This document discusses business opportunity identification. It defines opportunity as a situation enabling entrepreneurs to offer marketable products or services. Opportunities emerge when needs/problems are identified that existing products don't satisfy. The document outlines approaches to identifying opportunities by observing environmental changes, recognizing unmet needs/problems, and discovering solutions. It provides examples of how various social and technological changes create new opportunities.

1. BUSINESS OPPORTUNITY
PM Baharudin Ismail
PM Roslan Ab. Rahim
Mohamed Husny Basir

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(consumer)

3. 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

4. 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

5. OPPORTUNITY IDENTIFICATION
Opportunity identification
is a process that involved
the search for and
discovery of business
opportunities

6. 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

7. OBSERVING CHANGES IN THE
ENVIRONMENT
Changes in the environment give
rise to needs and wants and/or
problems, and an opportunity
emerges

8. OBSERVING CHANGES IN THE
ENVIRONMENT
Important environment forces to observe
include:
• Economic forces(perubahan
eco-peningkatan klpa sawit)
• Social forces
• Technological advances
• Political and regulatory statues

9. 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

10. 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.

11. 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

12. OPPORTUNITY IDENTIFICATION
PROCESS
Search for
Recognize
Changes in
needs and Discovery of
the
wants, and Opportunity
environmen
solutions
t

13. ABILITY TO SEARCH AND DISCOVER
BUSINESS OPPORTUNITIES
• Experience and exposure
• Knowledge and skills
• “Special alertness”
• Social network
• Creativity
• Vigilant(aware)

14. MECHANISM TO IDENTIFY
OPPORTUNITIES
• Customers
• Retailers and distributors
• Business associates
• Bankers
• Consultants
• Employees
• Others

15. EVALUATION AND SELECTION
PROCESS
The evaluation and selection
process involves judging the
viability of the opportunity and
assessing its potential.

16. 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