Exploring Opportunity
Behind every successful new venture is the story of a business opportunity that was recognised for its potential value and was profitably developed before others realised that potential.
The sources of marketing opportunity may be thought of in terms of the following framework:
- Context: Changes in the macro environment
- Customers: Dissatisfaction and /or unmet needs
- Competitors: Weaknesses
- Collaborators: Control, conflict and /or coordination
- Company: Competitive advantages
Assessing Market Opportunity
While an entrepreneur may have no shortage of ideas and may think passionately about those ideas, it pays to assess an opportunity before spending the time and effort to start a business only to see the idea fall flat with target customers. Assessments of market opportunity will consider various elements including:
- Fit (external and internal)
In assessing an opportunity, entrepreneurs must ask: 'Is there a demand for this product or service [product-market fit] and are we the right company to sell such a product or service [product-company fit]'?
- Time frame (including the speed of development)
In assessing an opportunity, entrepreneurs must also ask: 'How much time do we have to develop this opportunity?'. Speed of development is a critical factor in gaining a competitive advantage in the marketplace.
When is an Idea an Opportunity?
An Opportunity
Has the qualities of being
attractive, durable and timely and is anchored in a product or service
which creates or adds value for its buyer or user.
A Product Idea
Is an idea for a possible product that the company can see itself offering to the market.
A Product Concept
Is a detailed version of the product idea stated in meaningful consumer terms.
Research & Analysis - Hard work, and somebody's got to do it!
Michael Porter
provides us an analytical model that describes the industry
context in which all firms operate. His Five Forces Analysis is an objective assessment of opportunity as it relates to market
structure and the business environment. Working through this model will ensure the sound basis for defining your products and services,
while positioning them effectively in both strategic and practical terms.
© 2010 Solid Concept
SOURCES:
STRATEGIC MARKETING MANAGEMENT, Anderson and Vincze;
THE PORTABLE MBA IN ENTREPRENEURSHIP, Bygrave and Zacaharakis;
QUICKMBA.COM Porter's Five Forces
