1.3 Sources of business opportunity Flashcards
Define innovation
Innovation generally refers to changing or creating more effective processes, products and ideas, and can increase the likelihood of a business succeeding.
Define entrepreneurship
Entrepreneurship is the process of designing, launching and running a new business, It is the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make profit.
What are the ideas that create innovation that entrepreneur explore
- New products
- New services
- New production techniques
- New marketing techniques
Explain what the Demographic is
The Demographic is the statistical data of a population, especially those showing average age, income or education.
What is a SWOT analysis
A Swot analysis is an assessment of the internal strengths and weaknesses and the external opportunities and threats for a business in a given situation.
The factors to take into account when customers needs change
- Businesses are able to recognize signs indicating customer needs and wants
- Take advantage of favorable changes in the trends and increase demand for products in the demographic group.
What is a Gap in the market
The Gap in the market refers to a opportunity for a business to enter into an area of the market not currently being serviced.
Explain the opportunity of the Global Market
The opportunities of a global market includes locating opportunities overseas and introducing those innovations and ideas to Australia before anyone else has. Businesses profit handsomely through the successful introduction of overseas ideas into the Australian market.
Explain the opportunity of Research and development
Research and development is potential development of new products and technology for through observation of a particular target market and an analysis of products that the demographic might be interested in .
Explain the opportunity of Technological developments
The Technological development and impending availability of new technologies is often a source of new ideas for a new business
What are the characteristics of a good business opportunity
- Real demand
- Return on investment
- Market competitiveness
Explain Real demand as an characteristics of opportunity
If customers will respond in demand for the provided good or service. Without demand of the customer, the business will be unsuccessful
Explain Return on investment as an characteristics of opportunity
Return on investment refers to the potential for sustainable, timely and acceptable rewards/returns for the risk and effort required in the management of the business.
Explain Market competitiveness as an characteristics of opportunity
The product or business must be equal or outperform the rivaling products and/or businesses in the same market
