TECHNOLOGY ENTREPRENEURSHIP

(ENT600)

UNIT 3:
OPPORTUNITY ANALYSIS

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

DEFINITION OF ENTREPRENEURIAL
OPPORTUNITY
o Opportunities are an integral component of the
entrepreneurial process

o Entrepreneurial opportunities are defined as situations

in which new products, services and processes can be
introduced and sold at greater than the cost of
production

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 CONCEPT OF
‘WINDOW OF OPPORTUNITY’
• Often when referring to opportunities, the term “window of
opportunity” is used

• The entrepreneur must hit the “window of opportunity” for which the
opportunity exists

• Window of opportunity is defined as that too often short period of

time during which an opportunity must be acted on or missed

• It also describes the time period in which a firm can realistically

enter a new market

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 CONCEPT OF
‘WINDOW OF OPPORTUNITY’
• The “window of opportunity” is deemed to be “open” or “close” to
denote the degree of attractiveness or exploitation possibilities at a
particular time

• The term “open” refers to the opportunity lending itself to be

exploited at that time because it has value and potential for wealth
creation

• The term “close” refers to the opportunity potential diminishes due

to it being exploited by another entrepreneur or at that period of
time has become out-of-date or obsolete

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 CHANGING OPPORTUNITY – AN
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

• 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

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 CHARACTERISTICS OF AN ATTRACTIVE
OPPORTUNITY
• Timely
• A current need, unmet demand or problem (e.G. Vaccine
for bird flu, drugs to prevent obesity)
• Solvable
• A problem that can be solved in the near future with
accessible resources (e.G. A cure for cancerous diseases,
a more efficient public transport to reduce congestion and
traffic jams)

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 CHARACTERISTICS OF AN ATTRACTIVE
OPPORTUNITY
• Important
• The customer deems their problem or need important to
them (e.g. Energy-saving air conditioner or petrol saving
devices that work)
• Profitable
• The customer will pay for the solution and allow the
enterprise to profit (e.g. Security products, multi function
printers)
• Context
• A favorable regulatory and industry situation (e.g. On-
line business transaction , genuine investment schemes
that promised high returns)
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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 OPPORTUNITY ANALYSIS – A PROCESS
APPROACH
Opportunity
Evaluate the
Evaluate the
opportunity
discovery

Go
Technology-
Decision based idea Exploration of
blueprint opportunity

Reject

Look
elsewhere

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 OPPORTUNITY DISCOVERY
Sources of business ideas include:
 Patent office
The Intellectual Property Corporation of Malaysia is an
agency under the Ministry of Domestic Trade, Cooperative
and Consumerism. This agency can be a good source of
business ideas that can be retrieved easily from their online
patent search and patent gazette hosted on its website

 University Research & Development

Provides an endless stream of research findings that can be
commercialized. Local universities play an important role in
providing knowledge that will help businesses grow into new
market segments and develop new products
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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 OPPORTUNITY DISCOVERY

• Research institutes
Considered as reliable sources of business
ideas on various fields. Examples of research
institutes in malaysia include the malaysian
agricultural research & development institute
(MARDI), standards and industrial research
institute of malaysia (SIRIM)

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

OPPORTUNITY PULL (MARKET DRIVEN) VS
CAPABILITY PUSH (TECHNOLOGY DRIVEN)
Opportunity can either be:

• Opportunity pull (market driven)

Occurs when there is a need or problem that requires a solution.
An example is the need for a pharmaceutical that can mitigate or
cure the effects of AIDS. This type of opportunity can be called
opportunity pull, since the size of the opportunity draws
opportunity seekers to attempt to exploit it.

 Capability push (technology driven)

Occurs from the discovery of a capability or resource that can be
applied to a problem or need. An example of this type of
opportunity is the discovery of a new technology, such as digital
television. This type of opportunity can be called a capability
push, since it flows from a capability or resource availability.
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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 EVALUATE THE OPPORTUNITY
• Evaluating opportunities involves internal and external factors
• Internal factors relate more to the entrepreneurial individual
capabilities and intentions
• External factors relate to the company and business
environment

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

EVALUATE THE OPPORTUNITY
(INTERNAL FACTORS)
Internal factors that include:
• Capabilities
The ability or quality (knowledge, experience, and skill)
necessary to develop the business venture

 Resources
Include financial, physical, and human resources
consistent with the magnitude of the business venture

 Interest
the will, commitment, and passion to pursue the business
venture

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 EVALUATE THE OPPORTUNITY
(EXTERNAL FACTORS)
External factors include:
• Market
involves determining the size of the market and the potential
customers

• Financial
involves determining the costs to be incurred in developing the
business venture

• Technical
involves determining the requirements to proceed with the idea
that include machineries, raw materials, the processes and
infrastructure
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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

EVALUATE THE OPPORTUNITY
(CONT EXTERNAL FACTORS)

• Economic forces
• Have a direct impact on the level of disposable income and
consumer buying patterns. For e.G., When incomes are high,
people are more willing to buy products and services that
enhance their lives. Similarly, a drop in interest rates typically
leads to an increase in new home construction and furniture
sales.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 EVALUATE THE OPPORTUNITY
(CONT EXTERNAL FACTORS)
• Social and cultural trends
• An understanding of the impact of social and cultural trends and
how they affect new product, service, and business ideas is a
fundamental piece of the opportunity recognition puzzle.

• For example, the persistent proliferation of fast-food restaurants is

not due primarily to people’s love of fast food but rather to the fact
that people are busy – the increasing predominance of two-income
households leaves less time to cook at home. Similarly, the sony
walkman was developed not because consumers wanted smaller
radios, but because people wanted to listen to music while on the
move and while exercising.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 EVALUATE THE OPPORTUNITY
(CONT: EXTERNAL FACTORS)

• Technological advances

• Provide opportunities to help people satisfy basic needs and desires

in a better or more convenient way.

• For e.g. The cell phone provides the mobile population the ability to
communicate with its co-workers, customers, friends, and families
from anywhere and everywhere. Similarly, people who shave have
always wanted to minimize the number of nicks and shaving time
and get as close a shave as possible. These and other shaving-
related desires will probably never change. What does change is the
degree to which new technologies can better satisfy these needs
and desires.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 EVALUATE THE OPPORTUNITY
(CONT: EXTERNAL FACTORS )
• Political and regulatory changes
• New regulations create opportunities for entrepreneurs
to start firms to help companies comply with these laws.
• E.G. OSHA standard, has opened up business
opportunities for consulting companies to help other
companies ensure compliance.
• Political change also leads to new business and product
opportunities.
• E.G., Global political instability and the threat of
terrorism have resulted in many firms becoming more
security conscious.
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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 SWOT ANALYSIS?

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 BENEFIT OF SWOT ANALYSIS
• SWOT analysis is a very effective way of identifying
your strengths and weaknesses, and of examining
the opportunities and threats you face.

• Holding out an analysis using the swot framework

helps you to concentrate your activities into areas
where you are strong and where the greatest
opportunities lie.

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 SWOT ANALYSIS
STRENGTHS
List your WEAKNESSES
+ advantages List your
+ unique and low cost + disadvantages, limitations
resources What could you improve
+factors mean that you “get +factors lose you sales
the sale”

THREATS
OPPORTUNITIES
List your
List your
+ external trouble for the
+ chances to improves business
performance
+ obstacles do you face
+good opportunities can you
spot + what your competitors are
doing

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 SAMPLE SWOT ANALYSIS

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 CONSUMER TREND CANVAS:

An easy-to-follow framework that will help you not only unpack and
understand any consumer trend, but also help you apply it to launch
successful consumer-facing innovations of your own.

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS
 CONSUMER TREND CANVAS
• Basic Needs
UNDERSTAND • Drivers of Change
• Emerging Consumer Expectations
• Inspiration

APPLY • Innovation Potential

• Who

10/24/2022

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 1. UNDERSTAND BASIC NEEDS
• Consumer trends - and consumer behaviors more broadly – are
ultimately driven by basic, fundamental, rarely-if-ever-
changing human needs and desires. Identifying these
underlying needs is central to understanding any consumer
trend. Where to start? How about these:
• Social Status • Freedom
• Identity
• Self Improvement • Recognition
• Relevance
• Entertainment • Simplicity
• Social interaction
• Excitement • Transparency
• Creativity
• Connection • Honesty
• Fairness
• Security

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 2. UNDERSTAND DRIVERS OF CHANGE
• What’s changing?
• Looking for shifts that make it possible to service consumers basic needs and wants in
novel, exciting-better-ways.

• Shifts
• Shifts are the long-term, macro changes that are playing out across years or even
decades, that while not consumer trends themselves, will shape both the direction and
flavor of a specific trend. E.G. Urban transition, ageing world and climate challenge.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 2. UNDERSTAND DRIVERS OF CHANGE
• What’s changing?
• Triggers
• Triggers are the more immediate changes that drive the emergence of a
consumer trend. These can include specific technologies, political events,
economic shocks, environmental incidents, and more. E.G. Developments in
visual search technologies are driving the POINT-KNOW-BUY trend.
Another useful tools such as PESTLE model to analyze external change.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 3.UNDERSTAND EMERGING CONSUMER
EXPECTATIONS

When identifying these newly emerging needs,

• What new consumer needs,
wants and expectations are
created by the changes
identified above?
• Where and how does this
trend satisfy them?
wants and desires, look for EXPECTATION GAPS
between what consumers want, and what they
currently have.
e.g. in the music industry, digital technologies
triggered consumers to expect infinite choice and
instant access to music, on their terms.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 UNDERSTAND
4. INSPIRATION

Look at real-world examples to understand trends.

• How are other See what other businesses, entrepreneurs, non-profits,
businesses governments even, are already doing with the trend.
Understand it and gain inspiration.
applying this Combining several elements
Take something and deploy it in a new context.
trend? Look at existing business innovations, understand
them, then adapt them to your business.
To gain as wide a perspective as possible, look other
industries, other regions or cultures or other types of
business.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 Innovation Potential
APPLY
• Consider how and where consumer trend could impact your business using these four areas:
i. Vision
•How will the deeper shifts underlying this trend shape your company’s long-term vision
ii. Business model
•Can you apply this trend to launch a whole new business venture or brand?
iii. Product/service/experience
•What new products and services could you create in light of this trend? How will you adapt your
current products and services?
iv. Campaign
•How can you incorporate this trend into your campaigns, and show consumers you speak their
language, that you ‘get it’.
•Note:
•Not all trends will apply equally to all businesses or regions.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 APPLY

• Try thinking beyond those who are currently living the 6. Who
trend. Indeed, thinking about what changes you
would have to make, to make this trend relevant for Which (new) customer groups
other (new) demographics is a great way to come could you apply this trend to?
up with new innovations. What would you have to
change?
• Need further inspiration? Then look to the margins
and at what extreme users are currently doing. New
consumer behaviors usually start with certain (niche)
segments, before evolving and spreading throughout
the mass market.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

• Says ‘trends’ and many people instantly think of
demographics. And of course, consumers that share certain APPLY
traits (whether in age, income, lifestyle, location etc.) Will
often have similar tastes and preferences.

• But when it comes to applying consumer trends, try thinking

6. Who
beyond those who are currently living the trend. Indeed,
thinking about what changes you would have to make, to Which (new) customer groups
make this trend relevant for other (new) demographics is a could you apply this trend to?
great way to come up with new innovations. What would you have to
change?
• Need further inspiration? Then look to the margins and at
what extreme users are currently doing. New consumer
behaviors usually start with certain (niche) segments, before
evolving and spreading throughout the mass market

10/24/2022

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 FEASIBILITY STUDY

• The outcome of the evaluation of opportunity

is a feasibility study a tool to identify whether
the business idea is feasible or not.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

MAKING DECISION
 Once the opportunity is evaluated, a decision has to be made
whether to proceed to the preparation of a technology-based
idea blueprint or to explore other possibilities by looking
elsewhere
 The entrepreneur must make a difficult decision whether to act
or not on a good potential opportunity
 The factors to be considered in making the decision include
whether:
 the product will give significant value to the customer
 the entrepreneur can attract the necessary financial,
physical, and human resources required by the venture
opportunity
 the expected return of the venture is consistent with the
risk of the venture
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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 TECHNOLOGY-BASED IDEA BLUEPRINT

• This document summarizes the

entrepreneur’s proposal of a business
venture

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

 EXPLOITATION OF OPPORTUNITY
• Exploitation of opportunity for technological-
based product can be done through
commercialization.

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS

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Entrepreneurship Dept, FBM (2009) ENT600/UNIT 3 : OPPORTUNITY ANALYSIS