BUSINESS

OPPORTUNITY

Pn Ima Shanaz Wahidin

Business and Management Department
UiTM Perak Branch
Tapah Campus
 SESSION OBJECTIVES

1. To describe ideas and opportunities

2. To determine the attractive opportunity

3. To explain the opportunity analysis process

 INTRODUCTION
❑ The main function of the entrepreneur is to discover,
screen and implement business ideas/opportunities.
❑ Entrepreneurship can therefore be understood as the
activity of identifying and exploiting new business
opportunities
❑ Opportunity is the situation that enables an entrepreneur
to offer marketable products or services to interested
buyers or end users
❑ It is the job of the entrepreneur to locate new ideas and
to put them into action.
❑ Opportunities is an integral component of the
entrepreneurial process.
 EMERGENCE OF OPPORTUNITY
❑ Product or service is still not in existence
❑ Product or service is already in the market but failed to
satisfy the customers – so need to be improved
❑ 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 of unfulfilled needs and want and/or
problems alerts the entrepreneur to the potential
opportunity.
❑ ** Entrepreneur later creates a business that is able to fulfill
the needs or want and/or solve the problem
 When Is An Idea An
Opportunity?
❑ Create or add value to customer
❑ Solve a significant problem, removing a pain
point or meeting demand
❑ Have robust market, profit margin and
money marketing
❑ Good fit with founder & management team
at the right time & place
 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 of unfulfilled needs and want and/or

problems alerts the entrepreneur to the potential
opportunity.

❑ The entrepreneur later creates a business that is able to

fulfill the needs or want and/or solve the problem.
 Attractive Opportunity

Timely

Contextual Important

Solvable Profitable
❑ Solvable
A problem that can be solved in the near future with
accessible resources (cure for cancerous diseases, a
efficient public transport to reduce congestion).
❑ Timely
A current need and unmet demand or problem (vaccine
for bird flu, drugs to prevent obesity).
❑ Important
The customer deems their problem or need important to
them (energy-saving air conditioner, petrol saving devices
that work).
❑ Profitable
Willingness of customer to pay for the solution and allow
the enterprise to profit (e.g. security products, multi function
printers)
❑ Contextual
A favorable regulatory and industry situation (e.g. on-line
business transaction, genuine investment schemes promise
high returns).
 OPPORTUNITY ANALYSIS
PROCESS
❑ A process that involved the search for
and discovery of business opportunities.
❑The process involved :

Search for Recognize

Changes in needs and Discovery of
the wants, and Opportunity
environment solutions
 1. OBSERVING CHANGES IN
THE ENVIRONMENT
• Give rise to needs and wants and/or
problems and an opportunity emerges.
• Factors to observe include:
❑Economic forces
❑Social forces
❑Technological advances
❑Political and regulatory statues
 How Changes in the Environment Provides Openings
For New Product and Service Opportunities

1. Structure of Population and Income

Number of teenagers higher than number Cyber cafes, cineplexes, recording studios
of elderly and children
People have higher purchasing power Passenger cars, household furniture, DVD
2. Social
Increase incident of housebreaking Grills, alarm, sensor, security systems
Increase interest in fitness Fitness center, dancing class, in-house equipment,
Increase mobility of population Handphone, laptop computers
Increasing dual income family Restaurants, food delivery services as less time cooking
3. Technological Advances
Advances in biotechnology Biotech-related pharmaceutical products, food products,
Development of the internet E-commerce, improved communication
Improve economic performance Online marketing, cost control services
performance
4. Government Policies and Regulations
Increased driving standards Smoke emission control, helmet, seatbelt
 2. RECOGNIZE NEEDS & WANTS
THEN FIND SOLUTIONS
RECOGNIZE NEEDS & WANTS
❑ Opportunity occurs whenever there is a need and want to
fulfill.
❑ “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.
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.
 3. SEARCH & DISCOVER BUSINESS
OPPORTUNITIES
HOW TO SEARCH?
Experience and exposure
Knowledge and skills
“Special alertness”
Social network
Creativity
Vigilant
 MECHANISM TO
IDENTIFY OPPORTUNITIES
WHERE TO SEARCH?
Customers
Retailers and distributors
Business associates
Bankers
Consultants
Employees
Others
 Changing Opportunity Example

Data storage in the computing age is essential to

the user. Data storage in the early years of
desktop computing, the diskette was the key
mode of data storage then to floppy disk. As time
passes, the user looks to more storage capacities
in a more stable form and much more compact
design. Hence, the introduction of the pen drive
or thumb drive fulfills the new needs of the
growing user group and now we have compact
disc.