chapter 5 Flashcards
Competitive analysis?
Analysis is the collection of information, and competitive is your competitors. So it is information about your competitors products, services, and financial performance.
Entrepreneurial opportunity?
I see a demand for a product or service and I can do a business venture.
Joseph’s Shumpeter’s theories?
Entrepreneurs create value “by exploiting a new invention or untried invention, or producing an old one in a new way”.
Joseph’s Shumpeter’s theory name?
Creative destruction
Supply?
the amount of a product or service produced.
Demand?
consumers desire for the products or services produced.
Drivers of opportunity?
Capital, Technology, Globalization, and Economic.
Capital for opportunity?
crowdsourcing for women and minority to be entrepreneurs.
Technology for opportunity?
multiple applications.
Globalization for opportunity?
spreads ideas across markets.
Economic for opportunity?
strong economy fuels business.
Was Blakely’s idea a demand or a supply idea?
It was a demand idea.
Opportunity screening?
Is used to evaluate product ideas, strategies, and marketing trends to see if it will be successful.
Secondary research?
data already available through published source.
Primary research?
data that does not yet exist.
Significant market demand?
solution to a problem.
Significant market structure and size?
growth potential and drivers of demand. entry is not difficult.
Significant margins and resources to support the venture’s success?
checking the operating cost (high) and profit margin (low) to see if the idea is worth it.
Reasons small business fail?
Low sales
Lack of experience
Insufficient capital/money-
Poor location
Poor inventory management
Over investment in fixed assets
Poor credit -management
Personal use of business funds
Unexpected growth-
and Competition.
Shared economy?
utilize unused assets/resources.
Gig economy?
temporary positions, short-term workers.
What are the 6 Competitive analysis key success factors?
Strengths, Weaknesses, Product quality, Price point, Location of the business, and Promotion.
SWOT analysis?
Strengths, Weakness, Opportunities, and Threats. Builds on the knowledge gained with the competitive analysis information.
Pest analysis?
Used to identify issues in the political, economic, societal, and technology area.
What is the Business model?
a plan for how the venture will be funded, how the venture create value for stakeholders, and how income will be generated.
What does the business model include?
Offering, Customers, Financial viability, and Infrastructure.
Offering?
products/services being sold, how customers will benefit.
Customers?
people you will be serving.
Financial viability?
ability to generate profits.
Infrastructure?
resources entrepreneur needs to launch and sustain the business.
Unique selling proposition?
why a product or service is different/better than competitor’s product.
