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Identifying a Business Opportunity

Prepared by Mr. Bibhudendra sarangi (Sr. Lect. SC & HUM Dept.)

Subject – EM & ST

Chapter – 2 – Market Survey & Opportunity Identification(Business Planning)

Topic – Business Plan

Semester – 5^th

Branch – Electronics & Telecommunication

AY-2021-2022, WINTER-2021

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IDENTIFICATION OF BUSINESS OPPORTUNITY

WHAT IS OPPORTUNITY?

Opportunity is defined as a situation that enables an entrepreneur to offer marketable products or services to interested buyers or end users

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TYPES OF SITUATIONAL FACTORS

Product or service is still not in existence

Product or service is already in the market but failed to satisfy the

customers – so need to be improved

EMERGENCE OF OPPORTUNITY

when people decide they have certain needs and want to be satisfied, or when people discovered a problem of some kind that can be helped by a product or service.

The presence of unfulfilled needs and want and/or problems

alerts the entrepreneur to the potential opportunity.

The entrepreneur later creates a business that is able to fulfill the needs or want and/or solve the problem.

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OPPORTUNITY IDENTIFICATION

Observe changes in the environment
Recognize a need that customers have that is not being satisfied
Recognize problems and find ways to solve it

OBSERVING CHANGES IN THE ENVIRONMENT

Changes in the environment give rise to needs and wants and/or problems, and an opportunity emerges

Important environment forces to observe include :

Economic forces
Social forces
Technological advances
Political and regulatory statues

Opportunity identification is a process that involved the search for and discovery of business opportunities

APPROACH TO OPPORTUNITY IDENTIFICATION

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Examples of How Changes in the Environment Provides Openings for New Product and Service Opportunities

Structure of Population and Income	Number of teenagers higher than number of elderly and children	Cyber cafes, Cineplex's, recording studios
Structure of Population and Income	People have higher purchasing power	Passenger cars, household furniture, DVD
Social	Increase incident of housebreaking	Grills, alarm, sensor, security systems
	Increase interest in fitness	Fitness center, dancing class, in-house exercise equipment, health food store
	Increase mobility of population	Hand phone, laptop computers
	Increasing predominance of dual-income families leaves less time to cook at home	Restaurants, food delivery services
Technological Advances	Advances in biotechnology	Biotech-related pharmaceutical products, foodproducts, veterinary products
	Development of the internet	E-commerce, improved communication
	Increase pressure to improve economicperformance	Online marketing, cost control services
Government Policies and Regulations	Increased driving standards	Smoke emission control, helmet, seatbelt DI 4

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RECOGNIZE NEEDS AND WANTS

Opportunity occurs whenever there is a need and want to fulfill. The term “needs” refer to basic needs that the consumer must have in order to live while the term “wants” refers to a personal desire for something that is more than a basic need.

RECOGNIZE PROBLEM AND FIND SOLUTION

Problems can be recognized by observing the challenges that people encounter in their daily lives. Solution to the problem represented a business opportunity

OPPORTUNITY IDENTIFICATION PROCESS

Search for Changes in the environment

Recognize needs and wants, and solutions

Discovery of

Opportunity

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ABILITY TO SEARCH AND DISCOVER BUSINESS

OPPORTUNITIES

Experience and exposure
Knowledge and skills
“Special alertness”

Social network
Creativity
Vigilant

MECHANISM TO IDENTIFY OPPORTUNITIES

Customers
Retailers and distributors
Business associates
Bankers

Consultants
Employees
Others

EVALUATION AND SELECTION PROCESS

The evaluation and selection process involves judging the viability of the opportunity and assessing its potential.