Tools for Assessing Business Opportunities - Case Study Example

Research paper Institution: Name: Date: Introduction Entrepreneurs develop business ideas from the existing opportunities or they can come up with their own ideas. These new ideas must be addressing certain business problems and proving long lasting solutions to them. The men fashion industry receives below average attention because women have overshadowed them fashion industry. This has resulted to unexploited business opportunities on men’s fashion. This is a business idea that is developing the concept of online store for men fashion industry as an opportunity that entrepreneurs can adapt. On the other hand, a detailed research on this topic reveals assessment of the business opportunity (Champlain, 2013). This is important since it helps it determining feasibility of the business opportunity as well as marketing strategies. The paper also considers operational issues as this covers the management of the business premise. Finally, the paper discusses business model or strategy needed to make it successful. Briefly, the paper talks about a business proposal for men fashion online store. The business concept: problem and solution In this concept, the business idea is to open an online store for men fashion store. The world is shifting to digital means with many businesses thriving online. This business opportunity can thrive in the modern world since it is a new area in the international business. Currently, the world is experiencing a different trend in the consumer behaviours. In the olden days, the buyers preferred visiting the stores and getting whatever they needed. This has changed with technological advances. Consumers can purchase products at the comfort of their home. Therefore, this business opportunity can never fail since online purchasing has been successful especially in companies dealing with electronics. Online marketing is real and fashion industries in other parts of the world are embracing it. Australian fashion industries should not lag behind in this new shift in marketing and business opportunity identification. It is a business opportunity and not just an idea. The products This online store will be containing the most recent men’s fashion in clothes, shoes and designer boxers. The modern men, just like Australians, are fashion oriented and looking good is their slogan. Products are to make men fashionable and elegant. This type of a store makes it possible online purchasing thus a customer will not spend on transport. Just like any other online business, it embraces electronic banking system. The management will assure the customers of online security since their details will remain confidential. This gives the business added advantage over poorly secured online organizations. on the other hand, the business plans for a good return policy with the customers given up to one month to return the products if they don’t meet their standards. Most important is developing of a well-managed website or blog that will enable customers to choose from a variety of products (Jacoby, 2013). The services are customer oriented with customer satisfaction taking the centre stage. The management guarantees fair discounts and pocket friendly prices. Among the products in this business premise, include bags, intimate, jog jeans, shoes, suits, sandals, watches, jewels, beachwear, jewels and fragrances. Business opportunity assessment In assessing the business opportunities, it is important to consider the market, customer and the industry at large (Champlin, 2013). Entrepreneurs are obliged to do extensive market research so that they can be able to compete in the market. In this context, it will help the entrepreneur to know about the internal and external market factors that influence the business. However, lack of market information does not inhibit new business ventures. It only acts to bring uncertainties about future market barriers. In Australia for instance, the fashion industry, comprise of customers who have different purchasing powers. In doing the research, customer profiles, price of the products, the product itself and distribution channels helps entrepreneurs to gauge their new idea. Tools used to assess business opportunity The figure below shows tools that entrepreneurs can use to assess business opportunities. It is suitable for both new and existing businesses. The tool uses four cycles: preparation, partners, performance and purpose (Champlin, 2013). In the first stage, it is the initial step where a business opportunity presents itself. Planning for the opportunity follows where a brain trust comes up with available ideas on how to execute the great thoughts. The team merges to build a powerful group that works towards achieving set goals. The fifth step is performance forecasting when less inputs yield grater outputs. Finally, the team evaluates purpose of the business. (Champlain, 2013). Feasibility analysis Hofstrand and Holz-Clause (2009) defines it as the process of analyzing the viability of a business idea. A detailed study looks at the available resources and the business environment. These factors are considerate since they influence the success of a business opportunity. The business requires IT knowledge to since most operations will be computer oriented. This is a readily available resource since sourcing IT experts is an easy task nowadays. The other obstacle may advertisement and marketing. Marketing and advertisement are possible through social media sites like twitter and face book. Starting a business also needs a startup capital, which the management team will provide since the type of ownership is partnership. Industry assessment will entail looking at untapped opportunities like online fashion stores. The market research involves a research in online purchasing power of Australians. A Roy Morgan research shows that approximately 50 per of Australian population purchase online (Bainridge, 2013) Organization and management team Online marketing requires trained personnel on information technology and computer literate people. However, computer literacy in the world has short up making it possible for the business to thrive. Therefore, training can never be a challenge in this business venture. It is important to have an overall manager who oversees the staff under him. The advantage of online marketing is that is does not require a large team. There will be a physical store located in one of the street malls. In the retail shop, a storekeeper and deliverymen (around four) can take care of everything. Online purchasing requires service people who are ready to attend to customers. Their task is to answer calls and process emails. The general manager can have an assistant for work efficiency. The only foreseeable risk is employees’ commitment to the job. The management can overcome it through a good reward system and management policy aimed at employee retention. Nature of the management The organization team will strictly be a website management in nature. Jacoby (2013) recommends that clearly defined organization of the web team becomes vital for any digital organization. The management can best achieve it through “web governance strategy” (Jacoby 2013). This strategy should have a clear line of responsibility and authority. The overall manager needs to manage both the team and the site. Communication is crucial and must be regular, whether formal or informal. This type of organization will depend much on the website and the manager must review performance to improve the staff. The manager should not raise problems when performance evaluation is taking place. To improve the team, the top management should realize that improvement is a continuous process. Therefore, it will develop a system gives regular support to staff and celebrations of achievements will as a team. The business strategy The basis of business strategy is feasibility because it helps in forecasting on how the business will be in future. A strategy gives the business a direction. Some scholars refer to it as the plan, policy or approach and help the organization in achieving its goals. A proper understanding of the context as well as the industry aids in developing a long lasting strategy. Therefore, a new business needs a good strategy to help it sustain competitive advantage. There exist two perspectives that entrepreneurs can use to develop a strategy: the market-led view and resource-based view. In this context, the market-led view is most appropriate since external opportunities are available. For instance, online store in the fashion industry is still new in the business world giving this type of business venture n advantage over others. Nikols (2013) recommends three business strategies that include strategy in general, competitive strategy and corporate strategy. General strategy suits this business venture since it concerns the anticipated results and the resources available. This is a new business opportunity that aims at online marketing of men’s fashion. In this strategy, the term tactics comes up. Nikols (2013) explains the strategy as conceiving and eventually taking actions aimed at achieving certain objectives. The figure below illustrates strategy in general and shows difference between strategy and tactics. Means become available resources while ends are the results deploy. Employing the means entails incorporating them into new business initiative while deploying entails arranging tactics and strategies to achieve goals and objectives. (Nikol, 2013) References: Bainbridge, A JULY 2013. More than 50 percent of Australians shopping online: Roy Morgan research. [Available online] http://www.abc.net.au/news/2013-06-04/more-than-50-per-cent-of-australians-shopping-online/4731590 [accessed on 24th august 2013] Champlain, N (2013). tools for assessing business opportunities. Available online: http://www.huntsman.usu.edu/ecenter/htm/tools-for-assessing-business-opportunities [accessed on 24th august 2013] Hofstrand, D and Holz-Clause, M (2009). New business development, starting a business: feasibility and business plans. Available online at: [accessed on 24th august 2013] Jacoby, R July (2013). Web team management and organization. HowTo.gov [available online] http://www.howto.gov/web-content/governance/organization-and-management [accessed on 24th august 2013] Nikols, F (2013). The three kinds of business strategy. Available online at: http://www.smartdraw.com/articles/blog/three-kinds-of-business-strategy.htm [accessed on 24 August 2013] Read More