A3 Idea

1
A3 Idea

• In relation to the market

2
A3 Ideas (in relation to market)

• Aim
• To understand the potential market opportunity
  any given business idea may present
• Learning Outcome
• To analyse the origins of existing and new
  business ideas
• to appreciate the need to manage true innovations
  in the market place
• to understand how the market supports the
  creation of new business ideas.

3
The Market

• Facilitates exchange
• Collects and integrates information
• Your customers
• Your competitors
• Substitutes to your product / service

4
Idea Generation

• INTERNAL (SWOT resources)
• ENVIRONMENT (PEST)
• IN RELATION TO THE MARKET

5
Approaches

• Marketing perspective - customer focus
• Resource perspective - existing strengths
  resources
• Environmental perspective understanding and
  translation of ideas
• True innovations (new technological advances)

6
Customer Focus

• Give them what they want
• Have you searched for a product that doesn't
  exist? Isnt available locally or at the right
  price? Do you her other people complaining that
  they cant get the product/service they want?
• Give people what they want and youve maybe
  started a profitable business.

7
How to recognise an opportunity

• ANALYSE THE CURRENT MARKET
• What service could be improved?
• What improvements can be made which may deliver
  reduced costs to customers?
• Easyjet
• Daewoo cars
• Virgin Trains / Coke

8
Internal / me too

• I could do that!
• What are you good at? What are your talents,
  skills knowledge?
• What about an existing business that you could
  buy or franchise? e.g. the Dominoes Pizza
  millionaires.
• Could you take someone elses idea and do it
  better?

9
How to recognise an opportunity

• New markets innovations in market
• Coffee shops for a nation of tea drinkers!
• Big Issue newspaper
• What ideas have you seen in other
  cities/countries that could be imported to UK?

10
Translation to new markets

• Get in there first.
• Keep your eyes open, home and overseas for a
  potential business opportunity e.g. in Germany
  beer bottles are re-filled but in the UK they are
  lucky to be re-cycled.
• Use your imagination to solve problems, then work
  out if you can persuade others to pay for that
  service or product.

11
True Innovation

• The purpose of a business is to create a
  customer (Peter Drucker)
• Walkman
• What are the demands placed upon a company that
  makes a true innovation?