A business opportunity consists of four elements, which are usually present together within the same domain or geographical area before it can be considered a valid opportunity. These four elements are: • A
need (Business opportunities are almost everywhere, as long as the product type is related to some basic and ongoing human need or desire); • The means to fulfill the need (e.g., resources, technology, or expertise); • A method to apply the means (such as strategies, operations, or distribution channels); • A method to benefit (a way to generate value, like profit or impact). If one of these elements is missing, the opportunity can still be developed by identifying and addressing the gap. A desirable characteristic is for the combination of elements to be unique. The more control an institution (or individual) has over the elements, the better they are positioned to exploit the opportunity and become a
niche market leader. Business opportunities do not exist in isolation, but need someone to be able to take advantage of it to call it a real opportunity. The mere existence of a gap in the market or a good ideal product does not count as an opportunity, because they may not be used effectively. The definition of a business opportunity depends on the existence of an entity with the appropriate capabilities and resources to seize and exploit it. When the opportunity first arises, it may only be an ambiguous potential that needs to be fully determined through actual operation and verification. Opportunities for business growth are more likely to emerge in competitive environments. They must be identified and then transformed into value by management. Businesses need to build internal capabilities and establish strong relationships with external stakeholders to take advantage of potential opportunities that might otherwise remain uncoordinated or underutilized. == References ==