barringer_e3_ppt_02

©2010PrenticeHall2-1Chapter2RecognizingOpportunitiesandGeneratingIdeasBruceR.BarringerR.DuaneIreland©2010PrenticeHall3-2ChapterObjectives1of31.Explainwhyit’simportanttostartanewfirmwhenits“windowofopportunity”isopen.2.Explainthedifferencebetweenanopportunityandanidea.3.Describethethreegeneralapproachesentrepreneursusetoidentifyopportunities.4.Identifythefourenvironmentaltrendsthataremostinstrumentalincreatingbusinessopportunities.5.Listthepersonalcharacteristicsthatmakesomepeoplebetteratrecognizingbusinessopportunitiesthanothers.©2010PrenticeHall2-3ChapterObjectives2of26.Identifythefivestepsinthecreativeprocess.7.Describethepurposeofbrainstorminganditsuseasanideagenerator.8.DescribehowtouselibraryandInternetresearchtogeneratenewbusinessideas.9.Explainthepurposeofmaintaininganideabank.10.Describethreestepsforprotectingideasfrombeinglostorstolen.©2010PrenticeHall2-4WhatisAnOpportunity?1of2OpportunityDefinedAnopportunityisafavorablesetofcircumstancesthatcreatesaneedforanewproduct,serviceorbusiness.©2010PrenticeHall2-5WhatisanOpportunity?2of2Anopportunityhasfouressentialqualities©2010PrenticeHall2-6ThreeWaystoIdentifyanOpportunity©2010PrenticeHall2-7FirstApproach:ObservingTrends1of2•ObservingTrends–Trendscreateopportunitiesforentrepreneurstopursue.–Themostimportanttrendsare:•Economicforces.•Socialforces.•Technologicaladvances.•Politicalactionandregulatorychange.–It’simportanttobeawareofchangesintheseareas.©2010PrenticeHall2-8FirstApproach:ObservingTrends2of2EnvironmentalTrendsSuggestingBusinessorProductOpportunityGaps©2010PrenticeHall2-9Trend1:EconomicForcesEconomictrendshelpdetermineareasthatareripefornewstartupsandareasthatstartupsshouldavoid.ExampleofEconomicTrendCreatingaFavorableOpportunity•Aweakeconomyfavorsstartupsthathelpconsumerssavemoney.•AnexampleisGasBuddy.com,acompanystartedtohelpconsumerssavemoneyongas.©2010PrenticeHall2-10Trend2:SocialForcesSocialtrendsalterhowpeopleandbusinessesbehaveandsettheirpriorities.Thesetrendsprovideopportunitiesfornewbusinessestoaccommodatethechanges.ExamplesofSocialTrends•Retirementofbabyboomers.•Theincreasingdiversityoftheworkplace.•Increasinginterestinhealth,fitness,andwellness.•Emphasisonalternativeformsofenergy.•Newformsofmusicandothertypesofentertainment.©2010PrenticeHall2-11Trend3:TechnologicalAdvances1of2Advancesintechnologyfrequentlycreatebusinessopportunities.ExamplesofEntireIndustriesthatHaveBeenCreatedastheResultsofTechnologicalAdvances•Computerindustry•Internet•Biotechnology•Digitalphotography©2010PrenticeHall2-12Trend3:TechnologicalAdvances2of2Onceatechnologyiscreated,productsoftenemergetoadvanceit.Example:H20AudioAnexampleisH20Audio,acompanystartedbyfourformerSanDiegoStateUniversitystudents,thatmakeswaterproofhousingsfortheAppleiPod.©2010PrenticeHall2-13Trend4:PoliticalActionandRegulatoryChanges1of2Politicalactionandregulatorychangesalsoprovidethebasisforopportunities.GeneralExampleLawstoprotecttheenvironmenthavecreatedopportunitiesforentrepreneurstostartfirmsthathelpotherfirmscomplywithenvironmentallawsandregulations.©2010PrenticeHall2-14Trend4:PoliticalActionandRegulatoryChanges2of2Companycreatedtohelpothercompaniescomplywithaspecificlaw.SpecificExampleTheNoChildLeftBehindActof2002requiresstatestodevelopcriterion-basedassessmentsinbasicskillstobeperiodicallygiventostudentsincertaingrades.KimandJayKleeman,twohighschoolteachers,startedShakespeareSquared,acompanythathelpshighschoolscomplywiththeact.©2010PrenticeHall2-15SecondApproach:SolvingaProblem1of2•SolvingaProblem–Sometimesidentifyingopportunitiessimplyinvolvesnoticingaproblemandfindingawaytosolveit.–Theseproblemscanbepinpointedthroughobservingtrendsandthroughmoresimplemeans,suchasintuition,serendipity,orchange.©2010PrenticeHall2-16SecondApproach:SolvingaProblem2of2•AproblemfacingtheU.S.andothercountriesisfindingalternativestofossilfuels.•Alargenumberofentrepreneurialfirms,likethiswindfarm,arebeinglaunchedtosolvethisproblem.©2010PrenticeHall2-17ThirdApproach:FindingGapsintheMarketplace1of2•GapsintheMarketplace–Athirdapproachtoidentifyingopportunitiesistofindagapinthemarketplace–Agapinthemarketplaceisoftencreatedwhenaproductorserviceisneededbyaspecificgroupofpeoplebutdoesn’trepresentalargeenoughmarkettobeofinteresttomainstreamretailersormanufacturers.©2010PrenticeHall2-18ThirdApproach:FindingGapsintheMarketplace2of2Productgapsinthemarketplacerepresentpotentiallyviablebusinessopportunities.SpecificExampleIn2000TishCirovolvrealizedtherewerenoguitarsonthemarketmadespecificallyforwomen.Tofillthisgap,shestartedDaisyRockGuitars,acompanythatmakesguitarsjustforwomen.©2010PrenticeHall2-19PersonalCharacteristicsoftheEntrepreneurCharacteristicsthattendtomakesomepeoplebetteratrecognizingopportunitiesthanothersPriorExperienceCognitiveFactorsSocialNetworksCreativity©2010PrenticeHall2-20PriorExperience•PriorIndustryExperience–Severalstudieshaveshownthatpriorexperienceinanindustryhelpsanentrepreneurrecognizebusinessopportunities.•Byworkinginanindustry,anindividualmayspotamarketnichethatisunderserved.•Itisalsopossibleth