Ch 2 - Chapter 2: Opportunity Recognition CHAPTER 2...

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Chapter 2: Opportunity Recognition CHAPTER 2 Opportunity - is a favorable set of circumstances that creates a need for a new product, service, or business. Four essential qualities: (1) attractive (2) durable (3) timely, and (4) anchored in a product, service or business that creates value for its buyer or end user. Window of opportunity - describes the time period in which a firm can realistically enter a new market. Identifying an Opportunity – (3 Techniques) 1. Observing Trends – observe trends and study how they create opportunities for entrepreneurs to pursue. a. Economic Forces - affect, for ex., consumers’ level of disposable income. (ex., a drop in interest rates typically leads to an increase in new home construction and furniture sales.) b. Social Forces The persistent proliferation of fast-food restaurants, for example, isn’t due primarily to people’s love for fast food but rather to the fact that people are busy: the number of households with both parents working remains high. 23
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Chapter 2: Opportunity Recognition Recent social trends that allow for new opportunities are: The aging of the population The increasing diversity of the workforce The globalization of industry The increasing focus on health care and fitness The proliferation of computers and the Internet The continual increase in the number of cell phone users New forms of music and other types of entertainment c. Technological Advances - it is vital to remain on top of how new technologies affect current and future opportunities. Once a technology is created, products emerge to advance it.
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This note was uploaded on 03/28/2011 for the course MNGT 305 taught by Professor Chadwick during the Spring '11 term at Nicholls State.

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Ch 2 - Chapter 2: Opportunity Recognition CHAPTER 2...

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