Tips and Strategies

to Find Opportunity
Module 3
Identify the Reason
• Internal Reason
• External Reason
Internal Reason
When the entrepreneur decides to establish a company,
he starts looking in the market for opportunities and needs
that he can meet by offering a certain product or service.
External Reason
When the entrepreneur notes a gap or a need in the
market, he establishes a company that offers solutions and
products for people with this need.
Tips and Strategies to
Find Opportunity
An opportunity should have several specific qualities:
✓Right timing
✓Right product or
✓Added value that the service offers to consumers to
encourage them to purchase it.
Three Keys to Identify
Opportunity
1. Observing Trends
2. Solving a Problem
3. Gaps in the Marketplace
Observing Trends
The first approach is to observe trends and study how they
created opportunities for the entrepreneurs to pursue. The
most important trends to follow are economic trends, social
trends, technological advances, and political action and
regulatory changes.
OBSERVING
TRENDS
Economic Forces
• State of the economy, level of disposable
income, consumer spending patters.
Economic trends help determine areas
that are ripe for new start-ups and areas
that start-ups should avoid.
Social Forces
• Social and cultural trends, demographic
changes, what people think is “in”.
Technological advances
• New technologies, emerging
technologies, new uses of old
technologies
Political and regulator changes
• New changes in political arena, new
laws and regulation
Solving a Problem
Recognize problems and find ways to solve them. Problems can be
recognized when observing the challenges that people encounter in
their daily lives. There are many problems that have yet to be solved.
Many companies have been started by people who have experienced
a problem in their own lives, and then realized that the solution to
the problem represented a business opportunity.
SOLVING a
PROBLEM
a) Observe challenges
people face
b) Intuition
c) Serendipity
d) Change- there is a need
for change
Gaps in the Market
• There are many examples of products that consumers need or
want that aren’t available in a particular location or aren’t
available at all.
• A common way that gaps in the marketplace are recognized is
when people become frustrated because they cant find a product
or service that they need and recognize that other people feel the
same way.
 “A gap in the marketplace is often
created when a product or service is
needed by a specific group of people but
doesn’t represent a large enough market
to be of interest to mainstream retailers or
manufacturers.”
BUSINESS STRATEGY
• A business strategy refers to the actions and decisions that a company
takes to reach its business goals and be competitive in its industry. It
defines what the business needs to do to reach its goals, which can help
guide the decision-making process for hiring and resource allocation.
• A business strategy helps different departments work together, ensuring
departmental decisions support the overall direction of the company.
Importance of Business Strategy
• Planning: A business strategy helps you identify the key steps you will take to
reach your business goals
• Strengths and weaknesses: The process of creating a business strategy allows you
to identify and evaluate your company's strengths and weaknesses, creating a
strategy that will capitalize on your strengths and overcome or eliminate your
weaknesses
• Efficiency: A business strategy allows you to effectively allocate resources for your
business activities, which automatically makes you more efficient
• Control: It gives you more control over the activities you're performing to reach
your organizational goals, as you understand the path you're taking and can easily
assess whether your activities are getting you close to your goals
• Competitive advantage: By identifying a clear plan for how you will reach your
goals, you can focus on capitalizing on your strengths, using them as a competitive
advantage that makes your company unique
Components of
Business Strategy
6 Key Components of Business
Strategy
1. Vision and business objectives
2. Core values
3. SWOT analysis
4. Tactics
5. Resource allocation plan
6. Measurement
Vision and
Objectives
• The business strategy is
intended to help you reach
your business objectives.
With a vision for the
direction of the business,
you can create clear
instructions in the business
strategy for what needs to
be done and who is
responsible for it.
 Core Values
The business strategy guides top-level executives as well as
departments about what should and should not be done,
according to the organization's core values.
SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and
threats. This analysis is included in every business strategy, as
it allows the company to rely upon its strengths and use them
as an advantage. It also makes the company aware of any
weaknesses or threats.
TACTICS
Many business strategies articulate the operational details for
how the work should be done in order to maximize efficiency.
People who are responsible for tactics understand what needs
to be done, saving time and effort.
Resource Allocation Plan
A business strategy includes where you will find the required
resources to complete the plan, how the resources will be
allocated and who is responsible for doing so.
MEASUREMENT
The business strategy also includes a way to track the
company's output, evaluating how it is performing in relation
to the targets that were set prior to launching the strategy.
10 Business
Strategy
Examples
1. Cross-sell more products
2. Most innovative product or
service
3. Grow sales from new products
4. Improve customer service
5. Cornering a young market
6. Product differentiation
7. Pricing strategies
8. Technological advantage
9. Improve customer retention
10. Sustainability
Cross-Sell More Products
Some organizations focus on selling more products to the same
customer. This strategy works well for office supply companies and
banks, as well as online retailers. By increasing the amount of
product sold per customer, you can increase the average cart size.
Even a small increase in cart size can have a significant impact on
profitability, without having to spend money to acquire more new
customers.
Most Innovative Product
or Service
Many companies, particularly in the technology or automotive
space, are distinguishing themselves by creating the most
cutting-edge products. In order to use this as your business
strategy, you will need to define what "innovative" will mean
for your organization or how you're innovative.
Grow Sales From New
Products
Some companies like to invest in research and development in
order to constantly innovate, even with your most successful
products.
Improve Customer Service
• This can be a good business
strategy if your business has had a
problem delivering quality
customer service. Some companies
have even built a strong
reputation for having exceptional
customer service.

• Usually, companies have a

problem in one specific area, so a
business strategy that's focused on
improving customer service will
usually focus its objectives on
something like online support or a
more effective call center.
Cornering a Young Market
• Some large companies are buying
out or merging competitors to
corner a young market.
• This is a common strategy used
by Fortune 500 companies to gain
an advantage in a new or rapidly
growing market.
• Acquiring a new company allows
a larger company to compete in a
market where it didn't previously
have a strong presence while
retaining the users of the product
or service.
Product
Differentiation
This is a common business strategy,
especially for business-to-consumer
(B2C) businesses. They can
differentiate their products by
highlighting the fact that they have
superior technology, features, pricing
or styling.
Pricing Strategies
• When it comes to pricing, businesses can either keep their prices low to
attract more customers or give their products aspirational value by
pricing them beyond what most ordinary customers could afford.
• If companies plan to keep their prices low, they will need to sell a much
higher volume of products, as the profit margins are usually very low.
• For companies who choose to price their products beyond the reach of
ordinary customers, they are able to maintain the exclusivity of their
product while retaining a large profit margin per product.
EXAMPLE:
Technological Advantage
• Obtaining a technological
advantage, you can often achieve
better sales, improved
productivity or even market
domination.
• This can mean investing in
research and development,
acquiring a smaller company to
gain access to their technology or
even acquiring employees with
unique skills that will give the
company a technological
advantage.
Improve Customer
Retention
• It's generally far easier to retain a
customer than spend money to
attract a new one, which is why this
is a great strategy if you see
opportunities for improvement in
customer retention. This strategy
requires you to identify key tactics
and projects to retain your
customers.
Sustainability
• You could launch an entire business
strategy aimed at increasing the
sustainability of your business.
• For example, the objective could be
to reduce energy costs or decrease
the company's footprint by
implementing a recycling program.
“Strategy is figuring
out what not to do.”

- Steve Jobs
References
• https://www.coursehero.com/file/p4bukf1/a-How-do-people-feel-about-
the-product-or-service-It-is-important-to-
understand/#:~:text=Observing%20trends%20The%20first%20approach,p
olitical%20action%20and%20regulatory%20changes.
• https://www.indeed.com/career-advice/career-development/business-
strategy-examples
• https://www.wamda.com/2013/10/3-key-approaches-to-identify-the-best-
opportunities-for-your-new-project