Explain how the following factors affect idea and opportunity assessment.
a. Application and use b. Level of operation c. Competition

Question

Explain how the following factors affect idea and opportunity assessment.

a. Application and use b. Level of operation c. Competition

Accepted Answer

**a. Application and use** — Ideas are examined for their real life use and application. If the product already exists in the market, its present use is studied and it may be modified for better use, keeping in consonance with the upcoming trends.

**b. Level of operation** — This is a crucial test for product or service identification. Depending on the use of the product or service, the entrepreneur will produce it in a cottage industry, a small scale industry or a large scale industry.

**c. Competition** — Any product or service will face market competition at some stage. Competition should therefore be assessed through a study of the trends in demand and supply.