TECHNOLOGY ENTREPRENEURSHIP

(ENT600)

UNIT 3:

OPPORTUNITY ANALYSIS

Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

Definition of
Entrepreneurial Opportunity
Opportunities are an integral component
of the entrepreneurial process.
Entrepreneurial opportunities are defined
as situations in which new products,
services and processes can be introduced
and sold at greater than the cost of
production.
Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

Concept of
Window of Opportunity
Often when referring to opportunities, the term
window of opportunity is used.
The entrepreneur must hit the window of
opportunity for which the opportunity exists.
Window of opportunity is defined as that too
often short period of time during which an
opportunity must be acted on or missed.
It also describes the time period in which a firm
can realistically enter a new market.
Entrepreneurship
Dept/FBM (2009)

ENT600/Unit 3 Opportunity
Analysis

Cont
Concept of Window of Opportunity

The window of opportunity is deemed to

be open or close to denote the degree
of
attractiveness
or
exploitation
possibilities at a particular time.
The term open refers to the opportunity
lending itself to be exploited at that time
because it has value and potential for
wealth creation.
The term close refers to the opportunity
potential diminishes due to it being
exploited by another entrepreneur or at
Entrepreneurship
Dept/FBM
ENT600/Unit
3 Opportunity
that period
of time
has
become out-of-date4
(2009)
Analysis

Changing Opportunity An
Example
Data storage in the computing age is
essential to the user. Data storage in the
early years of desktop computing, the
diskette was the key mode of data storage.
As time passes, the user looks to more
storage capacities in a more stable form
and much more compact design. Hence,
the introduction of the pen drive or thumb
drive fulfills the new needs of the growing
user group.
Entrepreneurship
Dept/FBM (2009)

ENT600/Unit 3 Opportunity
Analysis

OPPORTUNITIES IN CYBER
ENTREPRENEURSHIP
Unlimited on-line opportunities
Examples:
Web designing
Web hosting
On-line business
Cyber business- eg. maintenance
services and accessories
Using social media for business - e.g
Twitter or Facebook, Instagram
On-line market places
Training and consultancy

CHARACTERISTICS OF AN
ATTRACTIVE OPPORTUNITY
1. Timely
-

a current need, unmet demand or problem (e.g.

vaccine for bird flu, drugs to prevent obesity).

2. Solvable
-

a problem that can be solved in the near future with

accessible resources (e.g. a cure for cancerous
diseases, a more efficient public transport to reduce
congestion and traffic jams)

Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

Cont
Characteristics of an Attractive Opportunity

3. Important

The customer deems their problem or need important to them

(e.g. energy-saving air conditioner or petrol saving devices
that work).

4. Profitable

the customer will pay for the solution and allow the enterprise
to profit (e.g. security products, multi-function printers).

5. Context

a favorable regulatory and industry situation (e.g. on-line

business transaction, genuine investment schemes that
promised high returns).

Entrepreneurship
Dept/FBM (2009)

ENT600/Unit 3 Opportunity
Analysis

OPPORTUNITY ANALYSIS A PROCESS

APPROACH

Opportunit
y Discovery

Evaluate
the
Opportunit
y
Go

Decisi
on

Technology
-based
Idea
Blueprint

Reject
Look
Elsewhere

Entrepreneurship
Dept/FBM (2009)

ENT600/Unit 3 Opportunity
Analysis

Exploitati
on of
Opportun
ity

OPPORTUNITY DISCOVERY
Sources of business ideas include:

Patent Office
The Intellectual Property Corporation of Malaysia (MyiPo) is an
agency under the Ministry of Domestic Trade, Cooperative and
Consumerism. This agency can be a good source of business ideas
that can be retrieved easily from their online patent search and
patent gazette hosted on its website.

University Research & Development

Provides an endless stream of research findings that can be
commercialized. Local universities play an important role in
providing knowledge that will help businesses grow into new market
segments and develop new products.

Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

10

Cont
Opportunity Discovery

Research Institutes
Considered as reliable sources of business ideas on
various fields. Examples of research institutes in
Malaysia include the Malaysian Agricultural Research &
Development Institute (MARDI), Standards and
Industrial Research Institute of Malaysia (SIRIM).

Entrepreneurship
ENT600/Unit
3: Opportunity
Analysis (2009)
Dept/FBM

ENT600/Unit 3 Opportunity
Analysis

11

Opportunity Pull (Market Driven)

vs
Capability Push (Technology Driven)
Opportunity can either be:

Opportunity Pull (Market Driven)

Occurs when there is a need or problem that requires a
solution. An example is the need for a pharmaceutical that can
mitigate or cure the effects of AIDS. This type of opportunity can
be called opportunity pull, since the size of the opportunity
draws opportunity seekers to attempt to exploit it.

Capability Push (Technology Driven)

Occurs from the discovery of a capability or resource that can
be applied to a problem or need. An example of this type of
opportunity is the discovery of a new technology, such as digital
television. This type of opportunity can be called a capability
push, since it flows from a capability or resource availability.
Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

12

EVALUATE THE OPPORTUNITY

Evaluating opportunities involves internal
external factors.
Internal
factors
relate
more
to
entrepreneurial individual capabilities
intentions.
External factors relate to the company
business environment.

Entrepreneurship
Dept/FBM (2009)

ENT600/Unit 3 Opportunity
Analysis

and
the
and
and

13

Cont
Evaluate the Opportunity (Internal Factors)

Internal factors that include:

Capabilities
the ability or quality (knowledge, experience, and
skill) necessary to develop the business venture.

Resources
include financial, physical, and human resources
consistent with the magnitude of the business
venture.

Interest
the will, commitment, and passion to pursue the
business venture.
Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

14

Evaluate the Opportunity (External Factors)

External factors include:
Market
involves determining the size of the market and
the potential customers.

Financial
involves determining the costs to be incurred in
developing the business venture.

Technical
involves determining the requirements to proceed
with the idea that include machineries, raw materials,
the processes and infrastructure.
Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

15

Cont (external factors)

Evaluate the opportunity

Economic forces
Have a direct impact on the level of disposable
income and consumer buying patterns. For e.g.
when incomes are high, people are more willing to
buy products and services that enhance their lives.
Similarly, a drop in interest rates typically leads to
an increase in new home construction and furniture
sales.

Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

16

Cont (external factors)

Evaluate the opportunity

Social and Cultural Trends

an understanding of the impact of social and cultural

trends and how they affect new product, service, and
business ideas is a fundamental piece of the
opportunity recognition puzzle.
For example, the persistent proliferation of fast-food
restaurants is not due primarily to peoples love of
fast food but rather to the fact that people are busy
the
increasing
predominance
of
two-income
households leaves less time to cook at home.
Similarly, the Sony Walkman was developed not
because consumers wanted smaller radios, but
because people wanted to listen to music while on
the move and while exercising.

Entrepreneurship
Dept/FBM (2009)

ENT600/Unit 3 Opportunity
Analysis

17

Cont (external factors)

Evaluate the opportunity

Technological Advances
provide opportunities to help people satisfy basic needs
and desires in a better or more convenient way.
For e.g. the cell phone provides the mobile population the
ability to communicate with its co-workers, customers,
friends, and families from anywhere and everywhere.
Similarly, people who shave have always wanted to
minimize the number of nicks and shaving time and get
as close a shave as possible. These and other shavingrelated desires will probably never change. What does
change is the degree to which new technologies can
better satisfy these needs and desires.
Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

18

Cont (external factors)

Evaluate the opportunity

Political and Regulatory Changes

New regulations create opportunities for entrepreneurs to

start firms to help companies comply with these laws.

E.g. OSHA standard, has opened up business

opportunities for consulting companies to help other
companies ensure compliance.

Political change also leads to new business and product

opportunities.

E.g. global political instability and the threat of terrorism

have resulted in many firms becoming more security
conscious.

Entrepreneurship
Dept/FBM (2009)

ENT600/Unit 3 Opportunity
Analysis

19

Feasibility Study
The outcome of the evaluation of opportunity
is a feasibility study a tool to identify whether
the business idea is feasible or not.

Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

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Making Decision

Once the opportunity is evaluated, a decision has to be

made whether to proceed
to the preparation of a
technology-based idea blueprint or to explore other
possibilities by looking elsewhere.
The entrepreneur must make a difficult decision whether to
act or not on a good potential opportunity.
The factors to be considered in making the decision
include whether:
- the product will give significant value to the customer
- the entrepreneur can attract the necessary financial,
physical, and human resources required by the venture
opportunity
- the expected return of the venture is consistent with the
Entrepreneurship Dept/FBM
ENT600/Unit 3 Opportunity
21
(2009) risk of the venture
Analysis

TECHNOLOGY-BASED IDEA BLUEPRINT

This document summarizes the entrepreneurs
proposal of a business venture.

Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

22

EXPLOITATION OF OPPORTUNITY
Exploitation of opportunity for technologicalbased
product
can
be
done
through
commercialization.

Entrepreneurship Dept/FBM
(2009)

ENT600/Unit 3 Opportunity
Analysis

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