UNIT 3 Business Opportunity Seeking, Screening, and Seizing

Opportunity Spotting and Assessment

 Opportunity Seeking
 Opportunity Screening
 Opportunity Seizing

Entrepreneurial Opportunity Seeking

Being coined as the “innovative opportunity seekers” in the business industry, entrepreneurs are
equipped with a spirit of inquiry that will help them decide which products or services are most likely
needed in the marketplace.

Sources of Opportunities

External/Macroenvironmental Sources Internal/Microenvironmental

Sources

1. Demographic 1. Customers
2. Economic 2. suppliers
3. Socio-cultural 3. Resellers
4. Technological 4. Competitors
5. Ecological 5. General Public
6. Political and Legal

External/Macroenvironmental Sources

Any enterprise, company, or organization is not alone in its business environment. It is always
surrounded by an array of factors and forces that help in shaping opportunities but also pose present
threats to the company.

1. Demographic - (gender, age, marital status, family size, occupation, educational level,
linguistic background, income level, ownerships or belongings, nationality, ethnicity, race,
religion, location, etc)
2. Economic - (economic growth, percentage of unemployment, inflation, interest and
exchange rates, and commodity (oil, steel, gold, etc) prices)
3. Socio-cultural - (lifestyle, buying habits, education, religion, beliefs, sexuality attitudes, etc)
4. Technological - (production techniques, information and communication resources,
production, logistics, marketing, and e-commerce technologies)
5. Ecological - (water, air, soil, climate, natural vegetation, and landforms)
6. Political and Legal - (political party in power, the degree of politicization of trade and
industry, the efficiency of the current government, government policies, current legal
framework, the public attitude towards the economy)

Internal/Microenvironmental Sources

Internal sources pertain to those factors that can be controlled by the management. It includes
factors of resources available that affect individuals and businesses.

Industry and Market Disparities

Certain disparities in the market may take place in the form of regulations, deregulations, constant
changes in supply chains, and other structural problems.
 Consumer Preferences and Interests

Consumer preferences and interests can also be sources of opportunities. These preferences refer to
the interests or tastes of individuals. When products eventually become outdated, consumers’
changes in perception can subsequently kill sales.

Technological Discoveries and Advancements

Continuous advancements in technology can be the source of highly innovative opportunities in the
business industry.

Opportunity Screening

In this phase, the entrepreneur will lay down a list of several opportunities which he will evaluate
prior to transforming his business idea into a reality It is the process of making both qualitative and
quantitative assessments of a business idea’s capability of producing sales growth and promising
financial performance. It is the process by which entrepreneurs evaluate innovative product ideas,
strategies, and marketing trends.

The opportunities chosen may likewise be evaluated by:

1. Identifying resources 4. Developing strategies

2. Analyzing capabilities 5. Reviewing feedback

3. Evaluating competitive advantage

Evaluating Opportunities

1. Remarkable value to customers

2. Can ideally solve a compelling need, problem, or demand of the market

3. A potential cash cow

4. Corresponds with the entrepreneur’s skills, resources, and risk appetite

Two-Stage Approach in Screening Opportunities

Qualitative assessment

focuses on gathering information, details, and recommendations from other entrepreneurs in the
industry. Business idea’s viability used to gauge a business opportunity’s feasibility and desirability to
attract investors.

The 12Rs of Opportunity Screening

1. Relevance to one’s vision, mission, and objective

2. Resonance with one’s values (how well clients and customers relate to a specific brand)

3. Reinforcement of existing enterprise strategies or entrepreneurial interests

4. Revenues

5. Responsiveness to customer needs and wants

6. Reach
7. Range

8. Revolutionary Impact (taking the initiative to do something that you love, something that you're
good at, and something that will make you money)

9. Returns

10. Relative ease of implementation

11. Resources required

12. Risks

Pre-feasibility Study

A pre-feasibility study refers to the analysis of a potential business opportunity at an early stage. It is
generally conducted to give possible investors the relevant information they need pertaining to the
implementation of a business idea.

When and Why Do Entrepreneurs Conduct a Pre-feasibility Study?

Entrepreneurs conduct this type of study to determine whether a full feasibility study, which is
relatively more costly, must be undertaken or not. To collect various pieces of information before
making huge investments into different tasks such as acquiring permits, gathering resources, hiring
staff, and purchasing tools and equipment.

Factors in Conducting a Pre-feasibility Study

1. Market potential and prospects

2. Assessment of technology and operations viability

3. Investment requirement and production costs

4. Financial forecast and determination of financial feasibility

Feasibility Study

A feasibility study is an in-depth report that covers many important points, including technical,
commercial, legal, and scheduling issues.

Core Questions in a Feasibility Study

Are both markets and industries attractive?

● Does the chosen business opportunity offer convincing benefits or advantages compared to other
potential ideas?

● Will the team be able to produce the results they seek to deliver to others?

Steps in Conducting a Feasibility Study

1. Create a brief preliminary analysis (Is this opportunity attainable?)

2. Outline the scope of your project

3. Understand the financial and operational costs

4. Review and analyze the data

 Opportunity Seizing

The stage of determining the critical success factors of succeeding in the industry, while also being
cautious about other factors that cause failure to some businesses.

Objectives of Opportunity Seizing

Two main objectives:

1. to enable the entrepreneur to transform his business opportunity into a reality, and

2. to address the compelling needs or demands of the market.

What are the secrets to opportunity seizing?

1. Stepping out of the comfort zone

2. Make the small ones count

3. Network with creative and business-minded people

Business Position Statement

- a statement refers to a brief description of a product or service catered by the business and
specifically how such a product or service answers the compelling need of the target market.

- It’s main purpose is to introduce the product or service to the customers and to align the branding
efforts with the brand and its value proposition.

Value Proposition vs. Business Position Statement

A value proposition

• broader in nature and is a direct output of a business strategy.

• It refers to a bigger picture which includes all the core benefits offered to various market segments
and the price that a customer pays to acquire those benefits.

A business position statement

• more specific and technically deals with a subset of the value proposition.

Writing a Business Position Statement

1. Keep it short. A business position statement is not about the vision and mission of an enterprise.
Therefore, such statements should be concise and straightforward.

2. Make it unique and remarkable. If the entrepreneur wants to stand out in the industry, the
business position statement should be crafted in a unique way.

3. Stick to the core values of the business. A business position statement must reflect the primordial
values of the enterprise itself.

4. Show how the business is different from other competitors. The competition will always be
present in any industry. As such, an effective business position statement should point out what
separates the business from its main competitors.
Product Propositions (Unique Selling Proposition, Value Proposition)

Unique Selling Proposition

A marketing strategy that focuses on special features of a product or service which enable them to
stand out from the competition and attract customers. A unique selling proposition is a statement
created by entrepreneurs to highlight distinct characteristics of products or services from
competitors. The unique selling proposition describes only the features of the product or service that
is different from others.

Purpose of the Unique Selling Proposition

1. Sympathize with customer needs

2. Motivate the customer

3. Uncover the real reason why the customer buys the product

Advantages of the Unique Selling Proposition

Clear Differentiation

Improved Revenue

Loyal Customers

Simpler Selling

Sales Strategy

Steps in Writing Unique Selling Proposition

Step 1. Review the planning process.

Step 2. Identify the target audience’s problem.

Step 3. Focus on the solution.

Step 4. Combine it into a concise statement.

Value proposition

A business or marketing statement indicating the worth (importance or usefulness) that the business
offers to customers.

Value Proposition Builder Model

The value proposition builder model is a six-step interactive process in building value or worth to the
customer experience.

In writing the value proposition, think about two main things:

1. Experience of the customers, and 2. Capabilities of the products or services.

The Value Life Cycle

The value proposition must be studied throughout the entire life cycle of value perceived by

customers. An entrepreneur must create an attribute that captures the five stages of the value life
cycle.

Stages of Value Life Cycle

1. Value Creation - The key resources will be the materials and ingredients needed to create the
finished product. The entrepreneur also chooses a value proposition that will fit the business.

2. Value Appropriation - The business owner notices that most of the students in the school do not
like the flavor of pizza he offers. He decided to innovate his product. Instead of selling only one flavor,
he adds a variety of flavors to choose from. Most of the flavors he chose to add are unique and tasty.

3. Value Consumption - The customers start to patronize the product. They now see and feel the
value and benefit they get in the product.

4. Value Renewal - The customer now doesn’t like the product because of their changing
preferences. The entrepreneur will improve the product by adding features like additional toppings
for the pizza. Through this, customer value also increases.
5. Value Transfer - Customer transfers to another store or product because the received value did not
match with the value proposition (can no longer gain value). When the value does not meet the
expectation, there is a possibility that customers may transfer.

Value Proposition Advantages

1. Gives direction. It provides a clear direction by identifying the target market and
understanding the needs of the customers that can be satisfied by a planned solution.
2. Creates focus. It focuses on how and why the business will deliver value. It also outlines
what the business must deliver to meet the customer’s needs and create an overall
marketable experience.
3. Breeds confidence. It gives the entrepreneur confidence that comes from knowing that the
business is making a difference to the people they serve in a way meaningful to them.
4. Customer understanding and engagement. It serves as a basis to engage the customers by
understanding how the customer view the business and its products or services.
5. Focus on clarity of value. It focuses on brand awareness. The business is going to identify a
very clear picture of the business’s brand.