The paper “ Tools for Assessing Business Opportunities” is a perfect variant of the case study on e-commerce. Entrepreneurs develop business ideas from the existing opportunities or they can come up with their own ideas. These new ideas must be addressing certain business problems and proving long-lasting solutions to them. The men fashion industry receives below average attention because women have overshadowed them fashion industry. This has resulted in unexploited business opportunities in men’ s fashion. This is a business idea that is developing the concept of an online store for the men fashion industry as an opportunity that entrepreneurs can adapt.
On the other hand, detailed research on this topic reveals the assessment of the business opportunity (Champlain, 2013). This is important since it helps in determining the feasibility of the business opportunity as well as marketing strategies. The paper also considers operational issues as this covers the management of the business premise. Finally, the paper discusses the business model or strategy needed to make it successful. Briefly, the paper talks about a business proposal for men fashion online store. The business concept: problem and solutionIn this concept, the business idea is to open an online store for men fashion store.
The world is shifting to digital means with many businesses thriving online. This business opportunity can thrive in the modern world since it is a new area in international business. Currently, the world is experiencing a different trend in consumer behaviors. In the olden days, the buyers preferred visiting the stores and getting whatever they needed. This has changed with technological advances. Consumers can purchase products in the comfort of their homes.
Therefore, this business opportunity can never fail since online purchasing has been successful especially in companies dealing with electronics. Online marketing is real and fashion industries in other parts of the world are embracing it. Australian fashion industries should not lag behind in this new shift in marketing and business opportunity identification. It is a business opportunity and not just an idea. Tools used to assess a business opportunityThe figure below shows tools that entrepreneurs can use to assess business opportunities. It is suitable for both new and existing businesses. The tool uses four cycles: preparation, partners, performance, and purpose (Champlin, 2013).
In the first stage, it is the initial step where a business opportunity presents itself. Planning for the opportunity follows where a brain trust comes up with available ideas on how to execute great thoughts. The team merges to build a powerful group that works towards achieving set goals. The fifth step is performance forecasting when fewer inputs yield greater outputs. Finally, the team evaluates the purpose of the business. (Champlain, 2013). Feasibility analysisHofstrand and Holz-Clause (2009) define it as the process of analyzing the viability of a business idea.
A detailed study looks at the available resources and the business environment. These factors are considerate since they influence the success of a business opportunity. The business requires IT knowledge since most operations will be computer-oriented. This is a readily available resource since sourcing IT experts is an easy task nowadays. The other obstacle may advertisement and marketing. Marketing and advertisement are possible through social media sites like Twitter and Facebook. Starting a business also needs a startup capital, which the management team will provide since the type of ownership is a partnership.
Industry assessment will entail looking at untapped opportunities like online fashion stores. Market research involves research in the online purchasing power of Australians. Roy Morgan research shows that approximately 50 per of the Australian population purchase online (Bainridge, 2013) Organization and management teamOnline marketing requires trained personnel on information technology and computer literate people. However, computer literacy in the world has short up made it possible for the business to thrive. Therefore, training can never be a challenge in this business venture.
It is important to have an overall manager who oversees the staff under him. The advantage of online marketing is that does not require a large team. There will be a physical store located in one of the street malls. In the retail shop, a storekeeper and deliverymen (around four) can take care of everything. Online purchasing requires service people who are ready to attend to customers. Their task is to answer calls and process emails. The general manager can have an assistant for work efficiency.
The only foreseeable risk is employees’ commitment to the job. The management can overcome it through a good reward system and management policy aimed at employee retention. Nature of the managementThe organization team will strictly be website management in nature. Jacoby (2013) recommends that the clearly defined organization of the web team becomes vital for any digital organization. The management can best achieve it through a “ web governance strategy” (Jacoby 2013). This strategy should have a clear line of responsibility and authority. The overall manager needs to manage both the team and the site.
Communication is crucial and must be regular, whether formal or informal. This type of organization will depend much on the website and the manager must review performance to improve the staff. The manager should not raise problems when performance evaluation is taking place. To improve the team, the top management should realize that improvement is a continuous process. Therefore, it will develop a system that gives regular support to staff and celebrations of achievements will as a team. The business strategyThe basis of business strategy is feasibility because it helps in forecasting how the business will be in the future.
A strategy gives the business a direction. Some scholars refer to it as the plan, policy, or approach and help the organization in achieving its goals. A proper understanding of the context as well as the industry aids in developing a long-lasting strategy. Therefore, a new business needs a good strategy to help it sustain a competitive advantage. There exist two perspectives that entrepreneurs can use to develop a strategy: the market-led view and resource-based view.
In this context, the market-led view is most appropriate since external opportunities are available. For instance, an online store in the fashion industry is still new in the business world giving this type of business venture n advantage over others. Nikols (2013) recommends three business strategies that include strategy in general, competitive strategy, and corporate strategy. General strategy suits this business venture since it concerns the anticipated results and the resources available. This is a new business opportunity that aims at online marketing of men’ s fashion. In this strategy, the term tactics come up.
Nikols (2013) explains the strategy as conceiving and eventually taking actions aimed at achieving certain objectives. The figure below illustrates the strategy in general and shows the difference between strategy and tactics. Means become available resources while ends are the results deploy. Employing the means entails incorporating them into new business initiatives while deploying entails arranging tactics and strategies to achieve goals and objectives.
Bainbridge, A JULY 2013. More than 50 percent of Australians shopping online: Roy Morgan research. [Available online] http://www.abc.net.au/news/2013-06-04/more-than-50-per-cent-of-australians-shopping-online/4731590 [accessed on 24th august 2013]
Champlain, N (2013). tools for assessing business opportunities. Available online:
http://www.huntsman.usu.edu/ecenter/htm/tools-for-assessing-business-opportunities [accessed on 24th august 2013]
Hofstrand, D and Holz-Clause, M (2009). New business development, starting a business: feasibility and business plans. Available online at:
Jacoby, R July (2013). Web team management and organization. HowTo.gov [available online] http://www.howto.gov/web-content/governance/organization-and-management [accessed on 24th august 2013]
Nikols, F (2013). The three kinds of business strategy. Available online at:
http://www.smartdraw.com/articles/blog/three-kinds-of-business-strategy.htm [accessed on 24 August 2013]