Identifying and analyzing
opportunities
Learning objectives
 To know the relation between opportunity and
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entrepreneurship
What are the sources of opportunity
What are the sources of information
What are the stages from analyzing opportunities to
growing the venture
How to assess opportunities
How to protect the idea(s)
Innovation and opportunity
 Innovation can be successful only when it is linked to
customer demand –existing or in future- this is the
market opportunity…
 This is the link between innovation and opportunity
and it help entrepreneurial firms in gaining
competitive advantage it seeks ..
For example
Anita Roddick (body shop), Ingvar kampard (Ikea)
Opportunity and Information
 Opportunities are exploited through generating
information and awareness which can be gathered
through
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General Information
Industry and Market information
Competitive company and industry information
Government sources
Innovation and Entrepreneurship
 Economic development is the process caused by
the enterprise-or innovation and this carried out
by entrepreneurs which show a strong relation that
innovation has with entrepreneurship
 It is innovation and entrepreneurship that are at
the heart of success for the individual firm and of
national advantage
Innovation and Opportunity
Entrepreneurship/Opportunity
Low
High
High
STRUGGLER
INNOVATOR
Low
STAGNATOR
COPIER
Innovation/
Creativity
Sources of Opportunity
 According to Peter Drucker innovation can be
practiced systematically through the creative
analysis of change in the environment and the
opportunity it generates
 Entrepreneur need to search purposefully for the
sources of innovation that indicate opportunity for
them
Druker’s Sources of Opportunity
 The unexpected
 The incongruity
 The inadequacy in underlying processes
 The changes in industry or market structure
PLUS
 Demographic changes
 Changes in perception, mood or meaning
 New knowledge
Drucker’s 5-stage approach to
innovation
 Analyse opportunities, internal and external. Innovate
for NOW – timing is everything
 Innovation is conceptual and perceptual, so look at
financial implications and analyse whether it meets
the opportunity
 Keep innovation simple – KISS!
 Start small, take an incremental approach
 Aim at leadership and dominate the competition as
soon as possible
Opportunity Assessment plan
 It is not a business plan but compared to it, it is
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Is Shorter
Focuses on opportunity not venture
Have no consumer based spreadsheets
Is the basis for making the decisions to either act on an
opportunity or wait until another, better opportunity comes
along.
Opportunity Assessment plan
cont..
 Questions to be asked while assessing an opportunity
are
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Why does this opportunity excites you?
How it can solve a problem?
Will availing this opportunity return you the benefits?
How does the idea fit into your background and experience?
What business skills do you have?
What business skills are needed?
Do you know some one who has these skills?
Protecting the Idea
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Legal Issues in setting up an organization
Start up with out patent
Trade marks
Copyrights
Registration procedures (SECP)