Chapter 2

Recognizing
Opportunities and
Generating Ideas
Bruce R. Barringer
R. Duane Ireland
©2010 Pearson Education
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 Logistics Service Provider: initial
idea was to deliver goods and
products to their clients across
the city fast.

Used Motorbikes: comparatively

quicker than a car or any other
vehicle to commute in traffic-
filled Dhaka.

Pathao: formulated with the sole

intention of cutting commuting
time.
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 What is An Opportunity?
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An opportunity is a favorable
Opportunity Defined set of circumstances that
creates a need for a new
product, service or business.

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 Stimulation
• Internal
• External

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 Jeff
Bezos

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 Window of opportunity

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So, is there a difference
between an idea and an
opportunity?

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 Three Ways to Identify an Opportunity

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 First Approach: Observing Trends
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• Observing Trends
– The most important trends are:
• Economic forces.
• Social forces.
• Technological advances.
• Political action and regulatory change.
– It’s important to be aware of changes in these areas.

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 First Approach: Observing Trends
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Environmental Trends Suggesting Business

or Product Opportunity Gaps

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 Trend 1: Economic Forces

Economic trends help

determine areas that
are ripe for new
startups and areas that
startups should avoid.

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 Trend 2: Social Forces

Social trends alter how

people and businesses
behave and set their
priorities. These trends
provide opportunities for
new businesses to
accommodate the
changes.

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 Trend 3: Technological Advances
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Advances in technology
frequently create business
opportunities.

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 Trend 4: Political Action and Regulatory
Changes
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Political action and

regulatory changes also
provide the basis for
opportunities.

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 Second Approach: Solving a Problem
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• Solving a Problem
– Sometimes identifying opportunities simply involves
noticing a problem and finding a way to solve it.

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 Second Approach: Solving a Problem
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Tommy John Undershirts – streamlined fit

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 Second Approach: Solving a Problem
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Sajid Iqbal – Solar bottle lights

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 Third Approach: Finding Gaps in the
Marketplace
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• Gaps in the Marketplace

– A third approach to identifying opportunities is to find a
gap in the marketplace

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