Opportunity Seeking, Screening, and Seizing (Part I) - Entrepreneurship 4Q

Businessman

Their main objective is simply to earn profits from producing, buying and selling goods.

Entrepreneur

Innovative opportunity seekers. They have an insatiable curiosity to discover new or different ideas and see whether these ideas will work in the marketplace. They find business opportunities more often than others.

Entrepreneurial process

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

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

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 attained 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

Physical environment, societal environment, and industry where the business operates.

Opportunity

Business idea that can potentially become a commercial product or service in the future.

3S of opportunity spotting and assessment

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 seeking

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.

Opportunity screening

The ongoing process of considering, evaluating, and pursuing market-based activities that are believed to be advantageous.

Opportunity seizing

The last step in opportunity spotting and assessment. This is the "pushing through" with the chosen opportunity.

Entrepreneurial mind frame

This allows the entrepreneur to see things in a very positive and optimistic way oneself difficult situation.

Entrepreneurial heart flame

Entrepreneur's driven passion, they are attracted to discover satisfaction in the act and process of discovery.

Passion

The great desire of an entrepreneur to achieve his/her goals.

Entrepreneurial gut game

This refers to the ability of the entrepreneur of being intuitive. Confidence in one's self and the firm belief that everything you aspire can be reached.

Rivals or competitors

An industry source of opportunity in a particular type of business. Those competing for the same or similar markets.

Competition

It is the act or process of trying to get or win something.

Buyers; Potential new entrants; Rivalry among existing firms; Substitute products; Supplier

Enumerate five (5) forces competing within the industry:

BPRSS

Buyer

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

Available; Backward; Minimal; High; Large

Fill-in the blanks for five (5) factors when noticed lessen the threat of the buyer's bargaining power:

Several suppliers _____.

Potential for _____ integration.

_____ cost of switching supplier cost.

Product represents _____ percentage of buyer's cost.

Buyer purchases _____ portions.

Potential new entrants

The one who enters something.

Capital; Strict; Distribution; Economies; High; High

Fill-in the blanks for six (6) factors that could be noticed as a threat to the business in terms of new entrants:

Substantial _____ requirement

_____ government policy

Difficulty in accessing _____ channels

_____ of scale

_____ cost of product differentiation

_____ switching cost

Rivalry among Existing Firms

A state or situation in which people or groups are competing with each other.

Diversity; Competing; Characteristics; Increased; Fixed; Rate

Fill-in the blanks for six (6) factors that indicate intensity of rivalry among existing firms:

_____ of rivals

Number of _____ firms

_____ of the products or services

_____ capacity

Amount of _____ costs

_____ of industry growth

Substitute products

It means anything that takes the place or function of another. For example the consumers decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually switch to margarine.

Low; Easily; Highly; Improves; Substantially lower

Fill-in the blanks for five (5) factors that could be noticed as threat in the industry environment in terms of substitute products:

Switching cost is _____

Preferences and tastes _____ change.

Product differentiation is _____ noticeable.

Quality of substitute products dramatically _____

Price of substitute product is _____.

Supplier

The one that provides something that is needed or wanted.

Forward; High; Not readily; High; Unique

Fill-in the blanks for six (6) factors that could be noticed as a threat in the industry environment in terms of suppliers:

Ability for _____ integration

Few suppliers but sales volume is _____

Substitute products are _____ available

Switching cost is _____

Product or service is _____

Suppliers of input

An industry source of opportunity wherein people or entities are involved in providing things needed for the process. Examples are fuel, electricity, and raw materials.

Marketing channels

An industry source of opportunity used by industry participants (enterprises) to reach the end consumers.

Consumer market segments

An industry source of opportunity being served by all those competing in the industry.

Substitute products or services

An industry source of opportunity which customers shift or turn to.

Substitute goods

Goods that a consumer may substitute for another good if the price of the consumer's normal choice rises too high, or the consumer's preference is unavailable.

Consumer market segments; All other support and enabling industries; Rivals or competitors; Marketing channels; Supplier of input; Substitute products

Enumerate the six (6) participants of industry sources of opportunities:

CARMSS