Entrepreneurial Venture

Abstract

This paper focus on the feasibility of new business, in this situation where there are other lines of product manager has to assess a part of fixed costs which is involved in the production process, the market, competition, product segmentation, production process, marketing strategy and marketing, product design, and all costs associated with production, marketing, logistics and storage, etc are analyze to see the capacity, demand, selling price of the product in relation to other products in the same segment of the competition.

Feasibility analysis of Entrepreneurial Venture

Introduction

Soap & Cleaning manufacturing industry produces substances that loosen and remove soil from a surface for personal hygiene, sanitization or cleaning clothes, linens and furnishings. The industry does not include manufacturers of synthetic glycerin, industrial bleaches or shampoos. The Soap and cleaning manufacturing industry is consolidating, developing new products and expanding to emerging markets in response to steep competition and low demand. In 2012, the industry is expected to grow 3.7%, representing improvement from 2011. Soap manufacturers have modified their product formulas to stimulate demand over time; however, consumer environmental and health concerns have heightened in recent years. This trend has caused industry companies to concentrate on eco-friendly chemicals and manufacturing processes.

We have decided to start our new business in this sector with the environmentally-friendly detergents and household cleaners.

Our company name is WAVE Inc which is medium-sized company which specializes in environmentally-friendly detergents and household cleaners. Our laundry detergent will not produce any harmful waste chemicals after use. It has been estimated that over the next five years, conditions of the environmentally-friendly detergents and household cleaners are expected to improve revenue rise at a marginal 0.4% per year to $9.4 billion. Looking at this estimation, there are various factors likely to influence the demand for an 'environmentally-friendly' product of this kind.

In this paper we will conduct a feasibility analysis for new company bring new product in order to see whether our estimation is favorable or not.

Thesis Statement

It has been estimated that in coming 5 years, US Soap & Cleaning manufacturing industry would increase up to 15%, hence it is profitable for a newly Entrepreneur to invest their money in this sector.

Discussion

Soap & Cleaning manufacturing is mature and is experiencing moderate revenue growth, moderate product innovation. As a mature industry, little change is expected in the upcoming years. However, increasing environmental standards may result in modifications to product content and packaging.

Factors influencing WAVE Inc Products

Technology & Systems: Companies in the Industry such as Ecocover products range from high volume types such as laundry detergents and liquid soaps that are used regularly, to lower volume specialty products for less frequent cleaning needs. Growing environmental concerns have caused change in both the production process and packaging of detergents and household cleaners products in recent years. Today, such products are designed with the objective of creating minimal waste and environmental impact.

More changes in the future: Over the next five years, the rate of technological change in the industry is not expected to be ...