Description
A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business. The licensor or seller of a business opportunity usually declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee.
IDEA GENERATION: Sources of Business Opportunities
Change as a Source of Opportunity
?
Status-quo is good for incumbent players (established companies) – they have products or services, smooth operations, established business models, loyal set of customers, functional teams …… Change brings in disruption – that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of finance Change produces a level-playing field which is actually loaded in favour of a new player because of his flexibility, adaptiveness
?
?
Examples of Entrepreneurs Exploiting Change
?
Japanese car manufacturers (1973)
?
?
Microsoft (1976-78)
Amazon and Dell (1990s)
?
Infosys (1989)
Broad Categories of Change
? ?
Demographic – whole population (age distribution) Economic – Emerging markets
?
?
Socio-Cultural -- Value systems, role models
Technological -- Variety, performance, cost
?
?
Political – democratic, authoritarian/totalitarian regimes. Free market vs socialistic policies (Britain in early 1980’s)
Legal and Regulatory -- liberalization (internal and external), enforcement of IP protection laws
Demographic Changes
? ? ? ? ? ? ?
Median age Working population as the % of total population Life expectancy Healthcare and Social Security Needs Urban-Rural Ratio Literacy Male-Female ratio
Socio-Cultural Changes
? ? ? ?
Value systems -- globalization and local assertions Accepted norms of behaviour Role of religion and spirituality Pursuit of expertise, knowledge, wealth, possessions
?
?
Aspirations, fears, desires, anxieties
Measure of “time” – attention span, priorities, conveniences
Technological Changes
?
Availability and wide-spread assimilation of technology
?
Information Technology and it pervasiveness
? ? ? ?
Costs and disposable incomes Performance, variety, ease of acquisition Cross applications – interdisciplinary developments Comfort level of technology usage
?
Examples: CD ROM drives and mobile phones
Economic Changes
? ?
Gross Domestic Product and Per Capita Income Level of exports and imports
?
? ? ?
Inflation and interest rates
Availability of credit at all levels Size of the middle class Various growth rates – industrial growth, productivity growth, exports growth
?
Level of unemployment
Political and Regulatory Changes
?
Transition from centrally planned to market economy (India, 1991)
?
? ? ? ?
Transition from communism to “market socialism” (China, 1978-1980)
Regulated, protected, closed economy No IPRs (copyrights, patent laws) Contract Enforcement and right to property Labour and land reforms
India in the New Millennium
? ? ? ? ?
“Young” country with rising literacy and prosperity GDP growth rate of 7-8 % per annum Growing middle class Liberal, business like values, pursuit of wealth High unemployment, imbalance in the development
India in the New Millennium
? ? ?
Passages of IP laws (new patent regime) Respect in the global community (functional democracy) Atmosphere conducive to business -- no xenophobia, no insularity, no misplaced importance to “selfreliance” Well developed “Institutions” – judiciary, capital markets, stock exchanges, media (free and independent), educational institutions, regulatory bodies (SEBI, FDA, ISI)
?
Analysis of Existing Entrepreneurs
? Truly new, novel and innovative ideas: 3-4% ? Rest 96%
? ? ?
Enhancement -- improvement / refinement of features – cheaper, better, faster, more user-friendly Extension to features Specialization -- niche’ creation
Enhancement, Extensions and Specializations
Enhancements
Extensions
Specialization
Examples of Enhancement
? ?
DOS to Windows Mechanical watch to quartz watch
?
? ? ?
Modem to ADSL modem
Ordinary TV to a flat screen TV Desktop PC to a laptop PC to a tablet PC Propeller engine to a jet engine
Most industrial innovations
Examples of Extensions
?
Toothbrush with a built in toothpaste
?
?
Pen with a torchlight
Mobile handset with camera, FM radio,MP3 player ….
?
? ?
Memory sticks with MP3 players
Wristwatch with a calculator Cinema Multiplexes
?
?
Day care centers (crèche) with tuitions
Swiss army knife
Examples of Specialization
? ?
Low cost airlines (Ryanair, Easyjet, Air Deccan) Boutique financial advisory services
?
? ?
Super-specialty hospitals
Finishing schools Executive search firms (CxOs only, finance professionals only)
Possible Service Opportunities
? Schools ? Restaurants ? Travel agency and tour operators ? Pet shops ? Bookshops ? Gyms / weight loss clinics
? Oxygen bars
Questions? Comments. Suggestions!
doc_395630334.ppt
A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business. The licensor or seller of a business opportunity usually declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee.
IDEA GENERATION: Sources of Business Opportunities
Change as a Source of Opportunity
?
Status-quo is good for incumbent players (established companies) – they have products or services, smooth operations, established business models, loyal set of customers, functional teams …… Change brings in disruption – that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of finance Change produces a level-playing field which is actually loaded in favour of a new player because of his flexibility, adaptiveness
?
?
Examples of Entrepreneurs Exploiting Change
?
Japanese car manufacturers (1973)
?
?
Microsoft (1976-78)
Amazon and Dell (1990s)
?
Infosys (1989)
Broad Categories of Change
? ?
Demographic – whole population (age distribution) Economic – Emerging markets
?
?
Socio-Cultural -- Value systems, role models
Technological -- Variety, performance, cost
?
?
Political – democratic, authoritarian/totalitarian regimes. Free market vs socialistic policies (Britain in early 1980’s)
Legal and Regulatory -- liberalization (internal and external), enforcement of IP protection laws
Demographic Changes
? ? ? ? ? ? ?
Median age Working population as the % of total population Life expectancy Healthcare and Social Security Needs Urban-Rural Ratio Literacy Male-Female ratio
Socio-Cultural Changes
? ? ? ?
Value systems -- globalization and local assertions Accepted norms of behaviour Role of religion and spirituality Pursuit of expertise, knowledge, wealth, possessions
?
?
Aspirations, fears, desires, anxieties
Measure of “time” – attention span, priorities, conveniences
Technological Changes
?
Availability and wide-spread assimilation of technology
?
Information Technology and it pervasiveness
? ? ? ?
Costs and disposable incomes Performance, variety, ease of acquisition Cross applications – interdisciplinary developments Comfort level of technology usage
?
Examples: CD ROM drives and mobile phones
Economic Changes
? ?
Gross Domestic Product and Per Capita Income Level of exports and imports
?
? ? ?
Inflation and interest rates
Availability of credit at all levels Size of the middle class Various growth rates – industrial growth, productivity growth, exports growth
?
Level of unemployment
Political and Regulatory Changes
?
Transition from centrally planned to market economy (India, 1991)
?
? ? ? ?
Transition from communism to “market socialism” (China, 1978-1980)
Regulated, protected, closed economy No IPRs (copyrights, patent laws) Contract Enforcement and right to property Labour and land reforms
India in the New Millennium
? ? ? ? ?
“Young” country with rising literacy and prosperity GDP growth rate of 7-8 % per annum Growing middle class Liberal, business like values, pursuit of wealth High unemployment, imbalance in the development
India in the New Millennium
? ? ?
Passages of IP laws (new patent regime) Respect in the global community (functional democracy) Atmosphere conducive to business -- no xenophobia, no insularity, no misplaced importance to “selfreliance” Well developed “Institutions” – judiciary, capital markets, stock exchanges, media (free and independent), educational institutions, regulatory bodies (SEBI, FDA, ISI)
?
Analysis of Existing Entrepreneurs
? Truly new, novel and innovative ideas: 3-4% ? Rest 96%
? ? ?
Enhancement -- improvement / refinement of features – cheaper, better, faster, more user-friendly Extension to features Specialization -- niche’ creation
Enhancement, Extensions and Specializations
Enhancements
Extensions
Specialization
Examples of Enhancement
? ?
DOS to Windows Mechanical watch to quartz watch
?
? ? ?
Modem to ADSL modem
Ordinary TV to a flat screen TV Desktop PC to a laptop PC to a tablet PC Propeller engine to a jet engine
Most industrial innovations
Examples of Extensions
?
Toothbrush with a built in toothpaste
?
?
Pen with a torchlight
Mobile handset with camera, FM radio,MP3 player ….
?
? ?
Memory sticks with MP3 players
Wristwatch with a calculator Cinema Multiplexes
?
?
Day care centers (crèche) with tuitions
Swiss army knife
Examples of Specialization
? ?
Low cost airlines (Ryanair, Easyjet, Air Deccan) Boutique financial advisory services
?
? ?
Super-specialty hospitals
Finishing schools Executive search firms (CxOs only, finance professionals only)
Possible Service Opportunities
? Schools ? Restaurants ? Travel agency and tour operators ? Pet shops ? Bookshops ? Gyms / weight loss clinics
? Oxygen bars
Questions? Comments. Suggestions!
doc_395630334.ppt