MODULE 2 :
BUSINESS OPPORTUNITY
1
WHAT IS OPPORTUNITY
OPPORTUNITY IS DEFINED AS A
SITUATION THAT ENABLES AN
ENTREPRENEUR TO OFFER
MARKETABLE PRODUCTS OR SERVICES
TO INTERESTED BUYERS OR END
USERS
2
TYPES OF SITUATIONAL FACTORS
Product or service is still not in existence
Product or service is already in the market
but failed to satisfy the customers – so
need to be improved
3
EMERGENCE OF OPPORTUNITY
• when people decide they have certain needs
and want to be satisfied, or when people
discovered a problem of some kind that can
be helped by a product or service.
• The presence of unfulfilled needs and want
and/or problems alerts the entrepreneur to
the potential opportunity.
• The entrepreneur later creates a business
that is able to fulfill the needs or want and/or
solve the problem
4
OPPORTUNITY IDENTIFICATION
OPPORTUNITY IDENTIFICATION
IS A PROCESS THAT INVOLVED
THE SEARCH FOR AND
DISCOVERY OF BUSINESS
OPPORTUNITIES
5
APPROACH TO OPPORTUNITY
IDENTIFICATION
1. Observe changes in the environment
2. Recognize a need that customers have that
is not being satisfied
3. Recognize problems and find ways to solve
it
6
OBSERVING CHANGES IN THE
ENVIRONMENT
CHANGES IN THE ENVIRONMENT GIVE RISE TO NEEDS AND WANTS AND/OR
PROBLEMS, AND AN OPPORTUNITY EMERGES
7
Important environment forces to observe
include:
Economic forces
Social forces
Technological advances
Political and regulatory statues
8
Examples of How Changes in the Environment
Provides Openings for New Product and Service
Opportunities
Structure of Population and Income
Number of teenagers higher than number Cyber cafes, cineplexes, recording
studios
of elderly and children
People have higher purchasing power Passenger cars, household furniture, DVD
Social
Increase incident of housebreaking Grills, alarm, sensor, security systems
Increase interest in fitness Fitness center, dancing class, in-house exercise
equipment, health food store
Increase mobility of population Handphone, laptop computers
Increasing predominance of dual- Restaurants, food delivery services
income families leaves less time to
cook at home
Technological Advances
Advances in biotechnology Biotech-related pharmaceutical
products, food
products, veterinary products
Development of the internet E-commerce, improved communication
Increase pressure to improve economic Online marketing, cost control services
performance
Government Policies and Regulations
Increased driving standards Smoke emission control, helmet, seatbelt
9
RECOGNIZE NEEDS AND WANTS
OPPORTUNITY OCCURS WHENEVER THERE IS
A NEED AND WANT TO FULFILL. THE TERM
“NEEDS” REFER TO BASIC NEEDS THAT THE
CONSUMER MUST HAVE IN ORDER TO LIVE
WHILE THE TERM “WANTS” REFERS TO A
PERSONAL DESIRE FOR SOMETHING THAT IS
MORE THAN A BASIC NEED.
10
RECOGNIZE PROBLEM AND FIND
SOLUTION
PROBLEMS CAN BE RECOGNIZED BY
OBSERVING THE CHALLENGES THAT
PEOPLE ENCOUNTER IN THEIR DAILY
LIVES. SOLUTION TO THE PROBLEM
REPRESENTED A BUSINESS
OPPORTUNITY
11
OPPORTUNITY IDENTIFICATION PROCESS
Search for Recognize
Discovery
Changes in needs and
of
the wants, and
Opportunity
environment solutions
12
ABILITY TO SEARCH AND DISCOVER
BUSINESS OPPORTUNITIES
Experience and exposure
Knowledge and skills
“Special alertness”
Social network
Creativity
Vigilant
13
MECHANISM TO IDENTIFY OPPORTUNITIES
Customers
Retailers and distributors
Business associates
Bankers
Consultants
Employees
Others
14
EVALUATION AND SELECTION
PROCESS
THE EVALUATION AND SELECTION
PROCESS INVOLVES JUDGING THE
VIABILITY OF THE OPPORTUNITY
AND ASSESSING ITS POTENTIAL.
15
CRITERIA FOR EVALUATION AND SELECTION
Can make money and has potential for growth
Less competition
Good fit between entrepreneur and opportunity
Has competitive advantage
Workable and efficient
Not against the norms and values of the
community
Conform with laws and regulations
16
END OF MODULE 2