Group 4 (ABM 174 JOHN)
ARANAN, PRINCESS
BALLAD, JERIC
MONTELORA, ALYANNA
PADULLON, RAFAEL
SEGOVIA, ANDREA
ELEMENT 1 ATTRACTIVENESS SCORE AND JUSTIFICATION
MARKET POTENTIAL (25%)
SMARTPHONE DISTRIBUTION
BUSINESS
1. MARKET NEEDED
2. MARKET STRUCTURE Rating – 5
It is an emerging market
because we are in the
developing country and Makati
City is known as the selfie
capital so, all residents are
potential buyers of
smartphones. Advance
technology is very evident in
the city also innovation is also
possible making it an emerging
one.
3. MARKET SIZE Rating- 5
The market is established since
most of the Makati residents
uses smartphones in their
everyday lives making them all
as potential buyers.
4. GROWTH RATE Rating- 5
The market is growing fast since
most of the people are potential
buyers of smartphones because
they are using it in their
everyday lives.
5. MARKET CAPACITY Rating- 5
It is fully capacitated because
residents in Makati are avid
users of smartphones and the
chance of them buying new
smartphones is higher.
6. MARKET SIZE Rating-5
It is easy to acquire new buyers
because old market will
influence other people to buy
advance smartphones. Since the
business will offer new and
advance smartphones they will
attract more customers.
7. COST LEADERSHIP Rating- 2
It is too costly because the raw
materials and supplies are too
expensive.
AVERAGE SCORE
DESCRIPTION
MARKET POTENTIAL SCORE
SMARTPHONE REPAIR BUSINESS
Rating- 3
Due to the advance technology
consumer will prefer to replace
their damaged phones.
Somehow there are still people
who will avail repair service for
their defective smartphones.
Rating- 3
The number of consumers will
be in small number since most
of their phones are new.
However it will become worthy
for them since it will fix their
defective phones and fixing
defective phones is cheaper
than replacing it by new one.
Rating- 2
The market is growing slow
because not all of them has
defective smartphones and it
will take years for a phone to be
defective and not all of them
will prefer to fix it.
Rating- 3
Some people will choose to
repair their defective phones,
However not all of them has
problems with their
smartphones.
Rating- 3
Acquiring new market is not
that easy since repair service is
a common business and people
will fix their phones elsewhere
however there is a little chance
that old customers will
influence future customers
because of the service quality.
Rating-5
It is efficient since the owner is
an IT graduate with full
knowledge when it comes to
technology and fixing phones.
 ELEMENT 2 ATTRACTIVENESS SCORE AND JUSTIFICATION
FINANCIAL FEASIBILITY (25%)
SMARTPHONE DISTRIBUTION
BUSINESS
1. NET INCOME Rating- 4
It will have a high cost of sale
since suppliers of smartphones
and raw materials are
expensive. There will be a
steady stream of income since
most of the people will continue
to purchase smartphones until
2020.
2. RETURN ON Rating- 5
INVESTMENT AND There is a high chance that the
CAPITAL RECOVERY capital will be recovered with
PERIOD high returns because the place
that the owner wants to
establish his business is very
suitable because most of the
residents are smartphones
users and they are all potential
buyers.
3. CAPITALIZATION Rating- 5
There is a reasonable
capitalization because there is a
chance that the capital will be
recovered with high returns.
4. FREE CASH FLOW Rating-5
The sales growth will be high
since residents of Makati uses
smartphones in their daily lives
and the business will still be
after allocating funds for
expenses. It will also have a high
gross income because the
product is indeed in demand.
The business will incur low cost
for research and development
to identify the necessities of
consumers in a smartphone and
it will only need little working
capital.
AVERAGE
DESCRIPTION
FINANCIAL POTENTIAL SCORE
SMARTPHONE REPAIR BUSINESS
Rating- 2
It will be cost efficient because
you will only need knowledge
and skills in fixing and
diagnosing defective
smartphone. It will have an
unpredictable stream of income
because smartphones will only
be defective after two years and
we are not sure if they will
choose to fix or they will just
replace it with new one.
Rating-2
There is a little chance that the
capital will recovered with high
returns since smartphones will
only have technical problems
after two years. There is no
assurance that people will
choose to repair it.
Rating-2
Unreasonable capitalization
because the chance that the
capital will be recovered with
high returns is very small.
Rating-3
It will require larger working
capital because this service
requires knowledge and skills.
Research is not that necessary
to fund or only cost a little if
ever. The business’ sales growth
will be not that high because
not all people will render this
service. Gross income will be
average
 LEMENT 3 ATTRACTIVENESS SCORE AND JUSTIFICATION
COMPETITIVE ADVANTAGE AND
ENTREPRENEURIAL RESOURCES
(50%)
SMARTPHONE DISTRIBUTION
BUSINESS
1. CONTROL OVER PRICES, Rating- 3
DISTRIBUTION AND The business will depend on the
COST marketing strategy and pricing
based on the cost of sales.
2. BARRIERS TO ENTRY Rating-3
It is not easy to enter into the
business since he is just a
beginner with no experience in
handling business, building a
strong relationship with
customer can be achieved by
providing extra service even
after purchase. The competition
is already tough since malls in
Makati City has a lot of
smartphone distribution
business.
3. DEGREE TO FIT Rating- 3
The businessman has no
knowledge nor experience in
running a business but in terms
of the kind of business he wants
to establish a smartphone
distribution he is fit to do so
since he has background in
technological things.
4. ENTREPRENEURIAL AND Rating- 4
TECHNOLOGICAL The businessman might offer
DIFFERENTATION new version of smartphones in
the city because of what he
read in the magazine also if he
will continue to research on the
necessities of consumer on
smartphones. The business is
not an original concept since
there are already different
smartphone distribution
business in Makati.
5. SERVICE MANAGEMENT Rating-5
The business will offer a service
even after purchase for only on
a specific time period, this
service is also known as
warranty.
6. TIMING Rating-5
The business is very timely since
as of the moment residents of
Makati City are all using
smartphones.
7. FATAL LAW Rating- 2
There is still a risk in the
business despite of the good
SMARTPHONE REPAIR BUSINESS
Rating-5
The business will have a strong
control in terms of its costs and
prices since the expenses will
depend on what type of
deficiency or problem of
smartphone will be fixed.
Rating-4
It will be difficult for him to start
a business since he is just a
beginner, building a strong
relationship with customers will
be easier because it will only
depend on the service quality.
Competition is also tough since
repair business is a common
business.
Rating-3
The businessman has no
knowledge nor experience in
running a business but in terms
of the kind of business he wants
to establish a smartphone
repair shop he is fit to do so
since he has background in
technological things.
Rating-3
The business is a “me too”
concept because repair service
is already a common one it will
only differ in the quality of the
service that they will offer.
Rating-3
The business might give
additional service even if the
fixing is done but only for a
short period of time.
Rating-2
The business will only have a lot
of customers only if there is a
defective smartphones and it
will take 2 years to a
smartphone be defective.
Rating-2
There is still a risk in the
business despite of the good
 location and good choice of
product, because the
businessman is still new to the
business industry and has no
knowledge and experience in
running the business.
8. FLEXIBILITY Rating-5
The business is adaptable to
changes and development since
it has something to do with
technology.
9. OPPORTUNITY Rating-5
ORIENTATION The businessman recognized
the opportunity as long term
opportunity because of what he
read and what the research in
was stated that the hype will
continue until 2020.
10. PRICING Rating- 4
The businessman will probably
follow the price leadership since
he is just new to the business
industry and he has no
knowledge in the pricing and
marketing strategy.
11. PLACE OF Rating-5
DISTRIBUTION The place for the business is
good since it will be located in a
mall in Makati City, a very
accessible place.
12. MARGIN FOR MISTAKES Rating- 3
AND ERRORS Because of he is just a newbie in
the business industry he might
commit many mistakes and he
might be afraid to continue in
running the business however
due to his positivity and
complete belief that he will
succeed in the business despite
of the lack of knowledge he has
still the chance to succeed.
13. INDUSTRY AND Rating- 4
TECHNICAL EXPERIENCE The entrepreneur is highly
skilled in terms of technological
experience because he is an IT
graduate with 5 years of
working in an IT company. This
type of business is suitable for
his skill however in the business
industry he has zero knowledge
on it.
14. INTEGRITY, CONCERN Rating-4
FOR THE NEW VENTURE Since he is just new to the
AND INTELLECTUAL business industry committing
HONESTY some mistakes is normal and he
will be more concerned because
he is trying to learn while
running the business.
15. PERSONAL GOALS AND Rating-5
FIT The entrepreneur’s objective is
to establish a business in Makati
City and he has enough
location, because the
businessman is still new to the
business industry and has no
knowledge and experience in
running the business.
Rating-5
The business is adaptable to
changes and development since
it has something to do with
technology.
Rating-3
He recognized it as a short term
opportunity because he will
wait for 2 years to have
defective phones.
Rating-5
The businessman is an IT
graduate will full knowledge in
terms of technological issues,
he would be offering a lower
prices since he is already
familiar with the defects and
fixing process of those phones.
Rating-5
The place for the business is
good since it will be located in a
mall in Makati City, a very
accessible place.
Rating-3
Because of he is just a newbie in
the business industry he might
commit many mistakes and he
might be afraid to continue in
running the business however
due to his positivity and
complete belief that he will
succeed in the business despite
of the lack of knowledge he has
still the chance to succeed.
Rating-4
He is skilled and experience
because of his degree in IT
repair shop will be easier for
him since he is already familiar
with technical settings but he is
not highly skilled in running a
business since he has no
experience at all.
Rating-4
The owner will be more
cautious because he is afraid
that one mistake can affect his
business making him more
concerned in his decisions.
Rating- 5
His goal is to have a business in
Makati, he has enough
resources whether financial or
 resources because of working
for 5 years.
16. DESIRABILITY Rating-5
The business perfectly matches
with the entrepreneur’s lifestyle
since it has something to do
with technology.
17. STRESS MANAGEMENT Rating-2
The entrepreneur is new to
business industry there is a high
probability that he will
encounter stressful situations in
the business, since he is new is
will be hard for him to face or to
handle those situations.
AVERAGE SCORE
DESCRIPTION
COMPETITIVE ADVANTAGE AND
ENTREPRENEURIAL RESOURCES
POTENTIAL SCORE
knowledge and skill in fixing
defective phones.
Rating-5
The entrepreneur’s lifestyle
perfectly fit with this service
because they are related in
terms of technical and
technological things.
Rating-2
The entrepreneur is new to
business industry there is a high
probability that he will
encounter stressful situations in
the business, since he is new is
will be hard for him to face or to
handle those situations.

OPPORUNITY ATTRACTIVENESS SMARTPHONE DISTRIBUTION SMARTPHONE REPAIR BUSINESS

ELEMENTS BUSINESS
MARKET POTENTIAL (25%)
FINANCIAL POTENTIAL (25%)
COMPETITIVE ADVANTAGE AND
ENTREPRENEURIAL RESOURCES
POTENTIAL (50%)
TOTAL