Report: Feasibility Analysis of E-commerce Business 'At Your Door'

This report presents a feasibility analysis for the 'At Your Door' e-commerce business, focusing on luggage delivery services. The analysis covers industry and market feasibility, evaluating the attractiveness of the business concept in the United States and the United Kingdom, considering factors such as industry growth and potential challenges like road pollution and airport baggage capacity. Product/service feasibility examines desirability and demand, highlighting the growing luggage delivery industry and the potential for remote baggage drop-off. Financial feasibility assesses the business's revenue and profitability, comparing it to competitors and addressing issues like road traffic. Entrepreneurial readiness is also considered, emphasizing the importance of management prowess, team selection, and resource sufficiency, including the use of bag tracking technology. The conclusion suggests that the business has potential but must adapt to technological advancements and environmental trends.

Running head: FEASIBILITY ANALYSIS
Assignment 2: Feasibility Analysis
Name of the student:
Name of the university:
Author note:

1FEASIBILITY ANALYSIS
Table of Contents
A Brief Introduction........................................................................................................................2
Feasibility Analysis.........................................................................................................................2
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

2FEASIBILITY ANALYSIS
A Brief Introduction
A feasibility analysis communicates whether the new strategy, plan or design is feasible
from every perspective of a business. It can be examined to validate the assumptions that were
made and constraints identified while devising this new plan or strategy. The aim of this report is
to conduct a feasibility analysis for an e-commerce business “At Your Door" service. The
business will take care of the home delivery of luggage.
Feasibility Analysis
The section conducts a feasibility analysis for the business across the four different areas
such as those listed below:
1. Industry and Market Feasibility
There will be components under ‘Industry and Market Feasibility’ such as:
Industry Attractiveness: At your door’ service is a growing business concept across major
countries such as the United States and the United Kingdom. The service enables passengers
sending and carrying their unaccompanied luggage easily. In many cases, owners can also track
the movement of their luggage (Airport-technology.com, 2020). However, there are high chances
of increased road pollution from this business (Zhang et al., 2018). Moreover, increasing fares
would mean the service charge will go up. Customers might have to pay more for the same
service. Hence, there will be chances of it becoming less appealing for the students. Besides,
Airports usually have low baggage capacity due to which they are not feasible to hold a large
amount of baggage. Hence, a new set of baggage will reach to the airport only if there is any

3FEASIBILITY ANALYSIS
available space in their baggage halls (Airport-technology.com, 2020). It would not just harass
the customers but also affect their trust in service.
Target Market Attractiveness: The business should be a profitable venture for its owner
and those associated with it in different forms. The baggage delivery service helps customers
enjoy a light journey. It is always good to have assistance on something that causes many
problems provided if it comes at an affordable price. Since the service will be the most
economical in the country it should be affordable for the students. However, uncontrollable
forces like increasing fares can affect the affordability of the service if not handled strategically
to reach to a solution (Liu et al., 2019).
2. Product or Service Feasibility
Product/Service Desirability: ‘At your door’ will be an exciting business for students. It
takes the growing luggage delivery industry to their advantage. The United States has many such
companies. The industry is still expanding and thus it should be the perfect time to come up with
such a fresh and new business concept.
Product/Service Demand: The service should have a bright future as according to IT
Trend Survey 2015, one in five Americans prefer an off-airport baggage drop (Airport-
technology.com, 2020). Due to the lack of effective coordination between airport terminals and
outside baggage handling businesses, baggage handling remained a major challenge for airports.
It faced two problems such as increasing global passenger traffic and the capacity issues in the
baggage halls. However, the use of cloud technology should change many of these problems.
Amadeus, the travel technology giant in partnership with “Off Airport Check-In Solutions

4FEASIBILITY ANALYSIS
(OACIS)" will be developing the options to drop off their bags from a cruise terminal, train
station, etc. (Airport-technology.com, 2020).
3. Financial Feasibility
“Luggage Forward” is one of the leading names in the US “Baggage Drop-Off” service
sector. As per a study, the estimated annual revenue of the company is $9M. There are 80
employees in the company. The annual revenue for “Sportsexpress” is $15M, one of the
strongest competitors of “Luggage Forward” (Owler.com, 2020). “Baggage Drop Off” industry
in the US is now home to a much successful business. The industry is picking up at good speed;
however, is associated with a few issues like road traffic. Increasing road traffic produces road
pollution (Men et al., 2018). Hence, there has to be a solution, so that, improvements can be
shown on the front of environmental damages that the delivery service causes. Being able to
control the issue should definitely produce more opportunities for this sector.
4. Entrepreneurial Readiness
Management Prowess: As mentioned earlier that this new business will be of the "Sole
Proprietorship" type. There will be one single power behind the business activities. However,
since the owner has a very good understanding of the industry, the person should find ways to
overcome a business problem. The owner should find its team who can lead this concept to
success. Few things should be kept into mind while developing a team such as; (Jonathan, Seun
& James, 2016)

5FEASIBILITY ANALYSIS
 Selecting skilled people
 Training the staff to become well-equipped with the job
 Facilitating effective communication through phones or emails as needed to know the
urgency and respond to it effectively
Resource Sufficiency: People will be recruited for different job positions such as
‘Customer Service Representatives’. Appropriate utilization of resources is needed to help each
business deliver its best performance. A good track of luggage movement should be useful in
answering customer questions on their luggage. Customers may have questions like when will
they be receiving their luggage and all. All these questions could only be answered when the
service people have access to a technology that tracks the movement of luggage. “Bag
Tracking” is an emerging innovation that can be used to track the bag movement (Airport-
technology.com, 2020). It is now up to the owner of “At your door” like whether they decide to
purchase this technology and improve their customer service efficiency.
Conclusion
Therefore, a feasibility analysis of ‘At Your Door’ company as conducted in the study
suggests it should do god business if it can react positively to new and emerging technologies as
well as growing environmental trends. Growing traffic as predicted in the study will lead to road
pollution. Hence, the business should have the readiness to look for a solution to this problem to
emerge a sustainable business. The use of ‘Cloud Technology’ to allow customers to check-in
from anywhere in the country should be given a serious concern. The use of a rising ‘Bag

6FEASIBILITY ANALYSIS
Tracking’ innovation is recommended as this will send notification of the baggage movement to
the next agent in the journey.

7FEASIBILITY ANALYSIS
References
Airport-technology.com. (2020). Is remote baggage drop-off the next big travel innovation?.
Retrieved 4 February 2020, from https://www.airport-technology.com/features/featureis-
remote-baggage-drop-off-the-next-travel-innovation-5935412/
Jonathan, O. A., Seun, A. A., & James, O. O. (2016). Managerial Capability and The Innovative
Prowess of Entrepreneurial Firms in Nigeria. World Journal of Research and
Review, 2(2).
Liu, B. Z., Ge, Y. E., Cao, K., Jiang, X., & Meng, L. (2019). Optimizing fares and transfer
discounts for a bus-subway corridor. Transport, 34(6), 672-683.
Men, C., Liu, R., Xu, F., Wang, Q., Guo, L., & Shen, Z. (2018). Pollution characteristics, risk
assessment, and source apportionment of heavy metals in road dust in Beijing,
China. Science of the total environment, 612, 138-147.
Owler.com. (2020). Retrieved 4 February 2020, from
https://www.owler.com/company/luggageforward
Zhang, Y., Yang, W., Simpson, I., Huang, X., Yu, J., Huang, Z., ... & Wang, Y. (2018). Decadal
changes in emissions of volatile organic compounds (VOCs) from on-road vehicles with
intensified automobile pollution control: Case study in a busy urban tunnel in south
China. Environmental Pollution, 233, 806-819.