ENTREPRENEURSHIP
Topic: DEVELOPMENT A BUSINESS PLAN
-VIABILITY
- PROFITABILITY
- CUSTOMER REQUIREMENTS
Learning Competencies
The learners screen the proposed solution/s based on viability, profitability,
and customer requirements that will meet the market need.
CS_EP11/12ENTREP-0d-5
Specific Objectives:
At the end of the lesson, the learners shall be able to:
1. Identify what is viability, profitability and customer requirements that will
meet the market need.
2. Appreciate the importance of the knowing the solution to meet the
market need based on the viability, profitability and customer requirements.
3. Show the proposed solution based on students observation in the
community.
VIABILITY
Viability is defined as the ability to survive. In business sense, that
ability is to ultimately linked to financial performance and position.
It is returning a profit that is sufficient to provide a return to the
business owner while also meeting its commitment to business creditors
PROPOSED SOLUTION ON MARKET VIABILITY
1. Performa A Market Research
Market research is an evaluation of the potential size and
characteristics of consumers or companies that might buy your product. The
market size is the total number of potential customers underserved at all by
existing solutions.
2. Analyze the Industry
An industry analysis is a review of the current scope of an industry
and the types of goods being offered. An brand new innovation means you
could have first mover advantage in the new industry.
3. Analyze Competitors
Who are my competitors? Competitors analysis involves a
comparison of your product or service features, strength and weaknesses
relative to those offered by competitors. Before entering the market, you
need confidence that your intended solution offers clear advantages over
existing solution.
4. Conduct a SWOT Analysis
A SWOT analysis is used to assess your internal competencies as well
as external factors that could impact your success/market setting.
Your strengths help to develop, promote and deliver a quality
solution that is distinct from competing brand. Your weaknesses offer
genuine insights into impediments to success. You can improve your
weaknesses or accept them as inherent to your business success. In
analyzing opportunities and threats helps you prepare for market entry with
a clear vision of how to make money or how to protect against potential
pitfalls.
Profitability
- It refers to the financial factors that affect a company’s ability to make
money after subtracting overhead cost like employees salaries, rent and
equipment.
DETERMINING THE MARKET PROFITABILITY
One of the most useful frameworks for determining the market
profitability is known as “PORTER’S FIVE FORCES”, the framework assess the
following elements that affect a market’s profit potential.
1. BUY POWER – ability of the customer or buyer to influence companies in
a given market.
2. SUPPLIER POWER – is similar to buyer power, but the company is now the
buyer, not the seller. A supplier is any entity that supplies a company what is
needs to produce its goods, such as raw materials labor or machinery.
3. BARRIERS TO ENTRY – affect the ease with which businesses can enter a
given market and may include factors like falling prices, government
restrictions or limited distribution capacity.
4. THREAT OF SUBSTITUTE PRODUCTS –refers to products that can be
substituted for both yours and your competitor’s products therefore
affecting demand for the goods in your market.
5. RIVALRY AMONG COMPETITORS – is affected by several factors, including
the numbers of businesses in a given market, the cost of exiting the industry
and the degree of similarity between competing products.
CUSTOMER REQUIREMENTS
ENTREPRENEURSHIP

Customer requirements is specification that originates with

customer as opposed to internal stakeholders. This can be include both
functional and non-functional requirements for products, services and
experiences.
Customer requirements may be documented directly by customers
themselves or collected and refined by an internal business analyst or
market research team.

The following type of customer requirements:

1. VOICE OF THE CUSTOMER
Identifying the customers that represent your target market and
collecting needs, expectations and ideas with methods such as focus group
or ladder interview.

2. LEAD USER
Engaging lead users who represent your customers with cutting
edge needs.

3. INTERMEDIARIES
Collecting requirements from customers other than end-customers
such as wholesalers, retailers,manufacturers or value-added resellers.

4. LARGE ACCOUNTS
Products and services that are sold on a business to business basis
may directly collect requirements from large accounts.
ENTREPRENEURSHIP

SELF-CHECK _____________ 10. It refers to the financial factors that affect a company’s
1. Identify what is being asked. Choose your answer from the list below. ability to make money after subtracting overhead cost like employees
VIABILITY SUPPLIER POWER salaries, rent and equipment
BARRIERS TO ENTRY VOICE OF THE CUSTOMER
THREAT OF SUBSTITUTE PRODUCTS INTERMIDIARIES ANSWER KEY
RIVALRY AMONG COMPETITORS PROFITABILITY 1. VIABILITY
LEAD USERS CUSTOMER REQUIREMENTS 2. VOICE OF THE CUSTOMER
3. INTERMEDIARIES
3. LEAD USERS
4. CUSTOMER REQUIREMENTS
__________ 1. It is defined as the ability to survive. In business sense, 5. BUY POWER
that ability is to ultimately linked to financial performance and position. 6. SUPPLIER POWER
__________ 2. Identifying the customers that represent your target 7. BARRIERS TO ENTRY
market and collecting needs, expectations and ideas with methods such as 8. THREAT OF SUBSTITUTE PRODUCTS
focus group or ladder interview. 9. RIVALRY AMONG COMPETITORS
__________ 3. Collecting requirements from customers other than end- 10.PROFITABILITY
customers such as wholesalers, retailers,manufacturers or value-added
resellers. Resources:
___________ 3. Engaging lead users who represent your customers with https://bizfluent.com
cutting edge needs. https://Smallbusiness.chron.com
____________ 4. It is specification that originates with customer as
opposed to internal stakeholders. This can be include both functional and
non-functional requirements for products, services and experiences. Prepared by:
_____________5. Ability of the customer or buyer to influence companies
in a given market. Rizza V. Tamayo
_____________ 6. Is similar to buyer power, but the company is now the
buyer, not the seller. A supplier is any entity that supplies a company what is
needs to produce its goods, such as raw materials labor or machinery.
_____________ 7. It affect the ease with which businesses can enter a
given market and may include factors like falling prices, government
restrictions or limited distribution capacity.
_____________ 8. It refers to products that can be substituted for both
yours and your competitor’s products therefore affecting demand for the
goods in your market.
_____________ 9. It is affected by several factors, including the numbers of
businesses in a given market, the cost of exiting the industry and the degree
of similarity between competing products.
ENTREPRENEURSHIP