveys, ● brand postioning & benchmarking, ● competitior analysis, ● marketing consulting, ● dashboard & reporting, ● data analytics, ● master data management, ● data quality, ● data integration, ● ibm cognos analytics, ● microsoft power bi, ● qlikview / qliksense, ● product analysis, ● process analysis, ● designing and implementing of loyalty & rewards program.

• +971 56 574 7998
• [email protected]
• 20th Floor, Regal Tower, Business Bay, Dubai, United Arab Emirates

⛊ Privacy Policy

© researchers 2024. all rights reserved..

Why Feasibility Studies Matter (With Examples)

Published: November 11, 2022

As a business leader, you want your projects to generate a return on investment. So before you begin any new venture, it’s a good idea to complete a feasibility study.

Feasibility studies help to determine the success (or failure) of your proposed project or plan. These types of studies help you make better, informed business decisions. As a result, you can save time and money by starting a plan or a project that you know has a high ROI.

Here, you’ll learn how to run feasibility studies. This post includes:

What is a feasibility study?

Feasibility study benefits, types of feasibility studies, how to write a feasibility study, feasibility study examples.

A feasibility study analyzes a potential project’s benefits, risks, costs, and potential outcomes. After completing a feasibility study, you and your team will have enough information to determine if the proposed project is a worthy investment.

Two types of sales forecasting data are appropriate for feasibility studies:

• Quantitative forecasting uses historical business data to predict trends.
• Qualitative sales forecasting data takes customers’ opinions, market research, and survey results into account.

The type of feasibility study you run determines which type of data you will need. Consider using qualitative forecasting data to determine how well your audience might receive your product. Quantitative data can help you predict revenue.

As a team leader, it’s your job to ensure your team hits yearly sales revenue goals. That may include deciding to take on a project based on projected sales forecasting data.

However, you do not want to take on a proposed plan or project without being sure the project will benefit your organization. Companies with accurate forecasts are 10% more likely to increase revenue yearly , according to Intangent.

That’s why feasibility studies matter. Combine sales forecasting data with the insight from a feasibility report, and you’ll be able to gauge the success rate of your proposed plan before you start.

Other feasibility benefits include:

• Determining if the project is appropriate for your team.
• Making sound decisions for your team.
• Avoiding mistakes.
• Narrowing the focus of the project.
• Determining project and team needs.
• Determining which departments need to be involved in the project.
• Calculating the amount and source of appropriate funding.
• Assessing the success or failure rate of your project.
• Estimating ROI.

Not only do feasibility studies help determine if a proposed plan or project is viable, but they also help narrow the focus of the project. Overall, feasibility studies can help keep your project on track from the start.

Now that you understand the benefits of feasibility studies, it’s time to determine which kind of feasibility study is best for your team.

Technical Feasibility Study

A technical feasibility study looks at your project’s technical aspects. This type of study answers the question: do you have the specialized resources and capabilities to carry out this project?

You might have the appropriate funding for a project, but a technical feasibility study will help you determine if you have the right processes, systems, and staffing for the job.

Best for: Software development teams and project development teams

Financial or Economic Feasibility Study

Financial feasibility studies can help you determine if you have the funding for your project. Plus, you’ll learn the venture is an overall good investment for your team and your company. These kinds of feasibility studies ask: is the allotted funding amount appropriate for this project?

By completing a financial feasibility study, you’ll have already identified funding sources, expenses, your budget, any potential risks, and expected revenue.

Best for: Financial managers and project managers

Operational Feasibility Study

As the name suggests, an operational feasibility study analyzes whether or not your team is equipped to carry out the proposed plan or project. This feasibility study answers the questions:

• Does your team have the means to complete the project?
• Will the project add value for your team or your customers?

Consider conducting an operational feasibility study if you have developed a solution for a potential problem. This kind of study will help you determine if the solution solves the problem or creates more issues.

Best for: Project managers and stakeholders

Legal Feasibility Study

This feasibility study should be performed to determine if your proposed project is legal and ethical. Legal feasibility studies are designed to keep you and your team aligned with local, state, and federal laws.

If you are unsure if your project is unethical or unlawful, a legal feasibility study will help you make the appropriate decision before you begin.

Best for: Legal departments and project managers

Scheduling Feasibility Study

When starting a new project, you’ll often be asked, “When can we reasonably expect this project to be completed?”

If you and your team are working for clients and are on a deadline, a scheduling feasibility study looks at the project’s timeline. That can help your team determine a reasonable completion date.

After completing a scheduling feasibility study, you might find the plan requires more time than you thought. This is helpful to know before you begin a project.

Best for: Stakeholders, project managers, and their teams

If you are wondering how to write a feasibility study, look no further than our feasibility study template .

Before you jump into writing your own study with our feasibility study template, take a minute to familiarize yourself with each section of the template. Keep in mind, the feasibility study temple can be customized to fit the needs of you and your team.

1. Executive Summary

Your executive summary should be a one-page summary of the entire study. Make sure to include the following:

• The project name.
• A description of the project.
• The goals of the project or plan.
• The target market.

Image Source

2. Business Explanation

This section of the feasibility study is your space to introduce the business concept of your project or plan. Consider discussing:

• The purpose of the project or plan.
• Products or services.
• Competitive advantages.
• Experience of its founders.

If your project is feasible, you’ll want to be as specific as possible in this section and discuss the project’s projected success.

3. Market Overview

This section of your feasibility study should discuss your target market and why your project or plan will (or will not) succeed. You’ll want to discuss your target market in-depth, its pain points, and how your proposed product or service will solve the problems.

You’ll want to include valid data in this section. Consider featuring:

• The market size and demographics.
• The market psychographics.
• Competitors and substitutes.

4. Financial Projections

Every good business endeavor is meant to make a profit. Your feasibility study should determine if the project or plan is a financially wise investment. The financial projections section of the feasibility template outlines and discusses critical financial metrics.

Considering including and discussing:

• Capital needs.
• Projected revenue and expenses.
• Projected revenue needed to break even.

5. Feasibility Assessment and Conclusion

In your conclusion, be as clear and specific about your proposed project or plan as possible. Use statements like, “Based on our assessment of (X), we have deemed this business project feasible.”

Feasibility studies can be helpful across your entire organization — from the sales team to the product development team. Here are a few examples of feasibility studies conducted in various industries.

Howard County Public School System

The Howard County Public School System’s feasibility study dives into projected student enrollment over a 10-year period.

What we love: The school system offers an excellent example of a brief, but thorough, executive summary. In this section, Howard County Public Schools also includes specific historical data used throughout the study.

Town of Walpole, Massachusetts

This feasibility study from the Walpole, Massachusetts’ explores the town’s recreation programming and facilities. Throughout, the document includes program recommendations with data that explains how the researchers came to this conclusion.

What we love: This document combines several different types of feasibility studies (financial, technical, and operational) into one comprehensive study. Remember, you can mold your feasibility study to fit your organization’s needs best.

U.S. Fish and Wildlife Service

In this example, the U.S. Fish and Wildlife Service explores the feasibility of reintroducing sea otters to areas of the Pacific coast. This study also provides a model for structuring the objectives section of this document. A good feasibility study is clear and to the point in each section.

What we love: Here, the U.S. Fish and Wildlife Service distinguishes what the study covers (potential options for reintroduction), and what it cannot accomplish (projected population growth from reintroduction).

While your feasibility study seeks to assess a project’s viability, your document will have a limited scope. If you’ll need to gather additional information moving forward, mention that in your feasibility study.

Holdrege Area Public Library

Your feasibility study doesn’t need to be all text. The Holdrege Area Public Library makes use of graphics and charts to convey information in its feasibility study.

What we love: Infographics are easy to read. You can absorb important information with a quick skim.

Running Your Feasibility Study

Accurately predicting the success of a project might seem like a daunting task. But it doesn’t have to be. There are many ways to conduct a feasibility study. Stary by leveraging the tools you already have, like HubSpot’s Forecasting Software and our feasibility study template.

Your job as a sales leader is to help your team increase your organization’s bottom line. With the use of sales forecasting data and feasibility studies, you’ll be able to pursue the projects that will yield the highest ROI.

Don't forget to share this post!

Related articles.

Entrepreneurial Competency: What it Is & Why it Matters

3 Ways to Cash In on Golf's Takeover by Millennials and Gen Z

This YouTuber Makes $300k A Year Teaching People How to Sew

The $6.8B Sewing Boom Is Here to Stay — 3 Ways to Take Your Cut

Vagus Nerve Care: A $483 Million Health Trend You Need to Know About

A $40m Startup's Founder Shares Insights on Growth and Raising Capital

3 Ways to Build for The Rise (And Fall) of Businesses

8+ Opportunities to Capitalize on The Legal Tech Boom

Top Industries for Entrepreneurs in 2024 According to Our Trends Team

3 Lucrative Ways to Help Seniors Live That Fit and Fabulous Lifestyle

A free template to help you prove your project's feasibility.

Powerful and easy-to-use sales software that drives productivity, enables customer connection, and supports growing sales orgs

• Contact sales

Start free trial

What Is a Feasibility Study? How to Conduct One for Your Project

Table of Contents

What is a feasibility study, what’s the importance of a feasibility study, what is included in a feasibility study report, types of feasibility study.

• 7 Steps To Do a Feasibility Study

Feasibility Study Examples

Why is a feasibility study so important in project management? For one, the feasibility study or feasibility analysis is the foundation upon which your project plan resides. That’s because the feasibility analysis determines the viability of your project. Now that you know the importance, read on to learn what you need to know about feasibility studies.

A feasibility study is simply an assessment of the practicality of a proposed project plan or method. This is done by analyzing technical, economic, legal, operational and time feasibility factors. Just as the name implies, you’re asking, “Is this feasible?” For example, do you have or can you create the technology that accomplishes what you propose? Do you have the people, tools and resources necessary? And, will the project get you the ROI you expect?

Get your free

Feasibility study template

Use this free Feasibility Study Template for Word to manage your projects better.

A project feasibility study should be done during the project management life cycle after the business case has been completed. So, that’s the “what” and the “when” but how about the “why?” Why is it important to conduct a feasibility study?

An effective feasibility study points a project in the right direction by helping decision-makers have a holistic view of the potential benefits, disadvantages, barriers and constraints that could affect its outcome. The main purpose of a feasibility study is to determine whether the project can be not only viable but also beneficial from a technical, financial, legal and market standpoint.

The findings of your project feasibility study are compiled in a feasibility report that usually includes the following elements.

• Executive summary
• Description of product/service
• Technology considerations
• Product/service marketplace
• Marketing strategy
• Organization/staffing
• Financial projections
• Findings and recommendations

Free Feasibility Study Template

Use this free feasibility study template for Word to begin your own feasibility study. It has all the fundamental sections for you to get started, and it’s flexible enough to adapt to your specific needs. Download yours today.

There are many things to consider when determining project feasibility, and there are different types of feasibility studies you might conduct to assess your project from different perspectives.

Pre-Feasibility Study

A pre-feasibility study, as its name suggests, it’s a process that’s undertaken before the feasibility study. It involves decision-makers and subject matter experts who will prioritize different project ideas or approaches to quickly determine whether the project has fundamental technical, financial, operational or any other evident flaws. If the project proposal is sound, a proper feasibility study will follow.

Technical Feasibility Study

A technical feasibility study consists in determining if your organization has the technical resources and expertise to meet the project requirements . A technical study focuses on assessing whether your organization has the necessary capabilities that are needed to execute a project, such as the production capacity, facility needs, raw materials, supply chain and other inputs. In addition to these production inputs, you should also consider other factors such as regulatory compliance requirements or standards for your products or services.

Economic Feasibility Study

Also called financial feasibility study, this type of study allows you to determine whether a project is financially feasible. Economic feasibility studies require the following steps:

• Before you can start your project, you’ll need to determine the seed capital, working capital and any other capital requirements, such as contingency capital. To do this, you’ll need to estimate what types of resources will be needed for the execution of your project, such as raw materials, equipment and labor.
• Once you’ve determined what project resources are needed, you should use a cost breakdown structure to identify all your project costs.
• Identify potential sources of funding such as loans or investments from angel investors or venture capitalists.
• Estimate the expected revenue, profit margin and return on investment of your project by conducting a cost-benefit analysis , or by using business forecasting techniques such as linear programming to estimate different future outcomes under different levels of production, demand and sales.
• Estimate your project’s break-even point.
• Conduct a financial benchmark analysis with industrial averages and specific competitors in your industry.
• Use pro forma cash flow statements, financial statements, balance sheets and other financial projection documents.

Legal Feasibility Study

Your project must meet legal requirements including laws and regulations that apply to all activities and deliverables in your project scope . In addition, think about the most favorable legal structure for your organization and its investors. Each business legal structure has advantages and disadvantages when it comes to liability for business owners, such as limited liability companies (LLCs) or corporations, which reduce the liability for each business partner.

Market Feasibility Study

A market feasibility study determines whether your project has the potential to succeed in the market. To do so, you’ll need to analyze the following factors:

• Industry overview: Assess your industry, such as year-over-year growth, identify key direct and indirect competitors, availability of supplies and any other trends that might affect the future of the industry and your project.
• SWOT analysis: A SWOT analysis allows organizations to determine how competitive an organization can be by examining its strengths, weaknesses and the opportunities and threats of the market. Strengths are the operational capabilities or competitive advantages that allow an organization to outperform its competitors such as lower costs, faster production or intellectual property. Weaknesses are areas where your business might be outperformed by competitors. Opportunities are external, such as an underserved market, an increased demand for your products or favorable economic conditions. Threats are also external factors that might affect your ability to do well in the market such as new competitors, substitute products and new technologies.
• Market research: The main purpose of market research is to determine whether it’s possible for your organization to enter the market or if there are barriers to entry or constraints that might affect your ability to compete. Consider variables such as pricing, your unique value proposition, customer demand, new technologies, market trends and any other factors that affect how your business will serve your customers. Use market research techniques to identify your target market, create buyer personas, assess the competitiveness of your niche and gauge customer demand, among other things.

7 Steps to Do a Feasibility Study

If you’re ready to do your own feasibility study, follow these 7 steps. You can use this free feasibility study template to help you get started.

1. Conduct a Preliminary Analysis

Begin by outlining your project plan . You should focus on an unserved need, a market where the demand is greater than the supply and whether the product or service has a distinct advantage. Then, determine if the feasibility factors are too high to clear (i.e. too expensive, unable to effectively market, etc.).

2. Prepare a Projected Income Statement

This step requires working backward. Start with what you expect the income from the project to be and then what project funding is needed to achieve that goal. This is the foundation of an income statement. Factor in what services are required and how much they’ll cost and any adjustments to revenues, such as reimbursements, etc.

Related: Free Project Management Templates

3. Conduct a Market Survey or Perform Market Research

This step is key to the success of your feasibility study, so make your market analysis as thorough as possible. It’s so important that if your organization doesn’t have the resources to do a proper one, then it is advantageous to hire an outside firm to do so.

Market research will give you the clearest picture of the revenues and return on investment you can realistically expect from the project. Some things to consider are the geographic influence on the market, demographics, analyzing competitors, the value of the market and what your share will be and if the market is open to expansion (that is, in response to your offer).

4. Plan Business Organization and Operations

Once the groundwork of the previous steps has been laid, it’s time to set up the organization and operations of the planned project to meet its technical, operational, economic and legal feasibility factors. This isn’t a superficial, broad-stroke endeavor. It should be thorough and include start-up costs, fixed investments and operating costs.

These costs address things such as equipment, merchandising methods, real estate, personnel, supply availability, overhead, etc.

5. Prepare an Opening Day Balance Sheet

This includes an estimate of the assets and liabilities, one that should be as accurate as possible. To do this, create a list that includes items, sources, costs and available financing. Liabilities to consider are such things as leasing or purchasing land, buildings and equipment, financing for assets and accounts receivables.

6. Review and Analyze All Data

All of these steps are important, but the review and analysis are especially important to ensure that everything is as it should be and that nothing requires changing or tweaking. Take a moment to look over your work one last time.

Reexamine your previous steps, such as the income statement, and compare them with your expenses and liabilities. Is it still realistic? This is also the time to think about risk and come up with any contingency plans .

7. Make a Go/No-Go Decision

You’re now at the point to make a decision about whether or not the project is feasible. That sounds simple, but all the previous steps lead to this decision-making moment. A couple of other things to consider before making that binary choice are whether the commitment is worth the time, effort and money and whether it aligns with the organization’s strategic goals and long-term aspirations.

Here are some simple feasibility study examples so you have a better idea of what a feasibility study is used for in different industries.

Construction Feasibility Study

For this construction feasibility study example, let’s imagine a large construction company that’s interested in starting a new project in the near future to generate profits.

• Pre-Feasibility Study: The first step is to conduct a preliminary feasibility study. It can be as simple as a meeting where decision-makers will prioritize projects and discuss different project ideas to determine which poses a bigger financial benefit for the organization.
• Technical Feasibility Study: Now it’s time to estimate what resources are needed to execute the construction project, such as raw materials, equipment and labor. If there’s work that can’t be executed by the company with its current resources, a subcontractor will be hired to fill the gap.
• Economic Feasibility Study: Once the construction project management team has established what materials, equipment and labor are needed, they can estimate costs. Cost estimators use information from past projects, construction drawings and documents such as a bill of quantities to come up with an accurate cost estimate. Then, based on this estimate, a profit margin and financial forecasts will be analyzed to determine if there’s economic feasibility.
• Legal Feasibility Study: Now the company needs to identify all potential regulations, building codes and laws that might affect the project. They’ll need to ask for approval from the local government so that they can begin the construction project .
• Market Feasibility Study: Market feasibility will be determined depending on the nature of the project. For this feasibility example, let’s assume a residential construction project will be built. To gauge market potential, they’ll need to analyze variables such as the average income of the households in the city, crime rate, population density and any trends in state migration.

Manufacturing Feasibility Study

Another industry that uses feasibility studies is manufacturing. It’s a test run of the steps in the manufacturing production cycle to ensure the process is designed properly. Let’s take a look at what a manufacturing feasibility study example would look like.

• Feasibility Study: The first step is to look at various ideas and decide which is the best one to pursue. You don’t want to get started and have to stop. That’s a waste of time, money and effort. Look at what you intend to manufacture, does it fill an unserved need, is the market able to support competition and can you manufacture a quality product on time and within your budget?
• Financial Feasibility Study: Find out if your estimated income from the sale of this product is going to cover your costs, both direct and indirect costs. Work backward from the income you expect to make and the expenses you’ll spend for labor, materials and production to determine if the manufacturing of this product is financially feasible.
• Market Feasibility Study: You’ve already determined that there’s a need that’s not being served, but now it’s time to dig deeper to get realistic projections of revenue. You’ll want to define your target demographic, analyze the competitive landscape, determine the total market volume and what your market share will be and estimate what market expansion opportunities there are.
• Technical Feasibility Study: This is where you’ll explore the production , such as what resources you’ll need to produce your product. These findings will inform your financial feasibility study as well as labor, material, equipment, etc., costs have to be within your budget. You’ll also figure out the processes you’ll use to produce and deliver your product to the market, including warehousing and retail distribution.

There could be other feasibility studies you’ll have to make depending on the product and the market, but these are the essential ones that all manufacturers have to look at before they can make an educated decision as to whether to go forward or abandon the idea.

Best Practices for a Feasibility Study

• Use project management software like ProjectManager to organize your data and work efficiently and effectively
• Use templates or any data and technology that gives you leverage
• Involve the appropriate stakeholders to get their feedback
• Use market research to further your data collection
• Do your homework and ask questions to make sure your data is solid

If your project is feasible, then the real work begins. ProjectManager helps you plan more efficiently. Our online Gantt chart organizes tasks, sets deadlines, adds priority and links dependent tasks to avoid delays. But unlike other Gantt software, we calculate the critical path for you and set a baseline to measure project variance once you move into the execution phase.

Watch a Video on Feasibility Studies

There are many steps and aspects to a project feasibility study. If you want yours to be accurate and forecast correctly whether your project is doable, then you need to have a clear understanding of all its moving parts.

Jennifer Bridges, PMP, is an expert on all aspects of project management and leads this free training video to help you get a firm handle on the subject.

Here’s a screenshot for your reference!

Pro tip: When completing a feasibility study, it’s always good to have a contingency plan that you test to make sure it’s a viable alternative.

ProjectManager Improves Your Feasibility Study

A feasibility study is a project, so get yourself a project management software that can help you execute it. ProjectManager is an award-winning software that can help you manage your feasibility study through every phase.

Once you have a plan for your feasibility study, upload that task list to our software and all your work is populated in our online Gantt chart. Now you can assign tasks to team members, add costs, create timelines, collect all the market research and attach notes at the task level. This gives people a plan to work off of, and a collaborative platform to collect ideas and comments.

If you decide to implement the project, you already have it started in our software, which can now help you monitor and report on its progress. Try it for yourself with this free 30-day trial.

Transcription

Today we’re talking about How to Conduct A Feasibility Study, but first of all, I want to start with clarifying what a feasibility study is.

Feasibility Analysis Definition

Basically, it’s an assessment of the practicality of a proposed plan or method. Basically, we’ll want to want to know, is this feasible. Some of the questions that may generate this or we can hear people asking are, “Do we have or can we create the technology to do this? Do we have the people resource who can produce this and will we get our ROI, our Return On Investment?”

When to Do a Feasibility Study

So when do we do the feasibility study? So it’s done during a project lifecycle and it’s done after the business case because the business case outlines what we’re proposing. Is it a product or service that we’re proposing?

So why do we do this? The reason we do this is that we need to determine the factors that will make the business opportunity a success.

How to Conduct a Feasibility Study

Well, let’s talk about a few steps that we do in order to conduct the feasibility study.

Well, first of all, we conduct a preliminary analysis of what all’s involved in the business case and what we’re analyzing and what we’re trying to determine is feasible.

Then we prepare a projected income statement. We need to know what are the income streams, how are we gonna make money on this. Where’s the revenue coming from? We also need to conduct a market survey.

We need to know, is this a demand? Is there a market for this? Are customers willing to use this product or use this service?

The fourth one is to plan the business organization and operations. What is the structure, what kind of resources do we need? What kind of staffing requirements do we have?

We also want to prepare an opening day balance sheet. What are the…how again, what are the expenses, what’s the revenue and to ensure that being able to determine if we’re gonna make our ROI.

So we want to review and analyze all of the data that we have and with that, we’re going to determine, we’re going to make a go, no-go decision. Meaning, are we going to do this project or this business opportunity or not.

Well, here are some of the best practices to use during your feasibility study.

One is to use templates, tools and surveys that exist today. The great news is, data is becoming more and more prevalent. There are all kinds of technologies. There are groups that they do nothing but research. Things that we can leverage today.

We want to involve the appropriate stakeholders to ensure that input is being considered from the different people involved.

We also want to use again the market research to ensure we’re bringing in good, reliable data.

Do your homework, meaning act like is if this is your project, if it’s your money. So do your homework and do it well and make sure you give credible data.

What Is a Feasibility Report?

So ultimately in the end what we’re doing is, we’re producing and we’re providing a feasibility report. So in that report, think of this is like a template.

So what you’re gonna do is give it an executive summary of the business opportunity that you’re evaluating and the description of the product or the service.

You want to look at different technology considerations. Is it technology that you’re going to use? Are you going to build the technology?

What kind of product and service marketplace and being able again, to identify the specific market you’re going to be targeting? Also, what is the marketing strategy you’re going to use to target the marketplace?

And also what’s the organizational structure? What are the staffing requirements? What people do you need to deliver the product or service and even support it?

So also we want to know the schedule to be able to have the milestones to ensure that as we’re building things, that as we’re spending money that we’re beginning to bring in income to pay and knowing when we’re going to start recuperating some of the funding. Again, which also ties into the financial projections.

Ultimately in this report, you’re going to provide the findings and the recommendations.

Again, we’ll probably talk about technology. Are you going to build it? Are you going to buy it? What are the marketing strategies for the specific marketplace organization? You may have some recommendations for whether you’re going to insource the staff, maybe you are going to outsource some staff and what that looks like and also financial recommendation.

If you’ve been looking for an all-in-one tool that can help with your feasibility study, consider ProjectManager. We offer five project views and countless features that make it seamless to plan projects, organize tasks and stay connected with your team. See what our software can do for you by taking this free 30-day trial.

Deliver your projects on time and under budget

Start planning your projects.

• Search Search Please fill out this field.

What Is a Feasibility Study?

Understanding a feasibility study, how to conduct a feasibility study.

• Feasibility Study FAQs

The Bottom Line

• Business Essentials

Feasibility Study

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

A feasibility study is a detailed analysis that considers all of the critical aspects of a proposed project in order to determine the likelihood of it succeeding.

Success in business may be defined primarily by return on investment , meaning that the project will generate enough profit to justify the investment. However, many other important factors may be identified on the plus or minus side, such as community reaction and environmental impact.

Although feasibility studies can help project managers determine the risk and return of pursuing a plan of action, several steps should be considered before moving forward.

Key Takeaways

• A company may conduct a feasibility study when it's considering launching a new business, adding a new product line, or acquiring a rival.
• A feasibility study assesses the potential for success of the proposed plan or project by defining its expected costs and projected benefits in detail.
• It's a good idea to have a contingency plan on hand in case the original project is found to be infeasible.

Investopedia / Lara Antal

A feasibility study is an assessment of the practicality of a proposed plan or project. A feasibility study analyzes the viability of a project to determine whether the project or venture is likely to succeed. The study is also designed to identify potential issues and problems that could arise while pursuing the project.

As part of the feasibility study, project managers must determine whether they have enough of the right people, financial resources, and technology. The study must also determine the return on investment, whether this is measured as a financial gain or a benefit to society, as in the case of a nonprofit project.

The feasibility study might include a cash flow analysis, measuring the level of cash generated from revenue versus the project's operating costs . A risk assessment must also be completed to determine whether the return is enough to offset the risk of undergoing the venture.

When doing a feasibility study, it’s always good to have a contingency plan that is ready to test as a viable alternative if the first plan fails.

Benefits of a Feasibility Study

There are several benefits to feasibility studies, including helping project managers discern the pros and cons of undertaking a project before investing a significant amount of time and capital into it.

Feasibility studies can also provide a company's management team with crucial information that could prevent them from entering into a risky business venture.

Such studies help companies determine how they will grow. They will know more about how they will operate, what the potential obstacles are, who the competition is, and what the market is.

Feasibility studies also help convince investors and bankers that investing in a particular project or business is a wise choice.

The exact format of a feasibility study will depend on the type of organization that requires it. However, the same factors will be involved even if their weighting varies.

Preliminary Analysis

Although each project can have unique goals and needs, there are some best practices for conducting any feasibility study:

• Conduct a preliminary analysis, which involves getting feedback about the new concept from the appropriate stakeholders
• Analyze and ask questions about the data obtained in the early phase of the study to make sure that it's solid
• Conduct a market survey or market research to identify the market demand and opportunity for pursuing the project or business
• Write an organizational, operational, or business plan, including identifying the amount of labor needed, at what cost, and for how long
• Prepare a projected income statement, which includes revenue, operating costs, and profit
• Prepare an opening day balance sheet
• Identify obstacles and any potential vulnerabilities, as well as how to deal with them
• Make an initial "go" or "no-go" decision about moving ahead with the plan

Suggested Components

Once the initial due diligence has been completed, the real work begins. Components that are typically found in a feasibility study include the following:

• Executive summary : Formulate a narrative describing details of the project, product, service, plan, or business.
• Technological considerations : Ask what will it take. Do you have it? If not, can you get it? What will it cost?
• Existing marketplace : Examine the local and broader markets for the product, service, plan, or business.
• Marketing strategy : Describe it in detail.
• Required staffing : What are the human capital needs for this project? Draw up an organizational chart.
• Schedule and timeline : Include significant interim markers for the project's completion date.
• Project financials .
• Findings and recommendations : Break down into subsets of technology, marketing, organization, and financials.

Examples of a Feasibility Study

Below are two examples of a feasibility study. The first involves expansion plans for a university. The second is a real-world example conducted by the Washington State Department of Transportation with private contributions from Microsoft Inc.

A University Science Building

Officials at a university were concerned that the science building—built in the 1970s—was outdated. Considering the technological and scientific advances of the last 20 years, they wanted to explore the cost and benefits of upgrading and expanding the building. A feasibility study was conducted.

In the preliminary analysis, school officials explored several options, weighing the benefits and costs of expanding and updating the science building. Some school officials had concerns about the project, including the cost and possible community opposition. The new science building would be much larger, and the community board had earlier rejected similar proposals. The feasibility study would need to address these concerns and any potential legal or zoning issues.

The feasibility study also explored the technological needs of the new science facility, the benefits to the students, and the long-term viability of the college. A modernized science facility would expand the school's scientific research capabilities, improve its curriculum, and attract new students.

Financial projections showed the cost and scope of the project and how the school planned to raise the needed funds, which included issuing a bond to investors and tapping into the school's endowment . The projections also showed how the expanded facility would allow more students to be enrolled in the science programs, increasing revenue from tuition and fees.

The feasibility study demonstrated that the project was viable, paving the way to enacting the modernization and expansion plans of the science building.

Without conducting a feasibility study, the school administrators would never have known whether its expansion plans were viable.

A High-Speed Rail Project

The Washington State Department of Transportation decided to conduct a feasibility study on a proposal to construct a high-speed rail that would connect Vancouver, British Columbia, Seattle, Washington, and Portland, Oregon. The goal was to create an environmentally responsible transportation system to enhance the competitiveness and future prosperity of the Pacific Northwest.

The preliminary analysis outlined a governance framework for future decision-making. The study involved researching the most effective governance framework by interviewing experts and stakeholders, reviewing governance structures, and learning from existing high-speed rail projects in North America. As a result, governing and coordinating entities were developed to oversee and follow the project if it was approved by the state legislature.

A strategic engagement plan involved an equitable approach with the public, elected officials, federal agencies, business leaders, advocacy groups, and indigenous communities. The engagement plan was designed to be flexible, considering the size and scope of the project and how many cities and towns would be involved. A team of the executive committee members was formed and met to discuss strategies, lessons learned from previous projects and met with experts to create an outreach framework.

The financial component of the feasibility study outlined the strategy for securing the project's funding, which explored obtaining funds from federal, state, and private investments. The project's cost was estimated to be between $24 billion to $42 billion. The revenue generated from the high-speed rail system was estimated to be between $160 million and $250 million.

The report bifurcated the money sources between funding and financing. Funding referred to grants, appropriations from the local or state government, and revenue. Financing referred to bonds issued by the government, loans from financial institutions, and equity investments, which are essentially loans against future revenue that needs to be paid back with interest.

The sources for the capital needed were to vary as the project moved forward. In the early stages, most of the funding would come from the government, and as the project developed, funding would come from private contributions and financing measures. Private contributors included Microsoft Inc., which donated more than $570,000 to the project.

The benefits outlined in the feasibility report show that the region would experience enhanced interconnectivity, allowing for better management of the population and increasing regional economic growth by $355 billion. The new transportation system would provide people with access to better jobs and more affordable housing. The high-speed rail system would also relieve congested areas from automobile traffic.

The timeline for the study began in 2016 when an agreement was reached with British Columbia to work together on a new technology corridor that included high-speed rail transportation. The feasibility report was submitted to the Washington State land Legislature in December 2020.

What Is the Main Objective of a Feasibility Study?

A feasibility study is designed to help decision-makers determine whether or not a proposed project or investment is likely to be successful. It identifies both the known costs and the expected benefits.

In business, "successful" means that the financial return exceeds the cost. In a nonprofit, success may be measured in other ways. A project's benefit to the community it serves may be worth the cost.

What Are the Steps in a Feasibility Study?

A feasibility study starts with a preliminary analysis. Stakeholders are interviewed, market research is conducted, and a business plan is prepared. All of this information is analyzed to make an initial "go" or "no-go" decision.

If it's a go, the real study can begin. This includes listing the technological considerations, studying the marketplace, describing the marketing strategy, and outlining the necessary human capital, project schedule, and financing requirements.

Who Conducts a Feasibility Study?

A feasibility study may be conducted by a team of the organization's senior managers. If they lack the expertise or time to do the work internally it may be outsourced to a consultant.

What Are the 4 Types of Feasibility?

The study considers the feasibility of four aspects of a project:

Technical: A list of the hardware and software needed, and the skilled labor required to make them work.

Financial: An estimate of the cost of the overall project and its expected return.

Market: An analysis of the market for the product or service, the industry, competition, consumer demand, sales forecasts, and growth projections

Organizational: An outline of the business structure and the management team that will be needed.

Feasibility studies help project managers determine the viability of a project or business venture by identifying the factors that can lead to its success. The study also shows the potential return on investment and any risks to the success of the venture.

A feasibility study contains a detailed analysis of what's needed to complete the proposed project. The report may include a description of the new product or venture, a market analysis, the technology and labor needed, as well as the sources of financing and capital. The report will also include financial projections, the likelihood of success, and ultimately, a go-or-no-go decision.

Washington State Department of Transportation. " Ultra-High-Speed Rail Study ."

Washington State Department of Transportation. " Cascadia Ultra High Speed Ground Transportation Framework for the Future ."

Washington State Department of Transportation. " Ultra-High-Speed Rail Study: Outcomes ."

Washington State Department of Transportation. " Ultra-High-Speed Ground Transportation Business Case Analysis ." Page ii.

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

Market Research and Feasibility Studies

• Project planning |
• How to use a feasibility study in proje ...

How to use a feasibility study in project management

It can be exciting to run a large, complex project that has a huge potential impact on your organization. On the one hand, you’re driving real change. On the other, failure is intimidating. 

What is a feasibility study? 

A feasibility study—sometimes called a feasibility analysis or feasibility report—is a way to evaluate whether or not a project plan could be successful. A feasibility study evaluates the practicality of your project plan in order to judge whether or not you’re able to move forward with the project. 

It does so by answering two questions: 

Does our team have the required tools or resources to complete this project? 

Will there be a high enough return on investment to make the project worth pursuing? 

Feasibility studies are important for projects that represent significant investments for your business. Projects that also have a large potential impact on your presence in the market may also require a feasibility study. 

As the project manager , you may not be directly responsible for driving the feasibility study, but it’s important to know what these studies are. By understanding the different elements that go into a feasibility study, you can better support the team driving the feasibility study and ensure the best outcome for your project.

When should you conduct a feasibility study

A feasibility study should be conducted after the project has been pitched but before any work has actually started. The study is part of the project planning process. In fact, it’s often done in conjunction with a SWOT analysis or project risk assessment , depending on the specific project. 

Feasibility studies help: 

Confirm market opportunities before committing to a project

Narrow your business alternatives

Create documentation about the benefits and detriments of your proposed initiative

Provide more information before making a go/no go decision

You likely don’t need a feasibility study if:

You already know the project is feasible

You’ve run a similar project in the past

Your competitors are succeeding with a similar initiative in market

The project is small, straightforward, and has minimal long-term business impact

Your team ran a similar feasibility study within the past three years

One thing to keep in mind is that a feasibility study is not a project pitch. During a project pitch, you’re evaluating whether or not the project is a good idea for your company, and whether the goals of the project are in line with your overall strategic plan. Typically, once you’ve established that the project is a good idea, you’d then run a feasibility study to confirm the project is possible with the tools and resources you have at your disposal. 

Feasibility study vs. project charter

A project charter is a relatively informal document to pitch your project to stakeholders. Think of the charter like an elevator pitch of your project objectives, scope, and responsibilities. Typically, your project sponsor or executive stakeholders reviews the charter before ratifying the project. 

A feasibility study should be implemented after the project charter has been ratified. This isn’t a document to pitch whether or not the project is in line with your team’s goals—rather, it’s a way to ensure the project is something you and your team can accomplish. 

Feasibility study vs. business case

A business case is a more formalized version of the project charter. While you’d typically create a project charter for small or straightforward initiatives, you should create a business case if you are pitching a large, complex initiative that will make a major impact on the business. This longer, more formal document will also include financial information, and typically involves more senior stakeholders. 

After your business case is approved by relevant stakeholders, you’d then run a feasibility study to make sure the work is doable. If you find it isn’t, you might return to your executive stakeholders and request more resources, tools, or time in order to ensure your business case is feasible.

Feasibility study vs. business plan

A business plan is a formal document of your organization’s goals. You typically write a business plan when founding your company, or when your business is going through a significant shift. Your business plan informs a lot of other business decisions, including your three to five year strategic plan . 

As you implement your business and strategic plan, you’ll invest in individual projects. A feasibility study is a way to evaluate the practicality of any given individual project or initiative. 

4 elements of a feasibility analysis

There are four main elements that go into a feasibility study: technical feasibility, financial feasibility, market feasibility (or market fit), and operational feasibility. You may also see these referred to as the four types of feasibility studies, though most feasibility studies actually include a review of all four elements. 

Technical feasibility

A technical feasibility study reviews the technical resources available for your project. This study determines if you have the right equipment, enough equipment, and the right technical knowledge to complete your project objectives . For example, if your project plan proposes creating 50,000 products per month, but you can only produce 30,000 products per month in your factories, this project isn’t technically feasible. 

Financial feasibility

Financial feasibility describes whether or not your project is fiscally viable. A financial feasibility report includes a cost/benefit analysis of the project. It also forecasts an expected return on investment (ROI), as well as outlines any financial risks. The goal at the end of the financial feasibility study is to understand the economic benefits the project will drive. 

Market feasibility

The market feasibility study is an evaluation of how your team expects the project’s deliverables to perform in the market. This part of the report includes a market analysis, market competition breakdown, and sales projections. 

Operational feasibility

An operational feasibility study evaluates whether or not your organization is able to complete this project. This includes staffing requirements, organizational structure, and any applicable legal requirements. At the end of the operational feasibility study, your team will have a sense of whether or not you have the resources, skills, and competencies to complete this work. 

Feasibility study checklist

Most feasibility studies are structured in a similar way. These documents serve as an assessment of the practicality of a proposed business idea. Creating a clear feasibility study helps project stakeholders during the decision making process. 

A feasibility study contains: 

An executive summary describing the project’s overall viability

A description of the product or service being developed during this project

Any technical considerations , including technology, equipment, or staffing

The market survey , including a study of the current market and the marketing strategy 

The operational feasibility study , evaluating whether or not your team’s current organizational structure can support this initiative

The project timeline

Financial projections based on your financial feasibility report

6 steps to conduct a feasibility study

You likely won’t be conducting the feasibility study yourself, but you will probably be called on to provide insight and information. To conduct a feasibility study, hire a trained consultant or, if you have an in-house project management office (PMO) , ask if they take on this type of work. In general, here are the steps they’ll take to complete this work: 

1. Run a preliminary analysis

Creating a feasibility study is a time-intensive process. Before diving into the feasibility study, it’s important to evaluate the project for any obvious and insurmountable roadblocks. For example, if the project requires significantly more budget than your organization has available, you likely won’t be able to complete it. Similarly, if the project deliverables need to be live and in market by a certain date, but they won’t be available for several months after the fact, the project likely isn’t feasible either. These types of large-scale obstacles make a feasibility study unnecessary, because it’s clear the project is not viable. 

2. Evaluate financial feasibility

Think of the financial feasibility study as the projected income statement for the project. This part of the feasibility study clarifies the expected project income and outlines what your organization needs to invest—in terms of time and money—in order to hit the project objectives. 

During the financial feasibility study, take into account whether or not the project will impact your business's cash flow. Depending on the complexity of the initiative, your internal PMO or external consultant may want to work with your financial team to run a cost-benefit analysis of the project. 

3. Run a market assessment

The market assessment, or market feasibility study, is a chance to identify the demand in the market. This study offers a sense of expected revenue for the project, and any potential market risks you could run into. 

The market assessment, more than any other part of the feasibility study, is a chance to evaluate whether or not there’s an opportunity in the market. During this study, it’s critical to evaluate your competitor’s positions and analyze demographics to get a sense of how the project will do. 

4. Consider technical and operational feasibility

Even if the financials are looking good and the market is ready, this initiative may not be something your organization can support. To evaluate operational feasibility, consider any staffing or equipment requirements this project needs. What organizational resources—including time, money, and skills—are necessary in order for this project to succeed? 

Depending on the project, it may also be necessary to consider the legal impact of the initiative. For example, if the project involves developing a new patent for your product, you will need to involve your legal team and incorporate that requirement into the project plan. 

5. Review project points of vulnerability

At this stage, your internal PMO team or external consultant have looked at all four elements of your feasibility study—financials, market analysis, technical feasibility, and operational feasibility. Before running their recommendations by you and your stakeholders, they will review and analyze the data for any inconsistencies. This includes ensuring the income statement is in line with your market analysis. Similarly, now that they’ve run a technical feasibility study, are any liabilities too big of a red flag? (If so, create a contingency plan !) 

Depending on the complexity of your project, there won’t always be a clear answer. A feasibility analysis doesn’t provide a black and white decision for a complex problem. Rather, it helps you come to the table with the right questions—and answers—so you can make the best decision for your project and for your team. 

6. Propose a decision

The final step of the feasibility study is an executive summary touching on the main points and proposing a solution. 

Depending on the complexity and scope of the project, your internal PMO or external consultant may share the feasibility study with stakeholders or present it to the group in order to field any questions live. Either way, with the study in hand, your team now has the information you need to make an informed decision. 

Achieve project success with Asana

Done with your feasibility study? You’re ready to run a project! Set your project up for success by tracking your progress in a work management tool , like Asana. From the small stuff to the big picture, Asana organizes work so teams know what to do, why it matters, and how to get it done. 

Related resources

How to track utilization rate and drive team profitability

How to accomplish big things with long-term goals

Smooth product launches are simpler than you think

What is stakeholder analysis and why is it important?

Feasibility Study Blueprint for Project Success & Beyond

Discover the power of feasibility studies and learn how to create a strong project blueprint. Explore the steps, examples, and benefits of feasibility studies.

Imagine investing time, effort, and capital into a project only to realize it's rotten with flaws and limitations. The consequences can be detrimental, ranging from financial setbacks to damaged reputations.

Enter the feasibility study — an indispensable tool to evaluate your project and any risks. A feasibility study helps plan flawless products and services and address limitations early.

In this blueprint, we explore the power of feasibility studies and unveil the steps for creating one. We'll guide you through the principles and best practices and show you examples.

Let's jump right in.

What is a feasibility study?

A feasibility study looks at a project’s potential before spending resources.

Consider it a detective’s investigation that uncovers potential problems you could face and if it’s worth it.

The key parts of a feasibility study include:

• Analyzing the project's technical needs
• Checking if it makes financial sense
• Identifying risks and challenges
• And considering any legal or rule-related factors

Let’s say your new business venture is to open a gym. Here; a feasibility study would involve the following:

• Examining the location
• Estimating the initial investment required
• Analyzing the target market
• Assessing competition

It'd also consider factors like zoning regulations, environmental impact, and potential risks.

When do you need a feasibility study?

A feasibility study happens before starting work on a project to assess its viability. However, let’s first focus on situations outside of project management where a feasibility study comes into play.

Entrepreneurs use feasibility studies to decide if their new business or product ideas are realistic and can be done. These studies are also called business plans in this setting.

In construction, a feasibility study is a part of valuing the practicality of projects. They use it to identify  resources needed vs. available , the overall cost, and return on investment (ROI).

Feasibility studies are also common in market entry strategies. Here they study market conditions, competition, and user stories.

In these scenarios, they can also fulfill the role of an investment proposal tool or a  plan of action  to guide ventures later.

When do you need a feasibility study in project management?

In project management, you should do the feasibility study after pitching the project but before starting.

‎In project management, feasibility studies help highlight whether the project aligns with the business’s  goals . It also helps them to see if they can accomplish the goals within the given constraints.

In Agile project management, feasibility studies may differ, but the purpose remains the same. For  Agile  feasibility studies, the focus is more concentrated and lightweight than in traditional methodologies. They are carried out before the initial project iteration and then done as the project progresses.

However, in certain projects and situations, a feasibility study isn’t necessary. These are:

• If the project is of a trivial or mundane nature.
• When the project has extensive research and validity behind it.

What benefits are there with a feasibility study?

Other than the stated advantage of clarity before tackling a project, this study has many other benefits. Let's explore these advantages a little deeper.

Risk reduction:  Feasibility studies help spot potential risks and challenges early on.

Efficient use of resources:  Doing a feasibility study lets managers see how they might use resources. And whether the resources needed would be made available. They can then plan the resource allocation (once the ball gets rolling).

Smart decision-making:  This research can give you the knowledge you need to make wise project choices in the future.

Financial planning:  Feasibility studies help managers ‌estimate costs, predict income, and check ROI.

Meeting rules:  Feasibility studies look at a project's legal and compliance aspects (often overlooked). Doing this early instead of at a product launch can save countless headaches.

It helps gain support from important stakeholders:  Showing them a well-thought-out plan will help you to gain their confidence and set their expectations early.

4 types of feasibility studies

Feasibility studies come in 4 different types, each geared at helping you know what you are getting into.

‎Let's explore the four main types.

Financial feasibility

A financial feasibility study determines whether a project is financially viable and can make enough profit. It looks at the costs, revenues, and financial implications of the whole project.

Let's look at an example financial feasibility study for a new Italian restaurant. It’d center around the costs of ingredients, rent, equipment, and employee salaries and compare them to projected profit.

Market feasibility

Market feasibility studies assess the potential market demand and acceptance for a product or service. They examine market size, customer preferences, competition, and market trends.

For instance, a market feasibility study for the restaurant might analyze the demand for similar cuisine. They could study consumer preferences for Italian dishes and preferred pricing. Doing this will also help the restaurant avoid overstocking products (ingredients) because they can anticipate the level of demand.

Technical feasibility

Technical feasibility studies determine the likelihood of success from a technical perspective. They assess factors like available technology, required resources, and technical expertise.

Let’s continue with the restaurant example and see how the technical study looks. The study will check if launching the restaurant is possible within the specified timeframe. It will also check if the necessary stoves are available and if the head chef has the required cooking skills.

Operational feasibility

Operational feasibility determines whether businesses can implement the project within themselves. It examines available resources, required skills, and existing infrastructure.

Let’s imagine the restaurant is planning to introduce a delivery service. The study would assess if the restaurant has enough staff for delivery (or would outsource it) and if the kitchen can handle additional orders. It can also check if the planned POS system can integrate with the delivery platform.

Conduct a feasibility study in 8 steps

Next up, let’s look at how to conduct a complete feasibility study. We’ve broken down the general process into eight steps, which you can apply across most industries.

1. Gather the data (pre-analysis)

Gathering relevant data and information is a prerequisite for a successful feasibility study.

Here, you focus on collecting the necessary facts and details to analyze and use in the study later. Focus on data that applies to the four types of feasibility studies and gather the information you need for each of those.

You can gather primary data by conducting firsthand surveys, interviews, or observations. You can also get secondary data from existing sources like reports, databases, or industry publications.

Using both sources gives you a more comprehensive understanding of the project's feasibility.

2. Conduct market analysis

Now let’s go over the bases you need to cover for a market analysis:

• Explore market aspects such as size, trends, customer preferences, and competition.
• Examine current market statistics to understand the potential demand for your product or service.
• Evaluate the competitive landscape to identify existing players and their strategies.

‎For your market feasibility study to be successful, your product or service should be competitive. Your business should also be able to match ‌current market demand (or scale to meet them).

3. Evaluate technical feasibility

Next, assess the technical feasibility of the project requirements and constraints.

Consider factors such as:

• Available technology

Then specify if the required infrastructure and tools are in place or if more is needed. Ask questions like, what impact does missing a few staff have on output and sales? How much downtime can you afford because of technical problems?

Also, use this study to examine potential solutions if needed. For example, can you afford another hire if you don’t have enough staff? How long will it take? Is there a way to avoid delays? Can upskilling a few staff help?

4. Perform financial analysis

Next, evaluate the projected costs, potential revenue streams, and ROI.

Then compare ‌the above against funding sources, timeline, and budget.

5. Assess legal and regulatory factors

Next, evaluate the legal and regulatory aspects that may impact your project's feasibility.

Consider compliance requirements, permits, licenses, and any potential legal obstacles. Try to find reliable outside sources if the need arises to help you do this. It would be a shame if your product or service goes to market only to fail because of poor compliance.

6. Analyze environmental and social impacts

In this step, you should check the environmental and social impact of your proposed business.

‎Think about the project’s influence on environmental regulations and corporate social responsibility. Consider things like resource usage, garbage control and their effect on the public.

7. Identify and evaluate risks

Next, we identify, evaluate, and plan for potential risks and challenges.

Why do a risk analysis in a feasibility study? The answer is that sometimes risks can be too big to take (and cause project failure).

8. Summarize findings and recommendations

Finally, it's time to summarize and give recommendations.

Make the summary concise, as you might use it to give insights to stakeholders and decision-makers.

Let’s use our Italian restaurant example again and assume you conducted a feasibility study. After all the evaluations, you found a high demand for the proposed cuisine. The necessary resources and expertise are available, and the financial projections indicate profitability. However, you did identify the risk of stiff competition in the local area. Based on this, you recommend that the restaurant strategize ways to differentiate itself from competitors.

Examples of feasibility studies

Let’s explore a couple of examples to show you the power of the feasibility study.

Marketing feasibility study

We will illustrate a situation where a firm plans to introduce a new type of product to the market.

To assess  technical feasibility , they analyze factors like software tools and hardware infrastructure.

For  operational feasibility , they determine if they can execute the marketing plan. They check factors like experienced staff availability,  capacity , and potential operational challenges.

In the  financial study , the company would analyze projected costs and potential revenue streams. They consider production, marketing, and ad costs and assess the expected ROI.

For the  market study , they research the audience, trends, and competitors.

Software development feasibility study

Let us shift our focus and contemplate an alternative situation. This organization makes new software for task management and want to know if their new app is a good idea.

In the  technical analysis , they evaluate if they possess the necessary software engineers, coding dialects, and software applications.

For  operational feasibility , they think about staff training, the potential impact on existing systems, and ease of integration.

In the  financial study , they analyze costs such as hiring programmers and ongoing maintenance. They also assess potential revenue streams like software licensing fees or subscriptions.

For the  market study , they research the target market and the competitors.

Motion helps with feasibility studies

Motion is a project management tool that can boost the effectiveness and precision of your feasibility assessment.

The app can help you construct an organized timeline for your studies. With a clear timeline, you can better analyze and plot out the feasibility of the project before doing it.

‎Motion has color-coded tasks and events to track the progress of your feasibility study. It can also manage and track the progress of various tasks and subtasks in your feasibility study.

‎Motion's collaboration features can help coordinate work among team members. It can also share calendars, schedule meetings, and allocate resources for you.

It also has time-blocking features to allocate dedicated time for focused work, analysis, and research.

Sign up now for your  7-day free trial  of Motion.

Related articles

How to Use a Progress Tracker to Deliver Successful Projects

6 Best AI Calendar Assistants for Easy Organization

Understand Project Blockers & How to Transform Them Into Success

Put motion to the test., tech and media companies are talking about motion.

• Software Categories

Get results fast. Talk to an expert now.

855-718-1369

What is a feasibility study: step-by-step guide.

Key takeaways

• A feasibility study is an essential analytical tool that evaluates the viability of a proposed project on multiple fronts, such as financials, technical requirements, and market demand.
• Conducted during the project initiation phase, this type of study serves as an early checkpoint to identify potential roadblocks and assess risks.
• Feasibility studies act as the first line of defense against project failure, saving time, money, and resources.

In this article...

What is a feasibility study?

A feasibility study is an analytical tool used to evaluate the practicality of a proposed project or business idea. It assesses various factors such as financial viability, technical requirements, legal constraints, and market demand. The study aims to answer the question “Are the goals of this project realistically attainable?” by examining data, studies, and other relevant information.

A feasibility study is a crucial step to take before diving into any project and is generally performed during the project initiation phase of project management . It helps identify potential roadblocks, assess risks, and estimate resource allocation; skipping this step can lead to project failure, wasted resources, and financial losses.

Feasibility studies represent one of the many intricacies of project planning . Understanding the other requirements of this crucial step can give you a well-rounded view of how to set your project up for success.

Steps to conduct a feasibility study

Successfully executing a project hinges on thorough planning and risk assessment. Following this step-by-step guide for conducting a feasibility study will help you meticulously evaluate the viability of your project from the outset.

Step 1: Conduct preliminary analysis

This is where you take a good, hard look at your project to determine whether it’s worth pursuing. At this stage, you should also decide if a more detailed feasibility study is necessary.

A few key criteria usually come into play during this initial assessment. First, consider a general sense of the market demand for your project, the resources you have at your disposal, and some ballpark figures for initial costs. If it’s difficult to get clear estimates, it may be worthwhile to invest additional time and resources in a more comprehensive feasibility study. If no significant roadblocks pop up in this preliminary analysis, then you have the green light to proceed.

Some project management software includes useful features that can help you efficiently collect and organize all this data. These features can be very helpful in decision-making, especially when you’re looking at multiple variables.

Step 2: Create a projected income statement

This vital component of the feasibility study involves forecasting the income, expenses, and profitability associated with the proposed project. The projected income statement is akin to peering into a financial crystal ball to see how the numbers might align.

There are several approaches you can take to assess a project’s financial impact. Historical data and industry benchmarks, for example, can serve as reliable guides. These projections are important for assessing financial feasibility and making informed decisions.

The significance of these forecasts cannot be overstated — they help stakeholders understand the project’s potential ROI and ultimately make the go/no-go decision for the project.

Step 3: Survey the market

The market survey stage involves rolling up your sleeves to gather valuable data and insights about your target market(s) and audience(s). Think of it as your project’s reconnaissance mission: You’re scouting the terrain to understand what you’re getting into.

To start, you’ll want to learn your customers’ preferences to see if your project will fulfill a need or solve a problem they currently face. For example, a software company’s research might reveal customer demand for a new feature that aligns with the project’s goals.

Also consider if your project is timely and whether it will make a significant impact now or in the near future, depending on emerging market trends. It may be useful to conduct competitor research as well; knowing what and who you’re up against can help stakeholders decide whether you should move forward with the project and, if so, how you will approach it.

Surveys and interviews are ideal for firsthand quantitative and qualitative data. However, don’t underestimate the power of existing market reports. This preexisting data can offer a broad market landscape view, helping you make data-driven decisions. You can also leverage other research and data collection methods, such as focus groups and publicly available databases like Statista and the U.S. Census Bureau .

Step 4: Review and analyze the data

With all of the necessary information in hand, use tools like a SWOT analysis to evaluate the project’s strengths, weaknesses, opportunities, and threats. A risk assessment is another go-to method that can help you identify potential pitfalls that could derail your project.

At this point in the feasibility study, weigh key metrics and indicators like projected ROI, milestone dates, market penetration rates, and possible vulnerabilities. These gauges, when reviewed in tandem, paint a broader picture of your project’s viability and value.

Step 5: Determine the next steps

Use your research-backed analysis to decide whether the project you’ve proposed is the best way to address the problems it intends to address. If the metrics are favorable and the risks are manageable, you should feel confident advancing to the planning phase. Too many red flags, however, may mean you need to go back to the drawing board.

Here’s a little tech tip to make this decision easier: Many project management software dashboards can compile your key metrics and findings neatly in one visual package. It’s like having a project feasibility snapshot right at your fingertips, which makes it much easier for stakeholders to understand important data and make informed decisions.

Types of feasibility studies

There are different types of feasibility studies that each focus on a unique aspect of projects and project planning . By understanding the nuances of each, you’ll become better equipped to make well-informed decisions, mitigate risks, and ultimately steer your project toward success.

Technical feasibility

Technical feasibility digs into the nuts and bolts of the project. You’re looking at what kind of technology you’ll need, whether it’s available, and if it can be integrated into your current systems. It’s like checking if you have all the ingredients you need before cooking a specific recipe.

Economic feasibility

This study is all about the money — how much the project will cost and what kinds of economic or profitability benefits it will bring forth. With an economic feasibility study, you’re most often doing a cost-benefit analysis to see if the financials add up in your favor. It’s like weighing the pros and cons but in dollar signs. 

Legal feasibility

This is your legal checkpoint. You’re looking at any laws or regulations that might create risks or restrict your project. This feasibility study could also involve checking compliance with industry-specific or regional regulations.

Operational feasibility

An operational feasibility study will help you see how the project fits into your current operations and operational goals and resources. After completing this type of study, you should know if your project will require new workflows and if your team can handle project tasks alongside their current workloads.

This study also evaluates whether the organization has the expertise to accomplish all project goals.

Scheduling feasibility

This feasibility study is all about time. You’re considering how long the project will take and whether you can afford any delays. Gantt charts , a feature commonly found in project management software, can be convenient in this type of study.

These visual timelines allow you to map out the entire project schedule, set milestones, and identify potential bottlenecks. You can also easily see if your project’s timeline is realistic or if you need to make adjustments to avoid delays.

Feasibility study examples

Feasibility studies add value to the project lifecycle across diverse industries. With each of these examples, the feasibility study is a critical preliminary step to identify potential roadblocks and assess the likelihood of project success.

Construction

A construction project feasibility study might focus on land evaluation, zoning laws, and material costs to determine if a new housing development is viable. In this example, the study helps avoid legal snags and ensure profitable land use.

A healthcare feasibility study may assess the demand for a new medical facility in a specific location by looking at factors like local population health statistics and existing healthcare infrastructure. This type of research helps determine whether a new facility would serve the community appropriately and utilize resources effectively.

Information technology

An IT feasibility study might analyze the technical requirements, cost, and market demand for a new software application to understand whether the development effort would offer a reasonable return on investment. This information helps project teams avoid sinking time and money into software that no one wants or needs.

Free feasibility study template

Download our feasibility study template for free:

Why are feasibility studies crucial in project management?

In project management, feasibility studies help you gauge whether your project is a go or a no-go, saving you time, money, and a lot of headaches in the long run. But it’s not just about giving your project a thumbs-up or down.

Feasibility studies are also invaluable for decision-making and risk assessment. They provide the data and insights you need to make informed choices. Whether it’s deciding on the project scope, budget, or timeline, these studies offer a comprehensive view of what you’re up against.

Plus, feasibility studies help you identify potential roadblocks and risks, allowing you to prepare effective contingency plans. Operating with a feasibility study as your project’s foundation is like giving your team both a roadmap and a weather forecast to help you better navigate your project journey.

About the author

Looking for software? Try our Project Management Product Selection Tool

Get FREE Expert Advice

How should our experts reach you?

Learn everything you need to know about What Is a Feasibility Study: Step-by-Step Guide. Our experts will reach out to you shortly.

By clicking the button above, I confirm that I have read and agree to the Terms of Use and Privacy Policy.

• Quantitative Research
• Qualitative Research
• Qual-Quant-Qual
• Communities
• Market Research Consulting
• NewtonX Prime
• All Capabilities
• Advertising Effectiveness
• Brand Awareness Research
• Brand Perception Research
• Brand Tracking Research
• Message Testing
• Competitive Intelligence Research
• Competitive Landscape Analysis
• Go-to-market Research
• Market Entry Research

Market Feasibility Study

• Concept Testing Research
• Conjoint Analysis
• MaxDiff Analysis
• Product Validation Testing
• UX Research
• Customer Journey Research
• Customer Loyalty Research
• Customer Satisfaction Research
• Persona Research
• Pricing Research
• Advertising & Marketing
• Financial Services & Institutions
• Healthcare & Life Sciences
• Hedge Funds
• Higher Education
• Human Resources
• Institutional Investors
• Management Consulting
• Manufacturing
• Media & Internet Publishers
• Private Equity
• Venture Capital
• Why NewtonX
• Case Studies

A NewtonX market feasibility study is the critical competitive intelligence you need to assess the viability of new B2B markets. You get complete due diligence on the complexity of all risks and opportunities before committing resources. 

Join the organizations who have already found success

Market feasibility study services and capabilities

A NewtonX market feasibility study enables you to make an informed decision about entering a new B2B market. Your custom findings help you understand the competitive landscape, regulatory environment, demand, current and future valuation, growth potential, and profitability.

Types of market feasibility studies

As part of your market opportunity analysis and research strategy , NewtonX experts will determine the best types of market feasibility analysis for your business. This includes elements like:

• Assess the level of demand within a target market
• Determine growth potential using market sizing exercises
• Identify industry trends that affect market entry – positively or negatively. 
• Consider legal implications
• Spotlight and mitigate any other risks
• Identify full potential of the new product, audience or market

Importance of performing a market feasibility study

There are two main reasons for initiating a market feasibility study:

• To assess the viability of a product in a specific market.
• To develop a robust go-to-market strategy for a new product entering into a previously untapped market. 

Without solid market feasibility analysis, you’re going in blind. Nobody wants to waste investment and effort in entering a new market that doesn’t deliver enough opportunity.

Having a market feasibility study research partner means that you don’t need to worry about the complexities of the market, finding the right professional minds, language barriers, and navigating cultural considerations. Our NewtonX Knowledge Graph custom recruits from 1.1 billion professionals, in 140 industries across the globe. This gives you the 100% verified data you need to develop successful market entry strategies that align with your objectives and resources. 

• Competitive intelligence (CI) research
• Competitive landscape analysis
• Market entry research
• Go-to-market planning
• Product research
• Persona research

Market feasibility analysis to deliver both scale and specificity

Our technology reaches across 140+ industries to give you the scale of a panel combined with the depth of an expert network.

• Cryptocurrency specialists advising on hedge fund projects 
• Advertising professionals overseeing brand spend
• Reddit users that visit Reddit for NSFW content
• IT decision-makers evaluating cloud software services

NewtonX helps industry innovators turn inquiry into impact.

How we located North America’s most elite real estate agents to glean critical home buying market insights

How NewtonX scouted 5,000 life insurance professionals for product-market fit

How NewtonX helped a top financial services company enter the US fleet industry market

Want to see how newtonx can help you, what is a market feasibility study.

Product and Service Viability

A market feasibility study is a comprehensive analysis that assesses the viability and potential success of a proposed product, service, or business in a specific market. The study involves analyzing the target market, considering economic factors like costs and returns, evaluating technical and operational feasibility, addressing legal and regulatory considerations, conducting a risk analysis, and performing a SWOT analysis. Gathering consumer feedback through surveys and interviews is essential, as is developing financial projections. The study concludes with recommendations based on a balanced assessment of opportunities, risks, and financial considerations, guiding decision-makers on whether to proceed, modify, or abandon the business idea.

What are the benefits of a market feasibility study?

A market feasibility study is a crucial step in the business planning process, offering a comprehensive understanding of the potential market for a product or service. This strategic analysis involves assessing economic viability, identifying risks, and providing valuable insights to guide decision-making. Here are key benefits that make market feasibility studies an indispensable tool for businesses:

Comprehensive Market Understanding

Gain insights into the target market, understanding customer needs and preferences to tailor products or services effectively.

Economic Feasibility Assessment

Evaluate the economic viability of the venture by anticipating costs, projecting revenues, and assessing potential returns on investment.

Risk Identification

Identify potential obstacles and risks, enabling proactive development of strategies to mitigate challenges.

Strategic Planning Tool

Serve as a strategic planning tool, providing valuable data for informed decision-making.

Risk Mitigation

Minimize risks, maximize opportunities, and reduce the likelihood of costly mistakes.

Increased Success Probability

Enhance the overall chances of a successful market entry through informed decision-making.

What are the four types of feasibility?

Evaluating Viability

The four feasibility areas—technical, financial, market, and operational—are crucial aspects in evaluating the viability of a project or business initiative.

Technical Feasibility: Assesses whether the proposed project can be successfully implemented using existing technology and infrastructure. It considers the availability of necessary technology, expertise, and knowledge to accomplish the project’s goals.

Financial Feasibility: Involves a thorough examination of the project’s economic aspects. This includes assessing potential costs and benefits, calculating return on investment (ROI), and determining the overall financial viability of the project.

Market Feasibility: Evaluate the project’s potential within the existing market. It involves analyzing customer needs, demand, competition, and market trends to determine whether there is a viable opportunity for the proposed project.

Operational Feasibility: Focuses on assessing how well the proposed project aligns with current business operations and processes. It considers the practicality of project implementation and ensures alignment with organizational objectives.

By delving into these four key areas, stakeholders gain a comprehensive understanding of the project’s feasibility, enabling well-informed decision-making in the planning and execution phases.

When to perform a market feasibility study?

Before Making Significant Investments

A market feasibility study is a strategic tool that should be conducted at specific junctures in the business development process. It is particularly crucial when contemplating the introduction of a new product or service or entering a new market. Conducting a market feasibility study at the early stages of conceptualization allows businesses to evaluate the viability and potential success of their ideas.

It is advisable to initiate a market feasibility study before making significant investments or allocating resources to ensure that there is a demand for the proposed offering. If there are changes in market conditions, consumer preferences, or regulatory landscapes, it’s also an opportune time to revisit and update existing feasibility studies. In essence, the timing for a market feasibility study aligns with pivotal decision points in a business’s growth trajectory, offering valuable insights to inform strategic planning and minimize risks.

What are the factors of a market feasibility study?

A market feasibility study involves a comprehensive examination of various factors and components to provide a thorough understanding of the market landscape. Each of these components contributes to a holistic understanding of the market feasibility, guiding businesses in making informed decisions and increasing the likelihood of success. Key elements include:

Market Analysis

Assess the current market conditions, size, and trends. Understand the demand for the product or service and identify potential competitors.

Target Audience

Define and profile the target audience. Understand their preferences, needs, and behaviors to tailor offerings effectively.

Regulatory Environment

Examine the regulatory landscape to understand legal requirements, permits, and any potential hurdles that may affect market entry.

Economic Factors

Evaluate economic conditions, including GDP growth, inflation rates, and overall economic stability that may impact business operations.

Technical Feasibility

Analyze the technological requirements and advancements needed for the product or service, ensuring alignment with industry standards.

Operational Feasibility

Assess the practicality of implementing the business plan, considering logistics, resources, and operational processes.

Financial Analysis

Conduct a thorough financial analysis, including cost projections, revenue forecasts, and return on investment (ROI) calculations.

Risk Assessment

Identify potential risks and challenges, both internal and external, and develop strategies to mitigate or address them.

Competitor Analysis

Understand the competitive landscape by analyzing existing competitors, their strengths, weaknesses, and market positioning.

SWOT Analysis

Perform a SWOT analysis to evaluate internal strengths and weaknesses, as well as external opportunities and threats.

Feasibility Recommendations

Provide conclusive recommendations based on the findings, indicating the feasibility and viability of entering the target market.

B2B Market Research Methods for Better Decision Making

The best B2B market research methods depend on the business problem you are trying to solve. These four types of market research each deliver specific benefits, and each has drawbacks. Understanding these will help you

Product-market fit research: How to do market size analysis

How to do market size analysis for product market fit.

Market-Sizing Questions: Frameworks for Estimating Market Demand

Asking market-sizing questions is part of the process of estimating the potential size of a market for a product or service. This information is vital in your go-to-market planning.

Take it from the world’s leading companies.

Newtonx’s platform gives us continued confidence that we’re sourcing the highest quality data to drive critical business decisions., i was really excited when we found newtonx. their custom recruiting has genuinely been a game changer for us in terms of data quality. not only do i have much greater trust in the data, but the variation in the data means i can more easily provide actionable direction for our product and marketing teams without finding myself rationalizing away bad data., got your next question in mind.

NewtonX is the only B2B research company that connects researchers with the exact professionals required to solve any problem.

• Privacy Overview
• Strictly Necessary Cookies

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

• Open access
• Published: 09 May 2024

Examining the feasibility of assisted index case testing for HIV case-finding: a qualitative analysis of barriers and facilitators to implementation in Malawi

• Caroline J. Meek 1 , 2 ,
• Tiwonge E. Mbeya Munkhondya 3 ,
• Mtisunge Mphande 4 ,
• Tapiwa A. Tembo 4 ,
• Mike Chitani 4 ,
• Milenka Jean-Baptiste 2 ,
• Dhrutika Vansia 4 ,
• Caroline Kumbuyo 4 ,
• Jiayu Wang 2 ,
• Katherine R. Simon 4 ,
• Sarah E. Rutstein 5 ,
• Clare Barrington 2 ,
• Maria H. Kim 4 ,
• Vivian F. Go 2 &
• Nora E. Rosenberg 2  

BMC Health Services Research volume  24 , Article number:  606 ( 2024 ) Cite this article

Metrics details

Assisted index case testing (ICT), in which health care workers take an active role in referring at-risk contacts of people living with HIV for HIV testing services, has been widely recognized as an evidence-based intervention with high potential to increase status awareness in people living with HIV. While the available evidence from eastern and southern Africa suggests that assisted ICT can be an effective, efficient, cost-effective, acceptable, and low-risk strategy to implement in the region, it reveals that feasibility barriers to implementation exist. This study aims to inform the design of implementation strategies to mitigate these feasibility barriers by examining “assisting” health care workers’ experiences of how barriers manifest throughout the assisted ICT process, as well as their perceptions of potential opportunities to facilitate feasibility.

In-depth interviews were conducted with 26 lay health care workers delivering assisted ICT in Malawian health facilities. Interviews explored health care workers’ experiences counseling index clients and tracing these clients’ contacts, aiming to inform development of a blended learning implementation package. Transcripts were inductively analyzed using Dedoose coding software to identify and describe key factors influencing feasibility of assisted ICT. Analysis included multiple rounds of coding and iteration with the data collection team.

Participants reported a variety of barriers to feasibility of assisted index case testing implementation, including sensitivities around discussing ICT with clients, privacy concerns, limited time for assisted index case testing amid high workloads, poor quality contact information, and logistical obstacles to tracing. Participants also reported several health care worker characteristics that facilitate feasibility (knowledge, interpersonal skills, non-stigmatizing attitudes and behaviors, and a sense of purpose), as well as identified process improvements with the potential to mitigate barriers.

Conclusions

Maximizing assisted ICT’s potential to increase status awareness in people living with HIV requires equipping health care workers with effective training and support to address and overcome the many feasibility barriers that they face in implementation. Findings demonstrate the need for, as well as inform the development of, implementation strategies to mitigate barriers and promote facilitators to feasibility of assisted ICT.

Trial registration

NCT05343390. Date of registration: April 25, 2022.

Peer Review reports

Introduction

To streamline progress towards its goal of ending AIDS as a public health threat by 2030, the Joint United Nations Programme on HIV/AIDS (UNAIDS) launched a set of HIV testing and treatment targets [ 1 ]. Adopted by United Nations member states in June 2021, the targets call for 95% of all people living with HIV (PLHIV) to know their HIV status, 95% of all PLHIV to be accessing sustained antiretroviral therapy (ART), and 95% of all people receiving ART to achieve viral suppression by 2025 [ 2 ]. Eastern and southern Africa has seen promising regional progress towards these targets in recent years, and the region is approaching the first target related to status awareness in PLHIV- in 2022, 92% of PLHIV in the region were aware of their status [ 3 ]. However, several countries in the region lag behind [ 4 ], and as 2025 approaches, it is critical to scale up adoption of evidence-based interventions to sustain and accelerate progress.

Index case testing (ICT), which targets provision of HIV testing services (HTS) for sexual partners, biological children, and other contacts of known PLHIV (“index clients”), is a widely recognized evidence-based intervention used to identify PLHIV by streamlining testing efforts to populations most at risk [ 5 , 6 , 7 ]. Traditional approaches to ICT rely on passive referral, in which index clients invite their contacts for testing [ 5 ]. However, the World Health Organization (WHO) and the President’s Emergency Plan for HIV/AIDS Relief (PEPFAR) have both recommended assisted approaches to ICT [ 6 , 8 , 9 , 10 ], in which health care workers (HCWs) take an active role in referral of at-risk contacts for testing, due to evidence of improved effectiveness in identifying PLHIV compared to passive approaches [ 10 , 11 , 12 , 13 , 14 ]. As a result, there have been several efforts to scale assisted ICT throughout eastern and southern Africa in recent years [ 15 , 16 , 17 , 18 , 19 , 20 ]. In addition to evidence indicating that assisted ICT can be effective in increasing HIV testing and case-finding [ 16 , 17 , 21 , 22 , 23 , 24 ], implementation evidence [ 25 ] from the region suggests that assisted ICT can be an efficient [ 14 ], acceptable [ 5 , 13 , 15 , 18 , 20 , 21 , 26 ], cost-effective [ 27 ], and low-risk [ 21 , 22 , 24 , 28 , 29 ] strategy to promote PLHIV status awareness. However, the few studies that focus on feasibility, or the extent to which HCWs can successfully carry out assisted ICT [ 25 ], suggest that barriers exist to feasibility of effective implementation [ 18 , 19 , 20 , 30 , 31 , 32 ]. Developing informed implementation strategies to mitigate these barriers requires more detailed examination of how these barriers manifest throughout the assisted ICT process, as well as of potential opportunities to facilitate feasibility, from the perspective of the HCWs who are doing the “assisting”.

This qualitative analysis addresses this need for further detail by exploring “assisting” HCWs’ perspectives of factors that influence the feasibility of assisted ICT, with a unique focus on informing development of effective implementation strategies to best support assisted ICT delivery in the context of an implementation science trial in Malawi.

This study was conducted in the Machinga and Balaka districts of Malawi. Malawi is a country in southeastern Africa in which 7.1% of the population lives with HIV and 94% of PLHIV know their status [ 4 ]. Machinga and Balaka are two relatively densely populated districts in the southern region of Malawi [ 33 ] with HIV prevalence rates similar to the national average [ 34 ]. We selected Machinga and Balaka because they are prototypical of districts in Malawi implementing Ministry of Health programs with support from an implementing partner.

Malawi has a long-established passive ICT program, and in 2019 the country also adopted an assisted component, known as voluntary assisted partner notification, as part of its national HIV testing policy [ 32 ]. In Malawi, ICT is conducted through the following four methods, voluntarily selected by the index client: 1) passive referral, in which HCWs encourage the index client to refer partners for voluntary HTS, 2) contract referral, in which HCWs establish an informal ‘contract’ with index clients that agrees upon a date that the HCW can contact the contact clients if they have not yet presented for HTS; 3) provider referral, in which HCWs contact and offer voluntary HTS to contact clients; and 3) dual referral, in which HCWs accompany and provide support to index clients in disclosing their status and offering HTS to their partners [ 8 ]. 

While Malawi has one of the lowest rates of qualified clinical HCWs globally (< 5 clinicians per 100,000 people) [ 35 ], the country has a strong track record of shifting HTS tasks to lay HCWs, who have been informally trained to perform certain health care delivery functions but do not have a formal professional/para-professional certification or tertiary education degree, in order to mitigate this limited medical workforce capacity [ 32 , 36 ]. In Malawi, lay HCW roles include HIV Diagnostic Assistants (who are primarily responsible for HIV testing and counseling, including index case counseling) and community health workers (who are responsible for a wider variety of tasks, including index case counseling and contact tracing) [ 32 ]. Non-governmental organization implementing partners, such as the Tingathe Program, play a critical role in harnessing Malawian lay HCW capacity to rapidly and efficiently scale up HTS, including assisted ICT [ 32 , 37 , 38 , 39 ].

Study design

Data for this analysis were collected as part of formative research for a two-arm cluster randomized control trial examining a blended learning implementation package as a strategy for building HCW capacity in assisted ICT [ 40 ]. Earlier work [ 32 ] established the theoretical basis for testing the blended learning implementation package, which combines individual asynchronous modules with synchronous small-group interactive sessions to enhance training and foster continuous quality improvement. The formative research presented in this paper aimed to further explore factors influencing feasibility of the assisted ICT from the perspective of HCWs in order to inform development of the blended learning implementation package.

Prior to the start of the trial (October-December 2021), the research team conducted 26 in-depth interviews (IDIs) with lay HCWs at 14 of the 34 facilities included in the parent trial. We purposively selected different types of facilities (hospitals, health centers, and dispensaries) in both districts and from both randomization arms, as this served as a qualitative baseline for a randomized trial. Within these facilities, we worked with facility supervisors to purposively select HCWs who were actively engaged in Malawi’s ICT program from the larger sample of HCWs eligible for the parent trial (had to be at least 18 years old, employed full-time at one of the health facilities included in the parent trial, and involved in counseling index clients and/or tracing their contacts). The parent trial enrolled 306 HCWs, who were primarily staff hired by Tingathe Program to support facilities implementing Malawi’s national HIV program.

Data collection

IDIs were conducted by three trained Malawian interviewers in a private setting using a semi-structured guide. IDIs were conducted over the phone when possible ( n  = 18) or in-person at sites with limited phone service ( n  = 8). The semi-structured guide was developed for this study through a series of rigorous, iterative discussions among the research team (Additional file 1 ). The questions used for this analysis were a subset of a larger interview. The interview guide questions for this analysis explored HCWs’ experiences with assisted ICT, including barriers and facilitators to implementation. Probing separately about the processes of counseling index clients and tracing their contacts, interviewers asked questions such as “What is the first thing that comes to mind when you think of counseling index clients/tracing contacts?”, “What aspects do you [like/not like] about…?” and “What do your colleagues say about…?”. When appropriate, interviewers probed further about how specific factors mentioned by the participant facilitate or impede the ICT implementation experience.

The IDIs lasted from 60–90 min and were conducted in Chichewa, a local language in Malawi. Eleven audio recordings were transcribed verbatim in Chichewa before being translated into English and 15 recordings were directly translated and transcribed into English. Interviewers summarized each IDI after it was completed, and these summaries were discussed with the research team routinely.

Data analysis

The research team first reviewed all of the interview summaries individually and then met multiple times to discuss initial observations, refining the research question and scope of analysis. A US-based analyst (CJM) with training in qualitative analysis used an inductive approach to develop a codebook, deriving broad codes from the implementation factors mentioned by participants throughout their interviews. Along with focused examination of the transcripts, she consulted team members who had conducted the IDIs with questions or clarifications. CJM regularly met with Malawian team members (TEMM, MM, TAT) who possess the contextual expertise necessary to verify and enhance meaning. She used the Dedoose (2019) web application to engage in multiple rounds of coding, starting with codes representing broad implementation factors and then further refining the codebook as needed to capture the nuanced manifestations of these barriers and facilitators. Throughout codebook development and refinement, the analyst engaged in memoing to track first impressions, thought processes, and coding decisions. The analyst presented the codebook and multiple rounds of draft results to the research team. All transcripts and applied codes were also reviewed in detail by additional team members (MJB, DV). Additional refinements to the codebook and results interpretations were iteratively made based on team feedback.

Ethical clearance

Ethical clearance was provided by UNC’s IRB, Malawi’s National Health Sciences Research Committee, and the Baylor College of Medicine IRB. Written informed consent was obtained from all participants in the main study and interviewers confirmed verbal consent before starting the IDIs.

Participant characteristics are described in Table  1 below.

Factors influencing feasibility of assisted ICT: barriers and facilitators

Participants described a variety of barriers and facilitators to feasibility of assisted ICT, manifesting across the index client counseling and contact client tracing phases of the implementation process. Identified barriers included sensitivities around discussing ICT with clients, privacy concerns, limited time for ICT amid high workloads, poor quality contact information, and logistical obstacles to tracing. In addition to these barriers, participants also described several HCW characteristics that facilitated feasibility: ICT knowledge, interpersonal skills, positive attitudes towards clients, and sense of purpose. Barriers and facilitators are mapped to the ICT process in Fig.  1 and described in greater detail in further sections.

Conceptual diagram mapping feasibility barriers and facilitators to the ICT process

Feasibility barriers

Sensitivities around discussing ict with clients.

Participants described ICT as a highly sensitive topic to approach with clients. Many expressed a feeling of uncertainty around how open index clients will be to sharing information about their contacts, as well as how contacts will react when approached for HTS. When asked about difficult aspects of counseling index clients, many HCWs mentioned clients’ hesitance or declination to participate in assisted ICT and share their contacts. Further, several HCWs mentioned that some index clients would provide false contact information. These index client behaviors were often attributed to confidentiality concerns, fear of unwanted status disclosure, and fear of the resulting implications of status disclosure: “They behave that way because they think you will be telling other people about their status…they also think that since you know it means their life is done, you will be looking at them differently .” Populations commonly identified as particularly likely to hesitate, refuse, or provide false information included youth (described as “ shy ” “ thinking they know a lot ” and “ difficult to reveal their contacts ”) and newly diagnosed clients (“it may be hard for them to accept [their HIV diagnosis]” ). One participant suggested that efforts to pair index clients with same-sex HCWs could make them more comfortable to discuss their contacts.

When asked about the first things that come to mind when starting to trace contacts, many participants discussed wondering how they will be received by the contact and preparing themselves to approach the contact. When conducting provider or contract referral, HCWs described a variety of challenging reactions that can occur when they approach a contact for HTS- including delay or refusal of testing, excessive questioning about the identity of the index client who referred them for testing, and even anger or aggression. Particularly mentioned in the context of male clients, these kinds of reactions can lead to stress and uncertain next steps for HCWs: “I was very tensed up. I was wondering to myself what was going to happen…he was talking with anger.”

Participants also noted the unique sensitivities inherent in conducting dual referral and interacting with sexual partners of index clients, explaining that HIV disclosure can create acute conflict in couples due to perceived blame and assumptions of infidelity. They recounted these scenarios as particularly difficult to navigate, with high stakes that require high-quality counseling skills: “sometimes if you do not have good counseling the marriage happens to get to an end.” . Some participants discussed concern about index client risk of intimate partner violence (IPV) upon partner disclosure: “they think that if they go home and [disclose their HIV status], the marriage will end right there, or for some getting to a point of [being] beaten.”

Privacy concerns

Participants also reported that clients highly value privacy, which can be difficult to secure throughout the ICT process. In the facility, while participants largely indicated that counseling index clients was much more successful when conducted in a private area, many reported limited availability of private counseling space. One participant described this challenge: “ if I’m counseling an index client and people keep coming into the room…this compromises the whole thing because the client becomes uncomfortable in the end.” Some HCWs mentioned working around this issue through use of screens, “do-not-disturb” signs, outdoor spots, and tents.

Participants also noted maintaining privacy as a challenge when tracing contact clients in the field, as they sometimes find clients in a situation that is not conducive to private conversations. One participant described: “ we get to the house and find that there are 4, 5 people with our [contact client]…it doesn’t go well…That is a mission gone wrong. ” Participants also noted that HCWs are also often easily recognizable in the community due to their bikes and cars, which exacerbates the risk of compromising privacy. To address privacy challenges in the community, participants reported strategies to increase discretion, including dressing to blend in with the community, preparing an alternate reason to be looking for the client, and offering HTS to multiple people or households to avoid singling out one person.

Limited time for ICT amid high workloads

Some participants indicated that strained staffing capacity leads HCWs to have to perform multiple roles, expressing challenges in balancing their ICT work with their other tasks. As one participant described, “Sometimes it is found that you are assigned a task here at the hospital to screen anyone who comes for blood testing, but you are also supposed to follow up [with] the contacts the same day- so it becomes a problem…you fail to follow up [with] the contacts.” Some also described being the only, or one of few staff responsible for ICT: “You’re doing this work alone, so you can see that it is a big task to do it single-handedly.” The need to counsel each index client individually, as a result of confidentiality concerns, further increases workload for the limited staff assigned to this work. Further, HCWs often described contact tracing in the field as time-consuming and physically taxing, which leaves them less time and energy for counseling. Many HCWs noted the need to hire more staff dedicated to ICT work.

High workloads also resulted in shorter appointments and less time to counsel index clients, which participants reported limits the opportunity for rapport that facilitates openness or probes for detailed information about sexual partners. Participants emphasized the importance of having enough time to meaningfully engage with index clients: “For counseling you cannot have a limit to say, ‘I will talk to him for 5 min only.’ …That is not counseling then. You are supposed to stay up until…you feel that this [person] is fulfilled.” . In addition, high workload can reduce the capacity of HCWs to deliver quality counseling: “So you find that as you go along with the counseling, you can do better with the first three clients but the rest, you are tired and you do short cuts.”

High workloads also lead to longer queues, which may deter clients from coming into the clinic or cause them to leave before receiving services: “Sometimes because of shortage of staff, it happens that you have been assigned a certain task that you were supposed to do but at the same time there are clients who were supposed to be counseled. As a result, because you spent more time on the other task as a result you lose out some of the clients because you find that they have gone.” In response to long queues, several participants described ‘fast-tracking’ contact clients who come in for HTS in effort to maximize case-finding by prioritizing those who have been identified as at risk of HIV.

Poor quality contact information

Participants repeatedly discussed the importance of eliciting accurate information about a person’s sexual partners, including where, when, and how to best contact them. As one participant said, “ Once the index has given us the wrong information then everything cannot work, it becomes wrong…if he gives us full information [with] the right details then everything becomes successful and happens without a problem. ” Adequate information is a critical component of the ICT process, and incorrect or incomplete information delays or prevents communication with contact clients.

Inadequate information, which can include incorrect or incomplete names, phone numbers, physical addresses, and contextual details, can arise from a variety of scenarios. Most participants mentioned index clients providing incorrect information as a concern. This occurred either intentionally to avoid disclosure or unintentionally if information was not known. Poor quality contact information also results from insufficient probing and poor documentation, which is often exacerbated by aforementioned HCW time and energy constraints. In one participant’s words, “The person who has enlisted the contact…is the key person who can make sure that our tracing is made easy.” Participants noted the pivotal role of the original HCW who first interacts with the index client in not only eliciting correct locator information but also eliciting detailed contextual information. For example, details about a contact client’s profession are helpful to trace the client at a time when they will likely be at home. Other helpful information included nicknames, HIV testing history, and notes about confidentiality concerns.

Logistical obstacles to tracing

Some contact clients are reached by phone whereas others must be physically traced in the community. Some participants reported difficulty with tracing via phone, frequently citing network problems and lack of sufficient airtime allocated by the facility. Participants also reported that some clients were unreachable by phone, necessitating physical tracing. Physically tracing a contact client requires a larger investment of resources than phone tracing, especially when the client lives at a far distance from the clinic. Participants frequently discussed having to travel far distances to reach contact clients, an issue some saw as exacerbated by people who travel to clinics at far distances due to privacy concerns.

While most participants reported walking or biking to reach contact clients in the community, some mentioned using a motorcycle or Tingathe vehicle. However, access to vehicles is often limited and these transportation methods require additional expenses for fuel. Walking or biking was also reported to expose HCWs to inclement weather, including hot or rainy seasons, and potential safety risks such as violence.

Participants reported that traveling far distances can be physically taxing and time-consuming, sometimes rendering them too tired or busy to attend to other tasks. Frequent travel influenced HCW morale, particularly when a tracing effort did not result in successfully recruiting a contact client. Participants frequently described this perception of wasted time and energy as “ painful ”, with the level of distress often portrayed as increasing with the distance travelled. As one HCW said, “You [can] find out that he gave a false address. That is painful because it means you have done nothing for the person, you travelled for nothing.”

HCWs described multiple approaches used to strategically allocate limited resources for long distances. These approaches included waiting to physically trace until there are multiple clients in a particular area, reserving vehicle use for longer trips, and coordinating across HCWs to map out contact client locations. HCWs also mentioned provision of rain gear and sun protection to mitigate uncomfortable travel. Another approach involved allocating contact tracing to HCWs based in the same communities as the contact clients.

Feasibility facilitators

Hcw knowledge about ict.

Participants reported that HCWs with a thorough understanding of ICT’s rationale and purpose can facilitate client openness. Clients were more likely to engage with HCWs about assisted ICT if they understood the benefits to themselves and their loved ones. One HCW stated, “If the person understands why we need the information, they will give us accurate information.”

Participants also discussed the value of deep HCW familiarity with ICT procedures and processes, particularly regarding screening clients for IPV and choosing referral method. One participant described the importance of clearly explaining various referral methods to clients: “So…people come and choose the method they like…when you explain things clearly it is like the index client is free to choose a method which the contact can use for testing”. Thorough knowledge of available referral methods allows HCWs to actively engage with index clients to discuss strategies to refer contacts in a way that fits their unique confidentiality needs, which was framed as particularly important when IPV is identified as a concern. Multiple participants suggested the use of flipcharts or videos, saying these would save limited HCW time and energy, fill information gaps, and provide clients with a visual aid to supplement the counseling. Others suggested recurring opportunities for training, to continuously “refresh” their ICT knowledge in order to facilitate implementation.

HCW interpersonal skills

In addition, HCWs’ ability to navigate sensitive conversations about HIV was noted as a key facilitator of successful implementation. Interpersonal skills were mentioned as mitigating the role’s day-to-day uncertainty by preparing HCWs to engage with clients, especially newly diagnosed clients: “ I need to counsel them skillfully so that they understand what I mean regardless that they have just tested positive for HIV.”

When discussing strategies to build HCW skills in counseling index clients and tracing contact clients, participants suggested establishing regular opportunities to discuss challenges and share approaches to address these challenges: “ I think that there should be much effort on the [HCWs] doing [ICT]. For example, what do I mean, they should be having a meeting with the facility people to ask what challenges are you facing and how can we end them?”. Another participant further elaborated, saying “We should be able to share experiences with our [colleagues] so that we can all learn from one another. And also, there are other people who are really brilliant at their job. Those people ought to come visit us and see how we are doing. That is very motivating.”

HCW non-stigmatizing attitudes and behaviors

Participants also highlighted the role of empathy and non-judgement in building trust with clients: “ Put yourself in that other person’s shoes. In so doing, the counseling session goes well. Understanding that person, that what is happening to them can also happen to you. ”. Participants viewed trust-building as critical to facilitating client comfort and openness: “if they trust you enough, they will give you the right information.” Further, participants associated HCW assurance of confidentiality with promoting trust and greater information sharing: “ Also assuring them on the issue of confidentiality because confidentiality is a paramount. If there will not be confidentiality then the clients will not reveal.”

HCW sense of purpose

Lastly, several participants reported that a sense of purpose and desire to help people motivated them to overcome the challenges of delivering assisted ICT. One participant said, “ Some of these jobs are a ministry. Counseling is not easy. You just need to tell yourself that you are there to help that person. ” Many seemed to take comfort in the knowledge that their labors, however taxing, would ultimately allow people to know their status, take control of their health, and prevent the spread of HIV. Participants framed the sense of fulfillment from successful ICT implementation as a mitigating factor amidst challenges: “ If [the contact client] has accepted it then I feel that mostly I have achieved the aim of being in the health field…that is why it is appealing to me ”.

Participants described a variety of barriers to assisted ICT implementation, including sensitivities around discussing ICT with clients, privacy concerns, limited time for ICT amid high workloads, poor quality contact information, and logistical obstacles to tracing. These barriers manifested across each step of the process of counseling index clients and tracing contacts. However, participants also identified HCW characteristics and process improvements that can mitigate these barriers.

Further, participants’ descriptions of the assisted ICT process revealed the intimately interconnected nature of factors that influence feasibility of assisted ICT. Sensitivities around HIV, privacy limitations, time constraints, and HCW characteristics all contribute to the extent to which counseling index clients elicits adequate information to facilitate contact tracing. Information quality has implications for HCW capacity, as inadequate information can lead to wasted resources, including HCW time and energy, on contact tracing. The opportunity cost of wasted efforts, which increases as the distance from which the contact client lives from the clinic increases, depletes HCW morale. The resulting acceleration of burnout, which is already fueled by busy workloads and the inherent uncertainty of day-to-day ICT work, further impairs HCW capacity to effectively engage in quality counseling that elicits adequate information from index clients. This interconnectedness suggests that efforts to mitigate barriers at any step of the assisted ICT process may have the potential to ripple across the whole process.

Participants’ descriptions of client confidentiality and privacy concerns, as well as fear of consequences of disclosure, align with previous studies that emphasize stigma as a key barrier to assisted ICT [ 15 , 18 , 19 , 20 , 30 , 31 ] and the overall HIV testing and treatment cascade [ 41 ]. Our findings suggest that anticipated stigma, or the fear of discrimination upon disclosure [ 42 ], drives several key barriers to feasibility of assisted ICT implementation. Previous studies also highlight the key role of HCWs in mitigating barriers related to anticipated stigma; noting the key role of HCW ICT knowledge, interpersonal skills, and non-stigmatizing attitudes/behaviors in securing informed consent from clients for ICT, tailoring the referral strategy to minimize risk to client confidentiality and safety, building trust and rapport with the client, and eliciting accurate contact information from index clients to facilitate contact tracing [ 18 , 19 , 20 , 30 ].

Our findings also reflect previous evidence of logistical challenges related to limited time, space, and resources that can present barriers to feasibility for HCWs [ 18 , 19 , 20 , 30 , 31 ]. Participants in the current study described these logistical challenges as perpetuating HCW burnout, making it harder for them to engage in effective counseling. Cumulative evidence of barriers across different settings (further validated by this study) suggests that assisted ICT implementation may pose greater burden on HCWs than previously thought [ 7 ]. However, our findings also suggest that strategic investment in targeted implementation strategies has the potential to help overcome these feasibility barriers.

In our own work, these findings affirmed the rationale for and informed the development of the blended learning implementation package tested in our trial [ 40 , 43 ]. Findings indicated the need for evidence-based training and support to promote HCW capacity to foster facilitating characteristics. Participants discussed the value of "refresher" opportunities in building knowledge, as well as the value of learning from other’s experiences. The blended learning implementation package balances both needs by providing time for HCWs to master ICT knowledge and skills with a combination of asynchronous, digitally delivered content (which allows for continuous review as a "refresher") and in-person sessions (which allow for sharing, practicing, and feedback). Our findings also highlight the value of flexible referral methods that align with the client’s needs, so our training content includes a detailed description of each referral method process. Further, our training content emphasizes client-centered, non-judgmental counseling as our findings add to cumulative evidence of stigma as a key barrier to assisted ICT implementation [ 41 ].

In addition, participants frequently mentioned informal workarounds currently in use to mitigate barriers or offered up ideas for potential solutions to try. Our blended learning implementation package streamlines these problem-solving processes by offering monthly continuous quality improvement sessions at each facility in our enhanced arm. These sessions allow for structured time to discuss identified barriers, share ideas to mitigate barriers, and develop solutions for sustained process improvement tailored to their specific setting. Initial focus areas for continuous quality improvement discussions include use of space, staffing, allocation of airtime and vehicles, and documentation, which were identified as barriers to feasibility in the current study.

Our study provides a uniquely in-depth examination of HCWs’ experiences implementing assisted ICT, exploring how barriers can manifest and interact with each other at each step of the process to hinder successful implementation. Further, our study has a highly actionable focus on informing development of implementation strategies to support HCWs implementing assisted ICT. Our study also has limitations. Firstly, while our sole focus on HCWs allowed for deeper exploration of assisted ICT from the perspective of those actually implementing it on the ground, this meant that our analysis did not include perspectives of index or contact clients. In addition, we did not conduct sub-group analyses as interpretation of results would be limited by our small sample size.

Assisted ICT has been widely recognized as an evidence-based intervention with high promise to increase PLHIV status awareness [ 5 , 6 , 7 , 10 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 23 , 24 , 26 , 27 , 28 , 29 ], which is important as countries in eastern and southern Africa strive to reach global UNAIDS targets. Study findings support cumulative evidence that HCWs face a variety of feasibility barriers to assisted ICT implementation in the region; further, the study’s uniquely in-depth focus on the experiences of those doing the “assisting” enhances understanding of how these barriers manifest and informs the development of implementation strategies to mitigate these barriers. Maximizing assisted ICT’s potential to increase HIV testing requires equipping HCWs with effective training and support to address and overcome the many feasibility barriers they face in implementation. Findings demonstrate the need for, as well as inform the development of, implementation strategies to mitigate barriers and promote facilitators to feasibility of assisted ICT.

Availability of data and materials

Qualitative data on which this analysis is based, as well as data collection materials and codebooks, are available from the last author upon reasonable request. The interview guide is included as an additional file.

Abbreviations

Acquired Immunodeficiency Syndrome

Antiretroviral Therapy

Health Care Worker

Human Immunodeficiency Virus

HIV Testing Services

Index Case Testing

In-Depth Interview

Intimate Partner Violence

Institutional Review Board

President’s Emergency Plan for HIV/AIDS Relief

People Living With HIV

Joint United Nations Programme on HIV/AIDS

World Health Organization

UNAIDS. Prevailing against pandemics by putting people at the centre. Geneva: UNAIDS; 2020.

Google Scholar  

Frescura L, Godfrey-Faussett P, Feizzadeh AA, El-Sadr W, Syarif O, Ghys PD, et al. Achieving the 95 95 95 targets for all: A pathway to ending AIDS. PLoS One. 2022;17(8):e0272405.

Article   CAS   PubMed   PubMed Central   Google Scholar  

UNAIDS. UNAIDS global AIDS update 2023: The path that ends AIDS. New York: United Nations; 2023.

Book   Google Scholar  

UNAIDS. UNAIDS data 2023. Geneva: Joint United Nations Programme on HIV/AIDS; 2023.

Kahabuka C, Plotkin M, Christensen A, Brown C, Njozi M, Kisendi R, et al. Addressing the first 90: A highly effective partner notification approach reaches previously undiagnosed sexual partners in Tanzania. AIDS Behav. 2017;21(8):2551–60.

Article   PubMed   PubMed Central   Google Scholar  

Lasry A, Medley A, Behel S, Mujawar MI, Cain M, Diekman ST, et al. Scaling up testing for human immunodeficiency virus infection among contacts of index patients - 20 countries, 2016–2018. MMWR Morb Mortal Wkly Rep. 2019;68(21):474–7.

Onovo A, Kalaiwo A, Agweye A, Emmanuel G, Keiser O. Diagnosis and case finding according to key partner risk populations of people living with HIV in Nigeria: A retrospective analysis of community-led index partner testing services. EClinicalMedicine. 2022;43:101265.

World Health Organization (WHO). Guidelines on HIV self-testing and partner notification : supplement to Consolidated guidelines on HIV testing services. 2016. https://apps.who.int/iris/bitstream/handle/10665/251655/9789241549868-eng.pdf?sequence=1 . Accessed 19 Apr 2024.

Watts H. Why PEPFAR is going all in on partner notification services. 2019. https://programme.ias2019.org/PAGMaterial/PPT/1934_117/Why%20PEPFAR%20is%20all%20in%20for%20PNS%2007192019%20rev.pptx . Accessed 19 Apr 2024.

Dalal S, Johnson C, Fonner V, Kennedy CE, Siegfried N, Figueroa C, et al. Improving HIV test uptake and case finding with assisted partner notification services. AIDS. 2017;31(13):1867–76.

Article   PubMed   Google Scholar  

Mathews C, Coetzee N, Zwarenstein M, Lombard C, Guttmacher S, Oxman A, et al. A systematic review of strategies for partner notification for sexually transmitted diseases, including HIV/AIDS. Int J STD AIDS. 2002;13(5):285–300.

Hogben M, McNally T, McPheeters M, Hutchinson AB. The effectiveness of HIV partner counseling and referral services in increasing identification of HIV-positive individuals a systematic review. Am J Prev Med. 2007;33(2 Suppl):S89-100.

Brown LB, Miller WC, Kamanga G, Nyirenda N, Mmodzi P, Pettifor A, et al. HIV partner notification is effective and feasible in sub-Saharan Africa: opportunities for HIV treatment and prevention. J Acquir Immune Defic Syndr. 2011;56(5):437–42.

Sharma M, Ying R, Tarr G, Barnabas R. Systematic review and meta-analysis of community and facility-based HIV testing to address linkage to care gaps in sub-Saharan Africa. Nature. 2015;528(7580):S77-85.

Edosa M, Merdassa E, Turi E. Acceptance of index case HIV testing and its associated factors among HIV/AIDS Clients on ART follow-up in West Ethiopia: A multi-centered facility-based cross-sectional study. HIV AIDS (Auckl). 2022;14:451–60.

PubMed   Google Scholar  

Williams D, MacKellar D, Dlamini M, Byrd J, Dube L, Mndzebele P, et al. HIV testing and ART initiation among partners, family members, and high-risk associates of index clients participating in the CommLink linkage case management program, Eswatini, 2016–2018. PLoS ONE. 2021;16(12):e0261605.

Remera E, Nsanzimana S, Chammartin F, Semakula M, Rwibasira GN, Malamba SS, et al. Brief report: Active HIV case finding in the city of Kigali, Rwanda: Assessment of voluntary assisted partner notification modalities to detect undiagnosed HIV infections. J Acquir Immune Defic Syndr. 2022;89(4):423–7.

Article   CAS   PubMed   Google Scholar  

Quinn C, Nakyanjo N, Ddaaki W, Burke VM, Hutchinson N, Kagaayi J, et al. HIV partner notification values and preferences among sex workers, fishermen, and mainland community members in Rakai, Uganda: A qualitative study. AIDS Behav. 2018;22(10):3407–16.

Monroe-Wise A, Maingi Mutiti P, Kimani H, Moraa H, Bukusi DE, Farquhar C. Assisted partner notification services for patients receiving HIV care and treatment in an HIV clinic in Nairobi, Kenya: a qualitative assessment of barriers and opportunities for scale-up. J Int AIDS Soc. 2019;22 Suppl 3(Suppl Suppl 3):e25315.

Liu W, Wamuti BM, Owuor M, Lagat H, Kariithi E, Obong’o C, et al. “It is a process” - a qualitative evaluation of provider acceptability of HIV assisted partner services in western Kenya: experiences, challenges, and facilitators. BMC Health Serv Res. 2022;22(1):616.

Myers RS, Feldacker C, Cesar F, Paredes Z, Augusto G, Muluana C, et al. Acceptability and effectiveness of assisted human immunodeficiency virus partner services in Mozambique: Results from a pilot program in a public. Urban Clinic Sex Transm Dis. 2016;43(11):690–5.

Rosenberg NE, Mtande TK, Saidi F, Stanley C, Jere E, Paile L, et al. Recruiting male partners for couple HIV testing and counselling in Malawi’s option B+ programme: an unblinded randomised controlled trial. Lancet HIV. 2015;2(11):e483–91.

Mahachi N, Muchedzi A, Tafuma TA, Mawora P, Kariuki L, Semo BW, et al. Sustained high HIV case-finding through index testing and partner notification services: experiences from three provinces in Zimbabwe. J Int AIDS Soc. 2019;22 Suppl 3(Suppl Suppl 3):e25321.

Cherutich P, Golden MR, Wamuti B, Richardson BA, Asbjornsdottir KH, Otieno FA, et al. Assisted partner services for HIV in Kenya: a cluster randomised controlled trial. Lancet HIV. 2017;4(2):e74–82.

Proctor E, Silmere H, Raghavan R, Hovmand P, Aarons G, Bunger A, et al. Outcomes for implementation research: conceptual distinctions, measurement challenges, and research agenda. Adm Policy Ment Health. 2011;38(2):65–76.

Kamanga G, Brown L, Jawati P, Chiwanda D, Nyirenda N. Maximizing HIV partner notification opportunities for index patients and their sexual partners in Malawi. Malawi Med J. 2015;27(4):140–4.

Rutstein SE, Brown LB, Biddle AK, Wheeler SB, Kamanga G, Mmodzi P, et al. Cost-effectiveness of provider-based HIV partner notification in urban Malawi. Health Policy Plan. 2014;29(1):115–26.

Wamuti BM, Welty T, Nambu W, Chimoun FT, Shields R, Golden MR, et al. Low risk of social harms in an HIV assisted partner services programme in Cameroon. J Int AIDS Soc. 2019;22 Suppl 3(Suppl Suppl 3):e25308.

Henley C, Forgwei G, Welty T, Golden M, Adimora A, Shields R, et al. Scale-up and case-finding effectiveness of an HIV partner services program in Cameroon: an innovative HIV prevention intervention for developing countries. Sex Transm Dis. 2013;40(12):909–14.

Klabbers RE, Muwonge TR, Ayikobua E, Izizinga D, Bassett IV, Kambugu A, et al. Health worker perspectives on barriers and facilitators of assisted partner notification for HIV for refugees and Ugandan nationals: A mixed methods study in West Nile Uganda. AIDS Behav. 2021;25(10):3206–22.

Mugisha N, Tirera F, Coulibaly-Kouyate N, Aguie W, He Y, Kemper K, et al. Implementation process and challenges of index testing in Cote d’Ivoire from healthcare workers’ perspectives. PLoS One. 2023;18(2):e0280623.

Rosenberg NE, Tembo TA, Simon KR, Mollan K, Rutstein SE, Mwapasa V, et al. Development of a Blended Learning Approach to Delivering HIV-Assisted Contact Tracing in Malawi: Applied Theory and Formative Research. JMIR Form Res. 2022;6(4):e32899.

Government of Malawi National Statistical Office. 2018 Malawi population and housing census : main report. 2019.  https://malawi.unfpa.org/sites/default/files/resource-pdf/2018%20Malawi%20Population%20and%20Housing%20Census%20Main%20Report%20%281%29.pdf . Accessed 19 April 2024. 

Wolock TM, Flaxman S, Chimpandule T, Mbiriyawanda S, Jahn A, Nyirenda R, et al. Subnational HIV incidence trends in Malawi: large, heterogeneous declines across space. medRxiv (PREPRINT). 2023. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9915821/ . Accessed 19 Apr 2024.

World Health Organization (WHO). Medical doctors (per 10,000). 2020. https://www.who.int/data/gho/data/indicators/indicator-details/GHO/medical-doctors-(per-10-000-population . Accessed 19 Apr 2024.

Flick RJ, Simon KR, Nyirenda R, Namachapa K, Hosseinipour MC, Schooley A, et al. The HIV diagnostic assistant: early findings from a novel HIV testing cadre in Malawi. AIDS. 2019;33(7):1215–24.

Kim MH, Ahmed S, Buck WC, Preidis GA, Hosseinipour MC, Bhalakia A, et al. The Tingathe programme: a pilot intervention using community health workers to create a continuum of care in the prevention of mother to child transmission of HIV (PMTCT) cascade of services in Malawi. J Int AIDS Soc. 2012;15(Suppl 2):17389.

Simon KR, Hartig M, Abrams EJ, Wetzel E, Ahmed S, Chester E, et al. The Tingathe Surge: a multi-strategy approach to accelerate HIV case finding in Malawi. Public Health Action. 2019;9(3):128–34.

Ahmed S, Kim MH, Dave AC, Sabelli R, Kanjelo K, Preidis GA, et al. Improved identification and enrolment into care of HIV-exposed and -infected infants and children following a community health worker intervention in Lilongwe, Malawi. J Int AIDS Soc. 2015;18(1):19305.

Tembo TA, Mollan K, Simon K, Rutstein S, Chitani MJ, Saha PT, et al. Does a blended learning implementation package enhance HIV index case testing in Malawi? A protocol for a cluster randomised controlled trial. BMJ Open. 2024;14(1):e077706.

Nyblade L, Mingkwan P, Stockton MA. Stigma reduction: an essential ingredient to ending AIDS by 2030. Lancet HIV. 2021;8(2):e106–13.

Nyblade L, Stockton M, Nyato D, Wamoyi J. Perceived, anticipated and experienced stigma: exploring manifestations and implications for young people’s sexual and reproductive health and access to care in North-Western Tanzania. Cult Health Sex. 2017;19(10):1092–107.

Tembo TA, Simon KR, Kim MH, Chikoti C, Huffstetler HE, Ahmed S, et al. Pilot-Testing a Blended Learning Package for Health Care Workers to Improve Index Testing Services in Southern Malawi: An Implementation Science Study. J Acquir Immune Defic Syndr. 2021;88(5):470–6.

Download references

Acknowledgements

We are grateful to the Malawian health care workers who shared their experiences through in-depth interviews, as well as to the study team members in Malawi and the United States for their contributions.

Research reported in this publication was funded by the National Institutes of Health (R01 MH124526) with support from the University of North Carolina at Chapel Hill Center for AIDS Research (P30 AI50410) and the Fogarty International Center of the National Institutes of Health (D43 TW010060 and R01 MH115793-04). The funders had no role in trial design, data collection and analysis, decision to publish or preparation of the manuscript.

Author information

Authors and affiliations.

RTI International, Research Triangle Park, NC, USA

Caroline J. Meek

Gillings School of Global Public Health, University of North Carolina at Chapel Hill, Chapel Hill, NC, USA

Caroline J. Meek, Milenka Jean-Baptiste, Jiayu Wang, Clare Barrington, Vivian F. Go & Nora E. Rosenberg

Kamuzu University of Health Sciences, Blantyre, Malawi

Tiwonge E. Mbeya Munkhondya

Baylor College of Medicine Children’s Foundation, Lilongwe, Malawi

Mtisunge Mphande, Tapiwa A. Tembo, Mike Chitani, Dhrutika Vansia, Caroline Kumbuyo, Katherine R. Simon & Maria H. Kim

Department of Medicine, Division of Infectious Diseases, University of North Carolina at Chapel Hill, Chapel Hill, NC, USA

Sarah E. Rutstein

You can also search for this author in PubMed   Google Scholar

Contributions

TAT, KRS, SER, MHK, VFG, and NER contributed to overall study conceptualization, with CJM, CB, and NER leading conceptualization of the analysis presented in this study. Material preparation and data collection were performed by TEMM, MM, TAT, MC, and CK. Analysis was led by CJM with support from MJB and DV. The first draft of the manuscript was written by CJM with consultation from NER, TEMM, MM, TAT, MJB, and DV. JW provided quantitative analysis support for participant characteristics. All authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Caroline J. Meek .

Ethics declarations

Ethics approval and consent to participate.

Ethical clearance was provided by the Malawi National Health Science Research Committee (NHSRC; #20/06/2566), University of North Carolina Institution Review Board (UNC IRB; #20–1810) and the Baylor College of Medicine institutional review board (Baylor IRB; H-48800). The procedures used in this study adhere to the tenets of the Declaration of Helsinki. Written informed consent for participation was obtained from all study participants prior to enrollment in the parent study. Interviewers also engaged in informal verbal discussion of consent immediately ahead of in-depth interviews.

Consent for publication

Not applicable. No identifying information is included in the manuscript.

Competing interests

The authors declare no competing interests.

Additional information

Publisher’s note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Supplementary Information

Supplementary material 1., rights and permissions.

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ . The Creative Commons Public Domain Dedication waiver ( http://creativecommons.org/publicdomain/zero/1.0/ ) applies to the data made available in this article, unless otherwise stated in a credit line to the data.

Reprints and permissions

About this article

Cite this article.

Meek, C.J., Munkhondya, T.E.M., Mphande, M. et al. Examining the feasibility of assisted index case testing for HIV case-finding: a qualitative analysis of barriers and facilitators to implementation in Malawi. BMC Health Serv Res 24 , 606 (2024). https://doi.org/10.1186/s12913-024-10988-z

Download citation

Received : 31 August 2023

Accepted : 12 April 2024

Published : 09 May 2024

DOI : https://doi.org/10.1186/s12913-024-10988-z

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• HIV testing and counseling
• Index case testing
• Assisted partner notification services
• Implementation science
• Health care workers

BMC Health Services Research

ISSN: 1472-6963

• General enquiries: [email protected]

Suggested Searches

• Climate Change
• Expedition 64
• Mars perseverance
• SpaceX Crew-2
• International Space Station
• View All Topics A-Z

Humans in Space

Earth & climate, the solar system, the universe, aeronautics, learning resources, news & events.

NASA Invites Social Creators for Launch of NOAA Weather Satellite 

NASA’s New Mobile Launcher Stacks Up for Future Artemis Missions 

NASA’s Webb Hints at Possible Atmosphere Surrounding Rocky Exoplanet

• Search All NASA Missions
• A to Z List of Missions
• Upcoming Launches and Landings
• Spaceships and Rockets
• Communicating with Missions
• James Webb Space Telescope
• Hubble Space Telescope
• Why Go to Space
• Astronauts Home
• Commercial Space
• Destinations
• Living in Space
• Explore Earth Science
• Earth, Our Planet
• Earth Science in Action
• Earth Multimedia
• Earth Science Researchers
• Pluto & Dwarf Planets
• Asteroids, Comets & Meteors
• The Kuiper Belt
• The Oort Cloud
• Skywatching
• The Search for Life in the Universe
• Black Holes
• The Big Bang
• Dark Energy & Dark Matter
• Earth Science
• Planetary Science
• Astrophysics & Space Science
• The Sun & Heliophysics
• Biological & Physical Sciences
• Lunar Science
• Citizen Science
• Astromaterials
• Aeronautics Research
• Human Space Travel Research
• Science in the Air
• NASA Aircraft
• Flight Innovation
• Supersonic Flight
• Air Traffic Solutions
• Green Aviation Tech
• Drones & You
• Technology Transfer & Spinoffs
• Space Travel Technology
• Technology Living in Space
• Manufacturing and Materials
• Science Instruments
• For Kids and Students
• For Educators
• For Colleges and Universities
• For Professionals
• Science for Everyone
• Requests for Exhibits, Artifacts, or Speakers
• STEM Engagement at NASA
• NASA's Impacts
• Centers and Facilities
• Directorates
• Organizations
• People of NASA
• Internships
• Our History
• Doing Business with NASA
• Get Involved
• Aeronáutica
• Ciencias Terrestres
• Sistema Solar
• All NASA News
• Video Series on NASA+
• Newsletters
• Social Media
• Media Resources
• Upcoming Launches & Landings
• Virtual Events
• Sounds and Ringtones
• Interactives
• STEM Multimedia

Hubble Celebrates the 15th Anniversary of Servicing Mission 4

Hubble Glimpses a Star-Forming Factory

NASA Mission Strengthens 40-Year Friendship 

NASA Selects Commercial Service Studies to Enable Mars Robotic Science

NASA’s Commercial Partners Deliver Cargo, Crew for Station Science

International SWOT Mission Can Improve Flood Prediction

NASA Is Helping Protect Tigers, Jaguars, and Elephants. Here’s How.

Two Small NASA Satellites Will Measure Soil Moisture, Volcanic Gases

C.26 Rapid Mission Design Studies for Mars Sample Return Correction and Other Documents Posted

NASA Selects Students for Europa Clipper Intern Program

The Big Event, 2024

NASA Images Help Explain Eating Habits of Massive Black Hole

NASA Licenses 3D-Printable Superalloy to Benefit US Economy

ARMD Solicitations

NASA’s Commitment to Safety Starts with its Culture

Tech Today: NASA’s Ion Thruster Knowhow Keeps Satellites Flying

Big Science Drives Wallops’ Upgrades for NASA Suborbital Missions

NASA Challenge Gives Artemis Generation Coders a Chance to Shine

NASA Community College Aerospace Scholars

Johnson Celebrates AA and NHPI Heritage Month: Kimia Seyedmadani

20 Years Ago: NASA Selects its 19th Group of Astronauts

Diez maneras en que los estudiantes pueden prepararse para ser astronautas

Astronauta de la NASA Marcos Berríos

Resultados científicos revolucionarios en la estación espacial de 2023

• Jet Propulsion Laboratory

Nine companies have been selected to conduct early-stage studies of concepts for commercial services to support lower-cost, higher-frequency missions to the Red Planet.

NASA has identified nine U.S. companies to perform a total of 12 concept studies of how commercial services can be applied to enable science missions to Mars. Each awardee will receive between $200,000 and $300,000 to produce a detailed report on potential services — including payload delivery, communications relay, surface imaging, and payload hosting — that could support future missions to the Red Planet.

The companies were selected from among those that responded to a Jan. 29 request for proposals from U.S. industry.

NASA’s Mars Exploration Program initiated the request for proposals to help establish a new paradigm for missions to Mars with the potential to advance high-priority science objectives. Many of the selected proposals center on adapting existing projects currently focused on the Moon and Earth to Mars-based applications.

They include “space tugs” to carry other spacecraft to Mars, spacecraft to host science instruments and cameras, and telecommunications relays. The concepts being sought are intended to support a broad strategy of partnerships between government, industry, and international partners to enable frequent, lower-cost missions to Mars over the next 20 years.

“We’re in an exciting new era of space exploration, with rapid growth of commercial interest and capabilities,” said Eric Ianson, director of NASA’s Mars Exploration Program. “Now is the right time for NASA to begin looking at how public-private partnerships could support science at Mars in the coming decades.”

The selected Mars Exploration Commercial Services studies are divided into four categories:

Small payload delivery and hosting services

• Lockheed Martin Corporation, Littleton, Colorado — adapt a lunar-exploration spacecraft
• Impulse Space, Inc., Redondo Beach, California — adapt an Earth-vicinity orbital transfer vehicle (space tug)
• Firefly Aerospace, Cedar Park, Texas — adapt a lunar-exploration spacecraft

Large payload delivery and hosting services

• United Launch Services (ULA), LLC, Centennial, Colorado — modify an Earth-vicinity cryogenic upper stage
• Blue Origin, LLC, Kent, Washington — adapt an Earth- and lunar-vicinity spacecraft
• Astrobotic Technology, Inc., Pittsburgh — modify a lunar-exploration spacecraft

Mars surface-imaging services

• Albedo Space Corporation, Broomfield, Colorado — adapt a low Earth orbit imaging satellite
• Redwire Space, Inc., Littleton, Colorado — modify a low Earth orbit commercial imaging spacecraft
• Astrobotic Technology, Inc. — modify a lunar exploration spacecraft to include imaging

Next-generation relay services

• Space Exploration Technologies Corporation (SpaceX), Hawthorne, California — adapt Earth-orbit communication satellites for Mars
• Lockheed Martin Corporation — provide communication relay services via a modified Mars orbiter
• Blue Origin, LLC — provide communication relay services via an adapted Earth- and lunar-vicinity spacecraft

The 12-week studies are planned to conclude in August, and a study summary will be released later in the year. These studies could potentially lead to future requests for proposals but do not constitute a NASA commitment.

NASA is concurrently requesting separate industry proposals for its Mars Sample Return campaign, which seeks to bring samples being collected by the agency’s Perseverance rover to Earth, where they can be studied by laboratory equipment too large and complex to bring to Mars. The MSR industry studies are completely independent of the MEP commercial studies.

NASA’s Jet Propulsion Laboratory in Southern California manages the Mars Exploration Program on behalf of NASA’s Science Mission Directorate in Washington. The goal of the program is to provide a continuous flow of scientific information and discovery through a carefully selected series of robotic orbiters, landers, and mobile laboratories interconnected by a high-bandwidth Mars-Earth communications network. Scientific data and associated information for all Mars Exploration Program missions are archived in the NASA Planetary Data System.

Caltech in Pasadena, California, manages JPL for NASA.

News Media Contacts

Andrew Good Jet Propulsion Laboratory, Pasadena, Calif. 818-393-2433 [email protected]

Karen Fox / Charles Blue NASA Headquarters, Washington 301-286-6284 / 202-802-5345 [email protected] / [email protected]

Related Terms

• Science-enabling Technology
• Space Communications Technology
• Technology Research
• The Future of Commercial Space

Explore More

Breaking the Scaling Limits: New Ultralow-noise Superconducting Camera for Exoplanet Searches

When imaging faint objects such as distant stars or exoplanets, capturing every last bit of…

NASA Scientists Gear Up for Solar Storms at Mars

Major Martian Milestones

There’s good news from NASA’s Cloudspotting on Mars project! That’s the project that invites you to…

• Smartphone 360
• Smartphone Model Tracker
• Refurbished Market Tracker
• Smartwatch 360
• Emerging Tech
• Consumer Research
• Smartphone AP-SoC
• Teardown & BOM
• Cellular Tracker & Forecasts
• Smart home Tracker
• PCs and Tablets
• 5G Networks
• Press releases
• White Papers
• Events & Webinars
• Counterpoint Conversations
• Research Portal
• Research services
• Marketing engagement
• Semis professionals
• Mobile operators
• Smartphone professionals
• Report purchases
• Software and services
• Opinion leaders
• In the press
• Vendor briefings

Global Smartphone Market Grows 6% YoY in Q1 2024; Revenue Reaches Highest Level in a First Quarter

• / May 3, 2024
• / Team Counterpoint
• The global smartphone market grew by 6% YoY to reach 296.9 million unit shipments in Q1 2024.
• Samsung dethroned Apple to become the top smartphone player globally, accounting for 20% shipment share.
• Apple’s shipments declined 13% YoY, however, the brand’s ASP grew to a record first quarter high driven by improved performance of the Pro models.
• Among the top five OEMs, Xiaomi grew the fastest, registering 34% YoY shipment growth.
• Global smartphone revenues also grew 7% YoY and reached highest-ever for a first quarter.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – May 3, 2024

Global smartphone shipments increased 6% YoY in the first quarter of 2024, according to the latest research from Counterpoint’s Market Monitor service. The growth is mostly attributed to the strong performance in key regions such as Europe, Middle East and Africa (MEA) and Caribbean and Latin America (CALA).

Commenting on overall market dynamics, Senior Analyst Prachir Singh said, “Smartphone shipments grew during the first quarter as emerging markets continued their strong momentum, while Europe , especially Central and Eastern Europe, grew the most compared to a difficult Q1 2023. Consumer demand in these markets has been growing gradually and the inventory levels have improved. MEA was the fastest growing region due to the strong shipments of TECNO, Xiaomi and HONOR . China also grew YoY owing to strong Lunar New Year sales and Huawei’s comeback. The India market also saw growth thanks to exiting 2023 with healthy inventory levels. The mature markets of North America and Japan declined relative to the same period in 2023.”

Global smartphone revenues grew by 7% YoY in Q1 2024 and reached the highest-ever in a first calendar quarter. The >$800 price segment was the fastest growing, registering double-digit growth and accounting for 18% of smartphone shipments in Q1 2024, up by 2pp compared to Q1 2023. Apple led the smartphone market revenues with a 43% share, although its revenues declined by 11% YoY. Samsung’s revenues grew 2% YoY, propelled by its increasing ASP while shipments remained flat. Among the top five OEMs, Xiaomi’s revenue growth was the fastest due to strong performance in its key markets. Revenues for the market beyond the top five OEMs also grew significantly, driven by increasing revenues from Huawei, HONOR and Transsion brands.

Commenting on Apple’s performance, Research Director Jeff Fieldhack said, “Tough competition in China, record low upgrades in the US and a difficult compare from last year due to iPhone 14 Pro’s supply shifting to Q1 2023 all weighed on iPhone performance. However, there were upsides as well. An improved product mix with 15 Pro’s performing better than its predecessors, and an increasing footprint in emerging markets, helped Apple in arresting some of the declines. Emerging markets especially provide long term growth opportunities. We also expect the inclusion of GenAI later this year to contribute to iPhone upgrades.”

Samsung re-captured the top spot and led global smartphone shipments during the quarter, driven by the early refresh of the Galaxy-A-series and strong performance of the Galaxy S24 series. Samsung reached its highest-ever ASP during the quarter as well. Among the biggest smartphone brands from China, Xiaomi and vivo registered growth. While Xiaomi registered growth in almost all its key markets, vivo posted strong performance in emerging markets of Asia Pacific including India. Huawei , HONOR and Transsion were the other key brands that gained during the quarter. Huawei made huge gains in China and won share from the leading brands. HONOR gained in CALA and MEA, in addition to having a strong share in China. The Transsion brands, TECNO, itel and Infinix, performed strongly in APAC, Eastern Europe, India and the MEA. OPPO* experienced a shipment decline due to stiff competition in key markets like China. The brand also prioritized value over shipments, with a shift to pushing higher ASP devices in emerging markets.

Commenting on the near-term outlook, Research Director Tarun Pathak said, “Growth is expected to be slow but steady in the near term. However, revenues are expected to grow faster as the ongoing premiumization trend is likely to persist, especially with the rise of newer form factors and capabilities such as foldables and GenAI . More than 10 OEMs have launched over 30 GenAI-capable smartphones so far. We estimate that GenAI’s share of overall smartphone shipments will reach 11% by 2024.”

*OPPO includes OnePlus since Q3 2021

Note: Pricing analysis is based on wholesale prices.

Feel free to reach us at [email protected] for questions regarding our latest research and insights.

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech

Follow Counterpoint Research

press(at)counterpointresearch.com

Related Posts

• Apple Could be Looking for iPhone GenAI Partnerships in China and Globally
• Apple's Services Revenue Grows to Reach Highest Ever Share as Product Revenues Decline
• China Smartphone Sales Remain in Black on Huawei, HONOR, Xiaomi Outperformance
• GenAI-capable Smartphone Shipments to Grow Over 4X by 2027
• Global Smartphone Shipments to See Modest Rebound in 2024 Driven by Premium, Budget-Economy Segments
• Qualcomm Snapdragon 8s Gen 3 to Promote AI Smartphones

• Privacy Policy

Copyright ⓒ Counterpoint Technology Market Research | All rights reserved

Only fill in if you are not human

• Teardown & BOM
• Cellular Tracker & Forecasts
• Events & Webinars

Term of Use and Privacy Policy

Carbon removals: How to scale a new gigaton industry

The Intergovernmental Panel on Climate Change (IPCC) has made it clear that CO 2 removal (CDR) is a critical tool for achieving net zero by 2050 1 “Summary for policymakers,” in Climate Change 2022: Mitigation of Climate Change , IPCC, 2022. because they could enable businesses to neutralize residual carbon emissions once all emission reductions efforts have been exhausted. Thus, by 2050, CDR competency could be a core part of management responsibilities across all sectors.

This report provides an analysis of the market potential for CDR, the investment requirements, and market trends. It also identifies which actions are the most likely to lower barriers to scaling CDR and delineates potential advantages for first movers in different stakeholder groups.

CDR’s role in reaching net zero

About the authors.

This report is a collaborative effort by Peter Mannion , Emma Parry , Mark Patel , Erik Ringvold, and Jonathan Scott, representing views from McKinsey Sustainability and McKinsey’s Global Energy and Materials Practices.

Reducing emissions remains the primary, most effective, and preferred response to climate change. But decarbonization alone could prove insufficient to reduce the residual “hard to abate” emissions that may persist in the medium term. Once decarbonization options have been expended, CDR could play a vital role in neutralizing residual emissions; therefore, most scenarios aligned with the Paris Agreement project substantial CDR capacities. Estimates from the Smith School of Enterprise and the Environment’s The state of carbon dioxide removal report, for example, show that six to ten gigatons of CO 2 in annual CDR capacity would likely be needed by 2050 for most Paris-aligned net-zero pathways. 2 Climatic need estimates drawn from Stephen M. Smith et al., The state of carbon dioxide removal , 2023. This capacity could not be delivered quickly, however, so efforts would need to begin as soon as possible to ensure 2050 scenarios are achievable. 3 For more, see Oliver Geden et al., “Near-term deployment of novel carbon removal to facilitate longer-term deployment,” Joule , November 15, 2023. Some estimates require an additional 0.8 to 2.9 metric gigatons of CO 2 per year of removals capacity by 2030—three to ten times more than the volumes currently estimated to be onstream by that date. 4 Estimated volumes reflect direct air capture and storage (DACS) and bioenergy with carbon capture and storage (BECCS) announced projects from public announcements. DACS includes an assumption of 30 metric megatons of CO2 (MtCO2) annual capacity phased in by 2030 from 1PointFive’s 75 Mt target, while BECCS includes all projects announced as net negative. Projected removals capacities from other CDR solutions were modeled using McKinsey’s Global Carbon Credits Model under a business-as-usual scenario. Biotic feedback loops could also further accelerate the most severe effects of climate change, consequently increasing the speed at which CDR would need to be scaled.

Given CDR’s potential importance to achieving net-zero commitments, removals could become a routine consideration for businesses across sectors. For companies to claim they have reached net zero under the Science Based Targets initiative’s (SBTi’s) Corporate Net-Zero Standard, for example, after they have exhausted decarbonization actions, they must neutralize any residual emissions. 5 SBTi Corporate Net-Zero Standard , SBTi, April 2023. CDR can be especially pertinent for sectors with “hard-to-abate” emissions—those emissions that are technologically or economically prohibitive to reduce.

Closing the removals gap to achieve net zero would require a range of CDR solutions comprising both nature-based removals (NBR) and technology-based removals (TBR). NBR removes carbon by restoring, enhancing, or actively managing ecosystems. Because they tend to cost less per metric ton of CO 2 removed than emergent TBR, NBR could offer a more cost-effective path to increasing near-term CDR capacity. NBR could also play a role in removals over the long term, to ensure flexibility and balance in removals capacity. However, TBR generally delivers more “durable” removals by storing CO 2 permanently with minimal risk of rerelease into the atmosphere. 6 Kaya Axelsson et al., “The meaning of net zero and how to get it right,” Nature Climate Change , 2022, Volume 15. And durable solutions are generally preferable to ensure removals efforts remain effective in the long term, so increasing volumes of such solutions would be needed. Accelerating the scale-up of durable TBR would require near-term investment and innovation to reduce their relatively higher cost.

Understanding ten CDR solutions

To further explore the range of methods to capture and store CO 2 , jump to individual CDR solutions for both nature-based and technology-based removals below (Exhibit 1).

1. Wetland and peatland restoration

Restoring terrestrial wetlands and peatlands to absorb and store more CO 2

Permanence, years <100

Cost 2023, $ per ton CO 2 15–40

Potential benefits Increase biodiversity; improve water quality; reduce flood risks; eco-tourism

Potential challenges Release of some greenhouse gases via restoration; uncertain permanence level; long-term monitoring and management

2. Cropland, grassland, and agroforestry

Improving cropland- and grassland-management practices to enhance CO 2 uptake from soils, and agroforestry to remove CO 2 from the atmosphere

Cost 2023, $ per ton CO 2 10–30

Potential benefits Increase biodiversity; enhance soil fertility and water retention; agricultural productivity

Potential challenges Quantifying and monitoring carbon sequestration

3. Reforestation and afforestation

Tree planting in deforested or never-forested land to remove atmospheric CO 2

Permanence, years <1,000

Cost 2023, $ per ton CO 2 10–40

Potential benefits Increase biodiversity and ecosystem resilience; eco-tourism

Potential challenges Increased demand for land; release of sequestered CO 2 1 The release of carbon back into the atmosphere (also known as reversal) can be caused by factors affecting tree growth, including pests and diseases, and weather events. ; risks of monoculture tree planting 2 Compared with natural forests, monoculture tree planting can increase the vulnerability of forests to, for example, pests and diseases and natural disasters.

4. Blue carbon management

Enhancing carbon uptake and storage of CO 2 in ocean and coastal ecosystems (eg, restoring mangroves, seagrasses, and tidal marshes; cultivating micro- and macroalgae)

Cost 2023, $ per ton CO 2 25–250

Potential benefits Improve marine ecosystems; enhance coastal resilience

Potential challenges Monitoring, reporting, and verification (MRV) for coastal and ocean ecosystems; regulatory uncertainty in international waters

5. Biochar and bio-oil

Produced from biomass, biochar is spread to improve soil quality, and bio-oil is injected underground

Cost 2023, $ per ton CO 2 90–220

Potential benefits Enhanced soil fertility and water retention; uses for biomass residues from agricultural processes

Potential challenges Increased demand for biomass feedstock and land; uncertain degree of soil permanence

6. Ocean alkalinity enhancement

Adding alkaline substances to the ocean enhances its ability to absorb CO₂ from the atmosphere, accelerating the natural process

Permanence, years >1,000

Cost 2023, $ per ton CO 2 Uncertain

Potential benefits Counter ocean acidification

Potential challenges Effects on marine ecosystems from alkaline; MRV for ocean ecosystems; regulatory uncertainty in international waters

7. Enhanced weathering

Rocks and minerals are broken down to increase surface area, speeding up processes that enable them to store carbon from the atmosphere

Cost 2023, $ per ton CO 2 120–800

Potential benefits Improve agricultural productivity

Potential challenges Environmental and social effects; effects of trace metals in local ecosystem

8. Bioenergy with carbon capture and storage

Sustainably sourced biomass to produce biofuels, electricity, heat, pulp; CO₂ emissions from these processes are captured and stored

Cost 2023, $ per ton CO 2 60–270

Potential benefits Additional revenue streams from generating coproducts (eg, electricity); retrofit to power plants

Potential challenges Increased demand for biomass feedstock and land

9. Direct ocean capture

Acid derived from ocean electrodialysis is used to chemically extract CO 2 from surface water; CO 2   then placed in long-term storage

Potential benefits Counter ocean acidification; use in coproducts (eg, sustainable aviation fuels)

Potential challenges Low technological readiness level at scale; MRV for open ocean ecosystems; high energy usage

10. Direct air capture and storage

Air passes through solid or liquid chemical filter that binds to CO 2 , removing it from the air; concentrated CO 2 from filter is stored in underground geological formations

Cost 2023, $ per ton CO 2 500–1,000

Potential benefits Use in coproducts (eg, sustainable aviation fuels); deploy across diverse geographies

Potential challenges High water and energy usage

The CDR market: Trillion-dollar potential

A CDR industry capable of delivering gigaton-scale removals at net-zero levels could be worth up to $1.2 trillion by 2050. This industry would require input and support from a range of players—including investors, suppliers, buyers, traders, and other intermediaries—with substantial potential value pools estimated for each (Exhibit 2). These are long-term business opportunities that would require early action to build removal volumes to scale by 2050.

This report recognizes a strong degree of uncertainty in the future of the CO 2 removal (CDR) industry in terms of the volume of removals needed to address climatic needs, the mix of solutions that could be used to deliver these volumes, and the range of returns players across the value chain will be expected to deliver. Here we present the range of possible scenarios, with market sizes ranging from $300 billion to $1.2 trillion.

The data opposite, for example, shows the results of a scenario that requires lower rollout of CDR (due to faster decarbonization efforts, for example), with a higher share of nature-based removals (NBR) in the overall mix of removal solutions. Such a scenario could deliver a CDR industry of around $300 billion, with heavier weighting toward NBR. Note that NBR revenue shares remain comparatively lower than technology-based removals (TBR) because of the lower prices of NBR credits compared with TBR.

In comparison, a scenario that requires higher rollout of CO 2 removal (CDR), combined with a higher use of technology-based removals (TBR) in the mix of removals, would create a significantly more expensive CDR industry worth up to $1.2 trillion. Because of higher-priced TBR options, market revenues would also be significantly more skewed toward TBR solutions in this scenario.

Investment would be needed to support innovation to drive down costs and to support project development. Analysis in this report estimates the cumulative investment in CDR required to deliver net zero in 2050 at $6 trillion to $16 trillion (Exhibit 3). The investment need would depend on the volume of removals needed as well as the range of available CDR solutions. Estimates based on the current trajectory for investment, however, suggest investment could fall considerably short of these levels. In fact, the gap between estimated investment and what is estimated to be needed by 2030 to put CDR on track to meet 2050 targets is between $400 billion and $1.6 trillion.

Market trends: Reducing costs through CDR innovation

The CDR market is currently trading at high prices and small volumes, particularly for emerging TBR. High prices for more durable CDR solutions are likely driven by small capacities and high costs of production. Innovation is key to fostering the higher volumes and lower prices needed to deliver CDR at scale. With continued demand, investment, and innovation, TBR costs are estimated to decline by at least 30 percent and up to 60 percent through 2035 and continue to drop through 2050, albeit more slowly as the industry scales (Exhibit 4). Costs for solutions that currently carry higher costs are estimated to decline fastest, though this scenario relies on the assumption that the required levels of investment and innovation can be achieved. NBR costs, on the other hand, may rise over time as land resources become constrained. NBR costs could rise by 20 to 60 percent through 2035, and 15 to 40 percent between 2035 and 2050. 7 Cost estimates derived from McKinsey TRAILS and Nature Analytics models for nature-based removals, and technology-specific cost models developed through literature review and McKinsey expert insights.

Lowering barriers to scaling CDR

Scaling CDR to deliver net-zero removal volumes is a challenging endeavor, fraught with complexity and nuance. Indeed, the risks and challenges facing the industry have been documented at length, 8 Several sources have documented CDR market risks and challenges, including Pathways to commercial liftoff: Carbon management , US Department of Energy, April 2023; Freya Chay et al., Barriers to scaling the long-duration carbon dioxide removal industry , CarbonPlan, July 2022; The case for negative emissions , Coalition for Negative Emissions, June 2021; “Barriers to negative-emissions technologies,” One Earth , August 21, 2020, Volume 3, Number 2; Danny Cullenward et al., “Addressing critical challenges in carbon dioxide removal,” ClimateWorks Foundation, December 10, 2020. and they include a need for stronger buyer incentives; improved transparency of standards, practices, and services; clear public-sector signals; innovation to unlock lower-cost solutions; and, of course, increased removals capacity. This report explores actions stakeholders across the CDR value chain could take to fulfill these needs.

Existing and developing policy measures and public funding have the potential to accelerate investment, along with enhanced project-level economics that reduce costs and improve future revenue streams. Governments, philanthropists, and nongovernmental organizations could work with the private sector to spur innovation—for example by addressing how CDR is incorporated into environmental, social, and governance (ESG) and carbon-accounting frameworks as well as how CDR could be integrated into cap-and-trade or carbon tax systems. Governments and philanthropists could also consider directly funding early-stage technology development or designing innovative financing arrangements that may help catalyze further private investment.

Early-mover advantages in the CDR industry

Although the challenges for scaling investment and innovation are not inconsiderable, tangible, long-term benefits are potentially available to those who engage in critical near-term efforts to scale the CDR industry. Indeed, the analysis in this report indicates that there may be strategic and competitive advantages available to early movers prepared to address these challenges together with other stakeholders.

Investors that engage early could gain valuable experience in spotting new opportunities and assessing their potential ahead of investors who wait for the market to grow before they engage. And CDR projects can have long lead times to start delivering removals—some TBR can take up to six to eight years to begin removing their first volumes of CO 2 . 9 Angus Gillespie and Alex Townsend, “Scaling up the CCS market to deliver net-zero emissions,” Global CCS Institute, April 2020. Early alliances and support for growth enterprises could help investors reserve the right to play as the industry matures and scales. Early investors could also fortify their reputations as climate leaders by being at the forefront of creating an essential net-zero industry, potentially realizing $20 billion to $80 billion in CDR market revenues by 2050, according to the value pools analysis in this report.

Suppliers (CDR project developers that generate carbon credits based on capture and storage activities) could earn 73 to 82 percent of estimated CDR market revenues—$250 billion to $900 billion—by 2050. Because they carry out physical removal activities (such as carbon capture, transport, and storage) while other market players enable their efforts, suppliers could capture the largest share of industry revenues. When demand scales—for example, if CDR is recognized in carbon trading systems—suppliers will need to be able to respond rapidly to meet it. Because of what could be largely unrivaled access to technology, talent, and capital resources, established suppliers could have a significant advantage in expanding programs quickly and successfully. Early movers could be positioned to develop approaches to move down the learning curve sooner than those who engage later, thereby reducing early movers’ costs.

Early buyers that sign future offtake agreements with suppliers could gain confidence that they will have a reliable future removals supply, even in the event of increased demand. If companies were required to purchase CDR to offset emissions—for example, following changes to regulations or guidelines on carbon offsets—then demand for CDR credits could rise sharply. Companies that made public net-zero commitments may require access to CDR urgently as they approach their stated deadlines. Early buyers may be more likely to secure a supply of reliable, high-quality CDR credits that could prove essential for hard-to-abate sectors to neutralize residual emissions and meet net-zero targets. In addition, a well-considered ESG strategy underpinned by CDR could support business aims such as talent recruitment and green premiums.

Marketplaces and intermediaries

As seen in other markets, as volumes grow for CDR, trading for removal volumes could coalesce around a small number of major marketplaces in a “winner takes all” dynamic. This dynamic would result from reduced intermediation costs and increased liquidity of the industry operating through a small number of marketplaces. Market intermediaries could earn 9 to 14 percent of estimated CDR market revenues—$40 billion to $140 billion—by 2050, according to the value pools analysis in this report. Marketplaces could aim to attract new and future buyers by moving early to establish a solid reputation for technical expertise, quality assurance, pricing knowledge, and the ability to diversify. Meanwhile, early-moving standards setters that develop high-integrity methodologies for the major CDR technologies could inform the core standard around which the voluntary carbon market for removals operates.

Governments

Governments that move early to support the CDR industry could shore up their domestic removal capacity to align their nationally determined contribution commitments with the Paris Agreement, satisfy other green commitments, and secure national supplies. CDR could be a global opportunity. A variety of CDR solutions means countries could utilize those solutions best suited to their particular geographies: for example, countries with access to low-cost renewable energy could enjoy cost advantages using energy-intensive CDR such as direct air capture. Likewise, countries with significant land-based natural assets could potentially benefit from expanded NBR; and coastal and island states could find emerging blue-carbon solutions afford them advantages. In addition, supporting CDR could provide governments with opportunities to promote skill development and job creation, thereby helping to facilitate a just transition to renewable energy sources.

Based on our analysis, CDR capabilities may become a core strategic concern for governments, investors, and businesses alike. This report offers analysis of the market potential for CDR, potential actions to scale CDR rapidly, and opportunities for near- and long-term advantages for early-moving CDR stakeholders. By reflecting on the analysis and data presented here, business leaders can gain a foundational understanding of CDR and how it may factor into their organizations’ net-zero strategies and overall goals. Bold actions taken today can scale CDR capacity to meet global net-zero requirements.

Peter Mannion  is a partner in McKinsey’s Dublin office;  Emma Parry  is a partner in the London office, where Jonathan Scott is a knowledge expert; Mark Patel  is a senior partner in the Bay Area office; and  Erik Ringvold is an associate partner in the Zurich office.

Explore a career with us

Related articles.

CO 2 removal solutions: A buyer’s perspective

Now the IPCC has recognized that carbon removals are critical to addressing climate change, it’s time to act

A blueprint for scaling voluntary carbon markets to meet the climate challenge