ENT300 Chapter 4

CHAPTER 4
BUSINESS OPPORTUNITIES:
IDENTIFICATION, EVALUATION,
AND SELECTION
LESSON OBJECTIVES
At the end of the lesson, students should
be able to understand:
Definition
of business opportunity and two

situations in which business opportunity
can exist in the market
The approach to opportunity identification
WHAT IS
OPPORTUNITY
Opportunity is defined as a situation
that enables an entrepreneur to offer
marketable products or services to
interested buyers or end users
2 TYPES OF SITUATIONAL FACTORS

There are two situations in which
business opportunity can exist in the
market;
Product
or service is already in the market but

failed to satisfy the customers so need to be
improved.
Product
or service is still not in existence to

help solve customers problems.
EMERGENCE OF OPPORTUNITY
When people decide they have certain needs and want to

be satisfied, or when people discovered a problem of some
kind that can be helped by a product or service.
The
presence
problems
of
alerts
unfulfilled
the
needs
entrepreneur
and
to
want
the
and/or
potential
opportunity.
The entrepreneur later creates a business that is able to

fulfill the needs or want and/or solve the problem.
BUSINESS OPPORTUNITY:
IDENTIFICATION
OPPORTUNITY
IDENTIFICATION
Opportunity identification is a
process that involved the search for
and
discovery
of
business
opportunities.
APPROACH TO
OPPORTUNITY
IDENTIFICATION
1.
Observe changes in the environment.
2.
Recognize a need that customers

have that is not being satisfied.
3.
Recognize problems and find ways to

solve it.
1. OBSERVING
CHANGES IN THE
ENVIRONMENT
Changes in the environment give rise to
needs and wants and/or problems, and
an opportunity emerges.
CONT..
Important environment forces to
observe include:
Economic
Social
forces
forces
Technological
Political
advances
and regulatory statues
Examples of How Changes in the Environment Provides Openings for

New Product and Service Opportunities
CHANGES IN ENVIRONMENT
Structure of Population and Income
Number of teenagers higher than number
of elderly and children
People have higher purchasing power
Social
Increase incident of housebreaking
Increase interest in fitness
Increase mobility of population
Increasing predominance of dualincome families leaves less time to
cook at home
Technological Advances
Advances in biotechnology
Development of the internet
Increase pressure to improve economic
performance
Government Policies and Regulations
Increased driving standards
PROVIDE OPPORTUNITIES FOR:

Cyber cafes, cineplexes, recording studios
Passenger cars, household furniture, DVD
Grills, alarm, sensor, security systems
Fitness center, dancing class, in-house exercise
equipment, health food store
Handphone, laptop computers
Restaurants, food delivery services
Biotech-related pharmaceutical products, food

products, veterinary products
E-commerce, improved communication
Online marketing, cost control services
Smoke emission control, helmet, seatbelt
2. RECOGNIZE NEEDS
AND WANTS
Opportunity occurs whenever there is a need
and want to fulfill. The term needs refer to
basic needs that the consumer must have in
order to live while the term wants refers to a
personal desire for something that is more
than a basic need.
3. RECOGNIZE
PROBLEM AND FIND
SOLUTION
Problems
can
be
recognized
by
observing the challenges that people

encounter
in
their
daily
lives.
Solution to the problem represented a

business opportunity.
OPPORTUNITY IDENTIFICATION
PROCESS
Search for
Changes in
the
environment
Recognize
needs and
wants, and
solutions
Discovery
of
Opportunity
ABILITY TO SEARCH AND

DISCOVER BUSINESS
OPPORTUNITIES
Experience
and exposure
Knowledge
and skills
Special
Social
alertness
network
Creativity
Vigilant
(alert)
MECHANISM TO IDENTIFY
OPPORTUNITIES
Customers
Retailers
and distributors
Business
associates
Bankers
Consultants
Employees
Others
BUSINESS OPPORTUNITY:
EVALUATION & SELECTION
EVALUATION AND
SELECTION PROCESS
The
evaluation
process
involves
and
selection
judging
the
viability of the opportunity and

assessing its potential.
CRITERIA FOR EVALUATION AND

SELECTION
Can make money and has potential for growth
Less competition
Good fit between entrepreneur and opportunity
Has competitive advantage
Workable and efficient
Not against the norms and values of the

community
Conform with laws and regulations
THE END!

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CHAPTER 4

of business opportunity and two

The approach to opportunity identification

2 TYPES OF SITUATIONAL FACTORS

or service is already in the market but

or service is still not in existence to

When people decide they have certain needs and want to

The entrepreneur later creates a business that is able to

Observe changes in the environment.

Recognize a need that customers

Recognize problems and find ways to

and regulatory statues

Examples of How Changes in the Environment Provides Openings for

PROVIDE OPPORTUNITIES FOR:

Biotech-related pharmaceutical products, food

Smoke emission control, helmet, seatbelt

observing the challenges that people

Solution to the problem represented a

ABILITY TO SEARCH AND

viability of the opportunity and

CRITERIA FOR EVALUATION AND

Can make money and has potential for growth

Good fit between entrepreneur and opportunity

Has competitive advantage

Workable and efficient

Not against the norms and values of the

Conform with laws and regulations

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