What is the purpose of conducting a feasibility study?

The purpose of conducting a feasibility study is to assess the practicality and potential success of a proposed project or idea. This involves evaluating various aspects such as technical feasibility, economic viability, legal considerations, and operational compatibility. By analyzing these elements, a feasibility study helps stakeholders understand whether the project is worth pursuing, identifying potential challenges and advantages.

A well-conducted feasibility study provides crucial insights that can inform decision-making processes, allowing organizations to allocate resources effectively and reduce risks associated with new initiatives. It serves as a foundational step in project management, ensuring that all critical factors are examined before committing to the implementation of a project. Consequently, it plays a vital role in strategic planning and helps organizations make informed decisions about their future endeavors.