BUSINESS OPPORTUNITYPM Baharudin IsmailPM Roslan Ab. RahimMohamed Husny Basir
WHAT IS OPPORTUNITY Opportunity is defined as a situation that enables anentrepreneur to offer marketableproducts or services to interested buyers or end users(consumer)
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
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
OPPORTUNITY IDENTIFICATION Opportunity identification is a process that involved the search for and discovery of business opportunities
APPROACH TO OPPORTUNITY IDENTIFICATION1. Observe changes in the environment2.Recognize a need that customers have that is not being satisfied3.Recognize problems and find ways to solve it
OBSERVING CHANGES IN THE ENVIRONMENTChanges in the environment giverise to needs and wants and/orproblems, and an opportunityemerges
OBSERVING CHANGES IN THE ENVIRONMENTImportant environment forces to observeinclude:• Economic forces(perubahan eco-peningkatan klpa sawit)• Social forces• Technological advances• Political and regulatory statues
Examples of How Changes in the Environment Provides Openings forNew Product and Service OpportunitiesStructure 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, DVDSocial 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 homeTechnological 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 performanceGovernment Policies and Regulations Increased driving standards Smoke emission control, helmet, seatbelt
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.
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
OPPORTUNITY IDENTIFICATION PROCESS Search for Recognize Changes in needs and Discovery of the wants, and Opportunityenvironmen solutions t
ABILITY TO SEARCH AND DISCOVER BUSINESS OPPORTUNITIES • Experience and exposure • Knowledge and skills • “Special alertness” • Social network • Creativity • Vigilant(aware)
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.
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