Identifying Entrepreneurial Opportunities - Desklib

This report covers evaluation of different sources of entrepreneur idea and innovation, reason and the market gap of chosen business idea, evidence of market potential, SWOT framework and evaluation of competitive and market environment in which the idea will be launched.

Identifying
Entrepreneurial
Opportunities

Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation providing
specific examples.........................................................................................................................4
M1 Provide a detailed evaluation of Drucker’s 7 sources of systematic innovation providing
specific examples.........................................................................................................................5
D1 Critically evaluate the benefits and drawbacks of different approaches and sources that can
lead to the identification of entrepreneurial ideas........................................................................6
Task 2...............................................................................................................................................7
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice................................................................................7
M2 Provide justification of how a specific entrepreneurial idea fills a market gap using
different techniques for gap and competitive analysis................................................................9
D2 Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and
investigation of the competitive market place.............................................................................9
Task 3.............................................................................................................................................10
Covered in PPT..........................................................................................................................10
Task 4.............................................................................................................................................10
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea......................................................................................................10
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability............................................................................................................11
M4 Critically evaluate a specific entrepreneurial idea in the context of the marketplace and
competition................................................................................................................................12

D4 Formulate valid conclusions and justified recommendations on how a specific
entrepreneurial idea can be developed, managed and sustained within the competitive market
place...........................................................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

Introduction
A budding entrepreneur is those individuals who are interested to become business man and start
their own business with innovative product idea (Bao, Wei and Di Benedetto, 2020). It is
essential for every entrepreneur to identify whether they have appropriate resources and funding
availability or not. A proper business plan can help them to identify their each opportunities and
threats for the business. The following report covers an innovative business plan for an
innovative business idea. Hence, an electric solar bike is a new business idea carried by budding
entrepreneur. The main feature of this bike is that it gets charged by both ways electricity as well
as by solar energy. When it is parked in sunlight then its battery will be charged by automatically
through solar power. Secondly, this sustainable business will also reduce the usage of petrol
vehicles. The following report covers evaluation of different sources of entrepreneur idea and
innovation, reason and the market gap of chosen business idea, evidence of market potential,
SWOT framework and evaluation of competitive and market environment in which the idea will
be launched.
Task 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation providing
specific examples
There are various sources of entrepreneurial ideas and innovation which is explained by
Drucker’s 7 sources model-
Source 1- The Unexpected
This source explains that an entrepreneur must analyse the reason for unexpected success and
failure of their business which will further help them to generate innovative product (Yu, Choi
and Zheng, 2021). Failure is not the end point in business. In case a product is unable to gain
high market demand than entrepreneur must make changes in the product and again launch it.
Source 2- The Incongruity
This is the situation which results in totally opposite outcome. In simple words it means that the
things are not happening like they are planned. Hence, there is a scope to improve the business
plan effectively to reach the goal.
Source 3- Process needs

It occurs when there is improper process for producing product is followed in an enterprise.
Hence, the improvement in the process will lead to innovation for the business.
Source 4- Industry and market structure
The industry and market trends are dynamic in nature which means it gets changes rapidly
(Cohen, Hsu and Shinnar, 2021). Product line expansion, change in regulations and many others
can provide opportunity for innovative business ideas for many entrepreneurs.
Source 5- Demographics changes
It includes changes in customer’s lifestyle, income level, age proportion, gender and many
others. This is a good opportunity for entrepreneurs to identify the better opportunities for
changing demographical factors for their new business and offer those innovative products and
services which can fulfil the requirement of demographical change of the targeted market.
Source 6- Change in perception
By changing the perception of targeted customers, new needs can be created. For example, aware
customers about fitness and health benefits again can change their mind set and they will prefer
to eat healthy foods and buy jogging equipments from a new jogging equipment brand.
Therefore, attacking on the perception of customers can also help the entrepreneurs to innovate
new business ideas.
Source 7- New knowledge
New and innovative knowledge not only about a single and particular field but it require having
knowledge of almost all those factors which can help the product to achieve its success in market
(De Massis and et. al., 2018). It is considered as an effective entrepreneur has both kinds of
knowledge scientific as well as non-scientific. Knowledge is always considered as better source
of innovation. Developing knowledge of entrepreneurs will motivate them to make changes in
their products and launch innovate product to fulfil needs of customers. For example, the
development of computers is the combination of knowledge about arithmetic, punch cards,
calculating machines, symbolic logic and programming.
M1 Provide a detailed evaluation of Drucker’s 7 sources of systematic innovation providing
specific examples
There are seven sources on innovation according to Drucker’s model. The unexpected is the first
source where unexpected failure and success can help an entrepreneur to innovate their product.
For example, when an entrepreneur launches their new product in market and he/she is unable to

create high demand for the product than the failure will help the entrepreneur to determine the
reasons and work upon them. Incongruity is another source where unexpected outcomes are
arrived. For example, an innovator analysis new ways to cut cost for their organisation by
innovating their product offering style but it becomes fail and cost increases instead of
decreasing. Improvement of process wills always a big scope for innovators which help them to
innovate new ideas for improving the production and manufacturing process for their products.
Industry and market structure is fourth source of this model where innovator seeks for marketing
changes to grab the opportunities for their business (Eller and et. al., 2020). For example, a new
government scheme for supporting SME in an economy will be an opportunities for many
entrepreneurs. On the other hand, demographical changes are also one of the main reasons for
innovative business idea. For example, when a market is having more female than male than the
businesses will focus to target female customers by offering female outfits more. Sixth source is
change in perception, when the perception gets changed in customers mind they will switch their
needs and wants for other products. The last source is knowledge change, which consist of
developing knowledge to create change in product.
D1 Critically evaluate the benefits and drawbacks of different approaches and sources that can
lead to the identification of entrepreneurial ideas
Benefits and drawbacks of each source of Drucker’s 7 sources-
Source 1- Unexpected change
The benefit of this source is that it provides opportunity for growth and the drawback of this
source is that it may possible that the failure of product growth can demotivate entrepreneur and
may decline their morale.
Source 2- The Incongruity
The benefit of source is that is motivate the entrepreneur to identify their environmental factors
appropriately for business growth and its drawback is that it consume a lot of time as well as
cost to determine the factors for failure by analysing current market.
Source 3- Process needs
The benefit of this source is that here inventor focuses on the process which is one of the most
essential parts of business and sometimes they also adopt sustainable factors in their process of
manufacturing to reduce the cost and wastage. On the other hand, the drawback of this source is

that it is time consuming to analyse the process first and then discussing it with employees,
preparing reports and then make any decision.
Source 4- Industry and market structure
The benefit of this source is that it will help the entrepreneur to enhance their knowledge about
industry and marketing environment which further help them to gain competitive advantage. On
the other hand, the drawback is that the marketing environment is dynamic in nature which
means it gets changes rapidly (Raut and et. al., 2021). Hence, whenever an entrepreneur makes
decision about a situation it may possible that new situation can occur in the market.
Source 5- Demographics changes
The benefit is this change is that entrepreneur can get to know that which customer segment they
can target effectively to gain high profit. The drawback of this source is that the entrepreneur’s
wrong prediction about the demographical change can decline their profit and marketing shares.
Source 6- Change in perception
The benefit of this source is that the company can influence their customers to purchase their
products with different techniques and marketing tools which can enhance their sales and
profitability. On the other hand, the drawback of this source is that is requiring high marketing
research and high investment to change the perception of customers.
Source 7- New knowledge
The benefit of this source is that it helps the entrepreneur to enhance their knowledge and gain
some new knowledge in new fields so that they will manufacture their products attractive for
customers. The drawback is that it consumes time and high experience for entrepreneurs to
predict the things first and then make decisions at their own authenticity.
Task 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice
Rational behind choosing specific idea-
The business of electric solar bikes is one of the best ideas which can help the entrepreneur to
gain high market demand and high profit (Jamali and et. al., 2018). This business will
manufacture those electric bikes which can charge by electricity as well as by sunlight through
solar energy. The main reason to adopt this idea is the market demand and its innovative feature

of solar energy rechargeable bikes. There is no other company which manufacture such kind of
bikes. Hence, this will also help the entrepreneur to gain competitive advantage. Customers are
also switching to sustainability and focus to purchase electric vehicles more. Secondly, another
reason for choosing this business idea is that it will bring sustainable change to society by
reducing the consumption of petrol by petrol vehicles. UK government is working to restrict the
petrol vehicle manufacturing to protect their environment. Hence, the adoption of this idea will
not let to make many changes for the entrepreneur in case the government implement the idea to
restrict petrol vehicle manufacturing.
Market gap for a specific entrepreneurial idea-
Marketing gaps are those areas where the organisation is not serving their product appropriately.
It is also consisting of not adopting effective usage of opportunities for business growth (Reuber
and et. al., 2018). Analysing market gap will help the business to identify where they are lacking
behind to earn high profit due to some obstacles and what they can do to mitigate these obstacles.
In context of analysing marketing gap of the chosen product Fishbone method is used which will
divide a problem in various components to make it easy to understand the root of issue. For
example, the issue which can be faced by this business idea is high prices of their product which
cannot influence to purchase the bikes of the company. According to the mentioned method, this
issue can be divided in various parts to analyse what makes the product so costly and there are 6
categories in which the issue is divided which is mentioned below-
 Method- There is no issue related to method of manufacturing these bikes.
 Machine- the Company will require high quality of tools and machines to manufacture
these bikes as well as to test the quality and safety which are costly in market.
 People- High demand of increasing in wages of workers.
 Materials- The raw material in UK are having higher prices
 Measurement- High investment in marketing activities like promotions and launching
event.
 Environment- High competition in market where their competitors can manufacture
similar product and sell it on low prices.

M2 Provide justification of how a specific entrepreneurial idea fills a market gap using different
techniques for gap and competitive analysis
There are various marketing gaps for the new and innovative business idea and these gaps can be
fulfilled by taking strategic measures. The marketing gap of the product is high cost is required
to manufacture the product due to few factors and these factors can be mitigated by following
ways-
 Machines and tools are expensive for the company than they can either use leased
machines or adopt partnership technique with other company in same industry which are
having high quality of tools and machines (Fritsch and Wyrwich, 2018). This can help the
company to reduce their cost as well as to use manpower of partnered company.
 In case of high prices of raw material in UK then company can import raw material from
other country which are having low prices as well as good quality of raw material. It is
essential for new venture to order the raw material in bulk because small quantity can be
costly for because they may need to pay shipping charges and trade duties.
D2 Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and
investigation of the competitive market place
The competition of the new business is high because there are various companies like Volt bikes,
Grey Technology Ltd. and many others who are having high quality or technology. They can
easily manufacture the substitutes and start selling it (Zeng, 2021). Their high brand image will
also help them to sell more quantity of vehicles. Therefore, the competition is high and tough for
the new business and product idea. Therefore it is suggested that they business will continue to
develop plan for another model of bike once they launch current idea. Increasing in product
portfolio will help them to mitigate the risk of their competitors. They can introduce new model
of bike after every few years which are having better features and technology than the previous
bike. This will help the company to retain their customers for longer period of time. They are
also focused to build high brand recognition and image as soon as possible so that they will
become more trustworthy brand in their industry.

Task 3
Covered in PPT
Task 4
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea
SWOT analysis is used to identify internal and external factors of a business like the strengths
and weakness as well as external and uncontrollable opportunities and threats for the business
(Seyyedamiri, Rahmani and Hasangholi Pour, 2019). In context of new entrepreneurial idea of
electric solar bikes, their SWOT analysis is mentioned below-
Strengths-
 The innovation of battery chargeable by solar energy will help the enterprise to grow well
by developing the demand for customers in market. This innovative feature will help the
company to achieve their objective to gain competitive advantage.
 Attractive designs and product portfolio strategy where the company will introduce new
model of e-bike after every short period of time will help them to gain high brand
recognition and high marketing share.
Weaknesses-
 It is essential for the company to invest high in research and development department to
analyse the functioning of solar chargeable batteries effectively and this will further
increase their cost (Patel, 2019).
 Unskilled workforce of the company may impact negative upon their growth. Most of the
companies in manufacturing industry hire low skilled workers so that they can pay less to
those customers and due to this, major issues can arise like defective piece can be sold to
customers instead of remanufacturing that piece.
Opportunities-
 It is a good opportunity for the new entrepreneurial idea to sell their e- solar bikes
through offline as well as online mode.
 Promoting high to their electric-solar bikes will help them to aware large segment of
customers and which further help them to develop their sales. Highlighting the main
feature of solar rechargeable batteries is effective for the company.

Threats-
 COVID pandemic is one of the biggest threats for the growth of any industry (Cai and et.
al., 2019). Due to this ongoing pandemic most of the customers are avoiding to invest in
purchasing new vehicles for them. They are more conscious to save their money and
invest it for future uncertainties.
 Another huge threat for the company is high competition. E-bike industry is having many
popular names such as Volt bikes, Grey Technology Ltd and many other competitors.
These are having high brand reputation and high marketing share which help them to
attract customers easily.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability
Evaluation of competitive environment to launch the product- The e-bike industry is having
huge competitive rivalry among companies (Sarooghi, AdelRastkhiz and Hornsby, 2021). Each
company try their best to gain competitive advantage by new features and technology in their
bikes. They also focus to promote their products well to gain high attention of customers. In
context of new entrepreneurial idea, first of all they are bringing new feature in their e-bike
which is not launched yet by any competitor in this industry and that is they launch an electric
solar bike which get charged by both ways electrically as well as by sunlight through solar
energy. This feature can help the company to offer unique and innovative product to their
customers. On the other hand, they must focus to lower their cost of manufacturing as much as
possible so that they will offer the manufactured solar bikes in low prices to attract more
customers. They must promote their bikes through social media sites because it has global reach
and they will expand the name of their brand globally.
Evaluation of market environment to launch the product- It is essential for the company to
target those geographical area where the temperature is higher than the other regions so that the
batteries will get enough sunlight for recharging. Secondly, the company must influence their
targeted market to buy e-bikes rather than any petrol vehicle and try to change their preference
and perception toward their offerings. They can target teenagers and racers for their product
because they are more interested in riding bikes as compared to any other age group of
customers.

M4 Critically evaluate a specific entrepreneurial idea in the context of the marketplace and
competition
In context of gaining competitive advantage, entrepreneurs are required to introduce innovative
product in market which can gain high attention of customers (Autio and et. al., 2018). The
unique features and characteristics will make the product more popular in the market. Therefore,
a entrepreneurial idea of offering e-bikes to customers which can also get charged by solar
energy. When this e-bike gets appropriate sunlight then it can charge its batteries automatically.
This innovative idea can help to gain competitive advantage within the market. Secondly, market
environment is also in favour of e-bikes because UK government is focusing to restrict the
manufacturing petrol vehicles soon. This is the opportunity for the e-bikes to develop their sales.
D4 Formulate valid conclusions and justified recommendations on how a specific entrepreneurial
idea can be developed, managed and sustained within the competitive market place
1. It is recommended that the e-solar bikes can continue to focus on innovations
appropriately because innovation can help them to lead the market.
2. It is also recommended to the new entrepreneurial business idea that the prices should be
fixed lower than their competitors so that they will able to attract more customers.
3. It is also recommended to the company that they must focus on effective promotional
strategies for the global promotion of their bikes and for this they can use social media
marketing because it has global reach.
4. It is also recommended for the company to hire skilled workforce which can provide
effective ideas of innovative growth for the company.
5. It is also recommended that the company must sale the e-solar bikes through online as
well as offline mode and for online mode they must use their own vehicle to deliver the
product at customer’s doorstep to avoid damaging any part of their bike.

Conclusion
From the above information it is concluded that Ducker’s 7 factor models have 7 sources of idea
generation for an entrepreneur. It is essential to launch an innovative product to customers which
further help a company to gain competitive advantage. The launching product should fulfil
market demand and help customers to fulfil their needs. SWOT analysis will help the business to
analyse their strengths as well as weaknesses. The new and innovative product can be launched
in the market by researching about marketing environment appropriately.

References
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