We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byGabrielle Davidson
Modified over 3 years ago
©2008 Prentice Hall Ideas and Opportunities Dr Jan Alpenberg, Youth Unlimeted, Toronto 2-1
©2008 Prentice Hall What is an idea? Something to do… Somewhere to go… How to do things… When to do things… Why to do things… 2-2
©2008 Prentice Hall What is a business idea? A business idea is a summary of ideas that will answer the following questions: –Who is my customer? Who is going to buy my product/service? –How is my idea unique? –How to create value for the customer? –Profit will follow… if we do this well! 2-3
©2008 Prentice Hall 2-4 What is An Opportunity? (1 of 2) Opportunity Defined –An opportunity is a favorable set of circumstances that creates the need for a new product, service, or business idea. –Most entrepreneurial firms are started in one of two ways: Some firms are internally stimulated. An entrepreneur decides to start a firm, searches for and recognizes an opportunity, then starts a business. Other firms are externally stimulated. An entrepreneur recognizes a problem or an opportunity gap and creates a business to fill it.
©2008 Prentice Hall 2-5 What is an Opportunity? (2 of 2) An opportunity has four essential qualities
©2008 Prentice Hall 2-6 Window of Opportunity –The term window of opportunity is a metaphor describing the time period in which a firm can realistically enter a new market. Once the market for a new product is established, its window of opportunity opens, and new entrants flow in. At some point, the market matures, and the window of opportunity (for new entrants) closes.
©2008 Prentice Hall 2-7 Three Ways to Identify An Opportunity
©2008 Prentice Hall 2-8 First Approach: Observing Trends (1 of 2) Observing Trends –The first approach to identifying opportunities is to observe trends and study how they create opportunities for entrepreneurs to pursue. –There are two ways that entrepreneurs can get a handle on changing environmental trends: They can carefully study and observe them. They can purchase customized forecasts and market analyses from independent research firms.
©2008 Prentice Hall 2-9 First Approach: Observing Trends (2 of 2) Environmental Trends Suggesting Business or Product Opportunity Gaps
©2008 Prentice Hall 2-10 Trend 1: Economic Forces Economic Forces –Economic forces affect consumers level of disposable income. –When studying how economic forces affect opportunities, it is important to evaluate who has money to spend and who is trying to cut costs. An increase in the number of women in the workforce and their related increase in disposable income is largely responsible for the number of boutique clothing stores targeting professional women that have opened in the past several years. Many large firms are trying to cut costs. Entrepreneurs have taken advantage of this trend by starting firms that help other firms control costs.
©2008 Prentice Hall 2-11 Trend 2: Social Forces (1 of 2) Social Forces –Changes in social trends provide openings for new businesses on an ongoing basis. –The continual proliferation of fast-food restaurants, for example, isnt happening because people love fast food. It is happening because people are busy, and have disposable income. –Similarly, the Sony Walkman was developed not because consumers wanted smaller radios but because people wanted to listen to music while on the go.
©2008 Prentice Hall 2-12 Trend 2: Social Forces (2 of 2) Examples of Social Forces That Allow For New Business Opportunities Family and work patterns. The aging of the population. The increasing diversity in the workplace. The globalization of industry. The increasing focus on health care and fitness. The proliferation of computers and the Internet. The increase in the number of cell phone users. New forms of entertainment.
©2008 Prentice Hall 2-13 Trend 3: Technological Advances Technological Advances –Given the rapid pace of technological change, it is vital that entrepreneurs keep on top of how new technologies affect current and future business opportunities. –Entire industries have emerged as the result of technological advances. Examples include the computer industry, the Internet, biotechnology, and digital photography. –Once a new technology is created, new businesses form to take the technology to a higher level. For example, RealNetworks was started to add audio capability to the Internet.
©2008 Prentice Hall 2-14 Trend 4: Political and Regulatory Changes Political and Regulatory Changes –Political and regulatory changes provide the basis for new business opportunities. For example, laws that protect the environment have created opportunities for entrepreneurs to start firms that help other firms comply with environmental laws and regulations. Similarly, many entrepreneurial firms have been started to help companies comply with the Sarbanes-Oxley Act of The act requires certain companies to keep all their records, including messages and electronic documents, for at least five years.
©2008 Prentice Hall 2-15 Second Approach: Solving a Problem (1 of 2) Second Approach: Solving a Problem Sometimes identifying opportunities simply involves noticing a problem and finding a way to solve it. These problems can be pinpointed through observing trends and through more simple means, such as intuition, serendipity, or chance. Some business ideas are clearly initiated to solve a problem. For example, Symantec Corp. created Norton antivirus software to guard computers against viruses.
©2008 Prentice Hall 2-16 Second Approach: Solving a Problem (2 of 2) Businesses Created to Solve a Problem
©2008 Prentice Hall 2-17 Third Approach: Finding Gaps in the Marketplace Gaps in the Marketplace –A third approach to identifying opportunities is to find a gap in the marketplace. –A gap in the marketplace is often created when a product or service is needed by a specific group of people but doesnt represent a large enough market to be of interest to mainstream retailers or manufacturers. This is the reason that small clothing boutiques and specialty shops exist. The small boutiques, which often sell designer clothes or clothing for hard-to-fit people, are willing to carry merchandise that doesnt sell in large enough quantities for Wal-Mart, GAP, or JC Penney to carry.
©2008 Prentice Hall 2-18 Personal Characteristics of the Entrepreneur Characteristics that tend to make some people better at recognizing opportunities than others Prior ExperienceSocial Networks Cognitive FactorsCreativity
©2008 Prentice Hall 2-19 Prior Industry Experience –Several studies have shown that prior experience in an industry helps an entrepreneur recognize business opportunities. There are several explanations for this. By working in an industry, an individual may spot a market niche that is underserved. It is also possible that by working in an industry, an individual builds a network of social contacts who provide insights that lead to recognizing new opportunities.
©2008 Prentice Hall 2-20 Cognitive Factors –Studies have shown that opportunity recognition may be an innate skill or cognitive process. –Some people believe that entrepreneurs have a sixth sense that allows them to see opportunities that others miss. –This sixth sense is called entrepreneurial alertness, which is formally defined as the ability to notice things without engaging in deliberate search.
©2008 Prentice Hall 2-21 Social Networks (1 of 3) Social Networks –The extent and depth of an individuals social network affects opportunity recognition. –People who build a substantial network of social and professional contacts will be exposed to more opportunities and ideas than people with sparse networks. –In one survey of 65 start-ups, half the founders reported that they got their business idea through social contacts. Strong-Tie Vs. Weak-Tie Relationships –All of us have relationships with other people that are called ties. (See next slide.)
©2008 Prentice Hall 2-22 Social Networks (2 of 3) Nature of Strong-Tie Vs. Weak-Tie Relationships –Strong-tie relationship are characterized by frequent interaction and form between coworkers, friends, and spouses. –Weak-tie relationships are characterized by infrequent interaction and form between casual acquaintances. Result –It is more likely that an entrepreneur will get new business ideas through weak-tie rather than strong-tie relationships. (See next slide.)
©2008 Prentice Hall 2-23 Social Networks (3 of 3) Strong-Tie RelationshipsWeak-Tie Relationships These relationships, which typically form between like- minded individuals, tend to reinforce insights and ideas that people already have. The relationships, which form between casual acquaintances, are not as apt to be between like-minded individuals, so one person may say something to another that sparks a completely new idea. Why weak-tie relationships lead to more new business ideas than strong-tie relationships
©2008 Prentice Hall 2-1 Chapter 2 Entrepreneurship: Successfully Launching New Ventures, 2/e Bruce R. Barringer R. Duane Ireland.
Business Plan Entrepreneurial Opportunity Recognition Entrepreneurial Opportunity Recognition Week3 ELIB 203.
Chapter Recognizing Opportunities and Generating Ideas.
Chapter 2 Recognizing Opportunities and Generating Ideas Bruce R. Barringer R. Duane Ireland Copyright ©2016 Pearson Education, Inc. 2-1.
©2010 Prentice Hall 2-1 Chapter 2 Recognizing Opportunities and Generating Ideas Bruce R. Barringer R. Duane Ireland.
Chapter 2 Recognizing Opportunities and Generating Ideas Bruce R. Barringer R. Duane Ireland Copyright ©2012 Pearson Education, Inc. publishing as Prentice.
©2010 Pearson Education 2-1 Chapter 2 Recognizing Opportunities and Generating Ideas Bruce R. Barringer R. Duane Ireland.
Chapter 2 Modified from: Barringer & Ireland (2006) Recognizing Opportunities and Generating Ideas Part II.
Recognizing Opportunities & Generating Ideas Chapter 2.
Successful Entrepreneurs Passion for the business Vision and endless ideas Product/customer focus: Must satisfy customer needs Persevere through.
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall2-1 Chapter Two Developing and Screening Business Ideas Dr. Bruce Barringer University.
Chapter 2. Learning Objectives 1. Difference between ‘opportunity’ & ‘idea’ 2. Understanding Window of Opportunity 3. How Entrepreneurs identify opportunities.
Diane M. Sullivan (2010) Some sections Modified from Barringer & Ireland’s (2008) Chapter 2 Recognizing Opportunities and Generating Ideas Day #2.
Chapter 2 Developing successful business ideas Identifying and recognizing opportunities Ways for identifying opportunities Personal characteristics of.
1 Part 3 Marketplace Dynamics Chapter 16 Segmenting a Market.
© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 5 MARKETING INFORMATION AND RESEARCH 5-1Understanding the Need for Market Information 5-2Finding.
Diane M. Sullivan (2007) Recognizing Opportunities and Generating Ideas Part II Entrepreneurial Networks and Evolutionary Creativity: The Nexus of Opportunity.
© 2007 Pearson Education. Upper Saddle River, NJ, All Rights Reserved.Mariotti: Entrepreneurship Entrepreneurship Chapter 1 Entrepreneurs Recognize.
Analysis of the External Environment and Competition.
© 2005 Prentice Hall12-1 Chapter 12 Global Marketing Channels and Physical Distribution Power Point by Kristopher Blanchard North Central University.
Market Analysis 1 To ensure success, the entrepreneur needs to understand the industry and the market. He or she should define areas of analysis and conduct.
Business Markets and Business Buyer Behavior 6 Principles of Marketing.
Chapter 2 The Marketing Plan. Objectives Conduct a SWOT analysis List the three key areas of internal company analysis Identify the factors in an environmental.
Prentice Hall, Inc. © STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 1 Basic Concepts of Strategic.
The Marketing Plan. SWOT Analysis Good marketing relies on good plans Planning efforts begin with a critical look at itself and its business environment.
Marketing Planning Chapter 2 Mrs. Newbegin. The Marketing Plan SWOT Analysis – An assessment that can foster the business’ success and what could make.
Marketing Channels and Supply Chain Management Chapter 13.
Analyzing International Opportunities 12 Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall.
EFREI BM057. EFREI BM057 Individual Written Class Assignment Hand out date: 14 Sept 2009 Hand in date: 28 Sept 2009.
Chapter 8 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Products, Services, and Brands Building Customer.
4 - 1 Copyright © 2016 Pearson Education, Inc. 1.
Edition Vitale and Giglierano Chapter 6 Assessing and Forecasting Markets Prepared by John T. Drea, Western Illinois University.
Making Your Business Grow Back to Table of Contents.
Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 22-1 chapter Spotting Trends and Opportunities 2 2 Prepared by Ron Knowles Algonquin.
2.1 Marketing Planning MARKETING MR. PAVONE. SWOT Analysis.
Market Opportunity Recognition.
Business & Innovative Company Creation Lecture 1..
Recognizing Opportunity Back to Table of Contents.
©2010 Prentice Hall 6-1 Chapter 6 Developing an Effective Business Model Bruce R. Barringer R. Duane Ireland.
1. 2 Part 1 Marketing Dynamics Chapter 1 Marketing Is Dynamic!
Chapter 1- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter One Creating and Capturing Customer Value.
Market Research For Small Business. How to ID your Target Audience Determining what kind of business you want to open is only the first step in the start.
Marketing Planning Chapter 2 The Marketing Plan Section 2.1 Marketing Planning Section 2.2 Market Segmentation Section 2.1 Marketing Planning Section 2.2.
E-Marketplaces. Electronic CommercePrentice Hall © E-Marketplaces Markets (electronic or otherwise) have three main functions: 1.Matching buyers.
New Product Innovation National Correctional Industries Association Enterprise 2004 March 23, 2004.
Section 1.1 Marketing and the Marketing Concept Chapter 1 marketing is all around us Section 1.2 The Importance of Marketing Section 1.3 Fundamentals of.
5-1 Chapter 5 PRINCIPLES OF MARKETING Consumer Markets and Consumer Buyer Behavior.
Feasibility and Business Planning 1 Understand the process and value of conducting a feasibility analysis for your business Key Terms: Industry Target.
© 2017 SlidePlayer.com Inc. All rights reserved.