Identification of opportunity

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Chapter 2
Identifying
Opportunities and
Generating Ideas

2. Agenda Of the Week
 Recognizing opportunities and generating Ideas
 Ways to identify Opportunities
 Finding GAPS
 Techniques for Generating Ideas
 Process of Generating Creative Ideas
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3. What is An Opportunity?
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Opportunity Defined
An opportunity is a favorable
set of circumstances that
creates a need for a new
product, service or business.

4. What is an Opportunity?
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An opportunity has four essential qualities

5. Three Ways to Identify an Opportunity
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6. First Approach: Observing Trends
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 Observing Trends
 Trends create opportunities for entrepreneurs to pursue.
 The most important trends are:
 Economic forces.
 Social forces.
 Technological advances.
 Political action and regulatory change.
 It’s important to be aware of changes in these areas.

7. First Approach: Observing Trends
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Environmental Trends Suggesting Business
or Product Opportunity Gaps

8. Trend 1: Economic Forces
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Economic trends help
determine areas that are
ripe for new startups and
areas that startups should
avoid.
Example of Economic Trend
Creating a Favorable Opportunity
• A weak economy favors
startups that help consumers
save money.
• An example is GasBuddy.com,
a company started to help
consumers save money on gas.

9. Trend 2: Social Forces
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Social trends alter how
people and businesses
behave and set their
priorities. These trends
provide opportunities for
new businesses to
accommodate the
changes.
Examples of Social Trends
• The increasing diversity of
the workplace.
• Increasing interest in health,
fitness, and wellness.
• New forms of music and other
types of entertainment.

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e.g Sony Walkman was developed not because
consumers wanted smaller radios but because
people wanted to listen to music while on the go

11. Trend 3: Technological Advances
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Advances in technology
frequently create business
opportunities.
Examples of Entire Industries
that Have Been Created as the
Results of Technological
Advances
• Computer industry
• Internet
• Biotechnology
• Digital photography

12. Trend 4: Political Action and Regulatory
Changes
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Political action and
regulatory changes also
provide the basis for
opportunities.
General Example
Laws to protect the environment
have created opportunities for
entrepreneurs to start firms that
help other firms comply with
environmental laws and
regulations.

13. Second Approach: Solving a Problem
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 Solving a Problem
 Sometimes identifying opportunities simply involves
noticing a problem and finding a way to solve it.
 These problems can be pinpointed through observing
trends and through more simple means, such as intuition,
chance, or change.

14. Second Approach: Solving a Problem
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•Example
• A problem facing the U.S. and
other countries is finding
alternatives to fossil fuels.
• A large number of
entrepreneurial firms, like
this wind farm, are being
launched to solve this problem.

15. Third Approach: Finding Gaps in the Marketplace
Specific Example
In 2000 Tish Ciravolo realized
there were no guitars on the
market made specifically for
women. To fill this gap, she
started Daisy Rock Guitars, a
company that makes guitars just
for women.
The gap in the market is a
specific area. An area
where you can dominate. If
you succeed in finding a
niche where you are the
only one, it is great for
your entrepreneurial career.

16. Finding GAPS In the Market
 Here are six ways you can identify a gap in your
market:
 Monitor Trends in Your Area of Expertise. ...
 Bring about Feedback from Customers (and Listen
to it!) ..
 Evaluate Competitors' Offerings and Differentiate
Yourself.
 Think Globally. ...
 Adapt an Existing Product or Service. ...
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17. Techniques for Generating Ideas
1) Social Listening
 Social Listing is the method of getting a public
opinion to generate ideas that fix the problem.
 (Using the social media platforms like Facebook,
Twitter, and Instagram).
2) Brain storming
 Brainstorming is a technique that involves a
single person or 5 to 10 people to give different
suggestions on a specific. Even blending one or
more ideas could solve the problem.
3) Mind Mapping
 Mind mapping is the famous idea generation
technique that represents the thoughts and ideas
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18. Techniques for Generating Ideas
4) Role-Playing
 You could take up the roles of customers and
discuss your expectations and what you want from
products. This could lead you to stumble upon
some good ideas.
5) Forced Relationship
 This technique helps to come up with unique ideas.
Here you take two unrelated things and imagine putting
them together to see what new thing you can come up
with.
 For example, take a calculator and a pencil, these are
unrelated to each other. Now try putting them together.
You might get some interesting ideas like a calculator
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19. Creativity
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 Creativity
 Creativity is the process of generating a novel or useful idea.
 Opportunity recognition may be, at least in part, a creative
process.

20. Creativity Process
1) Idea Germination
 This seeding stage of new idea
 It is the stage where the entrepreneur recognizes
that an opportunity exists
 Creative idea germinates besides the interest ,the
need of a specific problem or area of study
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21. Creativity Process
2) Preparation
 Entrepreneur starts looking for the answer to
implement the idea
 If the Idea is to launch a new product or service
then market research is conducted.
3) Incubation
• This is the subconscious assimilation of information
• This the transition period
• The entrepreneur starts thinking in his sub-
conscious mind
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22. Creativity Process
4) Illumination
 In this period of illumination the idea re-surfaces
in realistic way and entrepreneur comes out with
viable plan to give practical shape by collecting:
i) raw-material
ii) arranging funds
iii) Policy making for the implementation of idea
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23. Creativity Process
5) Verification
 Also called the validation or testing stage
 This is where the idea is verified to prove that it
has value
 This is the most difficult phase of creativity as
obstacles begin to appear
 This is developing stage in which knowledge is
developed into application
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