Sources of Business Opportunity Flashcards
Business Opportunity
A business opportunity is a set of circumstances that presents itself as an avenue of success. When an individual can see that there is an opportunity to make money, that individual sees that there is a gap in the market and will produce an item to fill that gap and need.
A business opportunity is a potential gap in the market which can lead to a potentially successful business if that gap is filled.
Factors of Changing Customer Needs
There are 5 factors that change customers’ needs.
- Changes in income
- Changes in population
- Changes in the price of substitute or complementary goods.
- Change in customer’s tastes or fashion trends.
- Change in number of potential customers.
Innovation
When an individual can look at an existing service or product and improve on it. Or when an individual finds a new way to solve an existing problem.
Research and Development
This is the process of developing an idea in a way that best meets the needs of its customers to make it successful.
A business will look for ways to improve things that can assist in creating a better quality of life for people. This is the process of developing an idea or concept to make it successful. This is the process that business undertake to introduce new products or services or improve existing ones.
It is important because it allows a business to produce an item that best meets the needs of its customers, so it will get more sales.
Technological Development
Technological development refers to applications of knowledge that have changed people’s lives and changed the way in which businesses operate.
Global Markets
Global Markets mean that goods and services are exchanged between businesses and customers across the world.
Advantages of Global Markets:
- The opportunity to grow and further expand a business.
- Reduced Dependence on local markets
- Extended life cycle of existing products or services
- Reduced effects of fluctuations in markets caused by changes in seasons or demand.
Business Concept Development
When a business has an idea and wants to make it a product or a service that it can sell. Looking at a product and seeing whether it would make a viable business.
Relationship between business opportunity and business concept development.
The relationship between a business opportunity is that it is a potential gap in the market that can lead to a potential business, while concept development is looking at that idea and seeing whether it will make a viable business.
Business opportunity is a set of circumstances that presents itself that leads to a potentially successful business, however concept development is just looking at that idea and seeing whether it would make a viable business or not.
