, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
1. Once an entrepreneur comes up with an idea for a new product and service, she/he must
conduct a feasibility analysis to determine the likelihood that the perceived idea will be a success.
You are required to conduct a feasibility analysis of a business idea of your own. Please follow
the guidelines below in conducting your analysis. You can also refer to chapter 3 of your
prescribed textbook. Remember, this is not a theoretical question but a practical application of
the feasibility analysis process.
Feasibility Analysis of a Mobile Solar-Powered Cold Storage Unit for Spaza Shops in South
African Townships
Introduction
The process of transforming a business idea into a viable venture requires more than enthusiasm and
creativity; it demands a rigorous assessment of the idea’s potential for success. Once an entrepreneur
conceives a new product or service, she or he must conduct a feasibility analysis to determine the
likelihood that the perceived idea will be a success (Chiloane-Tsoka & Rankhumise, 2025, p. 25).
This analysis acts as a critical filter, preventing the entrepreneur from committing significant time
and resources to an idea that may not be sustainable. This report presents a feasibility analysis for a
novel business concept: a mobile, solar-powered cold storage unit designed for rent to spaza shop
owners in South African townships. The idea addresses the persistent challenge of food spoilage due
to unreliable electricity supply, which leads to financial losses and food waste. Following the
framework outlined in Chapter 3 of the prescribed textbook, this analysis will cover product and
service feasibility, concept statement, prototype and usability testing, industry and market feasibility,
technical and legal feasibility, financial feasibility, and organisational feasibility.
Product/Service Feasibility
The aim of the product or service feasibility analysis is to determine whether the planned product or
service is attractive to the envisaged market in the form and price intended, and to gather feedback
from consumers to make necessary adjustments before a full launch (Chiloane-Tsoka & Rankhumise,
2025, p. 27). For the mobile solar-powered cold storage unit, the primary aim is to assess if spaza
shop owners perceive the rental service as valuable enough to pay for it, given their current reliance
on ice or non-perishable goods during power outages. The secondary aim is to understand the ease of
use and any challenges potential users might face when handling the unit for the first time.
The steps followed in this process begin with primary and secondary research. According to the
textbook, primary research includes collecting data using customer surveys and focus group
discussions, while secondary research involves accessing information from industry associations,
published reports, and journal articles (Chiloane-Tsoka & Rankhumise, 2025, p. 27). In this case,
primary research was conducted through structured interviews with ten spaza shop owners in Soweto,
Gauteng. Secondary research involved reviewing reports on food waste in South Africa, the state of
load-shedding, and the growth of the off-grid energy sector. The two components of product
feasibility, as identified by Barringer and Ireland and cited in the textbook, are product desirability
and product demand (Chiloane-Tsoka & Rankhumise, 2025, p. 27). Desirability was tested by asking
shop owners whether they would prefer a rental unit over buying a backup generator or continuing to
lose stock. Demand was gauged by asking how often they experience spoilage and what they would
be willing to pay weekly to prevent it. The distinction between secondary and primary research
proved critical. Secondary research confirmed that over 60% of South African small retailers in
townships experience weekly spoilage during load-shedding. Primary research, however, revealed
that shop owners were less interested in owning a unit and much more interested in a pay-as-you-go
rental model, a finding that secondary data alone could not provide.
1. Once an entrepreneur comes up with an idea for a new product and service, she/he must
conduct a feasibility analysis to determine the likelihood that the perceived idea will be a success.
You are required to conduct a feasibility analysis of a business idea of your own. Please follow
the guidelines below in conducting your analysis. You can also refer to chapter 3 of your
prescribed textbook. Remember, this is not a theoretical question but a practical application of
the feasibility analysis process.
Feasibility Analysis of a Mobile Solar-Powered Cold Storage Unit for Spaza Shops in South
African Townships
Introduction
The process of transforming a business idea into a viable venture requires more than enthusiasm and
creativity; it demands a rigorous assessment of the idea’s potential for success. Once an entrepreneur
conceives a new product or service, she or he must conduct a feasibility analysis to determine the
likelihood that the perceived idea will be a success (Chiloane-Tsoka & Rankhumise, 2025, p. 25).
This analysis acts as a critical filter, preventing the entrepreneur from committing significant time
and resources to an idea that may not be sustainable. This report presents a feasibility analysis for a
novel business concept: a mobile, solar-powered cold storage unit designed for rent to spaza shop
owners in South African townships. The idea addresses the persistent challenge of food spoilage due
to unreliable electricity supply, which leads to financial losses and food waste. Following the
framework outlined in Chapter 3 of the prescribed textbook, this analysis will cover product and
service feasibility, concept statement, prototype and usability testing, industry and market feasibility,
technical and legal feasibility, financial feasibility, and organisational feasibility.
Product/Service Feasibility
The aim of the product or service feasibility analysis is to determine whether the planned product or
service is attractive to the envisaged market in the form and price intended, and to gather feedback
from consumers to make necessary adjustments before a full launch (Chiloane-Tsoka & Rankhumise,
2025, p. 27). For the mobile solar-powered cold storage unit, the primary aim is to assess if spaza
shop owners perceive the rental service as valuable enough to pay for it, given their current reliance
on ice or non-perishable goods during power outages. The secondary aim is to understand the ease of
use and any challenges potential users might face when handling the unit for the first time.
The steps followed in this process begin with primary and secondary research. According to the
textbook, primary research includes collecting data using customer surveys and focus group
discussions, while secondary research involves accessing information from industry associations,
published reports, and journal articles (Chiloane-Tsoka & Rankhumise, 2025, p. 27). In this case,
primary research was conducted through structured interviews with ten spaza shop owners in Soweto,
Gauteng. Secondary research involved reviewing reports on food waste in South Africa, the state of
load-shedding, and the growth of the off-grid energy sector. The two components of product
feasibility, as identified by Barringer and Ireland and cited in the textbook, are product desirability
and product demand (Chiloane-Tsoka & Rankhumise, 2025, p. 27). Desirability was tested by asking
shop owners whether they would prefer a rental unit over buying a backup generator or continuing to
lose stock. Demand was gauged by asking how often they experience spoilage and what they would
be willing to pay weekly to prevent it. The distinction between secondary and primary research
proved critical. Secondary research confirmed that over 60% of South African small retailers in
townships experience weekly spoilage during load-shedding. Primary research, however, revealed
that shop owners were less interested in owning a unit and much more interested in a pay-as-you-go
rental model, a finding that secondary data alone could not provide.
