Jetwash Ltd has been manufacturing having manufacturing a variety of portable high pressure water jet and cleaning units. These products have always in cleaning of cars, pathways and patios. The target market for these have been limited to lower end of DIY market and this have impacted negatively on the returns. Following these challenges characterized by drastic gradual decline in demand affecting company’s sales for the last two years. The company has been left with no other choice but to soonest possible come up with strategies to counter the challenges, such as introducing new products in order to cope with the stiff competition in market. The managing director also strongly believes that developing the products to come up with more sophisticated jetwash would solve the problem among other strategies.
Report Purpose and scope
However, before Jetwash Company undertakes these new developments, a feasibility study was conducted. This study aimed at assessing technical, economic, schedule as well as the operational feasibility. These studies were important because they established the technical requirements for the upgrade or development of the jetwash, the technical specifications, availability of raw materials and availability of resources. In addition, the schedule feasibility was conducted to establish whether it will be possible for the production of the jetwash to be underway before the five weeks set time frame. Operational feasibility was equally or more important and it was aimed at establishing the benefits and appropriateness of the new products and how they will be received in market. Finally, the study is also established the economic requirements for the development of the new products such as the cost of purchase of law materials and also processing expenses, the cost of launching the products at the major European union exhibition.
In order to achieve these objectives and also be able to meet the set deadline a number of important consideraions had to be made and the table below was used in planning for the various tasks to be executed:
Criteria for selection
Before totally embarking on the idea to develop the earlier high pressure water jet to a more sophisticatted jetwash, the feasibility study presented the company with variety of products to select from. Expansive comparative considerations were conducted on these products in terms of their effectiveness, cost of production and also availability of raw materials. The target market of the products was also considered and the jetwash was unanimously expected to perform better than all the other products.
Although the idea of introducing a more developed jetwash seemed to have more benefits due to the fact that it is expected to perform very well in market after the launch, there were other alternative ways of solving the problem of market to the products. Initially the company targeted local consumers and the researchers argued that if the quality of the old products would be improved, more aggressive marketing conducted and the boundaries stretched further, then the company would realize positive results. However, the study clearly shown that the new products will make a greater impact in market and profits would be realized.
There are several constraints that were expected to be encountered that would limit the production before the specified deadline, the fact all the components and sub-assemblies are bought from external suppliers, there was fear that some components might not be received in good time.
After a thorough feasibility study and considering the benefits of the new jetwash in terms of its positive impact in the market thus posting a drastic change to the company’s image. The analyst totally recommended development of the new products and aggressive marketing to products after the launching was conducted. Other recommendations include expanding the boundaries of distribution from the local markets to external and later foreign market.
Get access to
Guarantee No Hidden