Business Ideas

Question 1

(1.1 Theories and concepts learnt)The Process from an Idea to an Opportunity - Business ideas can be converted into an opportunity through the process of searching information, discussing and integrating the information. Under searching information, Geoff had conducted informal market research to assess the level of competition in New Zealand market and is aware of the prospects of the toys and board games industry across different countries such as New Zealand, Australia and the United States. Under discussing and integrating information, Geoff’s uncle, Trevor, has clarified and refined his idea after consulting his friends who offered useful information that the game was too long and complex. This has led him to making huge modifications to improve the game substantially. Correspondingly, Geoff took several actions to find out if he should go ahead with the idea through seeking evaluations from industry experts such as game experts and toy broker to analyze the game.

Opportunity Identification - There are several factors that contribute to opportunity identification which includes knowledge, social networks and creativity. Firstly, Geoff was able to tap on his prior knowledge of the market and means to serve through his work experience as a sales manager in the confectionary industry. Through his experience, Geoff was aware of the exceptionally high gross profit margins that candiespossesed and the tendency of impulse purchases by consumers. Further, his experience has also allowed him to gain prior knowledge of solutions to the problem of oversaturated candy-selling through the traditional platforms such as supermarkets and convenience stores. This led to the discovery of a business opportunity, The Sweet Shop, which sells candy through nontraditional outlets by linking it to a socially responsible cause and in turn, ensuring sufficient volumes of candies are sold to absorb the cost of the charitable contributions. Similarly, Geoff’s second business opportunity (Zandinger!) was discovered by his uncle, Trevor, who had prior experience of playing board games with his family since young.

Many cases of opportunity identification are drawn from sources of social networks such as through family and friends. With the presence of social networks, entrepreneurs would be able to obtain useful information, receive advice and social support to go ahead with their business opportunity. Take for instance, Geoff was able to identify the opportunity of Zandinger! through close interaction with his uncle who invented the game. Opportunity identification also encompasses creativity in coming up with new ideas or ways of doing things. For the first business opportunity, Geoff was able to think out of the box by becoming the first person to employ the “honesty box” as a business model for distribution. Likewise, Zandinger! allows players to choose their starting letters which add an element