Summary
Summary Entrepreneurship and Innovation Management Chapter 4
- Institution
- Stellenbosch University (SUN)
- Book
- Entrepreneurship
Summary of Chapter 4
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
EI Man 214: Chapter 4: the window of oppourtunityIdea vs oppourtunity
Idea
o Must create value & add value
o Does not automatically translate into an opportunity
o Is the first step of converting creativity into opportunity
o Traditionally enjoys too much emphasis from entrepreneurs
o Translates into entrepreneurial myopia (lack of foresight)
Opportunity
o Is a gap left in the market by those who serve it
o Qualities: attractive, durable & timely
o Normally identified by an individual who:
o Has prior knowledge
o Possesses social capital
o Exhibits cognition
o Understands environmental conditions
o Demonstrates entrepreneurial alertness
o Practices systematic search
o Results form changes in the market place
o Could be more than just a product or service
o Changes derived from technology, demography or regulations
o These changes lead to a disequilibrium (a loss of equilibrium/stability, with regards to supply, demand
& prices)
o This leads to market imperfections which has the potential to create economic returns
When is an idea an opportunity
Attractive
Durable
Idea Timely Opportunity
Anchored in
product/serv
ice
Opportunities through idea generation
o A conscious, deliberate, creative process
o Entrepreneurial opportunities
o When products/services are aligned with market demand and facilitate value
, Opportunity evaluation
5 basic questions
o Risk and rewards of this opportunity?
o Is this an attractive & sufficient market opportunity?
o Is the proposed solution feasible in terms of a technological and market perspective?
o Will there be a sustainable competitive advantage?
o Will the opportunity be lucrative?
Screening opportunities
o Important issues and aspects overlooked or underemphasised
o Helps entrepreneur to determine the potential of the opportunity
o Criteria used to screen opportunities:
o Industry & market issues
o Economics
o Harvest issues
o Management team
o Fatal flaw issues
o Personal criteria
o Strategic differentiation
Industry and market issues
o Market structure:
o Number of sellers present in a market
o Size distribution of sellers
o Product differentiation
o Entry & exit conditions
o Number of buyers present
o Demand sensitivity to price changes
o Market size:
o Large and growing market ideal
o Competitive threat low
o Substantial returns if small portion of market captured
o Market capacity
o Full capacity = demand outweighs supply
o Attractive & high potential
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller erynbt. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now