Week 1: Opportunity and Concept Summary

Question 1

What is an Opportunity?

Answer 1

A timely and favourable juncture of circumstances providing a good chance for a successful venture

Question 2

What is Push and Pull?

Answer 2

Demand PULL - Need to be identified by market and satisfied by a number of technologies
Technology PUSH - Entrepreneur must find a problem that new technology can solve and convince market

Question 3

What creates opportunity? 2 factors

Answer 3

1. Social and cultural trends

2. Technological and industrial convergence

Question 4

What are the 9 categories of opportunity?

Answer 4

1. Increase value of existing product/service (ex. Improve performance)
2. New application of existing technology (ex. Credit cards to hotel door cards)
3. Creating mass markets (ex. Apps)
4. Customization for individuals (ex. Dell computers)
5. Increasing reach (ex. Delivery services)
6. Managing supply chain (ex. Walmart distribution system)
7. Convergence of industries (ex. Disney and Marvel)
8. Process innovation (ex. Mercedes safety testing process)
9. Increasing scale of firm (ex. Mergers)

Question 5

What are the 5 characteristics of an Attractive Opportunity?

Answer 5

1. Timely - Current need/problem available
2. Solvable - A problem that can be solved with accessible resources
3. Important - To the customer
4. Profitable - Customer will pay for product/service
5. Context - A favourable regulatory industry situation
   Note: A lack of 1 results in lack of opportunity

Question 6

How many good opportunities does an entrepreneur need in a lifetime? Why?

Answer 6

One or two due to opportunity cost, selection of one means rejection of another

Question 7

What are the 5 steps of evaluating an opportunity?

Answer 7

1. Capabilities (knowledge and skill)
2. Novelty
3. Resources (able to attract funds)
4. Return
5. Commitment

Question 8

What 3 things is the Entrepreneur Sweet Spot comprised of?

Answer 8

1. Attractive opportunity
2. Interests, passions, and commitment
3. Capabilities and skills

Question 9

What is Action?

Answer 9

An entrepreneur must decide whether to act on an opportunity or not, benefits must outweigh costs (B/C > 1)

Question 10

What is a Concept Summary/Statement? What are its elements?

Answer 10

A concise statement of the problem and how the venture will solve it by:

1. Explaining the problem or need
2. Identifying the customer
3. Explaining the proposed solution and its uniqueness