Week 3 Flashcards
___ are your
market’s stated or silent problems
which refer to existing
inefficiencies, awkward workflows
or non-optimal solutions
Market Problems
They are the people who have already purchased your product
Existing customer
People who have not yet purchased your product but are
considering it.
Prospects
People in your target market who are not
currently looking for a solution
Target market users
___ are explicit statements from your market
Stated needs
____ are problems with yet undefined
solutions
Silent needs
Enumerate on how to evaluate market problems.
- Is the market problem urgent?
- Is the market problem pervasive?
- WIll your buyers pay to have this problem solved?
Once you identify a problem that applies to the market,
ensure that potential and existing customers actually care
about the problem. Is the perceived problem actually
urgent? Will customers care if the problem is not solved?
Is the market problem urgent?
Determine if the identified market problem applies to a significant
percentage of your target market. Use quantitative research to
collect the data. Methods of data collection include surveys,
census information and other primary market research.
Is the market problem pervasive?
If the problem is significantly urgent and pervasive, chances are
good that customers would agree to pay for a solution. The next
step would be to understand how much they would be willing to
pay for a solution to this problem.
Will your buyers pay to have this problem solved?
What are the essentials in entrepreneur’s opportunity seeking?
Entrepreneurial mind frame, entrepreneurial heart flame and entrepreneurial gut game.
This allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation. Being a risk- taker, an entrepreneur can find solutions when problems arise.
Entrepreneurial mind frame
Entrepreneurs are driven by passion; they are
attracted to discover satisfaction in the act and process of discovery.Passion is the great desire of an entrepreneur to achieve his/her goals
Entrepreneurial heart flame
This refers to the ability of the entrepreneur of
being intuitive. This also known as intuition. The gut game also means
confidence in one’s self and the firm belief that everything you aspire can be
reached
Entrepreneurial gut game
Enumerate sources of opportunity
- Changes in environment
- Technological discovery and advancement
- GOVERNMENT’S THRUST, PROGRAMS, AND
POLICIES - People’s interest
- Past experiences
Entrepreneurial ideas arise when
changes happen in the external
environment. A person with an
entrepreneurial drive views
these changes positively.
Changes in the environment
A person with
entrepreneurial interest sees
possibility of business
opportunities in any new
discovery or because of the use
of latest technology
technological discovery and advancement
The priorities, projects, programs,
and policies of the government are
also good sources of ideas.
Government’s thrust, programs, and policies
The interest, hobbies, and
preferences of people are rich
sources of entrepreneurial
ideas, like the increasing
number of Internet Cafés at
present could lead to the
strong attachment of young
people to computers
People’s interest
The expertise and skills
developed by a person who has
worked in a particularfield may
lead to the opening of a related
business enterprise
Past experience
______ Is the rivalry between
companies selling similar
products and services with the
goal of achieving revenue
Competition
___ refers to the immediate
industry in which your
company is doing
business.
Competitive environment
____ process of collecting
information about the external
marketing environment to
identify and interpret potential
trends
Environmental scanning
What are the three types of competitors?
Direct, Indirect and replacement
A ______ is someone
that offers the same products.
Direct competitors create profit
all in the same way.
Direct competitor
_____ offer the
same products but have
different goals. They do get
revenue the same way.
Indirect competitors
_______ offer
substitute products. Usually, the
substitute products are of a different
price or quality than the dominant
product in the market.
Replacement competitors
_____ ’s classic 5 Forces
Model (Porter 1979) is a
popularly used framework for
understanding the competitive
structure of an industry.
Michael Porter
What are the five strategic forces affecting industry competition?
New entrants, Suppliers, Substitute products, Customers and Industry competition.
an intensity of rivalry
among firms in the industry
Industry competitors
Threats of new competitors
entering the market
New entrants
the bargaining power of
suppliers
Suppliers
the bargaining power of buyers
Buyers/Customers
threats of substitute products or
services
Substitute products
The risk faced by a firm due to its
competitors is the most obvious form of
operational risk. Competitors can spend
sums of money to steal market share from
the firm or even alter the market’s
perceptions about the firm’s products
Rivalry among existing competitors
The firm’s own suppliers can pose a threat
as well if the firm is too dependent on these
suppliers and the suppliers know it. The
suppliers can decide to increase their prices
or to even become potential entrants to the
industry as well.
Bargaining power of suppliers
If barriers are low, new competitors are
bound to enter the market. New
competitors weaken your market
Threat of new entrants
If the firm is too dependent on its buyers, the buyers
may sense this. They might band together and
threaten the firm through additional demands.
Bargaining power of customers
In an industry where
substitution easy and
inexpensive competitive
power is weak
Threat of substitutes
IDENTIFYING BUSINESS IDEAS:
What are your hobbies,
talents, skills, and interests?
Look within you
IDENTIFYING BUSINESS IDEAS:
Observe your community. What
skills are available in locality?
Can these be developed as
business ideas?
Look at other people’s innate abilities and knowledge
IDENTIFYING BUSINESS IDEAS:
There are various
ways of looking at
the market for
business ideas
Look at the market
IDENTIFYING BUSINESS IDEAS:
Problem could be a
blessing in disguise
for entrepreneurs
Look for problems
IDENTIFYING BUSINESS IDEAS:
Try visiting the nearest
Negosyo Center in your area
and look at available business
assistance programs.
Look for help
IDENTIFYING BUSINESS IDEAS:
Another option for entrepreneurship
is franchising, meaning you buy an
almost ready-made business.
Look for tried and tested ideas.
