Change, Trends & Forecasting Finding the Opportunities

CHANGE AND OPPORTUNITY  Changes in society are where opportunities lie  e.g., with the changes in computer technology and thus word processing, typewriter makers were facing great difficulties – loss of their market  IBM – International Business Machines – was primarily a typewriter maker. Did they decide to fold or to accept the change in society and in the marketplace as an opportunity?  BROTHER – still in existence, still making typewriters, but much smaller market

TRENDS AND FADS  Changes that develop and endure for long periods of time are called TRENDS  e.g., The Agricultural Age, The Industrial Age, The Information Age  e.g., Internet usage, mobile phone ownership  Changes that are temporary or short lived are called FADS  e.g., mood rings, flare jeans, Tamagochi, most fashion changes  Both can be the basis for a venture, but how you approach them is different – thus, you need to be able to distinguish whether the change is a trend or a fad

Successful Entrepreneurs…  …see the opportunities in the trends  E.g.: Trend : Aging Population (very large percentage of people in society will soon be over the age of 65) Opportunity : Older people want to socialize with people their age Entrepreneurial Idea : Cruises catering to senior citizens

(Trend) Rapid growth in the global economy Opportunities for Entrepreneurs Opportunities for Enterprising People importing / exporting products & services more jobs for people with international experiences and/or a second language

(Trend) Increasing use of contract labour (outsourcing) Opportunities for Entrepreneurs Opportunities for Enterprising People. entrepreneurs can set up consulting practices with professionals who can work for a variety of clients. opportunity to become self-employed while working for a large organization on a contract ‐ by ‐ contract basis

Situation – Opportunity – Idea SituationOpportunity Hot chocolate won’t stay hot on a cold day. Something is needed to keep the hot chocolate hot. Idea Thermal, insulated mugs

Situation – Opportunity – Idea SituationOpportunity Referee’s whistle won’t work at a crucial point in a game. The whistle needs to work all the time. Idea Create a whistle that doesn’t need a pea (since the pea was the problem).