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GE Elec 101 - Module 2

This document provides an overview of Module 2 from a course on entrepreneurship. The module addresses starting a business and performing market analysis. It discusses registering a business, including identifying feasible ideas and the various ownership options. The module also focuses on why understanding the market is important, including analyzing competition and finding a niche. The document provides learning outcomes and introduces the topics that will be covered in the first two lessons: starting and registering a business, and performing market analysis.
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0% found this document useful (0 votes)
114 views17 pages

GE Elec 101 - Module 2

This document provides an overview of Module 2 from a course on entrepreneurship. The module addresses starting a business and performing market analysis. It discusses registering a business, including identifying feasible ideas and the various ownership options. The module also focuses on why understanding the market is important, including analyzing competition and finding a niche. The document provides learning outcomes and introduces the topics that will be covered in the first two lessons: starting and registering a business, and performing market analysis.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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GE Elec 101 - The Entrepreneurial Mind | Module 2

Lesson 1 | Starting and Registering yout Business


Lesson 2 | Market Analysis

Page | 1

KAPALONG COLLEGE OF AGRICULTURE, SCIENCES AND TECHNOLOGY


Bachelor of Secondary Education
major in English

GE Elec 101 - THE ENTREPRENEURIAL MIND

MODULE 2

Name: _________________________________________

Section:________________________

Date Submitted: ________________

Disclaimer
This material is exclusively own by KCAST. Any part thereof may not be copied,
reproduced, distributed, downloaded, transferred, sold, or used in any form
without KCAST’s prior written consent.
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

MODULE OVERVIEW Page | 2

The module addresses the various options in venturing into business shying away from the
traditional approach via general trading, production or manufacturing-based business concerns. It also
provides step-by-step process of registering your business and gives the student the necessary
preparations required in starting and operationalizing the business and also discusses saving options
to minimize start-up costs, and deals with the importance of addressing marketing aspects as
premises for entrepreneurial ventures and postulating the idea of market creation and finding market
nitch rather simply matching the market demand, and aspects on marketing channels, advertising and
promotions as vital marketing tool.
Moreover, it discusses at length the concept of franchising and various modalities in frnachising
including some legal aspects of this type of doing business as they relate to establishing and
operating entrepreneurial business concerns.
In this module, we will be learning all about the process of registering your business and profound
understanding of your market. To be specific, you are expected to learn the following:
1. what are feasible business ideas;
2. what are the ownership options;
3. why some business failss;
4. what are the steps in registering the business;
5. why there is a need to understanding the market; and,
6. analyze the competition in the market.

MODULE LEARNING OUTCOMES


After reading this lesson, you should be able to understand and articulate answers to the
following:
1. discuss the process of starting a business;
2. explain the concept of creating a feasible business idea;
3. discuss why some businesses fail;
4. provide examples of effective team working; and,
5. explain the importance of market analysis.

LESSON 1: STARTING AND REGISTERING YOUR BUSINESS


LEARNING OUTCOMES
The students will be able to:
1. identify feasible business ideas;
2. differentiate the various options of business ownership;
3. list down the step-by-step process in registering a business; and,
4. value why there is a need to carefully select a feasible business idea to avoid business failure.

INTRODUCTION
Having decided to go into self-owned and self-managed business or be an entrepreneur, the
moment in time to really put things together and act as an entrepreneur or like any other businessman
should be an exciting phase. The idea of setting up and commencing the real efforts at starting up or
operationalizing is a career-breaking idea and very challenging. Gearing up and commences with the
crucial decision to be in the business of your own and the rest could be the beginning of long road to
success if the business is properly nurtured and managed.
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 3

ACTIVITY
To start, let us have a sharing of ideas and insights on the question-stated below. If you’re
interested in starting a business, you need to make decisions even before you bring your talent,
determination, hard work, and persistence to bear on your project. Here are the basic questions you’ll
need to address. Put your answers here: (Limit your answersof at least 10 to at most 20 words.)

What particular product/service you want to offer to the market?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

Who will buy my product or service?

_________________________________________________________________________________
_________________________________________________________________________________
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_________________________________________________________________________________

Why and where will they buy it?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

Am I positioning my product or service correctly? (In other words, if there’s a lot of


competition, look for a specialized market niche.)

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

What government regulations will my product/service be subject to?

_________________________________________________________________________________
_________________________________________________________________________________
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GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 4

ANALYSIS
Based from the given activity above, what exactly is a business idea? Is it feasible? (Put your
answers here of at least 50 words and at most 75 words.)

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

2. Do I want to start a new business, buy an existing one, or buy a franchise?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

ABSTRACTION
Let us start our discussion, please spend enough time undertanding the contents of this lesson,
you can use dictionary or any references you have to aid your learning. I believe in you! now let’s go
down to the details of topic. Here’s a great tip to optimize your learning, get a highlighter pen to shade
important terms and/or phrases, and most importantly take a good nap for you to be revitalized. Aja!

LESSON 1: STARTING A BUSINESS


Starting a business takes talent, determination, hard work, and persistence. It also requires a lot
of research and planning. Before starting your business, you should appraise your strengths and
weaknesses and assess your personal goals to determine whether business ownership is for you.

THE BUSINESS IDEA


For some people, coming up with a great business idea is a gratifying adventure. For most,
however, it’s a daunting task. The key to coming up with a business idea is identifying something that
customers want or, perhaps more importantly, filling an unmet need. Your business will probably
survive only if its purpose is to satisfy its customers, the ultimate users of its goods or services. To
come up with an innovative business idea, you need to be creative. The idea itself can come from
various sources. Prior experience accounts for the bulk of new business idea and also increases your
chances of success.
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 5

OWNERSHIP OPTIONS
As we’ve already seen, you can become a small business owner in one of three ways by starting
a new business, buying an existing one, or obtaining a franchise. Let’s look more closely at the
advantages and disadvantages of each option.

1. Starting from Scratch


The most common and the riskiest option is starting from scratch. This approach lets you start
with a clean slate and allows you to build the business the way you want. You select the goods or
services that you’re going to offer, secure your location, and hire your employees, and then it’s up to
you to develop your customer base and build your reputation.

2. Buying an Existing Business


If you decide to buy an existing business, some things will be easier. You’ll already have a proven
product, current customers, active suppliers, a known location, and trained employees. You’ll also find
it much easier to predict the business’s future success.
There are, of course, a few bumps in this road to business ownership. First, it’s hard to determine
how much you should pay for a business. You can easily determine how much things like buildings
and equipment are worth, but how much should you pay for the fact that the business already has
steady customers?
In addition, a business, like a used car, might have performance problems that you can’t detect
without a test drive (an option, unfortunately, that you don’t get when you’re buying a business).
Perhaps the current owners have disappointed customers; maybe the location isn’t as good as it used
to be. You might inherit employees that you wouldn’t have hired yourself. Careful study called due
diligence is necessary before going down this road.

3. Getting a Franchise
A franchiser (the company that sells the franchise) grants the franchisee (the buyer) the right to
use a brand name and to sell its goods or services. Franchises market products in a variety of
industries, including food, retail, hotels, travel, real estate, business services, cleaning services, and
even weight-loss centers and wedding services. Essentially, the franchisee buys into a ready-to-go
business model that has proven successful elsewhere, also getting other ongoing support from the
franchiser, which has a vested interest in her success.
In addition to your initial investment, you’ll have to pay two other fees on a monthly basis—a
royalty fee (typically from 3 to 12 percent of sales) for continued support from the franchiser and the
right to keep using the company’s trade name, plus an advertising fee to cover your share of national
and regional advertising. The cost of obtaining and running a franchise can be high, and you have to
play by the franchiser’s rules, even when you disagree with them. The franchiser maintains a great
deal of control over its franchisees.
For example, if you own a fast-food franchise, the franchise agreement will likely dictate the food
and beverages you can sell; the methods used to store, prepare, and serve the food; and the prices
you’ll charge. In addition, the agreement will dictate what the premises will look like and how they’ll be
maintained. As with any business venture, you need to do your homework before investing in a
franchise.

WHY SOME BUSINESSES FAIL


Businesses fail for any number of reasons, but many experts agree that the vast majority of
failures result from some combination of the following problems:
1. Bad business idea. Like any idea, a business idea can be flawed, either in the conception or in
the execution. If you tried selling snow blowers in Hawaii, you could count on little competition, but
you’d still be doomed to failure.
2. Cash problems. Too many new businesses are underfunded. The owner borrows enough
money to set up the business but doesn’t have enough extra cash to operate during the start-up phase,
when very little money is coming in but a lot is going out.
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

3. Managerial inexperience or incompetence. Many new business owners have no experience in Page | 6

running a business; many have limited management skills. Maybe an owner knows how to make or
market a product but doesn’t know how to manage people. Maybe an owner can’t attract and keep
talented employees. Maybe an owner has poor leadership skills and isn’t willing to plan ahead.
4. Lack of customer focus. A major advantage of a small business is the ability to provide special
attention to customers. But some small businesses fail to seize this advantage. Perhaps the owner
doesn’t anticipate customers’ needs or keep up with changing markets or the customer-focused
practices of competitors.
5. Inability to handle growth. You’d think that a sales increase would be a good thing. Often it is, of
course, but sometimes it can be a major problem. When a company grows, the owner’s role changes.
He or she needs to delegate work to others and build a business structure that can handle the increase
in volume. Some owners don’t make the transition and find themselves overwhelmed. Things don’t get
done, customers become unhappy, and expansion actually damages the company.

REGISTERING YOUR BUSINESS


Business registration involves enlisting your small enterprise with the proper government
agencies and obtaining the necessary permits to conduct business. The government requires all
enterprises of whatever size, type, and form to secure a permit before it can do business. An
unregistered enterprise is not counted within the economic mainstream. In other words, it is not legal
and therefore is part of the underground economy.

WHY REGISTER?
At first glance, the mere thought of business registration may mean expense. But if you are a
small entrepreneur who is forward looking, you will see beyond the expense to appreciate the gains
that your business will get for being legal. Registering your enterprise allows you the exclusive use of
your business name, design, and brand name, among others. In addition, an enterprise that is
registered can operate openly without fear of being visited by ‘unwanted’ guests. It is also an
investment or a passport to opportunities that will give you access to the different programs.

WHERE TO GO AND HOW TO GET THERE


Before you can register your small enterprise, it has to be a legitimate business first. This means,
your enterprise should have the necessary permits, licenses, and certificates issued by the
government agencies concerned.
Registering a business is a very simple process. In general, you start by filling out a registration
form and complying with the required documents, filing the accomplished form with the government
agency and attaching the supporting documents, and paying some fees. After a certain period, you
will be issued a certificate of registration, a permit, or a license.
Following are the government agencies that a start-up business needs to register with. Some of them
have already been mentioned earlier in this chapter and are being repeated here for easy reference.
After making these decisions, you’ll be ready to take the most important step in the entire process
of starting a business: you must describe your future business in the form of a business plan — a
document that identifies the goals of your proposed business and explains how these goals will be
achieved.

Step 1: DTI for Sole Proprietorship or SEC for Partnership and Corporation
Special Points before registering your Business (DTI and SEC)
1. Choose a strategic location of your business.
2. Before going to DTI, choose at least 5 business names. Search DTI's website for your chosen
business name and compare it if there are similar business name.

Where can you register the business name?


1. Purely over the counter at the Negosyo Center
2. Online end-to end at DTI.com.ph
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 7

Step 2: Barangay Business Permit


1. Go to barangay where your business is located to secure and fill-up application form.
2. Submit your completed application form together with the following:
2.1. Certificateof Business Registration from DTI.
2.2. Proof of Address such as Contract of Lease (if reneted) or Certifiate of Land Title (if owned).
2.3. Claim your Barangay Certificate of Business Registration.
2.4. Photocopy of DTI registration certificate for building owners/ lessors, photocopy of ownership for
business tenants, lease of contract/ contract of award notice.
2.5. Cedula (Community Tax Certificate) of the owner of the business.
2.6. Clearance Fees
2.7. Working clearance of all employees.

Step 3: City/Municipal Hall Business Permit and Licenses


1. Go to the city/municipal office where your businessis located to secure and fill-up application
form.
2. Submit your completed application form together with the required documents.
a. Barangay Clearance
b. Location Clearance
c. Fire Safety Inspection Certificate
d. Electrical Inspection Certificate
e. Sanitary Permit (for food relatedestablishments)
f. Pollution Clearance (for manufacturers)
g. Cultural Tourism Affairs Office Clearance (for tourist-oriented esablishment)
h. Lease Contract Site
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 8

Step 4: Secure BIR Forms


1. BIR FORM No. 0605: Form used for annual registration of Php. 500.00. Deadline: January 31
2. BIR FORM No. 2551Q: Quarterly percentage tax (3% of gross income). Deadline: every 25th of the
following month of the quarter
3. BIR FORM No. 2550M: Monthly VAT declaration (output tax less input tax). Deadline: every 20th of
the following month of the quarter
4. BIR FORM No. 2550Q: Quarterly VAT declaration. Deadline: every 25th day of the following quarter
5. BIR FORM No. 1601-C: Monthly remittances return of income taxes withheld on compensation- if
with employees. Deadline: every 10th of the following month
6. BIR FORM No. 0619-E: Expanded withholding declaration. Deadline: every 30th of the following
month of the quarter
7. BIR Form No. 1701Q: Quarterly income tax declaration
a. Deadline:
i. 1st quarter-May 15
ii. 2 nd quarter-August 15
iii. 3 rd quarter- November 15
8. BIR FORM No. 1701A: Annual Income Tax Return. Deadline: April 15 of the following year
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 9

MUCH KUDOS TO YOU MY DEAR!


NOW, GIVE YOURSELF TWO BIG THUMBS UP FOR YOUR EFFORT!

APPLICATION
I would like to know how much learnings you gain. Please summarize and put your answers on
the space provided below.
1. Look around and observe, provide at least three (3) businesses in your place where you
think belongs to a certain type of business ownership option. Use the table below.

BUSINESS OPTIONS EXAMPLES

Starting from Scratch 1.

2.

3.

Buying an Existing Business 1.

2.

3.

Getting a Franchise 1.

2.

3.
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

2. In your personal point of view, among the three business ownership options, which is Page | 10

best? Cite at least one advantage and disadvantage. (Limit your answersof at least 25 to at most
50 words.)

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

LESSON 2: MARKET ANALYSIS


LEARNING OUTCOMES: The students will be able to:
1. understanding target market; and,
2. analyze the competition.

INTRODUCTION
There is one thing that entrepreneurs must enbrace on a lifetime when he or she engages in the
business. This is the concept of matketing analysis. It involves everything the entrepreneur does to
obtain and keep a customer, from conducting market research, developing customer profile and
positioning organizational identify in the market to selecting marketing strategies to determining
location.
Quite often, some newcomers in the field of business brag about their new product or invention
and end up nothing or not going into the business and do it profitably. Most often, this is typical of an
inventor unmindful of the value of marketing aspects in favor of product development.
For a true and blue blooded entrepreneur, market aspect should be given due importance if not at
all, the most important aspect when one gets into business. For good or bad product to be relevant to
the entrepreneur, the bottom line is that it should make money for him.

ACTIVITY

Activity No. 1 - Instructions:


1. Choose five(5) products in your place. It should be a combination of physical good and a
service industry.
2. Construct a market segment for each of these products/services using the table below.

PRODUCT/SERVICE MAIN TARGET MARKET


1.

2.

3.
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

4. Page | 11

5.

Activity No. 2 - Instruction:


Create a word cloud from the word, MARKET.
Example:

Source: https://connect.ebsco.com/s/article/Poetry-Short-Story-Reference-Center-Lesson-Plan-Word-Clouds?language=en_US

Put your word cloud here. Write it legibly and clear.


GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

ANALYSIS Page | 12

From the activity above, how similar/different is your market segmentations between the five (5)
products/services? Put your answers here: (Limit your answers of atleast 75 to atmost 100 words.)

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

In your own words, define market? Put your answers here: (Limit your answers of atleast 20 to
atmost 30 words.)
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

ABSTRACTION
Let us start our discussion, please spend enough time undertanding the contents of this lesson,
you can use dictionary or any references you have to aid your learning. I believe in you! now let’s go
down to the details of topic. Here’s a great tip to optimize your learning, get a highlighter pen to shade
important terms and/or phrases, and most importantly take a good nap for you to be revitalized. Aja!

LESSON 2: MARKET ANALYSIS


There are several meanings of the term, “marketing,” that appear in the website
(www.thefreedictionary.com/marketing). Marketing refers to the commercial processes involved in
promoting and selling, and distributing a product or service. It refers to the commercial functions
involved in transferring goods from producer to consumer.
We shall likewise consider the following definitions of the term:
1. a subdivision of a population considered as buyers;
2. the business of buying and selling a specified commodity; and,
3. a geographic region considered as a place for sales.

Related words that were given for the term, “market,” includes the world of commercial activity
where goods and services are bought and sold, and the customers for a particular product or service.
The four important things in marketing that an entrepreneur must remember are:
- the client, the buyer, the target user, generally called the target market;
- the entrepreneur’s ability as a marketer to understand the target market;
- the entrepreneur’s ability to influence the target market to buy the products or use the
services offered by the business; this will depend on how well he understood he target market; and,
- the main objective of marketing, which is making the target market buy the company’s product
or service; this will be measured by the revenues that come in the form of payment from the buyers of
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

the product or users of the service. Page | 13

Understanding your Market


There are five skills you need to acquire that will help you understand the market:
1. how to group (or segment) the market;
2. how to identify which segment to focus on (target); and,
3. how to be more familiar with your target.
It will also help to you to know who else are making similar products or offering similar services
(competition) and how to estimate the size of the target market that will buy your product or use your
service.

Segmenting the Market


Market segmentation refers to the process of dividing prospective buyers into groups that have
common needs and will respond similarly to a marketing action. It is a process in marketing of
grouping a market (customers) into smaller subgroups. It is drawn from the recognition that
A market can be grouped according to these variables: geographic (region of the world or country,
size of country, climate), demographic (population - age, gender, sexual orientation, income,
occupation, education, etc.), psychographic (personality, lifestyle, values, attitudes), or behavioral
(product, benefit sought, rate of usage, brand loyalty, readiness-to-buy stage, etc.).
It is simple to segment a market. For example, the Market is the whole Philippines or the Filipinos
living within the Philippine archipelago. One can group the Filipinos according to any or a combination
of the demographic variables. The kind of grouping to use will depend on the nature of product you
are going to make and the set up of your business (whether manufacturing/processing, trading, or
service).
One of the more effective ways for identifying the kind of grouping to use in market segmentation
is to go to the places where products similar to what you intend to produce or service to offer are
being sold. You can gain some insights by observing what kind of people are buying products or using
services similar to what you have in mind to sell or offer, and buying from businesses with the same
set-up as yours.

Targeting
After grouping the market into different segments, you must be able to choose which among the
segments or groups to target as your market. To target is to select from among the big group of
possible buyers or users, a specific group or type of buyers to cater to. Normally, entrepreneurs would
want to target all segments of the market – the Philippines or the world. That is very good and that is
encouraged. But the discipline in marketing is to target one segment at a time. The goal of a business
may, however, be to serve all segments if it wants to.
When you target, you are going to decide which among these groups or segments you want to
serve. In effect, you are narrowing down the market from a very wide universe (all the Filipinos living
in the Philippines) into a specific group or segment.
Targeting will allow you to concentrate on one segment or group at a time. For example, San
Miguel Corporation segmented the market according to “event tables” and focused or developed a
marketing per segment. Marketing in this sense includes the products, the promotions, the distribution,
and the price that applies to each segment. So, the company developed specific products per
segment. You are also aware that the promotions programs for each product are different (San Mig
Light is promoted to young people who want to stay out all night but don’t want to get drunk
immediately; while Red Horse Beer is for those who want an instant kick). Each product is also
distributed (slightly) differently and priced differently.

Understanding your Target


After identifying a specific segment to be your target market, you will need to acquire skills on
how to understand or get to know your target market a little deeper. The usual practice of some

businesses in studying their target market is to use what is popularly called market research.
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Market research is the process of collecting and analyzing information as to how the goods or Page | 14

services move from the producer to the consumer. Market research is commonly regarded as an
expensive activity especially if it is carried out to draw conclusions and involve a large number of
respondents.
Here is a list of some of the commonly used tools for gathering information and getting insights
about the target market:
1. Surveys
2. Focus group discussions (FGDs)
3. Observing in Context (shadowing, expert walkthroughs, day-in-the-life survey, draw the
experience, fly on the wall)
4. Emphatic tools (mock journey, empathy tools, body storming)
5. Prototyping

When using these tools, be on the lookout for the following:


- Why people do what they do (motivation or intention)
- How they do what they do (process)
- Any behavior that is surprising or beyond the ordinary (e.g., not using a pillow when sleeping),
- Errors that make sense (e.g., dialing 9 on the house phone)
- Body language (e.g., saying no but nodding)
- Work-around (e.g., using shortcuts)

Analyzing the Competition


When trying to understand your target market, do not neglect to look at the other businesses that
are making similar products or offering the same services as yours (competitors). What is important
here is not the competition but your target market in relation to your competitors. It will help you
understand your target market further by looking and analyzing as to why the target market buys or
might buy from the competition – the answer to these questions can be found in the insights you
have already gathered.
Competitor analysis is, first, knowing what your competitor’s marketing is. This includes: the
competitor’s products or services, how much they cost, how they are distributed, and how they are
made known to the target market. The best way to do this is to go out there and see the competition
yourself. Some entrepreneurs even go to the extent of buying the products or using the services of
competitors. In this way, they are able to differentiate the product or service and marketing, be ahead
of the competition, and ride with the market trends.
Competitor analysis is, secondly, understanding why the target market is buying or will buy from
the competitor. To achieve this, you can use the tools on how to understand your market.

Great job! Now, give yourself two big thumbs up for your effort!

APPLICATION
Remarkable! I know you are capable of so much more! Don’t be shy, please share your brilliant
ideas on the things you have learned out from readings. You can use real-life experiences if want to.
Have fun!

KNOW THY ENEMY


There are two ways to define competitors. One is by strategic groups—competitors who use
similar marketing strategies, sell simi- lar products or have similar skills. Under this definition, you
might group Toyota and Nissan as competitors within the car industry.
The second, less obvious way to group competitors is by customer— how strongly do they
compete for the same customers’ dollar? Using this method gives you a wider view of your
competitors and the challenges they could pose to your new business.
Suppose you’re considering opening a family entertainment center. If there are no other family
entertainment centers in the area, you might think you have no competitors. Wrong! Any type of
business that competes for cus- tomer’s leisure time and entertainment dollars is a competitor. That
GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

means children’s play centers, amusement parks and arcades are all your competi- tors. So are Page | 15

businesses that, on the surface, don’t appear similar, like movie theaters, bookstores and shopping
malls. You could even face competition from nonprofit entities, like public parks, libraries and beaches.
In short, any- thing that families might do in their leisure time is your “competition.”
Don’t limit yourself to the obvious definitions of competition. Start thinking out of the box and you
will be less likely to get sideswiped by an unexpected competitor.

Share your thoughts and learning from the reading entitled “Know Thy Enemy”. Put your
answers here: (Limit your answers of at least 75 to at most 100 words.)

_________________________________________________________________________________
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GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 16
MODULE ASSESSMENT
Instruction: Expound your answer to the following questions below. (Limit your answers of
at least 75 to at most 100 words.)

1. Why is there a need to legalize our business? (20 points)

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2. What do you think is the main reason why sari-sari stores in your place fail?

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3. Why do we need to understand who the target markets are?

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GE Elec 101 - The Entrepreneurial Mind | Module 2
Lesson 1 | Starting and Registering yout Business
Lesson 2 | Market Analysis

Page | 17
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4. Cite at least two (2) advantages and disadvantages of market competition.

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REFERENCES

Green, G. (2015). How to Start and Manage your Own Small Business. New American Library, Times
Mirror, New York, USA

Manila Bulletin, Franchising Business. Manila, October 1994

Naumes, W. (2010). The Entrepreneurial Manager in the Small Business. Addison Wesley

TIMELINE

Let’s be mindful to your deadline. All activities in this module must be submitted on or
before September 17-18, 2022 from 8:00am to 12:00nn and from 1:00pm to 6:00pm.

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