Term
| Distinguish among the different types of start-up ideas |
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Definition
*A-New market ideas-centred on providing customers with an existing product or service that is not available in the market. E.g()
*B-New technology ideas- involving new or relatively new technology centered on providing customers with new product or services
*C-New benefit idea-Centred on providing customers with new or improved products or services
*Pivot-Refocus or recreate if the initial concept turns out to be flawed. |
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Term
| Distinguish among the sources of startup ideas |
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Definition
*Prior work experience
*Personal interest/hobby
*Chance happening
*Education |
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Term
| Innovative thinking to generate business ideas |
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Definition
*Borrow ideas from existing products and services.
*Combine two businesses into one to create a market opening.
*Think of how to streamline a customer's activities
*Study a product or service and try making it green |
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Term
| Describe external and internal analysis that can shape the selection of venture opportunities |
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Definition
SWOT Analysis-Strengths, Weaknesses and threats. Helps identify opportunities that match the venture
External-Opportunities and threats
*New technologies and slowed market growth
Internal-Strengths and weaknesses
*Financial strength and poor planned strategy |
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Term
| Explain the Broad-based strategy options and Focus strategies |
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Definition
*Broad based Strategy options:
-Differentiation based strategy
-Cost based strategy
-Focus Strategy
*Focus strategies:
-Focus to a single subset of customers and emphasizing a single product or service.
-Advantage -Focus allows development of unique expertise.
-Disadvantage-Competitors successfully imitate the strategy |
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Term
| Describe the factors in screening of new business ideas |
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Definition
*Strength of business idea- must meet market need.
*Industry and competitive advantage-Few or no competitors
*Capacity of founders-must have industry related experience
*Targeted market and customers-sizeable market that is easy to identify |
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Term
| Major factors offsetting Market attractiveness and profitability |
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Definition
*Threats of new competitors
*Threats of substitute product or service
*Intensity of rivalry |
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