Exploring Business Opportunities - Small Business BC

Opportunities: Build onChanging TrendsCater to Discarded MarketsCatering to discarded markets means enteringareas left behind by other companies that:• Have become so large they cannot or donot wish to handle small orders;• Are competing at the leading edge of atechnology and have decided not toservice markets based on oldertechnologies; or• Are expanding into different markets soquickly that they are unable to service allof them properly.Some Examples1. Large airlines that cannot afford to servicesmall communities have left a discardedmarket for smaller commuter carriers topick up.2. Obtaining parts for antique cars, tractors,boats and other equipment is difficult forhobbyists and collectors with interests inthose areas, since the originalmanufacturers often no longer supplythese. Other companies sometimes movein to service these discarded markets.3. A B.C. company developed a web site toprovide customers with out-of-printbooks.4. After a period of time when milk wasavailable only in cardboard containers,some dairies have now returned tosupplying milk in bottles. They areaddressing a discarded market-people whostill prefer bottled milk.How To Do It1. Identify areas of technology into whichmany companies are moving, then analyzethe markets left behind as a result.2. Locate companies that have changed theirproducts or services, then find outwhether some customers will requireservices or products of the previous type.3. Identify products that become obsoletequickly but remain useful for a muchlonger period of time. Look for servicingopportunities that have been dropped oroverlooked by these companies as theycontinually focus on the newest models toarrive in the market.4. Look for industries that have taken a newdirection to appear modern, then analyzethe opportunities created by the moveaway from the previous way of operation.5. Talk with potential customers to find outif they would buy the product or serviceyou are considering.Key Questions• What industries or companies have recentlymade major changes as a result of newtechnology, products or approaches to business?• Which of these changes may have resulted inprevious markets being discarded or left behind?• What other discarded markets do I know of?• How many potential customers have indicatedthere is still a need for the discarded services orproducts I have in mind?36solutions for small business exploring business opportunities