opportunity assessment Flashcards
models for opportunities
S trengths
W eaknesses
O pportunities
T hreats
D emand
I nnovation
Feasibility
A ttraction
essential qualities of an opportunity
DIFFERENCE TO IDEA
durable
attractive
timely
anchored in product, service or business that creates or adds value
peter drucker’s 7 sources of innovation
demographic changes
eg. ageing population
changes in perception
eg. culture of obession with appearance - cosmetics, clothes, magazines
new knowledge
eg. GM foods
INTERNAL TO ENVIRONMENT
unexpected event
eg. post-it notes led to development of low-tac glue
incongruity
gap between what is and what should be
eg. environmental solutions such as electic cars
process needs
eg. rightmove as a new way to buy/sell houses
market changes
eg. convergence of technologies as seen in smartphones
primary categories of external change
P olitical forces
E conomic forces
Social forces
Technological advances
L egalistic
Environmental
DEFINITION gap in the marketplace
when a product or service is needed by a specific group of people but doesn’t represent a large enough market to be of interest to other. current people in the market may not be interested because of cannibalism
eg. bespoke furniture
old as new as an opportunity
new uses for existing/old designs
new uses for existing/old technologies
eg. credit card chips
new markets for existing/old designs
new markets for existing/old technologies
coverging of existing technologies eg. hand-held computer and phone —> iPhone
ways of identifying an opportunity
observing trends (PESTLE)
solving a problem eg. Peter Norton Computer later to be Norton Anti-Virus
finding gaps in the marketplace
personal characteristics of a entrepreneur
cognitive process
creativity
prior industry experience
social networks
DEFINITION opportunity recognition
seeing a problem/need/perceived need as an opportunity to create a solution. they need to be assessed to determine if they are viable business ventures
‘good opportunities are usually disguised so not many people recognise them’ dorf and byers
‘business opportunities are like buses, there’s always another one coming’ richard branson
importance of demographic changes in identifying a new business opportunity
often influence cultural and social trends
measurable aspect of the population
as the trend develops, new opportunities open up
eg. ageing population
market for care homes is booming
changing attitudes due to demographic changes is displayed by the perceived need to stay looking young (anti-ageing cream market is doing very well)
eg. middle classes increasing - premium goods such as the market for coffee on the go, wine and food products growing
linking opportunity and entrepreneurship
opportunity - timely and favourable juncture of circumstances providing a good chance of a successful venture
entrepreneurship - identification and exploitation of previously unexploited opportunities
entrepreneurship links the opportunity to the idea to the reality
