General Rule:
“Find a need and fill it.”
3S OF OPPORTUNITY SPOTTING AND ASSESSMENT:
Seeking
Screening
Seizing
is an entrepreneur’s business idea that can potentially become a commercial product or service in the future.
Opportunity
is the first step and the most difficult process of all due to the number of options that the entrepreneur will
have to choose from.
Opportunity Seeking
Opportunity Seeking involves the development of new ideas from various sources as follows:
• External/Macroenvironment (PESTEL Analysis)
• Internal/Microenvironment (SWOT Analysis)
It involves the larger societal forces that influences the internal environment.
External/ Macro Environment
one important tool that executives can rely on to organize factors within the general environment and to identify how these factors influence industries and the firms within them.
PESTEL Analysis
PESTEL:
Political Factors
Economic Factors
Socio-cultural Factors
Technological Factors
Environmental Factors
Legal Factors
It include laws involving issues such as employment, health and safety, discrimination.
Legal Factors
These factors are important due to the increasing scarcity of raw materials; pollution targets; doing business as an ethical and sustainable company;
carbon footprint targets.
Environmental Factors
It basically refer to the trends and developments in computer and information technology that have
impact on business.
Technological Factors
It includes trends in demographics such as population consumers’ lifestyles, buying habits, education, religion, beliefs, values, social classes, sexuality and attitudes.
Socio-cultural Factors
It include elements such as interest rates, gross domestic product, unemployment rates, and inflation.
Economic Factors
It include government policies, leadership, and change; foreign trade policies; internal political issues and trends; tax policy; regulation and
de-regulation trends.
Political Factors
can be defined as a type of marketing strategy that targets a specific niche of your overall target audience.
Micromarket Sources
These are the current needs and wants of potential customers that should be discovered right away by a budding entrepreneur.
Consumer preferences, interests, and perception
Recognizing and understanding potential competitors will aid
the entrepreneur to develop a product or service that is unique
and will surely stand out from the competition
Competitors
Often, entrepreneurs just have to look at their environment
and they will be able to spot a business opportunity right away.
Location
Micromarket Sources:
> Consumer preferences, interests, and perception
Competitors
Location
is a technique for assessing these four aspects of your business.
SWOT ANALYSIS
SWOT stands for
Strengths
Weaknesses
Opportunities
Threats
primary objective is to help organizations develop a full awareness of all the factors involved in making a business decision.
SWOT analysis
Used to discover recommendations and strategies, with a focus on leveraging strengths and opportunities to overcome weaknesses and threats.
SWOT analysis
helps determine the potential for
success in pursuing the idea and can help refine planning.
Opportunity Screening
