BUSINESS OPPORTUNITIES IN VARIOUS

SECTORS
 Tourism: Largest smokeless and fast growing industry in the world.
8% of world’s trade and 20% service sector in the world. More than
70% of national income for countries like Malaysia and Singapore,
India has only 0.40% of world’s tourismmarket. Demand is growing
at 10.1% per annum.

 Automobile: Second fastest growing automobile market after China.

26% growth in domestic sales in 2009-2010. India is one of the
world’s largest manufacturers of small cars
 Textiles: Style of apparel is unique from state to state, offering a
diversified market
 Social Ventures: SEWA And Lizzat Pappad – Social
entrepreneurship – Plunging into social ventures is useful and
challenging
 Software: More overseas companies outsourcing contracts to
India – Large pool of software engineers – innovative and cost
effective business solutions
 Engineering goods: India is fastest growing exporter of
engineering goods – growing @ 31% - Target of $110 billion by
2014
 Franchising: More opportunities in sectors like education and
health
 Education and training: Demand for education and online
tutorials in the country – needs based education programs with
innovative teaching methods can help in a big way to make
education flourish
 Food Processing: Include cannery, meat packing plant, sugar
industry, vegetable pacing plants etc. – Explore different options
in foodgrain cultivation – Lot of scope for agri-businesses – level
of processing of perishable foods is very low – milk products
(35%), meat (21%), poultry (6%), fruits and vegetables (2.2%).
 Corporate demands: Demand for formal attire – corporate gifting is
catching up
 Ayurveda and traditional medicine – India is well known for herbal
and ayurvedic products – demand for cosmetics, remedies and natural
medicines
 Organic farming: Increasing number of consumers prefer organic
products
 Media: Opportunities for young entrepreneurs – Television,
advertising, print and digital media have seen a boom in recent times
 Packaging: China is invading the market with cheap plastic goods,
opportunities to develop good packaging materials to meet the
domestic and foreign demand
 Floriculture: Global trade in fresh flowers is $9.4 billion – India’s
share is only 0.18% - huge untapped market
 Toys: Potential to manufacture cost-effective and safe toys for the
world – Chinese toys having toxins in them
 Healthcare sector: Medical tourism is gaining momentum –
attract foreigners looking for cost effective treatments in India
 Biotechnology: Opportunities for application of biotechnology in
horticulture, sericulture, poultry, diary and production of fruits
and vegetables
 Energy solutions: Huge demand for low cost sustainable energy
saving devices – opportunities in solar valleys for performing
solar research
 Recycling business: E-waste management and disposal has
opportunities – Computer waste in India is expected to grow
500% from 2007 levels to 2020.
 IDENTIFICATION OF BUSINESS OPPORTUNITY
IDEA GENERATION
1. Knowledge of potential customer needs
2. Watching emerging trends in demands for certain products
3. Scope for producing substitute product
4. Going through certain professional magazines catering to specific
interests like electronics etc
5. Success stories of known entrepreneurs or friends or relatives
6. Making visits to trade fairs and exhibitions displaying new products and
services
7. Meeting with government agencies
8. Ideas given by knowledgeable persons
9. Knowledge about government policies, concessions and incentives, list
of items reserved for exclusive manufacturing in the small scale sector
10. A new product introduced by competitor
11. One’s market insights through observation
 Consumers: Consumers wants in terms of preferences, tastes and
like keep on changing – can be known through feedback about the
products and services they have been using and would want to use in
the future
 Existing products and services: Monitor existing products and
services and make a competitive analysis of them to identify
shortcomings and then decide how a better product or service can be
offered
 Distribution channels: AKA market intermediaries – Channel
members such as wholesalers and retailers can provide ideas for new
product development and modifications in the existing product
 Government: Govt. issues regulations from time to time – can be a
source of new ideas for ex. Govt. rules on polythene bags gave an
idea of manufacturing jute bags for marketing convenience of sellers
and buyers can also get enterprise idea from publication of patents
available for license or sale

 R&D: Can be carried out in house or outside the organization – this

activity suggests what and how a new or modified product can be
produced to meet the customer’s requirements
 METHODS OF GENERATING NEW IDEAS
 Focus Groups: consists of 6-12 members belonging to various socio-
economic backgrounds are formed to focus on one particular matter –
facilitated by a moderator to have an open in-depth discussion
 Brainstorming: using the brain to storm the issue/problem
 Generate as many ideas as possible
 Be creative, freewheeling and imaginative
 Build upon piggyback, extend or combine earlier ideas
 Withold criticism of others ideas
Principles that underlie brainstorming – differed judgment and quantity
breeds quality

 Problem Inventory Analysis: Similar to focus group method – not only

generates ideas but also identifies the problem the product faces –
relatively more effective because it is easier to relate known products
to a set of suggested problems and then arrive at a new product idea
 ILLUSTRATIVE SOURCES OF
GENERATION OF BUSINESS IDEAS
 Provide milk in tetra packs or sachets for service people who find it
inconvenient to take milk pots
 Having faced difficulty in finding accommodation and transport facility
while one visits a new tourist place might give one an idea to start a
travel agency providing a complete package of facilities to visitors
 Knowing that people have a hobby or develop passion for gardening may
give rise to the idea of setting up a nursery
 Seeing that people coming from outside to a particular place to buy
unique items as souvenir may give an idea to produce a local item as
souvenir
 Recognizing the increasing application of computers in offices may give
one an idea to set up a computer training center

Next step is opportunity/product identification