TECHNOLOGY ENTREPRENEURSHIP

(ENT600)

UNIT 3:
OPPORTUNITY ANALYSIS

Entrepreneurship Dept/FBM (2009) ENT600/Unit 3 Opportunity Analysis 1

 Definition of
Entrepreneurial Opportunity

• Opportunities are an integral component

of the entrepreneurial process

• Entrepreneurial opportunities are defined

Dec 2015

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 2

 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
ENT600/Unit 3 Opportunity Analysis 3
(2009)
 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 that period of time has become
out-of-date or obsolete
Entrepreneurship Dept/FBM (2009) ENT600/Unit 3 Opportunity Analysis 4
 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
ENT600/Unit 3 Opportunity Analysis 5
(2009)
OPPORTUNITIES IN CYBER ENTREPRENEURSHIP
• Unlimited online opportunities
Examples:
• Web designing
• Web hosting
• Online business
• Cyber business- eg. maintenance services and
accessories
• Using social media for business - e.g Twitter or
Facebook, Instagram
• Online market places
• Training and consultancy
 Characteristics of an Attractive Opportunity Dec 2015

• Timely
- a current need, unmet demand or problem (e.g.
vaccine for bird flu, drugs to prevent obesity)

• 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 7

 Characteristics of an Attractive Opportunity

• Important
– The customers deem their problem or need important to them
(e.g. energy-saving air conditioner or petrol saving devices that
work)

• Profitable
– the customers will pay for the solution and allow the enterprise to
profit (e.g. security products, multi function printers)

• Context
– a favorable regulatory and industry situation (e.g. on-line
business transaction , genuine investment schemes that
promised high returns)

Entrepreneurship Dept/FBM
ENT600/Unit 3 Opportunity Analysis 8
(2009)
 Opportunity Analysis – A Process Approach

Opportunity Evaluate the

discovery opportunity

Go
Decision Technology-based Exploitation
idea blueprint of opportunity

Reject

Look
elsewhere

Entrepreneurship Dept/FBM
ENT600/Unit 3 Opportunity Analysis 9
(2009)
 Opportunity Discovery
Sources of business ideas include:
• Patent office
The Intellectual Property Corporation of Malaysia 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

 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 Dept/FBM ENT600/Unit 3 Opportunity Analysis

ENT600/Unit 3: Opportunity Analysis 11
(2009)
 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 and

external factors

• Internal factors relate more to the

entrepreneurial individual capabilities and
intentions

• External factors relate to the company and the

business environment

Entrepreneurship Dept/FBM
ENT600/Unit 3 Opportunity Analysis 13
(2009)
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

Evaluate the opportunity (cont external factors)

• 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

 Evaluate the opportunity (cont external factors)
• 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 people’s 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
ENT600/Unit 3 Opportunity Analysis 17
(2009)
 Evaluate the opportunity
(cont: external factors)
• 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 shaving-
related 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

 Evaluate the opportunity
(cont: external factors )

• 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.
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ENT600/Unit 3 Opportunity Analysis 19
(2009)
 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 20

 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 risk of
the venture

Entrepreneurship Dept/FBM (2009) ENT600/Unit 3 Opportunity Analysis 21

 Technology-based idea blueprint

• This document summarizes the entrepreneur’s

proposal of a business venture

Entrepreneurship Dept/FBM (2009) ENT600/Unit 3 Opportunity Analysis 22

 Exploitation of Opportunity

Exploitation of opportunity for technological-based

product can be done through commercialization.

Entrepreneurship Dept/FBM (2009) ENT600/Unit 3 Opportunity Analysis 23