Quiz Week 4

Question 6

Discuss common pitfalls that entrepreneurs experience in selecting which ideas to develop into new ventures. Please respond in one paragraph.

Answer for Question 6

Successful entrepreneurs introduce a product or service that satisfies customer needs in a better way than competitors, and at a price that is greater than the cost of creating and delivering that product or service. To understand how to fulfill customer needs at an attractive price, four areas are critical to assess: macroeconomic changes, industry conditions, industry status, and competition. As a first step to exploring new venture ideas, search for sources of pain or aggravation for customers, as these are prime opportunities for new products. The best clue that a new product or service is needed, are customer complaints about existing products and services.

Question 7

Discuss four types of macro changes that increase new venture opportunities. Please respond in one to two paragraphs.

Answer for Question 7

Types of changes that increase new venture opportunities includes changes in technology, changes in social and demographic factors, changes in political and regulatory rules. Technical change is one of the most important triggers of change, because new technology allows for the expansion of new innovations. The magnitude of technical change is important. Significant change can create entirely new markets. The larger the technical change, the greater the opportunity for new businesses to be created. Societal change opens up opportunities for new businesses by altering people’s preferences and creating demand for things where demand had not existed before.

Demographic changes can create a host of entrepreneurial opportunities. Each trend offers new opportunities for products and services to serve these customers. Political changes can introduce opportunities or challenges for entrepreneurial ventures. It is valuable to consider how local, state, or national government decisions may change policies. These can challenge existing companies, and open new opportunities for new companies. This type of change creates opportunities because it is productivity enhancing. In other cases, changes generated are not productive, but merely shifts value from one set of economic factors to another.

Question 8

What questions should you consider in determining how to produce the product for your venture? Please write three questions.

Answer for Question 8

What is the best way to assess customer needs?

Why does my product fit customer needs better than those of current and future competitors?

What price should I charge?

Question 9

What demographic and psychographic changes are creating new market needs in business areas that interest you? Please respond in one paragraph.

Answer for Question 9

Demographic changes can create a host of entrepreneurial opportunities. Each trend offers new opportunities for products and services to serve these customers. Some that interest me are assisted living centers for the elderly, foreign language radio, and organic food stores. While psychographic change examines shifts in attitudes, values, opinions, interests, and related personal factors of markets. These are contrasted with demographic variables in that psychographics involve how people think and feel.

Question 10

What technical advancements, political changes, and/or regulatory changes are creating new market opportunities in business areas that interest you? Please respond in one paragraph.

Technical changes are one of the most important triggers of change, because new technology allows for the expansion of new innovations. For example, invention of portable cassette players leads to portable compact discs players which leads to the development of portable MP3 players and then leads to the capability to play songs on mobile phones. Political changes can introduce opportunities or challenges for entrepreneurial ventures. It is valuable to consider how local, state, or national government decisions may change policies. These can challenge existing companies, and open new opportunities for new companies. I am being aware of the political shifts that will influence business policy, taxation, corporate social responsibility, environmental issues, or consumer protection with my venture.  Governmental regulations affect entrepreneurial ventures in a variety of ways. Managerial regulations govern what the owners and operators of companies can and cannot do. Technology regulations influence standards, interoperability, safety, and a host of related areas. Price regulations often dictate pricing strategies that support fair competition, which along with competitive regulations, are designed to protect consumer interests.