LESSON 1: Opportunity Seeking, Screening and Seizing

1. Seeking

2. Screening

3. Seizing

3S of Opportunity Spotting and Assessment

3S of Opportunity Spotting and Assessment

is the framework that most of the promising entrepreneurs use to finally come up with the ultimate product or service suited for a specific opportunity

Opportunity

is an entrepreneur’s business idea that can potentially become a commercial product or service in the future

Opportunity Seeking

is the first and is the most difficult process to the number of options that the entrepreneur will have to choose from. It involves the development of new ideas from various sources

1. Education and Training

2. Family Ties, Contacts, and Connections

3. Serendipitous Encounters

4. Conducive Entrepreneurial Environment

5. Experimentations and Brainstorming

6. Work Experiences and Exposures

7. Unexpected Success and Failures

8. Innate Skills and Talents, Personal Interests and Hobbies

Personal Sources of Opportunities

Macro-environment Sources

refers to the “big or macro forces” that affect the area, the industry and the market, where the enterprise belongs to

1. Rivals or Competitors

2. Suppliers of Inputs

3. Marketing Channels

4. Consumer Market Segments

5. Substitute Products

6. All Other Support and Enabling Industries

Industry Sources of Opportunities

Rivals or Competitors

in a particular type of business ; true rivals or competitors are those competing for the same or similar markets

Competition

it is the act or process of trying to get or win something

1. Buyers

2. Potential New Entrants

3. Rivalry among Existing Firms

4. Substitute Products

5. Suppliers

Forces of Competition Model

Buyers

are the one that pays cash in exchange to your goods and services

Potential New Entrants

is defined as the one who enters something

Rivalry

is a state or situation in which people or groups are competing with each other

Substitute Products

means anything that takes the place or function of another

Suppliers

are the one that provide something that is needed or wanted

Suppliers of Inputs

as well as suppliers of machinery and equipment, suppliers of manpower and expertise, and suppliers of merchandise

Marketing Channels

used by industry participants (enterprises) to reach the end consumers

Consumer Market Segments

being served by all those competing in the industry

Substitute Products or Services

which customers sift or turn to ; refers to the specific target market segment of a particular enterprise ; these are the target customers that represent the immediate customers of the enterprise, meaning those who are currently buying the goods or services offered

1. Customer Preferences

2. People’s Taste

3. Customers’ Piques

4. Battle for the Mind, Heart and Wallet

5. Lasting Loyalty

6. Consumers’ Perceptions

7. New Inventions, New Knowledge

8. Personal Preferences and

Competencies

9. Unexpected Occurrences

Other Sources of Opportunities

Consumer Preferences

refers to the particular taste of a group of people

Consumer’s Piques

anything that cause curiosity or interest

Battle for the Mind, Battle for the Heart, and Battle for the Wallet

what was the best choice to make

Consumer Dislikes

refer to the things that irritate customers

Entrepreneurial process

can be defined as the steps taken in order to begin a new enterprise ; it is a step-by-step method, one has to follow to set up a business

Entrepreneurial ideas

an innovative concept that can be used for financial gain that is usually centered on a product or service that can be offered for money

Essentials of entrepreneur’s opportunity seeking

These are the basic foundation that the entrepreneur must have in seeking opportunities, such as entrepreneurial mind frame, heart flame and gut game

Sources of opportunity

can be attain by assessing and looking at changes in the environment ; technological discovery and advancement ; government’s thrust, programs, and policies ; people’s interest, and past experiences

External environment

refers to the physical environment, societal environment, and industry where the business operates

Government

refers to the local government (municipality, city, or provincial) or the national government and its branches

Competition

it is the act or process of trying to get or win something

1. Relevance

2. Resonance

3. Reinforcement of Entrepreneurial Interest

4. Revenues

5. Responsiveness

6. Reach

7. Range

8. Revolutionary Impact

9. Returns

10. Relative Ease of Implementation

11. Resources Required

12. Risks

12 R’s of Opportunity Seeking

Relevance

alignment of vision, mission and objectives

Resonance

matching with values and desired virtues

Reinforcement of Entrepreneurial Interest

Personal interest, talents and skills

Revenues

sales potential of the products and services

Responsiveness

customer needs and wants

Reach

expanding through branches, distributorships, dealerships or franchise outlets

Range

wide range of possible product or service offerings

Revolutionary Impact

next big thing or game-changer

Returns

returns of investment

Relative Ease of Implementation

easy to implement

Resources Required

fewer or more resources

Risks

technological, market, financial and people risks

Marketing

is about creating and accumulating customers

Marketing Plans

are designed to capture market share and defeat competitors

Positioning

helps establish your product’s or service’s identity within the eyes of the purchaser ; the enterprise should be mindful of the Main Value Proposition (MVP) to its customers relative to its competitors

Enterprise perspective

the enterprise scans the market environment and decides to position itself with products that specifically address the needs of a chosen target market

Competitive perspective

the enterprise has to differentiate and distinguish itself from its competitors

Customers’ perspective

positioning is the way the customers perceive the enterprise and its products or services in their minds

Product

is the tangible good or the intangible service that the enterprise offers to its customers in order to satisfy their needs and to produce their expected results

1. Breakthrough Products

2. Differentiated Products

3. Copycat Products

4. Niche Products

4 General Types of Products:

Breakthrough Products

also called pioneers, are products that are technologically advanced and creatively superior to existing products in the market

Differentiated Products

what makes your product or service stand out to your target audience. It's how you distinguish what you sell from what your competitors do, and it increases brand loyalty, sales, and growth

Copycat Products

is a product that has been designed, branded or packaged to look exactly like that of a well-established competitor ; a cheap imitation

Niche Products

are goods or services that serve a specific customer base and product category ; do not intend to compete directly with the giants ; products with lower reach, lower visibility, lower prices, and lower top of mind

Packaging

does not refer only to the wrapper or container of the product ; it can mean the bundle of the products or services that are put together to attract and delight customers ; is a silent hero in the marketing world

1. Packaging identifies the product, describes its features and benefits, and complies with government rules on specifying its contents

2. Packaging differentiates the product from its competitors and even from its other brand offerings

3. Packaging lengthens the lifespan, physically protects, and extends the usefulness of the product

4. Packaging has become an environmental issue by itself

5. It increased the cost of packaging and the price of the product

Purposes of Packaging:

Place

represents the location where the buyer and seller exchange goods or services ; it is also called as the distribution channel ; it can provide any physical store as well as virtual stores or online shops on the internet

Price

is the value of money in exchange for a product or service ; is the amount or value that a customer gives up to enjoy the benefits of having or using a product or service

Promotion

is the explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty, and support not only from its customers but also from its other significant stakeholders ; refers to the complete set of activities, which communicate the product, brand or service to the user

People

the one who buys the product