Unit 1- Spotting a Business Opportunity

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Mind Map on Unit 1- Spotting a Business Opportunity, created by beatricex on 10/14/2014.

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Unit 1- Spotting a Business Opportunity
1 (1)Introduction to business enterprise
1.1 why?
1.2 who?
1.3 how?
2 (2)Understanding Customer Needs
2.1 Primary/Secondary Research
2.1.1 Primary: any type of research that you collect yourself
2.1.2 Secondary: involves finding out data that already exists (second hand information)
2.2 Qualitative/Quantitative
2.2.1 Qualitative(answers): in depth
2.2.2 Quantitative(answers): short, simple, yes/no
2.2.3 Qualitative(research): in depth conversations among relatively few people, this provides insight that can help a business to make a decision
2.2.4 Quantitative(research): collecting research to specific answers, these involve large quantities of information
3 (3) Customer Demand
3.1 Effective Demand
3.1.1 is customer demand from those customers who can actually buy the product example: a customer may want to buy a sports car but may not be able to afford it. if they can afford it, demand becomes effective demand.
3.2 Factors that impact Demand
3.2.1 • the price of rival/competitor products
3.2.2 • level of advertising
3.2.3 • the price of product-can customers afford it?
3.2.4 • Fashion and tastes of customers
4 (4) Market Mapping
4.1 Gaps in the market
4.1.1 gaps in the market are ways in which a business can find a place to put there product, if there is a gap for a low price but high quality product then there is a possible idea there
4.2 Advantages/Disadvantages
4.2.1 advantages helps spot gaps in the market useful for analysing competitors encourages use of market research
4.2.2 Disadvantages not a guarantee of success just because there's a gap, it doesn't mean it needs to be filled how reliable is the market research?
5 (5)Competition
5.1 Benefits/Drawbacks
5.1.1 Benefits greater choice for consumers prices are kept to a sensible low to achieve sales
5.1.2 Drawbacks can become too focused on short-term events cutting business costs might neglect its social obligations
5.2 Good Reasons to track Competition
5.2.1 identify ways to create an advantage
5.2.2 find out about, and respond to, competitor actions
5.2.3 spot changes in the market so that you will have the advantages
6 (6)Adding Value
6.1 USP: Unique Selling Point
6.2 ways to add value
6.2.1 Branding
6.2.2 excellent customer service
6.2.3 add products features that customers want
6.2.4 operate efficiently
7 (8)Franchise
7.1 a franchise is when a large company i.e. McDonalds allows smaller businesses to use their name
7.2 Franchisor: allows the use of their business name for an agreement, they provide materials, training and advice
7.3 Franchisee: must provide money to start the business and must make regular payments
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