Opportunity Identification, Evaluation, and Exploitation are three heroes behind any idea to turn into a successful business.
Among these three, opportunity identification is the first, followed by the other two. Even the founder and CEO of Bhanu Pratap Bus Service, honourable Heera Thakur, worked on these three aspects to create his empire. Let’s dive deeper into the details of this trio and its importance.
1. Opportunity Identification refers to thinking of or coming up with a business idea or expansion strategy targeting a particular market section. Selling chocolates during valentine’s week, flowers outside temples and fast food outside coaching centres are a few of the examples.
2. It is a crucial ingredient for a company’s prolonged success and viability. It can be triggered by societal changes, technological advances or customer preferences. For example, Jeff Bezos came up with the idea of selling books online at Amazon.com, but later on, diversified and started selling multiple products online, eventually turning into an e-commerce giant.
3. Merely coming up with an idea isn’t enough for opportunity identification. To create a business out of that, it must be profitable, innovative, have economic value, and have customers willing to purchase the product.
4. Before further diving in the line of Opportunity, Identification, Evaluation, and Exploitation, Business Opportunities must be understood. These can be either discovered or created. The discovery can be made by observing economic, technological, or social trends. But they are created when the entrepreneurs engage with the users to figure out their needs and then develop a solution.
5. There are several ways in which an entrepreneur can go about opportunity identification. Feedbacks from customers and potential clients, analysis of competitors, and analysis of industry trends and insights are a few of the excellent ways to do it.
6. As the name describes itself, Opportunity Evaluation is conducting market research. It uses client data to analyze a business idea or opportunity and develop a strategy to implement (the idea) or use (the opportunity) to the company’s benefit.
7. The sellability and profitability of a product bridges the gap between an idea and an opportunity. An entrepreneur must perform a critical analysis of an idea, test the various aspects, and innovate to find unconventional solutions before pursuing it as a business venture.
8. Multiple factors should be assessed during opportunity evaluation. The relevance of the product, target customers, profitability, competition, costing, marketing strategy, expected market share, etc., are some of the aspects to consider while evaluating an opportunity.
9. In the final step of opportunity evaluation, an entrepreneur must consider the risk-reward ratio and the acceptability of the product in the market. They should also take into account the team that is working on a particular product and whether all the team members possess the required skills or not.
10. As per the Wiley Encyclopedia of Management, Opportunity Exploitation is the set of activities that can fetch economic returns from an entrepreneurial opportunity. Generally, entrepreneurs are the ones who discover opportunities, and the financial leaders dive deep into the product’s risk, reward, and economic feasibility.
11. Opportunity exploitation is the final and most crucial step. Usually, entrepreneurs exploit an opportunity only after gathering enough knowledge about the product’s demand, the required technologies, proper managerial capability, and support from the stakeholders.
12. A few things to make your journey of opportunity exploitation successful are using new technologies, exploring new business models, updating your products using customer insights, extending your customer base, etc.
All these three characters play a very crucial role in building and running a company. It is, therefore, necessary for an entrepreneur to have a simultaneous affair with opportunity identification, evaluation, and exploitation.
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