ENTRY OPTIONS and
SEARCH FOR
BUSINESS
OPPORTUNITIES
Sy: 2017-2018
THE COMMUNITY : Needs & Resources
Availability
• Resources in the community
1. Markets
2. Individual Interests
3. Capital
4. Skills
5. Suppliers of inputs
6. Manpower
7. Technology
SWOT ANALYSIS
• It studies the financial resources , physical
facilities, management capabilities, the
market , production process, information
system, sources of supply and social
environment.
• It is a tool evaluating the strengths,
weaknesses, opportunities and threats
associated with a particular product or
service.
INDICATORS OF SWOT
STRENGTHS WEAKNESSES
* Cheap and abundant raw • High Prices
materials
* Sufficient funds • Poor quality / Service
* Availability of Technology • Weak Management
* Presence of Skilled Workers • Lack of Skilled workers
* Management and technical • Irregular supply
expertise of the entrepreneur
* Good quality / service • Unattractive design
* Ease of Production • High costs of production
* Small capital
OPPORTUNITIES THREATS
* Big Demand for the * Shortage of raw materials
product or service at a given time
* Favorable government * Entry of many competitors
policy/support
* Scarcity of the * Increasing costs of
product/ service production
* Poor quality of * Expectation of
existing product or unfavorable government
service laws such as taxes
* Absence of product/ * Deterioration peace and
service order
* Possibilities of good * Emergence of unfair
profits demands of workers through
union activities
PRODUCT LIFE CYCLE
INTRODUCTION
Consumer awareness and acceptance of the
product are low.
Sales gradually increase due to promotion and
marketing activities
Cost of development and marketing activities are
high
Low profit or even incurs loss
Buyers are individuals who want to be the first in
the community to own the product.
GROWTH
Sales rapidly rise as the product becomes
popular.
Profits for the firm and industry increase
Product distribution is expanded.
Promotion still plays a vital role in marketing the
product
MATURITY
sales are still intact at the beginning of this
stage but the rate of increase has declined.
The sales curve will reach its peak while profits
begin to fall
Price competition increases which forces
inefficient competitors to get out of the industry.
DECLINE
There is a sharp fall in sales volume while profit
curve becomes almost flat or horizontal.
There is also a decline in the number of
competitors.
You can only survive if you will specialize in
marketing your product.
Once the product is no longer profitable, it will
be eliminated from the market.
MARKET RESEARCH
It is the process of systematically
gathering , recording , and
evaluating data regarding a
specific marketing problem.
STEPS
1. Defining the problem
2. Making a preliminary investigation
3. Planning the research
4. Gathering the data
5. Analyzing the data
6. Reaching a conclusion/ decision
7. Implementing and evaluating decisions
LOCATION of the Business
• Basic Factors in Selecting a Business Location
Population trends
Income trends
Consumer characteristics
Retail sales trend
Competition
Transportation facilities
Government policies
Cont.
• Environment ( health and sanitation)
• Electricity
• Water supply
• Communication facilities
• Peace and Order
• Fire protection
• Parking space
THE BUSINESS FORMAT
1.Service –based business
- It is somehow providing the very same services
they used to provide for an employer.
2. Trading or product –based business
- Trading business is essentially a “ buy and sell”
transaction. Wholesaling and retailing could be your
option.
The BF
3.Manufacturing business
- This is a cost intensive yet a common
approach to doing business
4.Licensed business
opportunities
- Licensed business opportunity ventures calls
for the seller making a commitment of
continuing involvement with the buyer.
Cont.
5.Distributorship
- In this scheme, an independent entrepreneur ,
company or individual enters into an
agreement or contract to offer.
6. Rack jobber
-It involves an agent or buyer entering into an
agreement with a parent company to market its
goods to various stores by means of
strategically located store racks.
Cont.
7. Wholesaler
- The wholesaler sells the producer to retailers
and other distributors who has direct dealings
with the end users or customers.
8. Subcontracting
- Once practice of subcontracting scheme is
the that of a major shoe department store that
doesn’t have a shoe factory
Cont.
9. Vending machine Routes
- It is similar to rack jobbing in that they
are positioned in various places or
locations.
