ENTREPRENEURSHIP
LEARNING COMPETENCY
•Recognize a Potential
Market
OBJECTIVES:
The learners are expected to :
1. Learn and understand the sources of opportunities for
business.
2. Determine the essentials in the entrepreneur’s
opportunity seeking
3. Identify market problems and propose potential
products or services that will meet the market needs.
4. Select the best product or service that will meet the
market’s need with a consideration of generating profit.
GAME: “SCRAMBLED WORDS”
FIX ME
Direction: Arrange the
scrambled letters to
form a correct words
GAME: “SCRAMBLED WORDS”
1. UPSIERSPL 8. PECITIONMTO
2. NISSUBES 9. IMCLTEA
3. KERTAM 10. NTERTSAN
4. EDICRRSTO
5. SUTEMOSRC
6. UTSBETIUST 60 sec
7. ICEVERS
ANSWERS:
1. SUPPLIERS 6. SUBSTITUTE
2. BUSINESS 7. SERVICE
3. MARKET 8. COMPETITION
4. CREDITORS 9. CLIMATE
5. CUSTOMERS 10. ENTRANTS
Figure 1. The Entrepreneurial Process of
Creating New Venture
Creation of Identification of Opening of
entrepreneurial entrepreneurial entrepreneurial
Ideas Opportunities Venture
Essentials in Entrepreneur’s Opportunity Seeking
1. Entrepreneurial mind frame.
This allows the entrepreneur to see things
in a very positive and optimistic way in the
midst of difficult situation.
2. Entrepreneurial heart flame.
Entrepreneur's driven passion, they are
attracted to discover satisfaction in the act and
process of discovery
Essentials in Entrepreneur’s Opportunity
Seeking
3. Entrepreneurial gut game.
This refers to the ability of the
entrepreneur of being intuitive
The gut game means confidence in
one’s self and the firm believes that
everything you aspire can be reached.
Sources of Opportunities
1. Changes in the environment
Entrepreneurial ideas arise when
changes happen in the external
environment.
Sources of Opportunities
External Environment
refers to the following:
[Link] environment,
[Link] environment, and
[Link] environment where the
business operates.
Physical Environment
Climate- the weather conditions.
Natural resources- such as minerals,
forests, water, and fertile land that
occur in nature and can be used for
economic gain.
Wildlife- includes all mammals, birds,
reptiles, fish, etc., that live in the wild.
Societal Environment
• Political forces-includes all the laws, rules, and
regulations that govern business practices as well as
the permits, approvals, and licenses necessary to
operate the business.
• Economic forces-such as income level and
employment rate.
• Sociocultural forces-customs, lifestyles and values
that characterize a society.
• Technological environment-New inventions and
technology innovations.
Industry Environment
• Competitors-an organization or country
engaged in commercial or economic
competition with others.
• Customers-a person or organization that
buys goods or services from a store or
business.
• Creditors-an individual or institution that
extends credit to another party to borrow
Industry Environment
• Employees-a person who is hired to work for
another or for a business, firm, etc, in return
for payment.
• Government-the political direction and
control exercised over the actions of the
members, citizens, or inhabitants of
communities, societies, and states.
• Suppliers-companies that provide goods or
services that a company or business requires
producing its products or achieving its aims.
2. Technological discovery and
advancement
A person with entrepreneurial
interest sees possibility of
business opportunities in any
new discovery or because of the
use of latest technology
3. Government’s thrust, programs, and policies
The priorities, projects, programs,
and policies of the government
are also good sources of ideas.
4. People’s interest
The interest, hobbies, and preferences of
people are rich source of entrepreneurial
ideas. Like the increasing number of
Internet Café at present could be lead to
the strong attachment of young people to
computers.
5. Past Experiences
•The expertise and skills
developed by a person who has
worked in a particular field may
lead to the opening of related
business enterprise.
Forces of Competition
Model
An industry environment is a competitive environment.
Regardless of what product or services you have,
competition is always present.
Competition – it is the act or process of trying to get or win
something.
For example, the prices are lower when there is a competition among the
stores.
These are the five forces competing
within the industry:
1. Buyers -
2. Potential new entrants
3. Rivalry among existing firms
4. Substitute products
5. Supplier
1. Buyers
The buyers are the one that pays cash in
exchange to your goods and services.
For example, the influenced of the price or in
the bargaining strategy. The buyer has a strong
and magnified bargaining power.
2. Potential New Entrants
A new entrant is defined as the one who enters something.
For example, the level of capital requirements, if the business
requires huge capital, new entrants should decline to join the
business. This gives a threat to the business.
3. Rivalry among Existing Firms
Rivalry is a state or situation in which people or
groups are competing with each other. For
example it depends on the Marketing strategy of
your competitor, like giving freebies and special
offers. The intensity of rivalry among existing
firms is characterized to the following factors:
3. Rivalry among Existing Firms
a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.
4. Substitute Products
• Substitute means anything that takes the place or function of
another. For example the consumers decide to use margarine
as a substitute for butter. In case the price of butter increases,
preferably the consumer will gradually switch to margarine.
• A substitute product can give a big threat in the industry
environment if the following factors are notice:
4. Substitute Products
A. Switching cost is low.
B. Preferences and tastes of the customers easily change.
C. Product differentiation is highly noticeable
D. The quality of substitute products dramatically improves.
E. The price of substitute product is substantially lower.
5. Suppliers
The Suppliers are the one that provide something
that is needed or wanted. For example if the
supply and services being offered is unstable or
keep. The intensity of the threat is strong in this
kind of the competitive force in the industry. This
can be notice if there is the presence of the
following factors:
5. Suppliers
A. The supplier has the ability for forward integration.
B. Suppliers in the industry are few, but the sales
volume is high.
C. Substitute products are not readily available in the
market
D. The switching cost is very high.
E. The product or service is unique.
Activity: WORD HUNT
Think of words or terms related to the topic and
find the words in the grid horizontally, vertically,
or diagonally. Write the words or terms on the
space provided below.
Activity: WORD HUNT
Activity 3: COMPLETE ME
Complete the table below by supplying it
with products that you consider similar.
Write the product and not the brand in their
respective columns. Then describe and
differentiate its characteristics and uses.
.
Individual Activity: COMPLETE ME
THANK YOU AND MABUHAY!