300 group

2

Introduction

An entrepreneurial process is the backbone of every business growth and development. It supports the initial stage of starting a business and later fosters the need for business growth and development in the long run. Peterka, Delic & Tomasevic (2014) suggest that there are four phases in the entrepreneurial business process, which starts from deciding to become an entrepreneur, then developing successful business ideas followed by moving from an idea to an entrepreneurial firm and finally managing/growing the entrepreneurial firm. The most important aspect to note is that regardless of which venture an individual desires to invest in, there must be an opportunity. Peterka, Delic & Tomasevic (2014) suggest that the entrepreneurial process's business opportunity is more crucial than money and talent possessed by an organization. With this in mind, Visa is already a well-established firm in the four-phase of the entrepreneurial process. The primary focus is to ensure proper management, improved development, and consistent growth. However, the market is always changing, and new business opportunities usually occur in the process. This means that a huge organization such as Visa still has to be proactive in detecting trends in the market and seizing them in the right period. Peterka, Delic & Tomasevic (2014) suggest that an organization must have the capability to seize business opportunities by identifying and understanding the market size and the perfect time to launch a new venture. Peterka, Delic & Tomasevic (2014) adds when an organization seizes business opportunities in the window period, it gets the best chance to enter the market with ease and taking advantage of a chance to dominate the market and grow. This article focuses on the trending demand for a digital payment method (credit card, debit card, and mobile applications). It identifies two business opportunities that Visa Company must venture into in its current in the window period. The context of this article integrates internal and external environmental concepts to discuss the capability and potential of Visa Company to utilize the two business opportunities for its growth and development in the global business environment. Comment by Mahendra K Joshi: I’m not sure how this answers the question. Comment by Mahendra K Joshi: Once again, this is confusing. Not sure of the value added. See that the question is and answer what’s asked.

Business opportunities for Visa Company:

Demand for credit card payment in small businesses and need for digital transactions services in banks

As discussed in the earlier assignment, Visa Company is a global brand organization ranked among the largest technology-based payment network that offers services to different stakeholders/customers such as financial institutions (issuers and Acquirers), Visa cardholders, and merchants. According to the mission statement, this company focuses on connecting the world through advanced innovation that offers reliable and secure payment methods/networks in a manner that fosters general growth/success for individuals and businesses. The company vision is to offer the best –contactless-financial-transaction methods for everybody in the world. It believes that through its mission and vision statement, it will manage to focus on businesses, governments’, banks’ and individual’s needs for added-value services in terms of integrity, risk management, and excellent financial transactions.

There are currently two business opportunities that Visa Company must venture into since there are in the window period. These include demand integrating digital payment in small businesses and demand for digital transaction services in banks. Traditionally, people did not accept credit and debit card payment because sometimes people perceive this payment as insecure and relatively untruthful compared to cash payment. Nonetheless, over time and advancement in technology, people are gradually starting to change this perspective and accept digital payment for services and products provided in different organizations. This is the general shifting perspective in the business environment. So, why should the Visa Company focus on tapping small business as a business opportunity in particular? Visa & ATKearney (2020) suggest that in the current business environment, small businesses are rapidly adapting credit cards as the most efficient payment method insofar the demand surpasses other methods such as the use of checks and bank transactions. Comment by Mahendra K Joshi: What does window period mean? Comment by Mahendra K Joshi: This section seems relatively well written. You may still need to exit it. However, bring the frameworks in informing the opportunities you have identified.

Additionally, business businesses are characterized by a high level of frequent shopping activities, increasing the use of credit cards. Visa & ATKearney (2020) states that about 72% of shoppers in small business demand apply for new credit card payment in different businesses. The already established brand image visa stands a significant chance to attract most of the consumers for these services due to its reliability and trustworthiness potential. Moreover, the industry has significantly low competition for credit card services and products. For instance, MasterCard is the only direct competitor with a global potential to closely match with Visa Company. The monopolistic status for the market dominated by these two companies (based on the previous assignment, Michael Porters Five Forces analysis) also creates a barrier for the new entrant to venture into is trending business opportunity.

Furthermore, all the business transactions through Visa credit cards are linked to digital transaction services in banks. This presents a new business opportunity in which Visa must work in partnership with the community and commercial banks to offer credit card services. The advancement in technology/FinTech is also has a significant potential to support future growth and efficient relationship between banks and Visa credit card services. For example, the emergence of new technology like Chabot and virtual services such as ATMs creates the best opportunity for Visa to offer its services and products to small businesses and individuals (Kumar et al., 2018). The company has the best potential to offer value-added services due to its capability to offer reliable digital payments method and its efficiency in establishing a strategic relationship. This fosters the company's values based on the mission and vision statement, such as innovation, collaboration, and excellence.

References

Kumar, K. S., Tamilselvan, S., Sha, B., & Harish, S. (2018). Artificial Intelligence Powered Banking Chatbot. International Journal of Engineering Science and Computing. References

Nigam V. K. (2020, July 20). VISA Inc: Company analysis, business strategy, and revenue models. Medium. https://medium.com/@varnigam/visa-inc-company-analysis-business-strategy-and-revenue-models-472f588df061

Peterka, S. O., Delic, A., & Tomasevic, V. (2014). Importance Of Evaluation Of Business Opportunity In The Process Of New Venture Creation Example Of Private Entrepreneurial Initiative In Preschool Education. The economy of eastern Croatia yesterday, today, tomorrow, 3, 406-417.

Visa & ATKearney (2020). Small Business Credit Cards: How Community Banks Can Harness the Opportunity/Driving Small Business Credit Card Acquisition. Visa - Leading Global Payment Solutions | Visa. https://usa.visa.com/dam/VCOM/global/partner-with-us/documents/small-business-credit-cards-how-business-community-banks-can-harness-the-opportunity.pdf