Opportunity Analysis for Shoes With Soul

In this activity, you'll consider the mini$-$case that describes two college friends who began an entrepreneurial venture after working in companies to gain business experience. You'll match ideas from the case that support the entrepreneurs' decision to move ahead with their entrepreneurial venture.

After identifying a business opportunity, the first formal planning step is to do an opportunity analysis. An opportunity analysis includes a description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur $($you$),$ a specification of activities and resources needed to translate your idea into a viable business, and a source $($or sources$)$ of capital. The opportunity analysis, or opportunity assessment plan, focuses on the opportunity, not the entire venture. It provides the basis for making a decision on whether to act. Then, the business plan describes all the elements involved in starting the new venture.

Read the mini$-$case below and complete the activity as instructed.

Renee Albertelli and Richard Rodriguez shared a dream ever since they met in college: to start their own business. Both took business and marketing courses and began their careers in established businesses so that they could gain experience about what it takes to turn an idea into a business reflity. As they advanced in their careers, the firms they worked for didn't offer the types of challenges they wanted to pursue. They aecided they wanted to work for themselves, and they saw an opportunity. For her job in marketing at a telecommunications firm, Albertelli had traveled to several regions of the world with developing economies, including Africa, Asia, and South America. She became increasingly aware that women in these regions wanted$-$and needed$-$to find new ways to earn a living to support and educate their families. Rodriguez, on the other hand, spent his time working in the financial offices of a major U$.$S$.$ clothing firm that had its own stores nationwide. During her travels, Albertelli met a group of women who were highly skilled at crafting handmade sandals. They prepared the leather by hand, designed their own shoe patterns, and assembled each pair of sandals with simple tools. Albertelli thought the finished products were beautiful. She was also impressed by the women's desire to operate their own businesses. She thought they would make a great team if enough sandals could be produced for sale$-$even in small numbers$-$in the United States. Albertelli contacted Rodriguez when she returned from her trip and the two friends met to create a business plan. Both believed in the product and the cause$-$they could build a business based on the desire and craftsmanship of small groups of artisans who wanted to band together to form their own businesses and appeal to the market for handcrafted goods in the United States. They knew if they could succeed with one group of women and their products, many more would follow. They banked on the fact that U$.$S$.$ consumers would fall in love with the idea as well$-$and buy the products. Albertelli and Rodriguez took a huge risk$-$they decided to cash in their retirement savings to fund the creation of the first batch of sandals. They devised a plan for acquiring more financial backing so that they could transport and advertise the product. They developed a marketing plan based not only on the