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OPPORTUNITY

SEEKING
Rellie D. Castro, RN, LPT
OPPORTUNITY SEEKING
 Entrepreneurs are innovative opportunity seekers.

 They have endless curiosity to discover new or


different ideas and see whether these ideas will work
in the marketplace.

 Entrepreneurs create value by introducing new


products or services or finding better ways of making
them.

 These may include innovation in terms of product


design or addition of new product features to existing
ones.
OPPORTUNITY SEEKING
 They may also tinker on improving their
operational capability by employing new
technologies that will bring them greater
efficiency better economies, and even enable
them to reach unparalleled superiority.

 Theymay also consider expanding their reach by


creating new markets or maximizing existing
market reach.
OPPORTUNITY SEEKING
 Atthe highest level, entrepreneurs may totally
change the prevailing business paradigm by
rendering it obsolete through the introduction of
disruptive technologies, processes, and systems.
OPPORTUNITY SEEKING
 Atthe highest level, entrepreneurs may totally
change the prevailing business paradigm by
rendering it obsolete through the introduction of
disruptive technologies, processes, and systems.
The Many Sources of
Opportunities
I. Macro Environmental Sources of Opportunities

 The macro environment refers to the "big or


macro forces" that affect the area, the industry,
and the market, which the enterprise belongs to.

 They influence how business should be


conducted, how consumers will behave, how
supply and demand will move, how different
competitors would position themselves, and how
the cost of doing business will proceed.
The Many Sources of
Opportunities
I. Macro Environmental Sources of Opportunities

 The macro environment forces can be divided


into five categories (SPEET)
1. Socio-Cultural Environment
2. Political Environment
3. Economic Environment
4. Ecological Environment
5. Technological Environment
Socio-Cultural Environment
 The
socio-cultural environment includes the
demographics and cultural dimensions that
govern the relevant entrepreneurial endeavor.

 Taking this aspect into consideration helps the


entrepreneur assess the trends and dynamics of
the bigger consumer population, their beliefs,
tastes, customs, and traditions.
Political Environment
 The political environment defines the governance
system of the country or the local area of
business.

 It
includes all the laws, rules, and regulations that
govern business practices as well as the permits,
approvals, and licenses necessary to operate the
business.

 Thesefactors are important influencers in


evaluating the attractiveness of any political
domain where the entrepreneur intends to locate
and do business in.
Economic Environment
 Supplyand demand forces mainly drive the
macro economic environment.

 They are the same factors that drive the interest


and foreign exchange rates that fluctuate with
the movement of the market forces.

 Inany country the income levels and the


purchasing power of its people as well as the
competitiveness of its industries and enterprises
are sources of opportunities.
Ecological Environment
 The ecological environment includes all natural
resources and the ecosystem, habitat of men,
animals, plants, and minerals.

 There is a growing awareness in the world today that


will make this factor more and more important for
countries, industries, and businesses.

 The threats of ecological degradation have


generated countless opportunities such as smoke and
spill detectors, filters and screens, pollution counters,
and energy-saving devices.

 Opportunities abound for greener, cleaner, and


healthier products, whose objectives are to save the
planet and prolong lives.
Technological Environment
 New scientific and technological discoveries,
which often lead to the launch and
commercialization of new products with superior
attributes or to rendering the old ones obsolete,
are the entrepreneur's nightmares.

 Insuch cases, the entrepreneur is left with no


choice but to invest in new technologies in order
to keep up with competition.
Examples of Relevant Opportunities and Threats to a Fast Food
FACTORS OPPORTUNITIES THREATS
1. Social
• Increasing double • Increased
income earners in customer base for
the family (i.e., the fast food chain
mother and father • More healthy
are both working) product offerings
• Trend toward are demanded by
healthier food customers
choices
2. Political
• Increased
• Tax exemption for
purchasing power
13th month pay
of the consumers
and other bonuses
leading to higher
up to F70,000.00
retail sales
passed by Congress
3. Economic • Opportunity for the • Smaller suppliers'
• ASEAN Integration in enterprise to expand to difficulty coping with
2015 (countries that other ASEAN markets greater competition
belong to,ASEAN trading at posed by foreign rivals;
zero tariff) might lose small but
reliable suppliers
4. Ecological • Opportunity to start an • Additional costs
• Increased usage of eco advocacy toward a incurred by new
bags and environment- 'greener' operation (not packaging may decrease
friendly containers limited to usage of eco- profitability
friendly
containers/packaging)
5. Technological • Greater usage of apps to • Potential for online
• Increased usage of place delivery orders via customer
smartphones to smartphones, which may disappointments and
disseminate important help increase market netizen bashing due to
information (e.g., news, reach poor product/ service
weather, traffic updates) delivery brought about
by intermittent technical
glitches
Industry Sources of Opportunities

 After the macro environment, the next biggest


sources of opportunities are the industry and the
market.

 One of the most difficult aspects about industry


analysis is defining what constitutes an industry in
the first place.
Industry Sources of Opportunities

 The proper classification of what industry the


enterprise is competing in is important if the
entrepreneur's intention is to define who are the
relevant customers, who are the direct and
indirect competitors, and what are the critical
characteristics of the market as to the quality of
products or services to be delivered.
Industry Sources of Opportunities
Participants in an industry include:
1. Rivals or competitors in a particular type of
business (e.g., Jollibee vs. McDonald's, Coca-
Cola vs. Pepsi, Samsung Galaxy vs. Apple's
iPhone, etc.). True rivals or competitors are
those competing for the same or similar
markets.

2. Suppliers of input (e.g., fuel, electricity, raw


materials) to rivals as well as suppliers of
machinery and equipment, suppliers of
manpower and expertise, and supplies of
merchandise.
Industry Sources of Opportunities
Participants in an industry include:
3. Consumer market segments being served by
rivals or competitors.

4. Substitute products or services, which customers


shift or turn to.

5. All other support and enabling industries.