Idea Screening

Olivier and Florès (2007) identify idea screening as, highlighting the ideas with the most potential. Showing the importance to understand the process of which, ideas should be chosen. Therefore, through the use of a feasibility analysis, an idea can be determined whether it’s viable or not, as suggested by Barringer and Ireland (2012, pp. 105). Figure 1 shows, there are 4 key areas for an idea to pass the criteria:

·      Product/Service feasibility- ensuring there is a demand/need within the market place.     

·      Industry/Target Market feasibility- researching companies producing similar product/services to understand competitors and identify the limited proportions of consumers.

·      Organisational feasibility- whether sufficient resources are available to launch the start up business.

·      Financial feasibility- comparing the cost to the attractiveness of the opportunity.

Figure 1.

Failure to do so can result in inherited risks associated to start up businesses. For example Visa launched a cash card in Hong Kong, 1997, a differentiation to the Octopus card currently in use, similar to the oyster card within London. However Visa, failed to assess its competitors and the needs of its consumers, wanting an easy system to save time, whilst using travel networks. Failing to adopt the scan and use system, allowing its competitor Octopus to dominate the market, with 95% of people aged 16 to 65 in Hong Kong use it (Barringer and Ireland, 2012, pp. 106). Therefore, it is vital for all ideas to be screened before a business can be developed.             

    

Which is why, I am using a decision matrix as seen in figure 2, to assess which idea is best suited to develop further.

Figure 2.

Therefore with considerations to figure 2, I have decided to develop the idea of Tri Extreme. The reason being, the sports can be rotated into different variations to optimise a greater target audience, which can be linked towards increased profits margins and there are no ethical issues, unlike the Steroid Olympics. Which could have mass implications towards increasing drug use within society, a characteristic most sports frown upon and campaign to ban, in order to sustain the values of sport such as, fair play and respect for others. Although, Tri Extreme was not ranked number 1 for safety for participates, due to the inherited risks associated with extreme sports. The long-term effects of drugs, out way the Steroid Olympics potential for entertainment and profit, as the health and safety of participates are paramount. The idea of Elite athlete was considered, due to its high scoring within figure 2, however the BBC show of Superstars was a success in the 1980’s but has since been discontinued. Suggesting that the demand and need for a show/sport of that magnitude no longer exists, therefore with no business/profit potential, the idea would fail.             

References

Barringer, B. Ireland, R. (2012) Entrepreneurship: successfully launching new ventures. 4^th edn. London: Perason.

Toubia, O. Florès, L. (2007) “Adaptive Idea Screening Using Consumers”, Marketing Science, 26(3), pp. 342-360