Introduction
In the assignment, the identified business opportunity is running a Chatbot which is a computer program with real conversations where chat interfaces enable conversation with users. This is a program with unique personalities with abilities to comprehend written, spoken, and text information interpret the meaning, and deliver it to the user(Barr& Weiss, 2012). The opportunity targets online businesses in Dubai that have always desired to have a platform that can eliminate human constraints by real-time solving of customer queries and concerns to ensure consumer loyalty and enhance brand establishment
Lesson learned from the assignment on how to exploit the identified business opportunity.
Based on the assignment, exploiting a business opportunity starts with the identification of a new business opportunity. In this case, the identified business opportunity was starting a chatbot to eliminate human limitations and enhance customer service in online businesses. This business opportunity was identified through the application of prior knowledge in online marketing, creativity, and cognitive mechanisms. Having acquired business and technical competencies in engineering and having seen the potential in the idea, I was motivated to study the chatbot market and mobilized resources to implement the business idea. Through creativity, I met the opportunity. This is in line with existing literature that the Creativity-Based Model of Opportunity is important in the recognition of business opportunities.
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The assignment has also enhanced my understanding that after opportunity identification, the next step is to exploit it. This step starts with determining the viability of the opportunity to know if it is worth pursuit. In this case, the determination of the viability of the chatbot as a business opportunity entailed carrying out a market scan to determine the availability and willingness of target markets to impress it. After determining the viability, the next step is real exploitation which can take different approaches (Lumpkin & Katz, 2007). These approaches include making use of the new Chatbot technology or adapting the existing ones for my target market. This also entails using consumer insights to update the opportunity as a way of improving services. This is then followed by extending the customer base attracting new business prospects and later increasing customer loyalty.
From the assignment, I also came to learn that exploiting a business opportunity (chatbot) demands the creation of a unique competitive strategy. This starts with monitoring competitors in the market and identifying areas that they do not focus on. This also entails understanding the type of customers they service since they are potential customers for the business. In monitoring competitors as a step of opportunity exploitation, I also came to learn that examining competitor service range/substitutes, checking out their marketing, and investigating their pricing is critical. As evident from the assignment, this is important because understanding the inadequacies of the competitor is strategic in creating a market opportunity for the service. Besides, I also came to learn that exploiting Chatbot's business opportunity demands anticipation of a market need. In this case, businesses have always wanted to eliminate human limitations in communicating with customers and prospects. Besides, existing mediums like email, live-chart and calling have limitations. Anticipating marketing needs is important in making rightful investment decisions.
Through the assignment, I also came to learn that exploiting chatbot business opportunities or any business opportunity needs exploration of new markets. This step involves looking beyond the sector and its established markets to open up new opportunities. In particular, this opportunity exploitation step entails using market research and reports to analyze the opportunities and differentiate the business sales channels to reach target customers. Based on the assignment, it was evident that Chatbots are mostly used by communication apps for purposes of communication. On the other hand, many online businesses have yet to incorporate it into their communication.
As learned from the assignment, exploitation of a business opportunity entails considering working with partnerships. This can include partner entrepreneurs and experts(Global Sourcing Workshop, Kotlarsky, Willcocks & Oshri, 2011). In this case, working with entities with complimentary services helps to understand the market and the operation of the business. In addition, a lot can be gotten from the project team that would help in the exploitation of the business opportunity. This is particularly in terms of knowledge and expertise such as marketing partners to help in reaching target markets and convert them to customers; financial management partners to help in the management of capital expenses as well as profits; Website backend management partners to help in the initial management of chatbot backend operations and Customer service partner to assist in answering potential customers’ queries on the new services in the market.
It also became evident that exploitation of a business opportunity needs sourcing of both human and financial resources. Human resources include knowledge and expertise from the project teams while financial resources are the money incurred to make the opportunity to generate profits (Blundel & Lockett, 2018). These resources can be internal and or external sources. As such, financial resources and expertise are key factors that enable business opportunity exploitation. Finally, opportunity exploitation needs strong marketing and the developing of revenue streams. In this respect, an opportunity must be marketed to the market in a strategic way that attracts buying. Based on the assignment, premium pricing stood as an important way of reflecting the quality of service to be offered to customers by the business.
How does exploiting an identified opportunity compare with recommendations /practices as proposed in academic literature
The exploitation of the identified business opportunity agrees with the existing literature that a significant demand for particular services always presents a market need (Global Sourcing Workshop, Kotlarsky, Willcocks & Oshri, 2011). The chatbot business opportunity is informed by the fact that there is a high demand for solutions that reduce human limitations in business combinations. Business opportunities are characterized by the potential to perform within a particle period to cover the capital used (Khanna, Palepu & Bullock, 2010). As such, instant solving of queries and customer concerns to ensure consumer loyalty along with the brand establishment in Dubai was the first step of exploitation which is identifying a significant demand.
Exploiting the identified business opportunity is also based on the existing literature that exploitation must focus on looking for opportunities in the market. Establishing a market niche for the business is important in enhancing competitiveness and increasing the market share (Lee, 2016). Turning a business idea into an operational venture is also a bold step that demands both human and financial capital. This is an aspect that stands out in the exploitation of Chatbot business ideas where human resources, as well as financial capital, are key requirements.
Exploiting a business opportunity must also be guided by a competitor analysis. This step is important for startup businesses because it helps them to understand the market dynamics. Competitor analysis is critical in developing competitive strategies and offering something above the competitors to the customers. This is strategic in developing revenue streams, brand loyalty, and hence profitability (Cowan, 2012).
In conclusion, I have come to learn that discovering a business opportunity alone does not create any value for an entrepreneur. As such, achieving benefits demands an entrepreneur to make decisions to exploit the opportunities and take a bold step to exploit them. The exploitation practices include market analysis, resource mobilization, developing competitive strategies, and creating revenue streams. According to the existing literature, this step always makes the recognition as well as exploitation of opportunities unique, through consecutive steps in business pursuit. This exploitation process always turns the opportunity into a running venture.
References
- Barr, C., & Weiss, A. (2012). Million-dollar web presence: Leverage the web to build your brand and transform your business. New York: Entrepreneur Press.
- Cowan, A. (2012). Starting a tech business: A practical guide for anyone creating or designing applications or software. Hoboken, N. J: Wiley.
- In Lee, I. (2016). Encyclopedia of e-commerce development, implementation, and management.
- Khanna, T., Palepu, K. G., & Bullock, R. J. (2010). Winning in emerging markets: A road map for strategy and execution. Boston, Mass: Harvard Business Press.
- Blundel, R., & Lockett, N. (2018). Exploring entrepreneurship.
- Lumpkin, G. T., & Katz, J. A. (2007). Entrepreneurial strategic processes. Amsterdam: Elsevier JAI.
- Global Sourcing Workshop, Kotlarsky, J., Willcocks, L., & Oshri, I. (2011). New studies in global IT and business service outsourcing: 5th Global Sourcing Workshop 2011, Courchevel, France, March 14-17, 2011: revised selected papers. Heidelberg: Springer-Verlag GmbH Berlin Heidelberg.
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