What is the purpose of a feasibility study?

The purpose of a feasibility study is to evaluate the viability of a proposed project or business venture. This involves a thorough assessment of various factors that determine whether the project can be successfully developed and sustained over time. A feasibility study typically examines aspects such as technical feasibility, financial viability, operational capacity, and market conditions, allowing stakeholders to make informed decisions about whether to proceed with the initiative.

In essence, the study seeks to address key questions related to the project's potential success, including the financial implications, resource requirements, and potential risks involved. By focusing specifically on the project's feasibility, organizations can minimize uncertainty and avoid investments in initiatives that are likely to fail or underperform.

The other options, while relevant to different aspects of business planning and strategy, do not encapsulate the primary focus of a feasibility study. Analyzing market trends and customer preferences pertains more to market research rather than evaluating project viability, assessing financial performance relates to existing operations rather than new ventures, and developing strategies for market expansion involves strategic planning rather than project feasibility evaluation.