ENTREP. 11: Opportunity Seeking and Screening

Industry

It is a group of organizations involved in producing or handling the same type of product or service.

Industry Sources of Opportunities

This refers to potential business ideas or ventures that arise from analyzing a specific industry and its market. These opportunities are identified by understanding how the industry is defined, who the target customers are, the presence of direct and indirect competitors, and the key characteristics and demands of the market, such as the quality of products or services needed.

1. Rivals or Competitors

2. Suppliers

3. Marketing Channels

4. Consumer Market Segments

5. Substitute Products or Services

6. All Other Support and Enabling Industries

Participants in an Industry

Rivals or Competitors

Those competing for the same or similar markets.

Suppliers

The one that provides something that is needed or wanted.

Marketing Channels

It is a medium used to advertise your company. It is used by industry participants to reach the end consumers.

Consumer Market Segment

Groups of customers within a market who share similar needs, preferences, or characteristics and are served by businesses in the industry.

Market/Customer Segmentation

The process of dividing a consumer or business market into meaningful sub-groups of current or potential customers known as segments.

Substitute Products or Services

A product or service that can be used in place of another.

Market Sources of Opportunities

This refers to the actual and potential demand and supply of the industry that the enterprise belongs to. It can be discovered from increased to decreased demand as well as from higher or lower supply.

• E.g. Battle of the value-for-money, more for less strategy

Micro Market

This refers to the specific target market segment of a particular enterprise. These are self-service stores selling a variety of items.

• E.g.

  • Schools – Vending Machines

  • Bank – ATM Machines

  • Coffee Shop – Coffee Vending Machine

  • Airport – Transit Essential Kiosk

  • Gym – Smart Coolers

  • Car Station – Electric Car charging stations

  • Mall/Airport – Cellphone charging stations, Free Wi-Fi, Golf Car

New Entrants

Refers to the one who enters something.

Buyers

The one that pays cash in exchange to your goods and services.

Rivalry

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

Goods

Refers to the tangible products that consumers can observe with their senses.

Services

These are by definition intangible. They are not manufactured, transported, or stocked. They are produced and consumed simultaneously.

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

The 12 R’s of Opportunity Screening

Relevance

One of the 12 R’s of opportunity screening that refers to the alignment of vision, mission, and objectives.

Resonance

One of the 12 R’s of opportunity screening that refers to matching with values and desired virtues.

Reinforcement of Entrepreneurial Interest

One of the 12 R’s of opportunity screening that refers to personal interest, talents, and skills.

Revenues

One of the 12 R’s of opportunity screening that refers to the sales potential of the products and services.

Responsiveness

One of the 12 R’s of opportunity screening that refers to the customer’s needs and wants.

Reach

One of the 12 R’s of opportunity screening that refers to expanding through branches, distributors, dealerships, or franchise outlets.

Range

One of the 12 R’s of opportunity screening that refers to the wide range of possible product or service offerings.

Revolutionary Impact

One of the 12 R’s of opportunity screening that refers to the next big thing or game-changer

Returns

One of the 12 R’s of opportunity screening that refers to the returns of investment.

Relative Ease of Implementation

One of the 12 R’s of opportunity screening that refers to how easy it is to implement.

Resources Required

One of the 12 R’s of opportunity screening that refers to fewer or more resources.

Risks

One of the 12 R’s of opportunity screening that refers to the technological, market, financial, and people risks.