Recognize a

Potential Market
Mr. John R. Manawis
What is the difference
between a
businessman and an
entrepreneur?
3
Recognizing a Potential Market 4
 1. Entrepreneurial Ideas
Potential 2. Essentials in Entrepreneur’s
Opportunity – Seeking
Market 3. Sources of Opportunities
4. Forces of Competition Model

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Introduction

An entrepreneurial Idea will give

you openings for an
entrepreneurial opportunities
leading to the creation of
entrepreneurial ventures.

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 Entrepreneurial
Process of Creating
New Venture
Entrepreneurial Ideas

Entrepreneurial
Opportunities

Entrepreneurial
Ventures
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 ESSENTIALS IN
ENTREPRENEUR’S
OPPORTUNITY
SEEKING
 Entrepreneurial
Mind Frame

Seeing things in a
positive or optimistic
way in a midst of
difficult situation.

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 Entrepreneurial
Heart Flame

Driven by passion to
discover satisfaction in
the act and process of
discovery.

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 Entrepreneurial
The ability to be Gut Game
intuitive, also known as
intuition. It may also be
defined as confidence in
one’s self and the firm
belief that everything
you aspire can be
reached.

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 Source
of
Opportunities
 Changes in the
environment
1 External Environment
-The physical
environment, social
environment, and
industry environment
where the business
operates.

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Physical Environment

Climate Natural Wildlife

Resources

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 Social Environment

Political Forces Economic Forces Socio-cultural Technologica

Forces l
Environment

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Industry Environment

1 2 3 4 5 6
Competitors Customers Creditors Employees Government Suppliers

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 Technology
Discovery and

2 -The possibilities of
business opportunity
Advancement

with the latest use of

technology.

Ex. Combustion Engine

to Electric Cars

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 Government’s
thrust, programs,

3 -The priorities, projects,

and policies

programs, and policies

of the government are
also good sources of
ideas.

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 People’s Interest

4 -Interest, hobbies and

preferences of people.

Ex. Internet Cafés,

Printing Shops

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 Past Experiences

5 -A skill developed by a
person who worked in a
certain field may lead to
opening of a similar
type of venture.

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Forces of Competition Model
The threat of its bargaining power will be
1. Buyers less if such factors are noticed:
• The one who pays cash in • a. There are several suppliers available in the market.
exchange of your goods. • b. The buyer has the potential for backward integration.
• A high bargaining power. • c. The cost of switching the supplier cost is minimal.
• d. The product represents a high percentage of the
buyer’s cost.
• e. The buyer purchases large portions of the seller’s
product or services.

Recognizing a potential Market 22

Forces of Competition Model
2. Potential New
Entrants
• Companies or business that
have the ability to penetrate
or enter into a particular
industry.
This can be noticed if there is the presence of the following factors:
a. Substantial capital requirement
b. Strict government policy
c. Difficulty in accessing distribution channels
d. Economies of scale
e. High cost of product differentiation
f. High switching cost
Recognizing a potential Market 23
Forces of Competition Model
3. Rivalry among
Existing Firms
• state or situation wherein
business organizations are
competing with each other in
a particular market.
Intensity of rivalry is characterized as follows:
a. Diversity of rivals
b. Number of competing firms
c. Characteristics of the products or services
d. Increased capacity
e. Amount of fixed costs
f. Rate of industry growth
Recognizing a potential Market 24
Forces of Competition Model
4. Substitute Products
• It serves the same purpose
as another product in the
market.
A substitute product can give a big threat in the industry
environment if the following factors are noticed:
a. Switching cost is low
b. Preferences and tastes of the customers easily change
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves
e. The price of substitute product is substantially lower
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Forces of Competition Model
This can be noticed if there is the presence of the following factors:
5. Suppliers
• The one who provides what a. The supplier has the ability for forward integration
is needed in the business
b. Suppliers in the industry are few, but the sales volume is high
such as supplies and
equipment. c. Substitute products are not readily available in the market
d. The switching cost is very high
e. The product or service is unique

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Summary
The entrepreneur must possess
entrepreneurial mind frame, heart flame
and gut game for a better undertaking of
the entrepreneurial ventures. In order to
create new ideas, one must consider
different sources of opportunities such as
the external environment, technology
advancement, government’s thrust
programs, people’s interest and past
experiences. While keeping in mind the
Five forces of competition model, which
shows us how competitive a market is.

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 References (pictures):

Difference between a businessman and entrepreneur

https://diffeology.com/difference-between-entrepreneur-and-businessman/

9/3/20XX Presentation Title 28

Thank you!

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