Recognize a

Potential
Market
Entrepreneurship
Quarter 3 – Module 2
  Learn and understand the sources of
opportunities for business.

Objectives  Determine the essentials in the

entrepreneur’s opportunity seeking
At the end
of the lesson,
 Identify market problems and propose
learners are ex potential products or services that
pected to: will meet the market needs.
 Know the problem in which a business
opportunity arises from.
 Identify, screen and proposed solution
to meet the problem
 Select the best product or service that
will meet the market’s need with
a consideration of generating profit.
FIX ME 1. UPSIERSPL 2. NISSUBES 3. KERTAM

Direction:
Arrange the
scrambled 4. EDICRRSTO 5. SUTEMOSRC 6. UTSBETIUST
letters to form
a correct word.
8.
7. ICEVERS 9. IMCLTEA
PECITIONMTO

10. NTERTSAN
FIX ME SUPPLIERS BUSINESS MARKET

Direction:
Arrange the
CREDITORS CUSTOMERS SUBSTITUTE
scrambled
letters to form
a correct COMPETITIO
SERVICE CLIMATE
word. N

ENTRANTS
 Definition of Terms

Opportunity seeking Entrepreneurial Entrepreneurial ideas

process

• Process of • can be defined as • an innovative

considering, the steps taken in concept that can be
evaluating, and order to begin a new used for financial
pursuing market enterprise. It is a gain that is usually
based activities that step-by-step centered on a
are accepted to be method, one has to product or service
beneficial for the follow to set up a that can be offered
business. business. for money.
 Definition of Terms
Essentials of Sources of opportunity External environment
entrepreneur’s
opportunity seeking
These are the basic can be attain by refers to the physical
foundation that the assessing and looking at environment, societal
entrepreneur must have changes in the environment, and
in seeking opportunities, environment; industry where the
such as entrepreneurial technological discovery business operates.
mind frame, heart flame and advancement;
and gut game. government’s thrust,
programs, and policies;
people’s interest, and
past experiences.
Definition of Terms

Government Competition Substitute

refers to the local it is the act or anything that takes

government process of trying to the place or
(municipality, city, or get or win function of another.
provincial) or the something.
national
government and its
branches.
Definition of Terms
New
Suppliers Buyers Rivalry
entrants
•the one •are the •are the •is a state
who one that one that or situation
enters provide pays cash in which
something something in people or
. that is exchange groups are
needed or to your competin
wanted. goods g with
and each
services. other.
 Recognize a Potential Market
Entrepreneurial Ideas
• The creation of an
entrepreneurial ideas leads Identification
to the identification of Creation of of Opening of
entrepreneur entrepreneuri entrepreneur
entrepreneurial opportunities, ial Ideas al ial Venture
which in turn results in the Opportunities
opening of an
entrepreneurial venture.
• The entrepreneurial process
of creating a new venture is
presented in the diagram
below. (Aduana, 2017)
Figure 1. The Entrepreneurial Process of Creating New
Venture
This Photo by Unknown author is licensed under CC BY.
Essentials in Entrepreneur’s Opportunity
Seeking

This allows the entrepreneur to see things in a very positive and

optimistic way in the midst of difficult situation. Being a risk - taker, an
entrepreneur can find solution when problems arise.
Essentials in Entrepreneur’s Opportunity
Seeking
Entrepreneurial
mind frame

Entrepreneur's driven passion, they are attracted to discover

satisfaction in the act and process of discovery. Passion is the great
desire of an entrepreneur to achieve his/her goals.
Essentials in Entrepreneur’s Opportunity
Seeking
Entrepreneurial
heart flame

• This refers to the ability of the entrepreneur of being intuitive. This

also known as intuition. The gut game also means confidence in
one’s self and the firm believes that everything you aspire can be
reached.
Sources of Opportunities
1. Changes in the environment
2. Technological discovery and advancement
3. Government’s thrust, programs, and policies
4. People’s interest
5. Past experiences
 Sources of Opportunities
Entrepreneurial ideas arise when changes happen in the external
environment.
A person with an entrepreneurial drive views these changes positively.

Changes in
People’s interest Past experiences
the Technological discovery and
advancement
Government’s thrust, programs, and
policies

Environment
 Sources of Opportunities
External Factors:
1.1 The Physical environment
1.2 The Societal environment
1.3 The Industry environment

Changes in
People’s interest Past experiences
the Technological discovery and
advancement
Government’s thrust, programs, and
policies

Environment
 Sources of Opportunities
a. Climate - the
1.1 The weather conditions.
1.3 The Physical b. Natural resources - such
Industry Environment as minerals, forests, water,
environment and fertile land that occur
in nature and can be used
for economic gain.
1.2 The c. Wildlife - includes
Societal all mammals, birds, reptiles,
environment fish, etc., that live in the wild.
 Sources of Opportunities
a. Political forces - includes all the laws,
rules, and regulations that govern bu
siness practices
as well as the permits,
1.2 The approvals, and licenses necessary to
1.1 The Societal operate the business.
Physical Environment b. Economic forces - such
Environment as income level and employment
rate.
c. Sociocultural forces -
customs, lifestyles and values that ch
1.3 The aracterize a society.
Industry d. Technological environment -
environment New inventions and technology inno
vations.
Sources of Opportunities
a. Competitors
1.3 The b. Customers
1.2 The Industry c. Creditors
Societal Environment d. Employees
Environment
e. Government
f. Suppliers
1.1 The
Physical
Environment
Sources of Opportunities
A person with entrepreneurial interest sees possibility of business
opportunities in any new discovery or because of the use of latest
technology.

Technological
Past experiences Changes in the Environment Discovery and Government’s thrust, programs, and
policies

Advancement
Sources of Opportunities
The priorities, projects, programs, and policies of the
government are also good sources of ideas.

Government’s
Changes in the Environment
Technological discovery and Thrust, People’s interest
advancement
Programs, and
Policies
Sources of Opportunities
The interest, hobbies, and preferences of people are rich
source of entrepreneurial ideas. Like the increasing
number of Internet Café at present could be lead to the
strong attachment of young people to computers.

Technological discovery and Government’s thrust, programs, and People’s Past experiences
advancement policies
Interest
 Sources of Opportunities
The expertise and skills developed by a person who has
worked in a particular field may lead to the opening of
related business enterprise.

Government’s thrust, programs, and

People’s interest
Past Changes in the Environment
policies
Experiences
Forces of Competition Model
• It is also known as the “five
forces of competition,” An
industry environment is a
competitive environment.
• Regardless of what product or
services you have, competition is
always present.
• Competition – it is the act or
process of trying to get or win
something.
• For example, the prices are
lower when there is a
competition among the stores.
Forces of Competition Model
These are the five forces competing within the industry:
1. Buyers
2. Potential new entrants
3. Rivalry among existing firms
4. Substitute products
5. Supplier
Forces of Competition Model
1.Buyers
2. Potential new entrants
3. Rivalry among existing firms
4. Substitute products
5. Supplier
The buyers are the one that
pays cash in exchange to
your goods and services.
• For example, the
influenced of the price or in
the bargaining strategy.
The buyer has a strong and
magnified bargaining
power
Forces of Competition Model
a. There are several suppliers
1.Buyers available in the market.
The threat of its b. The buyer has the potential for
bargaining power will backward integration.
be less if the following c. The cost of switching the supplier
factors notice: cost is minimal.
d. The product represents a high
percentage of the buyer’s cost.
e. The buyer purchases large
portions of the seller’s product or
services.
Forces of Competition Model
1. Buyers A new entrant is defined as
the one who enters
2.Potential new something.
entrants • For example, the level of
3. Rivalry among existing firms capital requirements, if the
business requires huge
4. Substitute products capital, new entrants
5. Supplier should decline to join the
business.
Forces of Competition Model
1. Substantial capital
2. Potential requirement.
New Entrants 2. Strict government policy.
This gives a threat to the
business. This can be 3. Difficulty in accessing
notice if there is the distribution channels.
presence of the
following factors: 4. Economies of scale.
5. High cost of product
differentiation.
6. High switching cost
Forces of Competition Model
1. Buyers Rivalry is a state or situation
2. Potential new entrants in which people or groups
are competing with each
3.Rivalry among other.
existing firms • For example it depends on
4. Substitute products
the Marketing strategy of
your competitor, like giving
5. Supplier
freebies and special offers.
Forces of Competition Model
3. Rivalry
among
existing firms
The intensity of rivalry among
existing firms is characterized
to the following factors:
1. Diversity of rivals.
2. Number of competing firms.
3. Characteristics of the products or
services.
4. Increased capacity.
5. Amount of fixed costs.
6. Rate of industry growth.
Forces of Competition Model
1. Buyers Substitute means anything
2. Potential new entrants that takes the place or
3. Rivalry among existing firms function of another.
• For example the consumers
4.Substitute decide to use margarine as
products a substitute for butter. In
case the price of butter
5. Supplier
increases, preferably the
consumer will gradually
switch to margarine.
Forces of Competition Model
a. Switching cost is low.
4. Substitute b. Preferences and tastes of the
products customers easily change.
A substitute product can c. Product differentiation is highly
give a big threat in the noticeable
industry environment if d. The quality of substitute products
the following factors are dramatically improves.
notice:
e. The price of substitute product is
substantially lower.
Forces of Competition Model
1. Buyers The Suppliers are the one
2. Potential new entrants that provide something that
3. Rivalry among existing firms is needed or wanted.
4. Substitute products • For example if the supply
and services being offered
5.Supplier is unstable or keep. The
intensity of the threat is
strong in this kind of the
competitive force in the
industry.
Forces of Competition Model
1. The supplier has the ability for
5. Supplier forward integration.
This can be notice if 2. Suppliers in the industry are
there is the presence few, but the sales volume is
high.
of the following
factors: 3. Substitute products are not
readily available in the
market
4. The switching cost is very
high.
5. The product or service is
unique.
WORD
HUNT
Think of 10 words
or terms related
to the topic
and find the
words in the grid
horizontally, verti
cally, or
diagonally.
 No.​ Primary Product​ Substitute Product​
(Product name)​ (Product name)​
Ex.​ Butter - expensive Margarine –
COMPLETE ME price used as bread
spread.​
lesser price also used
as bread spread​
1​
• Complete the table by supplying
2​
it with products that you consider
similar. 3​
• Write the product and not the
brand in their respective 4​
columns. 5​
• Then describe and differentiate
its characteristics and uses.