Feasibility Paper
Griselda Vall, Rebeka, Myra
May 11, 2016

Section 2

Industry Analysis
As a company who is trying to penetrate the design industry by introducing new and practical ways to decorate and present products to customers, technology will be essential.
We decided to present 3D display windows as well as decorating options to help the design industry evolve along with technology. We are aware that technology is becoming an essential part of our lives in every aspect and every industry needs to find ways to work with it.
Without technology our business would not work because we provide a service, which allows store owners to have a 3D experience of what their stores will look like, allowing them to save time and money.
Demographic changes
The United States population is expected to expand by a 100 million in the next 40 years. It is also expected to grow older. We believe that these changes affect our company in negative and positive ways. It will be affected negatively because the population will grow somewhat older and older people don’t use technology as often. However, people who will get older will already be exposed to technology and its importance in our everyday lives. As for the growth of population, it will affect us in a positive way because we can expand our market and have more sales.

Changes occurring in our socio-cultural environment
One of the biggest changes we are living is globalization. Even though this change has been happening since the beginning of civilizations (because there have always been advancements and changes) globalization has become a part of our daily lives. Almost everything we see or do is connected to something or someone who is in another part of the world. Being able to order candy online from China or being able to reach someone in Australia anytime you want is something that has affected the way we live and how we do things.
We believe this is something that directly affects Stark because furniture companies will now be able not only to sell furniture to other places in the world but to provide customers the opportunity of seeing the furniture displayed in their home before even having to buy it. This new technology will help furniture brands expand their business faster than before and with lower costs because there will be less returns of unhappy customers.

What is the economy like and how is it predicted to change?
“The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II.”

Our company will start from the US because we believe it has a strong economy and that consumers are educated enough in order to be able to understand this type of new technology. We don’t plan to expand to other places yet because we believe that trying to educate consumers in the use of these new technology will require a large investment that we can use for other things.

Porter’s Five Forces
Bargaining Power of Buyers: In an industry as massive as Technology, the term "buyers" refers to almost everyone in the world. While there are countries that are behind technologically, a majority of locations in the world have access to computers and the internet etc. Given the large number of buyers, it is safe to say that the customers control the IT industry.
Bargaining Power of Suppliers: new companies find it difficult (not impossible) to enter this industry as a supplier because of the existing relationships between current suppliers and technology firms, the ever changing and improving technologies of the world and the intense rivalry between existing players. Technology firms are very important to suppliers because they are their primary customers, but I believe suppliers are even more important to buyers.
Threat of New Entrants: The technology industry is relatively attractive to newcomers because of its rapid growth and appealing customer base. At the same time, the industry is unattractive to newcomers because of the cost advantage large-scale incumbents possess, the significant amount of capital a new firm would need, and the major established brands already in the industry.
Threat from Substitutes: There is not much of a threat from substitutes to the IT industry, mostly because there aren't true substitutes. We live in a digital age, so we rely on IT to run our lives and businesses.
Rivalry Among Existing Players: The technology industry is known for its rapid growth, effectiveness and competition. A main reason why many new entrants are not successful is the intense rivalry between existing players. Large companies in this industry benefit from economies of scale, which is valuable and something they try very hard not to lose.