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business oppurtunity.pptx

  2. 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
  3. 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 TYPES OF SITUATIONAL FACTORS
  4. • 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. EMERGENCE OF OPPORTUNITY
  5. Opportunity identification is a process that involved the search for and discovery of business opportunities. OPPORTUNITY IDENTIFICATION 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 Important environment forces to observe include: 1. Economic forces 2. Social forces 3. Technological advances 4. Political and regulatory statues
  7. 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 of elderly and children People have higher purchasing power Cyber cafes, Cineplex's, recording studios 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 Hand phone, laptop computers Increasing predominance of dual- income families leaves less time to cook at home Restaurants, food delivery services 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 performance Online marketing, cost control services Government Policies and Increased driving standards Smoke emission control, helmet, seatbelt
  8. 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.
  9. RECOGNIZE PROBLEM AND FIND SOLUTION OPPORTUNITY IDENTIFICATION PROCESS Searchfor Changesin theenvironment Recognize needs and wants, and solutions Discoveryof Opportunity
  10. ABILITY TO SEARCH AND DISCOVER BUSINESS OPPORTUNITIES Experience and exposure Knowledge and skills “Special alertness” •Social network •Creativity •Vigilant MECHANISM TO IDENTIFY OPPORTUNITIES • • • • Customers Retailers and distributors Business associates Bankers • • • Consultants Employees Others • EVALUATION AND SELECTION PROCESS The evaluation and selection process involves judging the viability of the opportunity and assessing its potential.
  11. CRITERIA FOR EVALUATION AND SELECTION 1. Can make money and has potential for growth 2. Less competition 3. Good fit between entrepreneur and opportunity 4. Has competitive advantage 5. Workable and efficient 6. Not against the norms and values of the community 7. Conform with laws and regulations
  12. Divergent Thinking Mode Convergent Thinking Mode
  13. Out-of-the-box thinking - thinking that moves away in diverging directions so as to involve a variety of aspects and which sometimes lead to novel ideas and solutions; associated with creativity. Divergent thinking is a thought process or method used to generate creative ideas by exploring many possible solutions. Divergent thinking typically occurs in a spontaneous, free- flowing manner, such that many ideas are generated in an emergent cognitive fashion. Many possible solutions are explored in a short amount of time, and unexpected connections are drawn. After the process of divergent thinking has been completed, ideas and information are organized and structured using convergent thinking.
  14. Thinking that brings together information focused on solving a problem (especially solving problems that have a single correct solution) Convergent thinking is the type of thinking that focuses on coming up with the single, well-established answer to a problem. It is oriented toward deriving the single best, or most often correct answer to a question. Convergent thinking emphasizes speed, accuracy, and logic and focuses on recognizing the familiar, reapplying techniques, and accumulating stored information
  15. Preparation of personal profile Development of OS (decision making) framework Generation of ideas Snap investigation Evaluation in terms of OS (decision making), framework & short listing of ideas Pre-feasibility studies Opportunity selection
  16. About the entrepreneur: May include following details: Background : Personal, educational, experience, personality Objectives for establishing enterprise Investment preparedness Attitude to risk taking Personal considerations
  17. Investment How much are you willing to invest? Contingency & escalation Working capital margin Technology sophistication Quality & Quantity of technology to acquire
  18. Managerial/ Organization demands Size or intensity or organizational task How skills & expertise match? Market Competition Market research Aggressiveness & determination to ‘sell’ Export industry consideration
  19. Sector preference Government intervention/ dependence Implementation time Profitability Degree of risk & its form Location Personal considerations Taboos/ Religious Sentiments
  20. To hit up ideas – the heart of OIS process Strong creative dimension to be present Stretch one’s mind for opportunity Idea generation
  21. Idea not enough – must examine preliminary viability Preliminary investigation Questions like: What exactly is the product or service? Application & uses Possible scales of production or operation Project cost to a given scale of production/ operation
  22. Market / competition Unit sale price Degree of technological complexity Expected annual turnover Expected profit margin (range) And any other information you can collect without incurring too much expenditure
  23. Will you be able to learn and get grip over business? Securing term loans, financial assistance or commercial bank… will it pose a problem? Key determinants: success & risks Must cross check all judgments
  24. Portion a highly individualistic process Generation of ideas will depend on Interest in sending opportunity over time Sense of urgency of business enterprise Ability to harness courses of knowledge & information Vision & creativity Lateral thinking
  25. 7 approaches to generation of ideas Natural resources Existing anticipated industries Market driven Service sector scanning Extension/ modification of present work content Creative effort Other ways
  26. Natural resources – to convert into profitable enterprises Forest Horticulture Agro-waste Marine or aqua Mineral Animal Wind Sun Human
  27. Natural resources – must pay attention to: Exploitation Resource quantification & life Resource stability Critical infrastructure for resource utilization Commodity/ trading dimension Legal dimension Other considerations Where will you pick resource based ideas?
  28. Existing anticipated industries Similar projects Raw material for existing industry Further processing of output of existing industry Projects based on waste or by- products of existing industry Packaging materials Service requirements Projects based on skills/ technology developed through existing industry
  29. Existing/ anticipated industries – keep following in view Outlook for existing industry of your interest Ancillary parent industry syndrome Captive arrangement Nature of decision making Projects in the pipeline Motivated feedback Look beyond local industries Well trenched non- local supply industries
  30. Demand driven or market driven opportunities Trade flows Import substitution Growth products Product positioning/ differentiation Exports Basis of import Competitive advantage, not just potential 100% export Networking
  31. Service sector opportunities Existing industrial enterprises Medium and large projects in pipeline Commercial establishment Public utility orgs. Social infrastructure Business enterprises catering to community needs Government/ quasi- government orgs. & local bodies Citizens households
  32. Creative effort Development of problem solving products/ services Exploitation of new technology or material to meet a widely felt need Creating a demand for a psychological product Technical extension of an established product concept Creating a demand implicit in emerging lifestyle Technical work Introducing products/ services alien to region or country Value addition through technical or managerial innovation
  33. Basic guidelines Imperfect knowledge Comprehensive comparison Key issues Technology comfortability Degree of difficulty of market position Risks Profitability Government dependence Success & risks calculated
  34. “Me too” syndrome Fallacy of numbers Failure to grasp key elements of success Lack ownership Catch the first bus Inaccurate information Unwillingness to step back