Feasibility studies provide an understanding of whether a project is economically, technically, financially and socially feasible and sustainable, or not. Feasibility studies are done by analysing market trends, assessing demand and supply dynamics, assessing competitors, and determining the project’s financial viability, in addition to technical inputs from industry experts, engineers, architects, financial and marketing specialists, and urban planners.
A feasibility study can be undertaken early into a project’s lifecycle (such as a pre-feasibility study using desktop information) to determine the overall viability of a project, or it can be very detailed as an input into a business plan or funding application, and require significant primary and desktop research and numerous specialists. An example of a feasibility study would be determining the feasibility of establishing a film studio in Durban. Techniques utilised include market demand analysis, stakeholder engagement, value chain analysis, best practice analysis, benchmarking, cost-benefit analysis, demand and financial modelling, and socio-economic impact assessments.