The window of opportunity

1
CHAPTER 4

• The window of opportunity

B. Nhlengethwa
2
LEARNING OUTCOMES

• Differentiate between an idea and an opportunity
• Understand why large organisations leave gaps in
  the market
• Define and understand the concept of a window of
  opportunity
• Identify and differentiate between the five
  stages of a window of opportunity

3
LEARNING OUTCOMES

• Understand the issues pertaining to the different
  stages of opportunity evaluation
• Identify the facets of idea generation
• Identify and understand the criteria used to
  evaluate an opportunity
• Understand the integrated approach to opportunity
  evaluation

4
IDEAS VS OPPORTUNITIES

• Opportunity is a gap left in the market by those
  who currently serve it
• Idea must be
• Attractive
• Durable
• Timely
• Create or add value
• Anchored in product or service to become an
  opportunity

5
THE GENERATION OF IDEAS
6
CRITERIA TO SCREEN OPPORTUNITIES

• Industry and market issues
• Economics
• Harvest issues
• Management team
• Fatal flaw issues
• Personal criteria
• Strategic differentiation

7
INDUSTRY MARKET ISSUES

•    Market structure
•    Market size
•    Market capacity
•    Market share
•    Cost structure

8
FATAL FLAW ISSUES

• Markets that are too small
• Markets with overwhelming competition
• Markets where the cost of entry is too high
• Markets where entrants are unable to produce a
  sustainable competitive advantage

9
WHY BIG BUSINESSES LEAVE GAPS IN THE MARKET

• Failure to see new opportunities
• Underestimation of new opportunities
• Technological inertia
• Cultural inertia
• Politics and internal fighting
• Government intervention to support new and
  (smaller) entrants

10
WINDOW OF OPPORTUNITY
11
HOLISTIC VIEW OF THE WINDOW OF OPPORTUNITY
12
HOLISTIC VIEW OF THE WINDOW OF OPPORTUNITY

• Seeing the window
• Locating the window
• Measuring the window
• Opening the window
• Closing the window

13
BASES OF COMPETITIVE ADVANTAGE