Evaluation of Successful Venture

Feasibility Analysis - Entrepreneurial Venture

Introduction

Almost for all the entrepreneurs, the easiest thing is to come up with new ideas and launch a business. Once the ideas have been developed the next step is the feasible analysis. This analysis is very important as it expresses the viability of the project and on basis of this; the idea then converted in to the practical approach .furthermore, Feasibility analysis is different from business plan. Feasibility answer question related to sales, profit potential and market, while business plan transforms the idea in to realism. This paper focuses on the feasibility analysis of the Puddle Jumpers Airlines, Inc. and factors that made the venture successful.

Discussion

In the past decades the U.S. airlines has been unstable with the revenue growing marginally art an annual rate of 0.3% over the five years to 2012. In 2010 and 2011, more passengers boarded a domestic flight which allows ticket prices to increase and causing most major domestic carriers to post a profit (Jenkins, Marks, Miller, 2011).

Revenue was up 9% during 2010 and 3.6% in 2011. As demand continues to rebound, revenue expected to increase to 4.7% from 2011 to 2012. Furthermore, the rise in prices of fuel along with the subsequent enlarging in the prices of ticket will intimidate profitability of the industry & demand. The participation in the industry has decline in the last five years due to the mergers and acquisitions, consolidation and bankruptcies. The total number of enterprises has been estimated to be 0.6% per year with an average of 350 in 2012. Airline profitability has been in the red for most of the period, causing many firms to leave the industry. In 2010 and 2011, the industry moved back into the black.

In 2008, a high-profile merger between Delta and Northwest Airlines occurred which created the largest airlines in the world of that time. United Airlines corporation and continental airlines also agreed to a merger which was completed in 32010 October that created the new world's largest airline. These trends have been the reasons for sustainability operations. Most of the companies within this industry have posted positive earning in terms of profit, low cost airlines (Jenkins, Marks, Miller, 2011). According to the industry revenue, over five years to 2017, the industry leader revenue has been forecasted to be positive with 1% increase per year. Heavy passenger traffic will return as consumer and business sentiments recover and spending increases. Also, the US dollar is expected to go through another cycle of depreciation during the next five years, increasing demand from foreign tourists. The industry will likely experience further structural changes in the form of mergers and acquisitions, given the competition from low-cost airlines. Fuel prices will rise, with airlines struggling to remain profitable in the face of rising costs (Brown, Gogzheyan, Huwel, Meininger, et al., 2009).

Similarities & Differences between the Startup and the Industry Leader

The difference between startup and industry leader is that, the startup has to make place in the market while, leaders ...