1. Chapter 3 Opportunity Recognition, Shaping and Re-shaping
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2. Idea-to-opportunity transition
Seed of idea
Idea
Viable
Opportunity
Passion
Professional
Experience
Idea
Multiplication
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3. Idea multiplication – IDEO technique
Gather
Stimuli
Observe 1
Multiply
Stimuli
Brainstorm/brain-write 2
Create
Customer
Concepts
Build a simple mock up 3
Optimize
Practicality
Add/remove features 4
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4. Government Regulations
The opportunity space
Global Business Environment
Competitors
Suppliers
Your Company
Customers
Competitors
Competitors
Government Regulations
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

5. Target Audience Categories
The customer
Target Audience Categories
Primary
Target Audience
Secondary
Target Audience
Tertiary
Target Audience
Common Demographic/Psychographic Categories
Demographics
Psychographics
Age
Gender
Household Income
Family Size/Family Lifecycle
Occupation
Education Level
Religion
Ethnicity/Heritage
Nationality
Social Class
Marital Status
Social group (e.g., white collar, blue collar, etc.)
Lifestyle (e.g., mainstream, sexual orientation, materialistic, active, athletic, etc.)
Personality Traits (Worriers, Type A’s, Shy, Extroverted, etc.)
Values (Liberal, Conservative, Open-Minded, Traditional, etc.)
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6. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Macro trends
Important Trends over the Last 50 Years
Trend
Impact
Baby Boom Generation
Pampers, Rock & Roll, Television, Minivans, Real Estate, McMansions, etc.
Personal Computing
Internet, media on demand, electronic publishing, spreadsheets, electronic communication
Obesity
Drain on healthcare system, growth of diet industry, changes in food industry, health clubs, home gyms
Dual-Income households
Child care, Home services – landscaping, house cleaning, prepared foods
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

7. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
S-curve
Obsolescence
Phase
Competitors
New
Enter
Market Adoption
Window of
Opportunity 1 2 3
Time
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

8. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Setting prices
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

9. Reaching customer – the value chain
Example - Value Chain of Gourmet Chili
Base
Ingredients
Gourmet
Chili
Food
Distributors
Grocery
Stores
Beef,
Sauce, etc.
From Food
Distributor
80%
90%
85%
75% - -
30% - -
30%
25%
35% - - -
COGS 70 -
COGS 75
COGS 65
COGS 70
GM 20
GM 25
GM 10
GM 15
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10. Learning about “stealth” competitors
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

11. Opportunity checklist
Customer
Competition
Vendors
Government
Global
Environment
Price/
Frequency/
Value
Trends
Market size
Market
Growth
Distribution
Key Success
Factors
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