Identifying a Business Opportunity
Civil Engineering Department�Subject-EMST�Chapter-Identifying Business Opportunity�SEM-5TH �By�Er.P.PRUSTY�(Asst.HOD In Civil Engineering Department)�AY:2021-2022
Components Making a
Good Business Opportunity
Meeting Needs and Solving Problems
● Creating a startup, or managing any business, is all about problem solving.Entrepreneurs who are great problem solvers within any business are the best prepared to solve their customers' needs effectively as well.
● Most opportunities disguise themselves as problems. They can arise from new technology or products entering the marketplace where other people may not yet know how to harness those technologies.
● Identify multiple possible solutions. The more possible solutions one develops, the more likely one will come up with the right answer.
Resources Needed
● Human Resources: Employees
● Educational Resources: Industry Know How
● Physical Resources: Premises and Equipment ● Emotional Resources: Support Systems
Location
Location is the place where a firm decides to site its operations. Location decisions can have a big impact on costs and revenues.
A business needs to decide on the best location taking into account factors such as: ● Customers - is the location convenient for customers?
● Staff - are there sufficient numbers of local staff with the right skills willing to work at the right wage?
● Support services - are there services offering specialist advice, training and support?
● Cost - how much will the premises cost? Those situated in prime locations (such as city centres) are far more expensive to rent than edge-of-town premises.
Bengaluru
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Bengaluru is sometimes referred to as the "Silicon Valley of India" (or " IT capital of India") because of its role as the nation's leading information technology (IT) exporter Indian technological organisations ISRO, Infosys, Wipro and HAL are headquartered in the city.
It is home to many educational and research institutions, such as Indian Institute of Science (IISc), Indian Institute of Management (IIMB), International Institute of Information Technology,(IIITB), National Institute of Fashion Technology, National Institute of Design,(NID R&D Campus),
Highly educated human resources are easily available in Bengaluru.
Bengaluru connectivity to the rest of the world has increased in recent years.
Hence, it is an ideal location to acquire talented employees and start a business.
Infrastructure
● Infrastructure refers to the facilities that support everyday economic activity, eg roads, phone lines and gas pipes.
● An efficient transport network enables staff to get to work easily. It also allows supplies to be brought in from far afield and permits finished products to be moved to market cheaply and quickly.
● The impact of location depends on the type of business. For example, it is important for shops and restaurants to be conveniently located for customers
Pricing of the Product or Service
● Price is both the money someone charges for a good or service and what the consumer is willing to give up to receive a good or service.
● The pricing of the product depends upon the following factors:
1. Brand Value
2. Quality
3. Convenience
Reliance JIO
● Mukesh Ambani controlled Reliance Jio made a disruptive foray in September 2016, covering 95% of the country’s population with aggressive 4G network rollout together with innovative pricing strategy.
● Public perception of RJio’s products and its pricing strategy is that these are “affordable” and “better” than those of its rivals.
● The prices offered for their services directly challenged their rivals , grabbing attention from the public, helping it to grow at an alarming rate on user subscription basis.
Timing
● As a startup, it is okay to be early to market as long as one is not massively early to market. One’s product should be available within 12-24 months of the perfectly ripe market conditions when he/she can deliver a best in breed solution with a significant price-performance advantage.
● As a startup, if one is late to market, he/she will likely lose. Only fast followers that differentiate primarily based in a superior cost structure due to scale can win as a follower.
● Although one can never predict with pinpoint accuracy when a market will ignite, one can have a pretty good idea within a couple of years. It is essential that he/she understand in great detail the specific ecosystem factors that impact their target customers' willingness and ability to adopt the solution.
Inspiration for Business or
Product Ideas
Market Demand
● Unfulfilled demands of a product will open up new doors for the creation of a new and improved product.
● Supply and Demand of products in the market should be studied and analysed to understand the market needs.
● Example: The success of Kellogg's cereal as a nutritious calorie-less breakfast is an example of a new idea.
Import and Export
The Government Of India is encouraging various export policies to encourage entrepreneurs to think about the new option.
Emerging Technologies
Commercial exploitation of indigenous or imported technologies and know how of different subjects is another source of project ideas.
Social And Economic Trends
● Social and Economic status are always dynamic in nature and offer wide opportunities.
● An Entrepreneur should observe such changes in society and take maximum advantage of the problems and market space available.
Product Profile
● An analytical study of different products and their end products will throw light regarding new innovative ideas in relation to already available products.
● Example: By-product of the sugar industry led to a more large scale industry called the paper industry.
Trade Fairs And Trade Journals
Magazines, journals, industries or trade fairs provide ideas having a wide scope for business opportunities.
Revival Of Sick Units
● Sick industrial unit is defined as a unit or a company (having been in existence for not less than five years) which is found at the end of any financial year to have incurred accumulated losses equal to or exceeding its entire net worth.
● A sick unit gives ample opportunity for an enthusiastic entrepreneur to revitalise it into a profitable unit.
Course Of Action After
Identification of a Business
Opportunity
Brainstorming
● Brainstorming is the name given to a situation when a group of people meet to generate new ideas around a specific area of interest. Using rules which remove inhibitions, people are able to think more freely and move into new areas of thought and so create numerous new ideas and solutions.
● The creative team brainstorming improves critical thinking and problem solving skills as an individual and a team. It also encourages collaboration on more than just major projects.
Product Analysis and Market Survey
● Product analysis can take different forms but in general it means asking questions about a product and forming answers. It can mean experts analysing a product or members of the general public or potential customers/groups of people.
● Market Survey is an investigation into the state of the market for a particular product or service, including an analysis of consumers' needs and preferences.
Product Innovation
Product innovation is the creation and subsequent introduction of a good or service that is either new, or an improved version of previous goods or services.
Product Planning
Product Planning is the ongoing process of identifying and articulating market requirements that define a product's feature set. Product planning serves as the basis for decisions about price, distribution and promotion.
Market Penetration
Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service.
Market Development
Market development is a growth strategy that identifies and develops new market segments for current products. A market development strategy targets non-buying customers in currently targeted segments. It also targets new customers in new segments.
Diversification
Product diversification is the practice of expanding the original market for a product. This strategy is used to increase the sales associated with an existing product line, which is especially useful for a business that has been experiencing stagnant or declining sales.
Business Analysis
Business analysis is a research discipline of identifying business needs and determining solutions to business problems. Solutions often include a software-systems development component, but may also consist of process improvement, organizational change or strategic planning and policy development.
Test Marketing
Test marketing is an experiment conducted in a field laboratory (the test market) comprising of actual stores and real-life buying situations, without the buyers knowing they are participating in an evaluation exercise. It simulates the eventual market-mix to ascertain consumer reaction.