business concept development Flashcards
business concept development
one of the first steps of starting a business. initial idea that forms a business is often either the development of a new innovative product or the enhancement of existing products. important that the g or s is superior -> competitive advantage.
3 business concept developments
- an improvement on existing product/service.
- an idea for a completely new product.
- identifying a gap in the market - demand that is not currently being satisfied.
link between business opportunity and business concept development.
identify the business opportunity -> develop the business concept -> protect the business concept.
identify the business opp.
before entre. can develop their concept, they must identify the source of business opp.
develop the business concept
- conducting market research
- conducting a feasibility study
(feasibility = the state or degree of being easily or conveniently done)
protect the business concept
once the business has established its idea it needs to obtain legal protection to prevent others from copying the idea.
ways to protect the business concept: trademark
right granted over a letter, word, phrase, number, sound, shape, logo, picture or aspect of packaging that is a business will use to represent is products and services. a trademark ensures that a business can maintain a unique image that cannot be replicated by another business.
ways to protect the business concept: patents
this is a right granted for any devices, substance, method or process that is new, inventive and useful and prevents others using the IP without your permission.
ways to protect the business concept: copyright
free and automatic protection of original works such as writing, music, art, films, sound recording, broadcasts and computer programs.
NOTE: usually will see as a c in a circle
ways to protect the business concept: domain name
a potential owner can register a domain name (the business’s unique address on the internet) so that nobody else can register it.
e.g telsa.com, google.com
intellectual property
an original creation of the mind that can be legally owned -> this is to prevent other businesses/competitors from using their ideas.
once IP has been protected it legally cannot be copied or reproduced without permission from the owner.
why protect a business idea?
if an idea proves to be successful and the business hasn’t protected it, it leaves itself vulnerable.
How? loss competitive advantage -> loss of sales/loss of market share
