Chapter IV:

Business opportunities analysis

Lecturer: Do Duy Kien, PhD

 Objectives
• Source of business ideas
• Lean start up
• Innovation vs Creativity
• Feasibility analysis
 Where are the business ideas
from?
• 3 Popular sources:
• - environment trend’s changes
• - unsolved problems
• - the gap in the market
 Where are the business ideas
from?
• Environment trend’s changes:
• - economic trends
• - social trends
• - technological development
• - legal and political changes
 Where are the business ideas
from?
• Unsolved problems:
• - People face to a difficulty in their life and
then they find the solutions. This become a
business opportunity.
 Where are the business ideas
from?
• The gap in the market:
• -The customers want to buy some goods or
services that are not in the current
market.
Lean start up
 Lean vs traditional
LEAN TRADITIONAL
Organization - Teams focus on - Teams focus on
learning, tracking, departments: accounting,
fixing, improving finance, marketing, etc
- Work together - Work separately

Financial Reporting - Only track the metrics - Focus on accounting

that show problems reporting: income, cash flow

Failure - Expected! - Exception: often the end

- Used to identify - Fix by firing employees
problems to solve

Speed - Rapid! - Measured

- Operating on good- - Operating on complete data
enough data
Lean vs traditional
HOW CREATIVE ARE
YOU?
BUSINESS IDEAS
4 P’S OF INNOVATION
 Creativity vs innovation
• Creation
– Unleashing the potential of the mind to come up
with new ideas
– Subjective: Hard to measure

• Innovation
– Introducing change into a relatively stable system
– Objective: Totally measurable
 Creativity vs innovation
• Creation
– Unleashing the potential of the mind to come up
with new ideas
– Subjective: Hard to measure

• Innovation
– Introducing change into a relatively stable system
– Objective: Totally measurable
 4 p’s of innovation

• Does every innovative idea need to be a new one?

• 4P’s of innovation:
– Product
• Changes the product

– Process
• Changes to how the product is made and delivered

– Position
• Changes to the context in which the products/services are
introduced

– Paradigm
• Changes to the way people think about the product
 4 P’s of innovation (types)
• 4P’s:
– Product
• Changes the product
– Process
• Changes to how the product is made
– Position
• Changes to the purpose of the company
– Paradigm
• Changes to how the product is consumed
 Dimensions of innovation
Sustaining innovation Disruptive innovation
• Builds upon existing • Requires new knowledge or
knowledge and resources resources
• Competence-enhancing • Existing competence loses
• Relatively small changes in value
performance/utility • Step changes in
• Can build towards performance
something big! • Opens new markets for
more startups
• Relatively rare
 Dimensions of innovation

Innovation Type Sustaining Disruptive

Product • Windows 7 and 8 replace • First speech recognition
Vista and XP software
• CDs replaced vinyl records • Spotify streams music across
multiple devices

Process • Improved banking services • Mpesa in Kenya changed the

at physical banks way people bank
• Improved retail shopping • Online shopping websites
experience at malls allow people to shop in their
underwear

Position • Changing the target • Selling the Tata Nano car to

market for icecream from poor people in India for
children to adults $2,000 per car
Paradigm • Dyson redefining the home • Amazon, Google and Skype
appliance market with high redefining whole industries:
performance engineered retail, advertising,
products telecommunications online
 Dimensions of innovation
Disruptive innovation
• A smaller company with fewer resources is
able to successfully challenge established
existing businesses
– Pulling away customers
– Moving faster to serve customers than bigger
companies are able to move
– Starting with an underserved market, but carving
off bigger pieces very quickly
 Feasibility Analysis/
Process of business planning

Step 2: checking Step 3: analysing

Step 1: making preliminary comprehensive
business idea feasibility of idea feasibility

Step 5: Step 4: preparing

presenting the to write
business idea business plan
 Feasibility analysis of business idea

• The businessman do not shorten creative ideas but …

• If a specific idea is a based foundation to set a successful
business?
• Feasibility analysis can help us answer the question
“ Should we implement this business idea?”
 Feasibility analysis of business idea
Feasibility analysis:
•Not like a business plan
•Play a role as a filter in order to reject unfeasible ideas in
making a successful business before a businessman uses
necessary resources to implement that business plan
• Be a investigative tool
 Comprehensive feasibility analysis
Introduction:
•Enterprise’s name
• Founders’ name
•A paragraph to introduce about the enterprise
Part 1: Feasibility of goods/ services.
•Customers’ wants, needs about the goods/
services
• Customers’ demands about goods/ services
 Comprehensive feasibility analysis
Part 2: Feasibility about target market/ sector
•Sector ‘s attraction
•Target market ‘s attraction
•Opportunist of market
Part 3: Feasibility about organization
•Management skills
•Necessary resources
Part 4: Feasibility about finance
• Total initial capital
• Financial result of similar enterprises
•Financial attraction of this business plan
 Comprehensive feasibility analysis
Feasibility Unfeasible Uncertain Feasible
about
goods/services
Feasibility Unfeasible Uncertain Feasible
about
market/sector
Feasibility Unfeasible Uncertain Feasible
about
organization
Feasibility Unfeasible Uncertain Feasible
about finance

Overall Unfeasible Uncertain Feasible

evaluation
Propound the Unfeasible Uncertain Feasible
feasibility of
 Factors in feasibility analysis

Feasibility about
goods/services

Feasibility
Feasibility
about
about finance
market/secto
r

Feasibility about
organization
 Feasibility about goods/ services
• Determine the attraction of a idea about good/ service to
the target customers and collect the necessary resources
to produce it
• 2 questions:
– 1. Are the customers willing to buy our goods/
services?
– 2. Can we get profit when supplying these
goods/services?
 Feasibility about goods/ services
• Products:
– Goods/ services description
– Expected Target market
– Advantages of goods/services
– Describe how to locate the goods/services in comparison
with competitors
– Describe how to build the goods/services
– Describe the management team
 Feasibility about goods/ services
• Primary analysis:
– Collect data directly and analyze
– Examine customers and questionnaire
– Limit at some specific groups
• Secondary analysis: Take into account the collected and
analyzed data
• Sample
• Test at home
 Feasibility analysis of market/sector

we need to focus on 2 fields:

•Determine the attraction of sector to a new enterprise
•Determine the suitable market in which a small enterprise
can earn profit
 Feasibility about organization

• Human resources and management capability

• Necessary resources
 Feasibility about finance

• Capital: Initial capital that required to implement a

business plan
• Expected profit
• Rate of return
 Group work
• Research market
• Research legal issue
• Stating main resources
• Design a poster for your business idea
• Write a company name, logo, slogan, vision,
mission for your new company
• Think about the marketing campaign that you
may use to promote your products or services
References
Copyright (ppt slides): Tran Minh Thu, PhD
Foreign Trade University