Chapter NO.
5
Identifying and Analyzing
Domestic and International
Opportunities
Opportunity Assessment
Plan
Opportunity Assessment Plan – Four Sections – Two
major two minor sections
• First major section
o Develop the product/service idea
o Analyze the competitive products and companies
o Identifies the uniqueness of the idea in term of its unique selling
propositions
• Second major section
o Focuses on market size
o Market trends
o Market characteristics
o Market growth rate
• Third section – minor
o Focuses on entrepreneur and the management team in terms of their
• Background
• Education
• Skills
• Experience
• Last section – minor
o Develops a time line indicating
• What steps need to be taken to successfully launch he venture
• Translate the idea into a viable business entity
Foreign Market
Selection
Five-step approach
• Step 1 – Develop appropriate indicators
• Step 2 – Collect data and convert into comparable
indicators
• Step 3 – Establish an appropriate weight for each
indicator
• Step 4 – Analyze the data
• Step 5 – Select the appropriate market from the
market rankings
Entrepreneurial Entry
Strategies
• Exporting – Sale and shipping of products manufactured in one
country to a customer located in another country
o Indirect Exporting – Involves having a foreign purchaser in the local
market or using an export management firm
o Direct Exporting – Involves the use of independent distributors or the
company’s own overseas sales office in conducting international
business
• Nonequity Arrangements – A method by which an
entrepreneur can enter a market and obtain sales and profits without direct
equity investment in the foreign market
o Licensing – Involves giving a foreign manufacture, the right to use a
patent, technology, production process or product in return for the
payment of a royalty
o Turn-Key Projects – A foreign entrepreneur supplies the
manufacturing technology or infrastructure for a business and then
turns it over to local owners
o Management Contracts – An entrepreneur contracts his or her
management techniques and skills to a foreign purchasing company
• Direct Foreign Investment
o Minority Interest – Entrepreneur holds a minority ownership
position in the foreign venture
o Joint Venture – Joining of two firms in order to form a third
company in which the equity is shared
o Majority Interest – Purchase of over 50 percent of the equity
in a foreign business
o Mergers – Obtain 100 percent ownership to ensure complete
control
• Entrepreneurial Partnering – To partner with
an entrepreneur in foreign country
