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Lesson 2 - Recognize A Potential Market

The document discusses the entrepreneurial process of creating new ventures. It begins with the creation of entrepreneurial ideas, which leads to identifying opportunities and ultimately opening a new venture. Key aspects for entrepreneurs seeking opportunities include having an entrepreneurial mindset, passion, and intuition. Sources of opportunities include changes in the environment, new technologies, government programs, identifying market needs, and past experience. The document also discusses Porter's five forces model of competition within an industry.

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Marivie Da-arol Elic
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294 views17 pages

Lesson 2 - Recognize A Potential Market

The document discusses the entrepreneurial process of creating new ventures. It begins with the creation of entrepreneurial ideas, which leads to identifying opportunities and ultimately opening a new venture. Key aspects for entrepreneurs seeking opportunities include having an entrepreneurial mindset, passion, and intuition. Sources of opportunities include changes in the environment, new technologies, government programs, identifying market needs, and past experience. The document also discusses Porter's five forces model of competition within an industry.

Uploaded by

Marivie Da-arol Elic
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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LESSON 2

RECOGNIZE A
z

POTENTIAL
MARKET
ENTREPRENEURIAL IDEAS
z

 The creation of an entrepreneurial ideas leads


to the identification of entrepreneurial
opportunities, which in turn results in the
opening of an entrepreneurial venture.
 The entrepreneurial process of creating a new
venture is presented in the diagram below.
(Aduana, 2017)
ENTREPRENEURIAL IDEAS
z

Creation of Identification of Opening of


entrepreneurial entrepreneurial entrepreneurial
Ideas Opportunities Venture

Figure 1. The Entrepreneurial Process of


Creating New Venture
ESSENTIALS
z
IN ENTREPRENEUR’S
OPPORTUNITY SEEKING
These are the basic foundation that the entrepreneur must have in seeking
opportunities:
 Entrepreneurial mind frame – 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.
 Entrepreneurial heart 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.
 Entrepreneurial gut game – 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
z
OF OPPORTUNITIES
There are many ways to discover opportunities. Looking at
the big picture some have noticed the emerging trends and
patterns for business opportunities. While others are trying to
find out their target market. Some are the following sources of
opportunities:
1. CHANGES IN THE ENVIRONMENT
Entrepreneurial ideas arise when changes happen in the
external environment. A person with an entrepreneurial drive
views these changes positively. External environment refers
to the physical environment, societal environment, and
industry environment where the business operates.
EXTERNAL ENVIRONMENT
z

1.1 Physical Environment – Climate, Natural


Resources, Wildlife
1.2 Societal Environment – Political Forces,
Economic Forces, Sociocultural Forces,
Technological Forces
1.3 Industry Environment – Competitors,
Customers, Creditors, Employees, Government,
Suppliers
SOURCES
z
OF OPPORTUNITIES

2. TECHNOLOGICAL DISCOVERY AND ADVANCEMENT


A person with entrepreneurial interest sees possibility of
business opportunities in any new discovery or because of
the use of latest technology.
For example, an individual with knowledge in repair and
installation of a machine engine discovers that additional
engine parts that considerably reduce fuel consumption.
SOURCES
z
OF OPPORTUNITIES

3. GOVERNMENT’S TRUST, PROGRAMS, AND POLICIES


The priorities, projects, programs and policies of the
government are also good sources of ideas.
For example, the use of firecrackers to celebrate New
Year’s Eve is strictly prohibited. People without
entrepreneurial interest will view the ordinance as a plain
restriction. However, for an entrepreneur, it is business
opportunity to come up with a new product that will serve as a
substitute for firecrackers.
SOURCES
z
OF OPPORTUNITIES

4. PEOPLE’S INTEREST
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.
For example, an accountant who has learned the
appropriate accounting and management skills and
techniques in a prominent accounting firm can start his/her
business venture by opening his/her own accounting firm.
SOURCES
z
OF OPPORTUNITIES

5. PAST EXPERIENCE
The Suppliers are the one that provide something that is
needed or wanted. For example if the supply and services
being offered is unstable or keep. The intensity of the threat
is strong in this kind of the competitive force in the industry.
FORCES
z 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 to get or win
something.
For example, the prices are lower when there is a
competition among the stores.
FORCES
z OF COMPETITION MODEL

These are the five forces competing within the industry:


 Buyers

 Potential new entrants

 Rivalry among existing forms

 Substitute products

 Supplier
FORCES
z OF COMPETITION MODEL

These are the five forces competing within the industry:


1. 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
z OF COMPETITION MODEL

These are the five forces competing within the industry:


2. POTENTIAL NEW ENTRANTS – defined as the one
who enters something. For example, the level of capital
requirements, if the business requires huge capital, new
entrants should decline to join the business. This gives a
thereat to the business.
FORCES
z OF COMPETITION MODEL

These are the five forces competing within the industry:


3. RIVALRY AMONG EXISTING FIRMS– is a state or
situation in which people or groups are competing with
each other. For example it depends on the Marketing
strategy of your competitor, like giving freebies and
special offers.
FORCES
z OF COMPETITION MODEL

These are the five forces competing within the industry:


4. SUBSTITUTE PRODUCTS– means anything that
takes the place or function of another. For example the
consumers decide to use margarine as a substitute for
butter. In case the price of butter increases, preferably
the consumer will gradually switch to margarine.
FORCES
z OF COMPETITION MODEL

These are the five forces competing within the industry:


5. SUPPLIERS – are the one that provide something
that is needed or wanted. For example, if the supply and
services being offered is unstable or keep. The intensity
of the threat is strong in this kind of the competitive force
in the industry.

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