An Opportunity Analysis Project

In addition to creating a whole new product, creating a business opportunity comprises combining two or more items to provide a single good that fulfills several needs. Successful businesspeople who are motivated by the convenience of a product and changing lifestyles have widely embraced this idea. We developed S-soap, a novel product that combines the capabilities of soap and shaving cream, based on this idea. Shaving cream and soap have traditionally been used as two distinct items with different purposes. However, given their relatedness, more so concerning the time they are being used, it would be appropriate to have one product that provides both the function of soap and a shaving cream. This idea comes from the fact that people spend much time shaving and bathing when they can do both things concurrently.
The new product will solve many problems that current consumers experience. First, shaving and bathing are two different activities that consume considerable time when done separately using various products. In other words, people spend substantial time shaving and bathing to the extent that it can cut into their work or school schedule if there is no proper time management. Besides, purchasing a shaving cream and a bathing soap as two different products has implication on the individual financial budget, something that any person would want to avoid if given an opportunity. Therefore, the targeted consumer is a person who spends considerable time shaving and bathing using two different products but would instead use one product for convenience purposes and as a way of saving time. Also, the target consumers consist of individuals who want to cut their grooming costs while reducing instances of allergic reactions caused by shaving and bathing products. The fact that the product serves two purposes and saves on cost and time makes it compelling. It is also the reason that consumers will pay for the new offering.
Opportunity Evaluation
Venturing into a new line of business involves high-risk. Therefore, there is a need to conduct opportunity analysis to ascertain the level of attractiveness (Winston, Stevens, Sherwood, & Dunn, 2013). The process involves typically examining whether the opportunity is timely, profitable, solvable, significant to the customer and if it fits the current business context. For instance, the timeliness of an opportunity is determined by the extent in which it solves the current need or problem. The recent upsurge in the cost of living has created the demand for products that reduce the cost of consumption. Also, the increasing trend of attending college and working at the same time to make ends meet has made time an essential necessity if one is to achieve both objectives. Coming up with a product that can act both, as a soap and shaving cream is an idea that can solve both the problem of cost and limited time. Hence, it is considered a timely opportunity. Moreover, more consumers are moving towards eco-friendly products, and, therefore, would want products that limit the use of material that degrade the environment such as cream cans. S-soap aims to solve this problem by eradicating the use of shaving cream cans. Primarily, the demand for a soap and shaving cream corresponds closely to the changes in their prices. Combining the functions of both products will relatively reduce the cost incurred in purchasing the two items separately. Therefore, consumers are more likely to pay for the new product and allow the venture to grow.
Furthermore, the components that can be used in combining the functions of a soap and shaving cream, such as raw materials are readily accessible, more so given the fact that both are existing products. Therefore, it makes the problem solvable. Besides, the required human resource and technology can be acquired efficiently. This opportunity is also considered attractive because of the extent to which the targeted consumer deems the problem important. As discussed above, time constraint and increasing cost of living are current problems that could determine the wellbeing of an individual. Hence the consumer deems them vital to daily growth. Finally, the fact that the product will perform existing functions makes it fit into the present business context. For instance, the immense success of many soap and shaving cream manufacturers is an indication that the current business environment is favorable.
Market Analysis
Market analysis is an integral part of any business plan (Winston et al., 2013). In most cases, market analysis tends to look at the size of the marketplace, various consumer segments, and consumer perception. Our clients, in this case, comprises of everyone who uses shaving cream and bathing soap as separate products. Regarding size, it is a relatively large market considering that nearly all people use bathing soap almost every day and that most people from the age of sixteen require shaving cream. About customer segment, the product is expected to appeal specific individuals based on geographic, demographic, and psychographic variables as indicated in the table below.
Table 1: Market Segmentation
Variable Customer Characteristics
Geographic S-soap is an urban body care product
It will be used in all regions across the globe, but mostly in urban areas
Demographic Both male and female consumers from the age of 16 and above
Lower-middle-income to upper-class individuals
Consumers will comprise mainly of students, employed persons (from low-rank workers to top executives)

Psychographic Individuals who want to maintain an attractive look and feel good by using the product.
A consumer who would like to have an enjoyable shaving and bathing time at the same time.

The product will be marketed on the basis that a single product that performs two functions is superior to two product that serves the same purpose. It is due to this reason that consumers will perceive the product as a better solution when compared to existing offerings.
Customer Development
After conducting an interview with ten people about the product, it is evident that we are going to have customers for our product. Most individuals that were interviewed showed willingness and interest in using a product that can act as a shaving cream and soap and at the same time providing additional benefits. However, some areas still need to be improved given that some interviewees expressed skin sensitivity and affordability concerns. For instance, addition consultation with skin experts will be required to limit cases of skin reactions. Also, production cost reduction is crucial in ensuring that the targeted market can afford the product in a bid to realize competitiveness. An analysis of the feedback also revealed that people are currently using soap and shaving cream as two separate products. Most potential consumers also indicated that they were willing to pay between $10 and $15 for the new product, which is the average price of most bathing soaps currently in the market. Finally, based on the response we received from the interviewees, we are going to reach customers online and through physical stores such as supermarkets and other agents.
Competition and Positioning
Competition
S-soap will be competing against top brands in the market such as Unilever, P&G, and Beiersdorf that produces various kinds of shaving creams and soaps, though as separate products. The competitors have some of the most influential brands in the consumer commodities industry. The strength enables them to infiltrate marketplaces efficiently compared to other companies. Also, these competitors have broad product mix, enjoys economies of scale, and have a strong global presence. The abilities enable them to achieve sustainable growth and competitive advantage. However, their significant weaknesses lie in the fact that they have imitable products, limited business diversification, and are dependent on retailers.
Barriers to Entry
Apart from competition, some other factors could prevent S-soap from entering the market. For instance, economies of scale, financial requirements, product differentiation, access to supply chain networks, and government regulations are some of the aspects that are likely to limit S-soap's ability to enter the market (Geroski & Jacquemin, 2013). S-soap might be disadvantaged when it comes to cost because it will be difficult to come in as large scale given the huge initial financial requirements. Besides, the product might be different, but the benefits must be communicated to potential consumers. Also, in a situation where existing companies decide to lock up distribution channels, and the government tightens its regulations through trade policies, it can create a barrier for S-soap to enter the market successfully (Geroski & Jacquemin, 2013).
Overcoming competition from such big enterprises and the above barriers is crucial in ensuring successful entry, survival, and competitiveness of S-soap. One way of establishing competitive advantage is by forming a partnership and through strategic alliances with established manufacturers (Russo & Cesarani, 2017). For instance, strategic alliances and collaboration can help S-soap to reduce the sum of transaction and production costs as well as provide opportunity through which the company can access unviable resources such as distribution channels, and industry knowledge (Russo & Cesarani, 2017). A strategic partnership can also help S-soap meet the initial monetary requirement by accessing financial resources of the partner firm. Finally, effective positioning is also crucial when it comes to overcoming some the challenges that the new product might face.
Positioning Statement
For men and women aged above 16 years who need skin-friendly and naturally healthy skin and hair removal products, S-Soap is a multipurpose soap essential for bathing and shaving. Unlike convention soaps and shaving products, S-soap is selected from nature to provide safe and effective skin benefits. It also ensures cost and time efficiency and guarantees less ecological impact.








Figure 1: S-Soap Positioning Map
Differentiation
The central aspect that differentiates S-Soap is that it is a multipurpose product. Unlike competitors' products, S-Soap can be used for bathing and shaving purposes.
Some of the Risks That the Startup May Face
The startup is vulnerable to certain types of risks that could have a significant impact on the success of the ides. For instance, the technological risk could result from human error, data theft, infringement of intellectual property or protected health information. Also, as business owners, we are vulnerable to market risk in case we experience losses due to changes in the market (Belas, Machacek, Bartos, Hlawiczka, & Hudakova, 2014). For instance, the industry trends can move away from the proposed product making it difficult to gain momentum. The business is also susceptible to financial risk. Sufficient funding is necessary to meet the business expenses. However, in a case where we will not be able to secure enough financing, the owners might be forced to turn to private funding, thereby exposing us to financial risk in case the business fails (Belas et al., 2014). Finally, the startup also faces specific uncertainties, more so when it comes to the market, regulations, and product. For instance, there is a likelihood that regulations might change and there could be a shift in market trends and product preferences, thereby affecting the progress of the idea.
Learning and Adaptation
The opportunity analysis project has made me appreciate the importance of customer development to the introduction of new products in the market. I have learned that it is vital to gain the prospective consumers' opinion of the new product if an entrepreneur is to realize success with his or her product idea. Also, I deem that the process has helped me identify the viability of my new product, S-Soap. The business idea is a real opportunity. Currently, there is a gap in the market as regards the eco-friendliness, time and cost efficiency and the extent to which existing soap and shaving products are suitable for people with sensitive skin. Considering that the S-soap will be marketed at relatively lower prices than competitor products and it is manufactured from natural ingredients, I deem that it will fill the gap in the market.
References
Belas, J., Machacek, J., Bartos, P., Hlawiczka, R., & Hudakova, M. (2014). Business risks and the level of entrepreneurial optimism among SME in the Czech and Slovak Republic. Journal of Competitiveness, 6(2), 30-41. doi:10.7441/joc.2014.02.03
Geroski, P. G., & Jacquemin, A. (2013). Barriers to entry and strategic competition. UK: Taylor & Francis.
Russo, M., & Cesarani, M. (2017). Strategic alliance success factors: A literature review on alliance lifecycle. International Journal of Business Administration, 8(3), 1. doi:10.5430/ijba.v8n3p1
Winston, W., Stevens, R. E., Sherwood, P. K., & Dunn, J. P. (2013). Market analysis: Assessing your business opportunities. Abingdon: Routledge.

Deadline is approaching?

Wait no more. Let us write you an essay from scratch

Receive Paper In 3 Hours
Calculate the Price
275 words
First order 15%
Total Price:
$38.07 $38.07
Calculating ellipsis
Hire an expert
This discount is valid only for orders of new customer and with the total more than 25$
This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Find Out the Cost of Your Paper

Get Price