EMPOWERMENT TECHNOLOGIES
Key Features of Web 2.0
Information and Communications Technology
- It deals with the use of different communication
technologies such as mobile phones, the Internet,
etc. to locate, save, send, and edit information.
“C” reflects the important role that computers now
play in communications.
The “S” at the end of communications, is a term
that predates computer technology and was originally
associated with Morse code, radio, and often abbreviated
to “comms.”
ICT in the Philippines
- The Philippines is called the “ICT hub of Asia”
because of the huge growth of ICT-related jobs
around the country.
Time magazines declared Makati City,
Philippines-Rank 1 as the “Selfiest” City around the
world, and Rank 9 is Cebu City.
WWW (World Wide Web)
- an interconnected system of public web pages
accessible through the Internet. It was invented by
Sir Tim Berners-Lee in 1989.
- Web pages are what make up the world wide web.
Web 1.0
- are static and not interactive. You can’t post
comments or create an account.
Examples of Websites in Web 1.0
Web 2.0
- allows the user to interact with the page known as
the dynamic page; instead of just reading a page,
the user may be able to comment or create a user
account.
- The dynamic page refers to the web pages that
are affected by user input or preference.
Web 2.0 term used to describe the present
generation of the World Wide Web that concentrates on its
capability of providing people the means to collaborate
and share information online.
Darcy DiNucci, an information architecture
consultant, coined the term Web 2.0 in her
1999 article, “Fragmented Future”.
The term was popularized by Tim O’Reilly and
Dale Dougherty at the O’Reilly Media
Web 2.0 Conference in late 2004 (TechTarget, 2015).
1. Folksonomy - It allows users to categorize and
classify/arrange information using freely chosen
keywords. (Twitter, Instagram, Facebook)
2. Rich User Experience - Content is dynamic and
responsive to the user’s input. In the case of social
networking sites, when logged on, your account is
used to modify what you see on their website.
3. User Participation - The owner of the website is
not the only one who can put content. Others can
place the content of their own through comments,
reviews, and evaluations.
4. Software as a Service - Users will subscribe to
software only when needed rather than purchasing
them.
5. Mass Participation - It is a diverse information
sharing through universal web access. Since most
users can use the Internet, Web 2.0’s content is
based on people from various cultures.
6. Long Tail - services that are offered on demand
rather than on a one-time purchase.
Web 3.
- also called Semantic Web
Semantics – the ability of Web technologies to understand
and interpret human-generated content.
The aim of Web 3.0 is to have machines understand
the user’s preferences to be able to deliver web content
specifically targeting the user.
The Internet can predict the best possible answers
to your question by “learning from your previous
choices”.
Several problems of Web 3.0
1. Compatibility - HTML files and current web
browsers could not support Web 3.0.
2. Security - The user’s security is also questioned
since the machine is saving his or her preferences.
3. Vastness - The World Wide Web already contains
billions of web pages.
4. Vagueness - Certain words are imprecise. The
words “old” and “small” would depend on the
user.
5. Logic - since machines use logic, there are certain
limitations for a computer to be able to predict
what the user is referring to at a given time.
Trends in ICT
 1. Convergence - the combination of two or more
entities of technologies to create a new single
device. Example: Using a smartphone to create
word documents that were previously can only
created using a desktop computer.
2. Social Media - a website, application, or online
channel that enables web users to create,
co-create, modify, and exchange user-generated
content.
Six types of Social Media
a. Social Networks – These are sites that allow you
to connect with other people with the same
interests or background. Once the user creates
his/her account, he/she can set up a profile, add
people, share content, etc. (Facebook and
Google+)
b. Bookmarking Sites– These are sites that allow
you to store and manage links to various websites
and resources. Most of these sites allow you to
create a tag and easily share them.
(StumbleUpon/Pinterest)
c. Social News – These are sites that allow users to
post their news items or links to other news
sources. The users can also comment on the post
and comments may also be ranked. (Reddit and
Digg)
d. Media Sharing – These are sites that allow you to
upload and share media content like images,
music, and video. (Flickr, Youtube, and
Instagram)
e. Microblogging – These are sites that focus on
short updates from the user. Those that subscribed
to the user will be able to receive these updates.
(Twitter and Plurk)
f. Blogs and Forums – These websites allow users
to post their content. Other users can comment on
the said topic. (Blogger, WordPress, and Tumblr)
3. Mobile Technologies - The popularity of
smartphones and tablets has taken a major rise over
the years. This is largely because of the devices’
capability to do tasks that were originally found in
personal computers.
Different types of mobile operating systems:
a. iOS – used in Apple devices such as iPhone and
iPad.
b. Android – an open-source OS developed by
Google. Being open source means
mobile phone companies use this OS for free.
c. Blackberry OS – used in Blackberry devices.
d. Windows Phone OS – a closed source and
proprietary operating system developed by
Microsoft.
e. Symbian – the original smartphone OS; used by
Nokia devices.
f. WebOS – originally used in smartphones; now
used in smart TVs.
g. Windows Mobile - developed by Microsoft for
smartphones and pocket PCs.
5. Assistive Media - It is a nonprofit service designed
to help people who have visual and reading
impairments.
Cyber Citizen
- utilizes technology in an appropriate manner
including etiquette, communication, education,
access, commerce, responsibility, rights, safety,
and security.
Ways to be cyber aware
a. Cell phones - “Sexting” is a term used to describe
inappropriate photos or texts sent via cell phones
Cell phone history options allow you to view past
callers and messages. Although the history can be
deleted, contact your cell phone provider for any
other options available. Geotagging allows users
to note where they are located in a smartphone
photo.
b. Cyberbullying - involves the use of technologies
to display behavior that harms another. Through
email, instant messaging, text messaging, and
social networking sites, hurtful messages can be
posted and shared.
c. Ethics - Plagiarism is the use of another work as
your own. On the internet, all materials are
copyrighted unless stated otherwise. Such
materials include, but are not limited to, images,
music, text, and videos.
d. Gaming - Online gaming provides the opportunity
to play games from a computer or another device,
like a Wii or PlayStation. Some consoles have a
social element, as users can play with anyone
from around the world. Chatting, IM, and other
social tools exist within these games.
e. Instant Messaging and Email - Instant
messaging (IM) allows users to correspond online
with others in real-time. IM can occur
through a mobile device or computer with internet
access. Similar to text messaging, IM lets users
 correspond in brief text. Popular IM platforms include
iMessage and Meebo.
Email also allows users to interact online.
Follow the common email usage tips below.
➢ Privacy – do not share your password with others.
➢ Unknown – do not open emails or attachments
from an unknown source. Block messages from
unknown sources.
➢ Unsubscribe – scroll to the bottom of the email
and choose unsubscribe to be removed from the
list of unwanted emails.
f. Social Networking - Social networking sites
provide a social atmosphere by allowing users to
share personal information. Popular sites include
Facebook, Google+, and Twitter with similar
elements such as status updates, photo friend lists
or followers, chat, gaming, and messaging or
email. Most SNS like Facebook is intended for
those aged 13 and older.
Online Safety and Security
Internet - defined as the information superhighway. This
means that anyone has access to this highway, can place
information, and can grab that information. This is why
social networking sites like Facebook continue to improve
their security features. The threat of cybercrime is very
real. Whatever information we share today could affect
our future.
Tips to Stay Safe Online
1. Be mindful of what you share online and what site
you share it to.
2. Do not just accept terms and conditions; read
them.
3. Know the security features of the social
networking site you use. By keeping your profile
private, search engines will not be able to scan
your profile.
4. Do not share your password with anyone.
5. Avoid logging in to public networks/Wi-Fi.
Browsing in “incognito (or private) mode will
NOT protect you from hackers.
6. Do not talk to strangers whether online or
face-to-face/
7. Never post anything about a future vacation. It is
similar to posting, “Rob my house on this date.”
8. Add friends you know in real life.
9. Avoid visiting untrusted websites.
10. Install and update antivirus software on your
computer. Use only one anti-virus software to
avoid conflicts.
11. If you have Wi-Fi at home, make it a private
network by adding a password.
12. Avoid downloading anything from untrusted
websites.
13. But the software does not use pirated ones.
14. Do not reply to or click links from suspicious
emails.
15. Make Online Purchases from Secure Sites
Internet Threats
1. Malware – or malicious software, is any program
or file that is harmful to a computer user.
Types of Malware:
a. Virus - a malicious program designed to replicate
itself and transfer from one computer to another
(internet, local networks, FDs, CDs, etc.)
b. Worm - a malicious program that transfers from
one computer to another by any type of means.
Ex. ILOVEYOU Worm - The malware originated
in the Pandacan neighborhood of Manila in the
Philippines on May 5, 2000.
c. Trojan - a malicious program that disguises as a
useful program but once downloaded or installed,
leaves your PC unprotected and allows hackers to
get your information.
d. Spyware - a program that runs in the background
without you knowing it (thus called “spy”). It can
monitor what you are currently doing and typing
through keylogging.
Keylogger – used to record keystrokes done by
the user. This is done to steal their password or
any other sensitive information. The key logger
software typically uses a log file to store its
recording.
e. Adware - a program designed to send you
advertisements, mostly as pop-ups.
f. Ransomware - or ransom software is a type of
malicious software from cryptovirology that
threatens to publish the victim's data or
perpetually block access to it unless a ransom is
paid.
2. Spam - an unwanted email mostly from bots or
advertisers. It can be used to send malware.
3. Phishing - its goal is to acquire sensitive personal
information like passwords and credit card details.
This is done by sending you an email that will direct the
user to visit a fake
website and be asked to update his/her username,
password, credit card, or personal
information.

Copyright Infringement
- It is the use of works protected by copyright law
without permission for a usage where such
permission is required.

Tips to avoid copyright infringement

1. Always assume that the work is copyrighted.
2. Do not copy, share or alter without seeking
permission.
3. Review and retain licensing agreements.
4. Consider buying content.
5. Give credit to the original author of the page or
information.

Online Research
Have you ever searched the internet for certain
information where the search engine returned a different
result?

Tips for conducting online research

1. Have a question in mind.
2. Narrow it down.
3. Advanced Search.
4. Look for a credible source.
5. Give Credit.
ORGANIZATION AND MANAGEMENT
Functions of Managers
Managers just don't go out and haphazardly
perform their responsibilities. Good managers discover
how to master five basic functions: planning, organizing,
staffing, leading, and controlling.
● Planning: This step involves mapping out exactly
how to achieve a particular goal. Say, for
example, that the organization's goal is to improve
company sales. The manager first needs to decide
which steps are necessary to accomplish that goal.
These steps may include increasing advertising,
inventory, and sales staff. These necessary steps
are developed into a plan. When the plan is in
place, the manager can follow it to accomplish the
goal of improving company sales.
● Organizing: After a plan is in place, a manager
needs to organize her team and materials
according to her plan. Assigning work and
granting authority are two important elements of
organizing.
● Staffing: After a manager discerns his area's
needs, he may decide to beef up his staffing by
recruiting, selecting, training, and developing
employees. A manager in a large organization
often works with the company's human resources
department to accomplish this goal.
● Leading: A manager needs to do more than just
plan, organize, and staff her team to achieve a
goal. She must also lead. Leading involves
motivating, communicating, guiding, and
encouraging. It requires the manager to coach,
assist, and problem-solve with employees.
● Controlling: After the other elements are in place,
a manager's job is not finished. He needs to
continuously check results against goals and take
any corrective actions necessary to make sure
that his area's plans remain on track.
All managers at all levels of every organization
perform these functions, but the amount of time a manager
spends on each one depends on both the level of
management and the specific organization.
Roles Performed by Managers
- A manager wears many hats. Not only is a
manager a team leader, but he or she is also a
planner, organizer, cheerleader, coach,
problem solver, and decision maker — all rolled
into one. And these are just a few of a manager's
roles.
- In addition, managers' schedules are usually
jam‐packed. Whether they're busy with employee
meetings, unexpected problems, or strategy
sessions, managers often find little spare time on
their calendars. (And that doesn't even include
responding to e‐mail!)
- In his classic book, The Nature of Managerial
Work, Henry Mintzberg describes a set of ten
roles that a manager fills. These roles fall into
three categories:
● Interpersonal: This role involves human
interaction.
● Informational: This role involves the sharing
and analyzing of information.
● Decisional: This role involves decision-making.
Informational
1. Monitor - Seek and receive information; scan
periodicals and reports; maintain personal contact
with stakeholders.
2. Disseminator - Forward information to
organization members via memos, reports, and
phone calls.
3. Spokesperson - Transmit information to outsiders
via reports, memos, and speeches.
Interpersonal
1. Figurehead - Perform ceremonial and symbolic
duties, such as greeting visitors and signing legal
documents.
2. Leader - Direct and motivate subordinates;
counsel and communicate with subordinates.
3. Liaison - Maintain information links both inside
and outside the organization via mail, phone calls,
and meetings.
Decisional
1. Entrepreneur - Initiate improvement projects;
identify new ideas and delegate idea responsibility
to others.
2. Disturbance handler - Take corrective action
during disputes or crises; resolve conflicts among
subordinates; adapt to environments.
3. Resource allocator - decide who gets resources;
prepare budgets; set schedules and determine
priorities.
4. Negotiator - Represent departing during
negotiations of union contracts, sales, purchases,
and budgets.
Skills of a manager
- Not everyone can be a manager. Certain skills, or
abilities to translate knowledge into action that
 results in desired performance, are required to
help other employees become more productive.
These skills fall under the following categories:
1. Technical: This skill requires the ability to use a
special proficiency or expertise to perform
particular tasks. Accountants, engineers, market
researchers, and computer scientists, as examples,
possess technical skills. Managers acquire these
skills initially through formal education and then
further develop them through training and job
experience. Technical skills are most important at
lower levels of management.
2. Human: This skill demonstrates the ability to
work well in cooperation with others. Human
skills emerge in the workplace as a spirit of trust,
enthusiasm, and genuine involvement in
interpersonal relationships. A manager with good
human skills has a high degree of self‐awareness
and a capacity to understand or empathize with the
feelings of others. Some managers are naturally
born with great human skills, while others
improve their skills through classes or experience.
No matter how human skills are acquired, they're
critical for all managers because of the highly
interpersonal nature of managerial work.
3. Conceptual: This skill calls for the ability to
think analytically. Analytical skills enable
managers to break down problems into smaller
parts, see the relations among the parts, and
recognize the implications of any one problem for
others. As managers assume ever‐higher
responsibilities in organizations, they must deal
with more ambiguous problems that have
long‐term consequences. Again, managers may
acquire these skills initially through formal
education and then further develop them through
training and job experience. The higher the
management level, the more important conceptual
skills become.
Although all three categories contain skills
essential for managers, their relative importance tends to
vary by level of managerial responsibility.
Business and management educators are
increasingly interested in helping people acquire technical,
human, and conceptual skills, and develop specific
competencies, or specialized skills, that contribute to high
performance in a management job. Following are some of
the skills and personal characteristics that the American
Assembly of Collegiate Schools of Business (AACSB) is
urging business schools to help their students develop.
1. Leadership — ability to influence others to
perform tasks
2. Self‐objectivity — ability to evaluate yourself
realistically
3. Analytic thinking — ability to interpret and
explain patterns in information
4. Behavioral flexibility — ability to modify
personal behavior to react objectively rather than
subjectively to accomplish organizational goals
5. Oral communication — ability to express ideas
clearly in words
6. Written communication — ability to express
ideas clearly in writing
7. Personal impact — ability to create a good
impression and instill confidence
8. Resistance to stress — ability to perform under
stressful conditions
9. Tolerance for uncertainty — ability to perform
in ambiguous situations
“Factors that affect the Business environment”
1. External Factors
a. Economic environment - Economic
factors throw light on the nature and
direction of the economy in which a firm
operates.
b. Social and Cultural Environment - The
social factors that affect a firm include the
values, attitudes, beliefs, opinions, and
lifestyles of persons in the firm’s external
environment, as developed from
demographic, cultural, religious,
educational, and ethnic conditioning.
c. Political Environment - Many political
factors influence how managers formulate
and implement strategic direction.
d. Legal Environment - The legal
framework/regulatory environment is
decided by the political party in power.
The government, therefore, may legislate
on matters like wage fixation, managerial
remuneration, safety and health at work,
location of plants, entry of multinationals,
 price control, import-export policy,
licensing policy, etc.
e. Technological Environment - and grow successfully.
Technological factors represent major
opportunities and threats that must be
taken into account while formulating
strategies. Technological breakthroughs
can dramatically influence an
organization's products, services markets,
suppliers, distrib­utors, competitors,
customers, manufacturing processes,
marketing practices, and competitive
position.
f. Natural Environment - The natural
environment comprising ecological,
geographical, and topographical factors
(such as natural resources, weather,
climate, location, etc.) are all relevant to
the business. Historically, Industries were
set up in places where natural resources
were available in abundance. This has
created pockets of affluence, congestion,
and pollution all at the same time.
g. International Environment - specific industry, and the organization in question.
International developments can greatly
impact the ability of an organization to do
business abroad. For example,
fluctuations of the rupee against foreign
currencies influence the ability of an
Indian company to compete in global
markets. When the price of the rupee is
high against foreign currencies, Indian
companies find it difficult to compete in
the international market.
h. Task/Competitive/Operating
Environment - The task environment is
that part of the external environment
consisting of specific outside forces with
which an organization interfaces in the
course of carrying out its operations. It
consists of the factors in the
organization’s immediate environment
(micro-environment).
2. Internal Factors
a. Corporate Culture - Corporate culture is
normally defined as The way things are
done around here. This means the way in
which the attitudes, beliefs, values, and
norms of the firm are visible and evident,
and shared by all employees in the
organization.
b. Staffing - Human resources relate to the
people who work in a business
organization. The performance of a
business is affected by the quality and
impact of the people who work for it.
c. Finance - A business needs adequate
funds in place in order for it to survive
d. Current Technology - A business can use
new technology to ensure efficiency and
also boost its profile. Savings can be made
by having staff use video conferencing
technology instead of traveling to
meetings. By using smartphone and tablet
technology, staff can also work while
away from the office.
“Planning Tools and Techniques”
1. P.E.S.T. (political, economic, social, and
technological) - is a management method
whereby an organization can assess major external
factors that influence its operation in order to
become more competitive in the market. As
described by the acronym, those four areas are
central to this model.
- The political aspect of PEST Analysis focuses on
the areas in which government policy and/or
changes in legislation affect the economy, the
- The economic portion of the analysis targets the
key factors of interest and exchange rates,
economic growth, supply and demand, inflation,
and recession.
- The social factors that may be included in a PEST
Analysis are demographics and age distribution,
cultural attitudes, and workplace and lifestyle
trends.
- The technological component considers the
specific role and development of technologies
within the sector and organization, as well as the
wider uses, trends, and changes in technology.
2. S.W.O.T. - a compilation of your company's
strengths, weaknesses, opportunities, and
threats. The primary objective of a SWOT
analysis is to help organizations develop a full
awareness of all the factors involved in making a
business decision
- Strengths describe what an organization excels at
and what separates it from the competition: a
strong brand, loyal customer base, a strong
balance sheet, unique technology, and so on.
- Weaknesses stop an organization from
performing at its optimum level. They are areas
where the business needs to improve to remain
competitive: a weak brand, higher-than-average
turnover, high levels of debt, an inadequate supply
chain, or lack of capital.
- Opportunities refer to favorable external factors
that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a
car manufacturer can export its cars into a new
market, increasing sales and market share.
 - Threats refer to factors that have the potential to
harm an organization. For example, a drought is a
threat to a wheat-producing company, as it may
destroy or reduce crop yield. Other common
threats include things like rising costs for
materials, increasing competition, tight labor
supply, and so on.
ENTREPRENEURSHIP
Entrepreneurship is defined as the art of observing
correct practices in
managing and operating a self-owned wealth-creating
business enterprise by
providing goods and services that are valuable to
customers.
Relevance of Entrepreneurship to an organization
1. Development of Managerial capabilities-
2. Creation of Organizations-
3. Improving the standard of living-
4. Means of economic development-
Entrepreneur - was derived from the French verb
enterprendre, which means “to undertake” This is
pinpointing those who ”undertake” the risk of the
enterprise.
Entrepreneurship - the process by which the enterprise is
created by an entrepreneur.
Entrepreneurs are innovators, willing to take risks
and generate new ideas to make unique and profitable
solutions to present-day problems.
Basic Concepts in Entrepreneurship
1. Entrepreneurship is the primary generator of
economic growth.
2. It is important to understand how the economy
works for the entrepreneur to be successful.
Factors Affecting Entrepreneurship
1. Personality Factors
a. Initiative- which means doing things even before
being told
b. Proactive-which means he can classify
opportunities and seize them.
c. Problem Solver- which means he can retain good
relations with other people
d. Perseverance-meaning he will pursue things to
get done regardless of challenges
e. Persuasion- means that he can entice people to
buy even if they don’t.
f. Planner- meaning he makes plan before doing
things and do not fail to monitor it.
g. Risk-taker which means that he is willing to
gamble but he will calculate it first
2. Environmental Factor
1. political/government factor
2. legal system
3. economic and social condition
4. market situation
5. Climate
Common Competencies in Entrepreneurship
1. Decisive- an entrepreneur must be firm in making
decisions.
2. Communicator- an entrepreneur must have
convincing power.
3. Leader-an entrepreneur an entrepreneur must
have the charisma to be obeyed by his employees
4. Opportunity seeker- an entrepreneur must have
the ability to be the first to see business chances.
5. Proactive- controlling a situation by making
things to happen or by preparing for possible
future problems.
6. Risk Taker- they have the courage to pursue what
are their business ideas.
7. Innovative- the entrepreneurs have big business
ideas and they do not stop improving and thinking
of new worthwhile ideas for their business
Core Competencies in Entrepreneurship
1. Economic and dynamic activity-
Entrepreneurship is an economic activity because
it involves the creation and operation of an
enterprise with a view to creating value or wealth
by ensuring optimum utilization of limited
resources.
2. Innovative- Entrepreneurs constantly look for
new ideas, thus he needs to be creative.
3. Profit Potential- meaning the entrepreneur can be
compensated by his profit coming from the
operation.
4. Risk bearing –meaning the entrepreneur needs to
gamble but is wise enough to offset the risk
Career Opportunities of Entrepreneurship
 1. Business Consultant- serves as professional
advisor and helps serve businesses and companies
2. Teacher - a graduate of entrep can use his
knowledge of teaching
3. Researcher - a person who carries out academic
or scientific research by an enterprise
4. Sales - in entrepreneurial sales, you need to
persuade a prospect to buy the service/product you
are selling
5. Business Reporter - gather and analyze facts
about businesses that are trustworthy
Types of Entrepreneurs
1. Innovative entrepreneurs - are those who always
make new things by thinking of new ideas.
2. Imitating - are those who don't create new things
but only follow the ideas of other entrepreneurs.
3. Fabian Entrepreneurs - are those skeptical. They
don't initiate but follow only after they are
satisfied
4. Drone entrepreneurs - are those who live on the
labor of others. They are die-hard conservatives
even ready to suffer the loss of business.
5. Social entrepreneurs - are those who initiate
changes in various fields such as education,
health, human rights, environment, and enterprise
development.
Essentials in Entrepreneur’s Opportunity Seeking
These are the basic foundation that the entrepreneur must
have in seeking opportunities:
1. Entrepreneurial mind frame - this allows the
entrepreneur to see things in a very positive and
optimistic way in the midst of a difficult situation
2. Entrepreneurial heart flame - Entrepreneurs are
driven by passion, they are attracted to discover
satisfaction in the act and process of discovery.
3. Entrepreneurial gut game - this refers to the
ability of the entrepreneur to be intuitive. This is
also known as intuition.
Sources of opportunities
1. Changes in the environment - Entrepreneurial
ideas arise when changes happen in the external
environment.
- External environment - refers to the physical
environment, societal environment, and industry
environment where the business operates.
The physical environment includes Climate, Natural
resources, and Wildlife.
2. The Societal environment includes various forces
like;
a. Political forces - includes all the laws, rules, and
regulations that govern business practices as well
as the permits, approvals, and licenses necessary
to operate the business.
b. Economic forces - such as income level and
employment rate.
c. Sociocultural forces - customs, lifestyles, and
values that characterize a society.
d. Technological environment - New inventions
and technology innovations
The industry environment of the business includes
Competitors, Customers, Creditors, Employees,
Government, and Suppliers.
2. Technological discovery and advancement - a
person with entrepreneurial interest sees the
possibility of business opportunities in any new
discovery or because of the use of the latest
technology.
3. Government’s thrust, programs, and policies -
The priorities, projects, programs, and policies of the
government are also good sources of ideas.
4. People’s interests - The interests, hobbies, and
preferences of people are a rich source of
entrepreneurial ideas.
5. Past experiences - the expertise and skills
developed by a person who has worked in a particular
field may lead to the opening of related business
enterprises
Forces of Competition Model
- It is also known as the “five forces of
competition,” An industry environment is a
competitive environment.
Competition – it is the act or process of trying to get or
win something
Five forces competing within the industry:
1. Buyers - The buyers are the one that pays cash in
exchange for your goods and services.
The threat of its bargaining power will be less if the
following factors notice:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier 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.
2. Potential New Entrants - A new entrant is defined as
the one who enters something.
This gives a threat to the business. This can be noticed if
there is the presence of the following factors:
a. Substantial capital requirement
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale.
e. High cost of product differentiation.
f. High switching cost
3. Rivalry among Existing Firms - Rivalry is a state or
situation in which people or groups are competing with
each other.
The intensity of rivalry among existing firms is
characterized by the following factors:
a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.
4. Substitute Products - Substitute means anything that
takes the place or function of another.
A substitute product can give a big threat to the industry
environment if the following factors are noticed:
a. Switching cost is low.
b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically
improves.
e. The price of substitute product is substantially lower
5. Suppliers - the Suppliers are the ones that provides
something that is needed or wanted.
The intensity of the threat is strong in this kind of
competitive force in the industry. This can be noticed if
there is the presence of the following factors:
a. The supplier has the ability for forwarding integration.
b. Suppliers in the industry are few, but the sales volume is
high.
c. Substitute products are not readily available in the
market
d. The switching cost is very high.
e. The product or service is unique
Recognize and Understand the Market
Value Proposition (VP) is a business or marketing
statement that summarizes why a consumer should buy a
company's product or use its service. In creating Value
Proposition, entrepreneurs will consider the basic
elements:
• Target Customer • Needs/opportunity • Name of the
product • Name of the enterprise/company
Unique selling proposition (USP) refers to how you sell
your product or services to your customer.
Tips for the entrepreneur on how to create an effective
unique selling proposition to the target customers:
• Identify and rank the uniqueness of the product or
services character
• Very Specific
• Keep it short and simple (KISS
Unique Value Proposition and Value Proposition are the
two most famous tools used to explain why prospect
customers buy each product and service.
A. Target Market
Market Targeting is a sage in the market identification
process that aims to determine the buyers with common
needs and characteristics. Prospect customers are a
market segment that entrepreneurial ventures intend to
serve.
Commonly used methods for segmenting the market
1. Geographic segmentation – the total market is
divided according to geographical location.
- Variable to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
2. Demographic Segmentation – divided based
consumers.
Variable to consider
a. Gender
b. Age
c. Income Tips for gathering Data
d. Occupation ➢ Organize collected data as soon as it is available
e. Education ➢ Know what message you want to get across and
f. Religion then collect data that is relevant to the message.
g. Ethnic group ➢ Collect more data
h. Family size ➢ Create more data
➢ Regularly run experiments or collect data
3. Psychological Segmentation- divided in terms of ➢ Challenge your assumptions
customers' thoughts and beliefs. ➢ Set reasonable expectations
Variable to consider. ➢ Take note of interesting or significant data
a. Needs and wants
b. Attitudes Surveys - are the most common way to gather primary
c. Social class research with the use of questionnaires or interview
d. Personality traits schedules.
e. Knowledge and awareness of - Keep it as simple as possible.
f. Brand concept - Make sure it is clearly appealing and easy to read.
g. Lifestyle - Cluster or block-related questions.
- Move from complex questions to more specific
4. Behavioral Segmentation- divided according to questions.
customers' behavior patterns as they interact with a - Make sure questions are concise and easily
company. understood
Variable to consider - Avoid questions that are difficult to answer.
a. Perceptions - Make sure any response scales used are consistent
b. Knowledge with categories that are mutually exclusive.
c. Reaction
d. Benefits Interview - one of the most reliable and credible ways of
e. Loyalty getting relevant information from target customers. It is
f. Responses typically done in person between the
researcher/entrepreneur and a respondent where the
B. Customer Requirements researcher asks pertinent questions that will give
There can be two types of customer requirements: significant pieces of information about the problem that he
1. Service Requirement - Intangible thing or will solve.
product that is not able to be touched but
customers can feel the fulfillment. 1. Personal interviews are the traditional method of
2. Output Requirement - Tangible things or things conducting an interview. It allows the researcher
that can be seen. Characteristic specifications that to establish relationships with potential
a consumer expects to be fulfilled in the product. participants and therefore gain their cooperation.
It generates the highest response rates in survey
C. Market Size research. They also allow the researcher to clarify
Entrepreneurs’ most critical task is to calculate the indefinite answers and when necessary, seek
market size and the potential value that the market has for follow-up information.
their startup business. 2. Telephone interviews are less expensive and less
It is the approximate number of sellers and buyers time-consuming, but the disadvantages are that the
in a particular market. response rate is not as high as the face-to-face
interview, but considerably higher than the mailed
Market Research questionnaire.
DATA COLLECTION is the most valuable tool of
any type of research study. Inaccurate data collection may Focus Group Discussion (FGD) - is an excellent method
cause mistakes and ultimately lead to invalid results. for generating and screening ideas and concepts. It can be
a moderated group interview and brainstorming sessions
that provide information on the user's needs and behaviors.

The following are considerations in the use of focus group

discussions in market research:
- The length of the session is between 90 and 120
minutes.
- Usually, conduct focus groups discussion with 8 to
10 participants per group.
- Assign an expert moderator/facilitator who can
manage group dynamics.
- Use a semi-structure or open-format discussion
- Strive for consistency in the group’s composition