Creativity for Innovation and Entrepreneurship

Creativity for
Innovation and
Entrepreneurship

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
PART-B......................................................................................................................................................3
Analysis of industry and business sector.................................................................................................3
Problem from Customer’s perspective:....................................................................................................5
Market analysis: segmenting, targeting and positioning..........................................................................6
Competitor analysis.................................................................................................................................8
Growth and expansion plan.....................................................................................................................8
Details of the new venture team..............................................................................................................8
Business Model Canvas...........................................................................................................................9
Factors that create opportunities in such idea..........................................................................................9
CONCLUSIONS........................................................................................................................................9
REFERENCES........................................................................................................................................10
Books and Journals:...............................................................................................................................10

INTRODUCTION
Innovation could be understood as an action that requires to create ideas, products or
processes which when executed lead to positive and effective change. Innovation indicates a
value system which try to find a positive result from an inventive act (Abu Amuna, Y. M. and
Et.al., 2019). It can also be defined as putting something new to the business that try to build a
new market and fills an untapped needs of the customer. This report is going to consider on the
social enterprise named Care-shield Organization which is establishing to retain humanity in
every single day. This organization is built to serve the society and make society a better place to
live in. This organization is mainly focus and exists on a social mission on the lonely elderly
people in nursing homes and school children (Buisine, S., Guegan, J. and Vernier, F., 2017).
They intended to create new jobs for the unemployed, focus on well-being of elders and
advancing education initiatives. Such organizations seeks to serve the society maximizing profits
with maximizing society welfare and its environment. The main objectives of this organization is
to use their profits in a society well-being programs.
MAIN BODY
PART-B
Analysis of industry and business sector.
An industry life cycle illustrates the different stages where business operates, progress
and crash with in the industry. There is no universal definition to explain industry life cycle. It
consists of five stages; startup, growth, shakeout, maturity and decline. Such stages can last for
unidentifiable amount of time that can be months or years (Chen, C. X., 2017).
Start-up stage: At this stage, the customer’s demand or elder people who got separated
from their families is limited as they are not familiar with the new service features and their
performances. In this stage there is lack of complementary services that add importance to the
customer and limits the satisfaction of the service. These organizations generally start with low
revenue generation and also experience negative cash flows and profits as it takes huge capital
investment in technologies, equipment and many more in early stage.
Growth Stage: This stage is a growing stage where a customer slowly attracts attention
and where profitability starts to increase. When services are improved it will also create value to
the customer. Complimentary services are also begin in this stage; so that people may have
greater advantages.
Shakeout Stage: This stage is a consolidation of an industry. In this stage some
organizations are naturally removed in the industry as they are not able to grow and generate
negative cash flows while other merge with competitors or may be acquired by those who were
able to generate high revenues and shares larger market. As the industry approaches maturity at
this level, the profit start slowing down (Cropley, D. H. and Cropley, A. J., 2020).
Maturity stage: Organizations at this stage reaches it saturation point. As organization
starts mature, they attempt to try to moderate the intensity to prevent themselves and increases

the profitability by developing strategies to prevent the entry of new competitors into such
industry.
Decline: As this stage is the last stage in the industry life cycle. In the industry. The
intensity is declining due to several factors level of fixed costs, the height of exit barriers or
speed of decline. To handle this decline stage, many organization tends to focus on most
profitable services with an intention to achieve maximum profits and stay in the competition.
While divestment is the ideal choice for companies who faces huge losses and does not feel to
survive in the competition.
Challenges currently facing the industry:
Care-shield organization are having a significant impact on maintaining the social
relations as well as on communities (de Leon, R. B. P., 2018). While world is radically changed
by the global COVID-19 pandemic, the effects on organization are expected to be far reaching
and long lasting. Due to such pandemic, many organization tackling issues of shortage of
resources, social distancing keeps people far and more. But, it is vital to know the challenges in
the industry which are mentioned in below points:
 Lack of funding support: It is the biggest challenge to collect funds from sources in
such industry. A great idea is not worthy unless it is followed; it requires investments not
only for actions but to support promotional activities, staff pays and many more. It is
challenging to convincing financiers who does not see any returns in back years and other
is to stand out in the crowd of competition.
 Lack of awareness amongst the general public: Social enterprise is all about convey
message of well-being. Population are at larger scale are inactively involved in the cause
or belief but wants take advantage of services but are not being targeted through a well
communicated message.
 Lack of proper business strategy: Another challenge that company may face due to
lack of proper planning or strategy leading to non-competitive services. Many
entrepreneurs have not any business background which is completely out of goodwill.
Due to this reason, they do not have any managerial skill which allow them to plan,
financial forecasting, availing resources and many more.
The attractiveness of the industry (PEST Analysis):
A PEST analysis is a tool of strategic business used by organization to identify, evaluate,
track and organized macro environmental factors that effect on the current and future business.
The framework of PEST analysis studies opportunities and threats due to political, economic,
social and technological factors. This analysis advises the process of strategic planning and the
contribution of market research accordingly.
Political Factors: As business owners, entrepreneur depends on themselves but still they
have to adopt government policies, such as measures which are introduced by government during
this pandemic situation. These political decisions have a major impact on business; they either
break all the efforts or make a life of an entrepreneur. Such organization faces crucial time even