OPPORTUNITY

RECOGNITION,
SHAPING, AND
RESHAPING
PRESENTED BY:

BATUIGAS I BORBON I BUSICO I VALENCIA

OPPORTUNITY
RECOGNITION
Assessment and evaluating ideas can be very
beneficial to have good opportunities.

Entrepreneurs who establish new enterprises within an

existing firm (corporate entrepreneurship) or as a stand-
alone venture must investigate the nature of the
opportunity in order to create a viable business model.
Entrepreneurs must conduct a lot of tests on what
we call to as what we refer to as market tests in
order to identify exciting ideas and decide
whether they are viable possibilities.
 Belief in your concept is excellent, but you
must first evaluate it.

OPPORTUN
Every great opportunity starts with the
ITY consumer. Typically, entrepreneurs uncover
opportunities by identifying a product or
RECOGNIT service that they want but cannot obtain.

ION The IDEO concept is a useful technique to

examine whether an idea is suitable with
your organization or business.
 IDEO employs a technique known as customer ethnography,
in which the IDEO team goes out into the field and observes
the client in action in their natural environment, finding their
pain points.

WHAT IS
IDEO?
Another technique is brain-writing. The process is like
brainstorming, except that the focus is on written
communication rather than spoken communication.

The following stage is to multiply stimuli. The team

members submit their findings before beginning to
brainstorm on the concept and how to improve the
solution.
WHAT IS IDEO?

After you've narrowed the field down to the ideas and features that you
feel have the most potential, the following step is to generate consumer
ideas. To put it another way, make a crude mock-up of the product's look.

The last phase is to optimize practicability, which is when the team will
eliminate features that are either unneeded, impracticable, or just too
expensive.
 OPPORTUNITY
RECOGNITION

• Is your concept a good one? This question helps you

shape your idea so that it is clearer and more solid.
• Prior to your launch, you must completely grasp the
following five primary areas: (1) consumers, (2)
rivals, (3) suppliers and vendors, (4) the government,
and (5) the larger global environment.
CUSTOMER

• Who may be your client? You must think

about who your primary consumers are.
To learn more, divide your clients into
three groups: main target audience (PTA),
secondary target audience (STA), and
tertiary target audience (TTA) (TTA).
• You are gathering information about your
Primary Target Audience such as income
and ethnicity (demographics), as well as
personality traits and values
(psychographics).
 CUSTOMER
• The STA may not be the primary reason you built
the firm, but they are still significant. You must also
align your business with their demographics.
• Finally, the TTA takes very little upkeep. You
shouldn't spend much time on the TTA throughout
the inquiry and launch stages.
• The common demographics are: Age, Gender,
Household income, Family size/family life cycle,
Occupation, Education level, and etc.
• The common psychographics are: Social group,
Lifestyle, Personality traits, and Values.
CUSTOMER
• Customers aren't static groups that remain the same
throughout time. They change, evolve, and move from one
profile to the next.
• Trends exist in smaller market niches as well, and they may
be just as potent as macro trends.
• Trends frequently predict new markets and indicate when
an industry's window of opportunity is about to open.
• It is critical to understand the full value chain for the
industry in which you compete. You must plan the
distribution of your goods from raw resources to the final
customer.
CUSTOMER
Because there is more demand than supply in growing markets, attractive prospects
arise, and a new business does not need to compete on price.

Market size and growth are crucial, but we must also consider how frequently our
average consumer purchases our product or service and how much he is ready to
spend.

It is tough to choose the appropriate price to charge. It necessitates a grasp of your

cost structure. A better strategy is to compare market prices for rival items.
 • Begin with the client to completely
identify the competitors. Direct rivals,
indirect competitors, and substitutes
must all be identified.
• Even if you successfully join the market,
COMPETITI the competition's power allows them to
respond.
ON • We learn about our rivals' strategies and
which clients they are targeting when we
review the competitive profile matrix.
• It is frequently preferable to emphasize a
few typical rivals rather than every
possible organization.
VENDORS AND
SUPPLIERS
Your suppliers may wield enormous
power, which will have a direct
impact on your profitability.

Operating systems such as Microsoft

and Intel are examples. Microsoft has
gross margins of 81 percent, whereas
Intel has gross margins of 55 percent.
GOVERNMENT
• Taxes are cheaper than in most other
countries, the time it takes to register a new
firm is quicker, and the degree of regulation is
often lower.
• In some industries, such as pharmaceuticals
and medical devices, government regulation
and engagement are substantially stronger.
• When the government gives your company
serious consideration, the approval procedure
can be lengthy, with a median time to
approval of 19 months before the product can
be brought to market.
 GLOBAL
ENVIRONMENT
• Logistics, technology, and
manufacturing advancements
have enabled smaller and
younger enterprises to
compete worldwide.
• Dickson offers a model that
demonstrates when and how
entrepreneurial companies
pursue global prospects.
GLOBAL ENVIRONMENT

• Gradual global means these firms enter international

markets in stages in order to reduce their risk.
• Born global is the second firm. These firms plan to enter
international markets right from the outset. They see the
global opportunity as inherent to their business strategy.
• Born-again global is the last. These firms have been
operating only domestically, but some event triggers them
to move rapidly into new international markets, such as an
unsolicited order from abroad.
 GLOBAL ENVIRONMENT

• Dickson’s model moves from enablers to enacting processes. There are

eight primary means to expand globally, each representing a possible
avenue to opportunity:
1. Technology transfer (joint venture). When firms choose to enter the
global market, they may need to decide whether to sell their
technology or produce it abroad themselves.
2. Technology licensing. Perhaps the most common means to enter a
foreign market is to secure an agent to represent the company
abroad.
 GLOBAL ENVIRONMENT
3. Outsourcing. Outsourcing allows businesses to handle
key attributes of their products while handing over the
responsibility for development and manufacturing to a
subcontractor.
4. Exporting. The cheapest and easiest way to enter new
markets is to sell from your headquarters.
5. Foreign direct investment (FDI). Under this strategy,
companies set up a physical presence in the countries of
interest, whether in the form of a sales office, retail
outlets, production facilities, or something else.
 6. Franchising. Some see franchising as a low-risk method
of entering a foreign market because it allows the firm to
license an operational system.

GLOBAL
7. Venture financing. According to Dickson, venture capital
ENVIRONM is both an enabling and an enacting mechanism. This could
lead to mergers and acquisitions with foreign companies.

ENT 8. Mergers and acquisitions. For some businesses, buying

an overseas firm may be the most efficient manner to enter
a foreign market. You gain an instant presence in the
country with an established infrastructure
CONCLUSION

• Savvy entrepreneurs also recognize that competitors, both direct and

indirect, are vying for the customers’ attention. Understanding
competitive dynamics helps entrepreneurs shape their opportunity to
reach the customer better than the competition can.
• All opportunities start with an idea. We find the ideas that most often
lead to successful businesses have two key characteristics: First, they are
something that the entrepreneur is truly passionate about; second, the
idea is a strong opportunity as measured on the opportunity checklist
 CONCLUSION

Better opportunities will have lots of customers currently (market size) with the
potential for even more customers in the future (market is growing). Furthermore,
these customers will buy the product frequently and pay a premium price for it (strong
margins). Thus, entrepreneurs need to be students of the marketplace.

In addition to the customer and competition, entrepreneurs need to understand how

they source their raw materials (suppliers) and what government regulations mean to
their business.