Entrepreneurship, Enterprise and Innovation

Explore the concepts of entrepreneurship, enterprise, and innovation in this study material. Learn about the entrepreneurial process, innovation theories, market research, business models, and more. Get insights into the automobile industry and its competitors. Find out about pricing and credit strategies, growth strategies, and the challenges of growth. Discover the key to success in entrepreneurship and how to achieve financial viability. Study entrepreneurship, enterprise, and innovation with Desklib.

Entrepreneurship, Enterprise and Innovation
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Contents
INTRODUCTION...........................................................................................................................3
Entrepreneurial process and Mindset...........................................................................................3
Innovation theories......................................................................................................................3
Gap in Market and Solution.........................................................................................................4
Vision and Mission......................................................................................................................4
Objective......................................................................................................................................4
Key to success..............................................................................................................................4
Automobile Industry and its Competitors....................................................................................4
Porter’s Five Forces Model.........................................................................................................5
PEST Analysis.............................................................................................................................5
SWOT..........................................................................................................................................6
Market research...........................................................................................................................7
Business Model............................................................................................................................8
Business Revenue Models...........................................................................................................8
Financial Viability.......................................................................................................................8
Pricing and credit strategies.........................................................................................................9
Franchising..................................................................................................................................9
Funding operations....................................................................................................................10
Growth strategies.......................................................................................................................10
Internal growth strategies..........................................................................................................10
External growth strategies.........................................................................................................11
Challenges of Growth................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Entrepreneurship is a type of process that will help for designing, launching and running the
business through innovative idea. It will capture the innovative activities that play important role
for increasing productivity and profitability in global marketplace. The primary aim is to mainly
focused on the Gig Motors Application and become innovative idea for business growth as well
as development.
The proposal report will discuss about various type of theories and practices that application
in business for implementing innovative idea of GIG Motors app within organization. It will
describe about the different opportunities for entrepreneurial activities on the basis of global,
national and local economies for start-up business. this proposal will determine about the
behaviour, personalities and competencies towards the innovative idea and how it will success of
business in global marketplace. However, it will evaluate the various external and internal
factors that effecting on the development. it will understand about process of GIG Motors
application where how it will use as an innovative idea in business process executions.
Entrepreneurial process and Mindset
The characteristics and competencies are important role played in successful entrepreneur
because it has an ability to take risk, self-confidence, dynamism and other type of excellent level
of perception. It is mainly focused all about innovation where how it will improve quality and
efficiency. Main intension of entrepreneur which uses their own characteristics for launching a
GIG Motors app in marketplace (Francke and Alexander, 2019). In order to have development of
risk at the initial level but after successfully implementing innovation in business process.
Innovation theories
Innovation is a type of diverse topic with consider many types of layers and its dimensions.
Although Innovation become itself as ab abstract concept terms that applicable within
automobile industry for increasing productivity and profitability in marketplace. in context of
business development, innovation plays important role for creating somethings where
entrepreneurship have development a great idea for business development through GIG Motors
App.
According to linear model, it is based on the innovation model which help for designed the
understandability towards GIG application and how refers to technology for managing overall
level of development. the flexibility innovation process is combination of non-linear idea that’s
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way. It can be implementing GIG Motors App in Automobile industry for emerging the
innovation in business growth and development.
Gap in Market and Solution
A new online application GIG Motors is the advanced technology in terms of automobile
industry development. it is based on the digital vehicle log book which consists of automobile
history and also useful for reassigning the proper maintenance of vehicle as per consumer
requirement. If in case vehicle mostly have failure by losing and damaging. This type of new
application supports to help the consumer for providing better maintenance services.
Vision and Mission
 Vision: A place where a vehicle has no secrete about everything related the raw materials,
maintenance which should be recorded as a long life because of providing services on
time.
 Mission: To deliver the better quality of services in terms of automobile vehicles and also
reminded in order to server better services for reducing unnecessary cost and price.
Objective
 To analyse the expansion of business by using GIG application within marketplace.
 To increase the sales rate of £340,000 in first year.
Key to success
 Launch an excellent innovative application that will build and maintain consumer loyalty.
 An automobile industry will maintain the high quality of services, visibility and flow of
customer by using GIG app.
 It also enhanced the Proven management ability that successfully running the business in
global marketplace.
 It must ensure to focus on commitment and improvement towards total quality of
services.
Automobile Industry and its Competitors
It also analysis the industry which are having to find out internal and external factors
because it directly creating level of attractive over developed items. The competition level is
very high in marketplace because there are many companies used Smart application which
provide information about automobile parts that can be used in vehicles.
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It may include significant player within automobile industry, which give a high competition of
other business such as Toyota Motors, Honda Motors Corporation, Ford Motor company. The
automobile industry includes various type of organization that includes development, design,
manufacturing. It also categorised on the basis of passenger car as well as commercial vehicles.
Porter’s Five Forces Model
 Threat of new Entrants: GIG App is highest development as it required limited
investment needed in terms of technology. The development in mobile application is
higher in the automobile industry (Rong, LIANG and Fang, 2019).
 Threat of substitutes: It is low because of maintaining daily schedule according to proper
and its also turning out to be imposable for providing maintenance services of vehicle to
people.
 Bargaining Power of buyer: it is high because it depends on the choice of people whether
they are concerned about the maintenance over vehicle.
 Bargaining power of Supplier: it has no as such threat which directly contact with
consumers.
PEST Analysis
 Political: In marketplace, the rules and regulations are frequently increase issues which
are made by government. After Brexit, Automobile industry face problem for increasing
confliction between employees and also minimize production rate of industry. In this
way, Government will be taken serious consideration towards the Gig Motors application
in marketplace.
 Economic: In this factor, it will affect on the services related internet due to increase
inflation and taxes rate in global market. In this way, customer will able to have definite
an appropriate level of automobile business. it also tuns out of expensive which require
for making promotion in new GIG App development in marketplace (Ebrahimi, Ahmadi
and Alipour, 2019).
 Social: it also effects on the automobile industry due to expansion of horizontal level
where market will have highest attraction towards the maintenance and services related
vehicles. in this way, GIG app will target the potential audience so as it will increase
demand of vehicle maintenance services.
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 Technological: In automobile industry, there are only nano technological advancement
level which mainly turns towards the telecommunication by using mobile application. So
as require for increasing demand of investment towards application development.
SWOT
It is based on the internet analysis tool that mainly identify the strength, weakness, threat
and opportunities of Automobile industry within market. In this way, it become easier for
identifying overall need and requirement in terms of development.
Strength
 The strength of GIG Motors application
is unique concept in marketplace.
 It easily increased the values of vehicle
for providing better services.
 In terms of innovation, it become an
efficient technique for holding entire
sectors.
 It is user friendly which help for
consumer to access full details within
smartphones.
 It is an efficient innovative concept
with provide maintenance of vehicle in
lower cost or price.
Weakness
 The Careless attitude of people towards
the innovative technique like GIG
Motors application.
Sometimes, it required for large amount of
investment in the GIG app promotion in global
marketplace (Suárez
Puerta, 2019).
Opportunities
 The industry might be performed the
promotion activities on behalf of
governmental.
 The GIG application is to capture the
Niche market where the existing and
potential consumers.
 It is based on the advance level of
technology for increasing demand of
business in marketplace.
Threats
 Sometimes, it has limited proper
materials.
 It is not being approved by government.
 It will generate security threat in the
GIG app.
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 GIG application always helping for
promoting the app in wide areas.
Table: 1
Market research
Market research provide new idea for business expansion and allows them to asses feasibility
of business operation and function. Currently, we have identified the overall market
segmentation that perform a primary market research to gather qualitative data through NICHE
market. It is mainly focused on the innovative idea for launching new app which are fully
customisable in terms of automation project (Kapinga, Suero Montero and Mbise, 2019). In
present days there is not such type of application exits which will bring success for organization.
It also appealing the market on the basis of segmentation.
 Customer and target audience: it is important part of targeting the potential consumer
and audience, who are mostly used the online platform. In context of demographics, there
are large number of users tends to use smartphone application into over 28 group. As per
income majority, mobile application users earn more than $50,000. In this way, it will use
the overall percentage rate of market size that how many users concern about apps. If we
suppose the age group distribution. There are lot of 30 million men and women age 35 to
40. As per research, it will target the specific group of people, who always search many
services on internet by using application.
 Product and services: GIG Motors will use app for sending the remainder of customer
regarding maintenance services. If any type of changing must be done such as Filters, oils
and breaks etc. In additional, it could be added more features where customer
automatically checking all details of expire data of MOT, taxes and insurances. It will be
one-time purchase for customer where automatically used services as per required. As per
market research, it has found that many people use app for pre-booking through mobile
phones. The customer will be one time purchase £4.99, will require for users which will
get registration plate, a password set up by the person.
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 Market Segmentation: Through GIG Motors app, Main market segments of individuals
and local customers which always concern about the vehicle maintenance. GM will send
the customer reminder with the certain time before checking and changing must be done.
Business Model
A business model is based on the conceptual structure that mainly supports the viability
of item and industry. It mainly explained that how business operates, make money by
implementing innovative concept. On other hand, GIG App is a type of innovative idea that
implemented within automobile industry where customers directly interact with the Maintenance
service of vehicle. In this way, application provide facilities to generate overall cost require for
maintenance. Sometimes, customer directly will be done payment through application
(Rondović, Djuričković and Kašćelan, 2019).
 Marketing stratgey: The Automobile industry will use the different type of marketing
tool or platform which provide brief idea about the overall services to customers. It
mainly involves social media, advertising on billboards, garages etc.
 Competitive advantage: The automobile industry will bring competitive advantage in
market because it will gain by offering the GIG motors app services for client and
generate better values. It will quick response to client for maintaining good coordination
between management and potential consumers.
Business Revenue Models
A revenue model is based on framework that help for generating revenue of automobile
industry with the help of GIG Motors app. It useful for targeting large number of customers, who
are used new application for purpose of vehicle maintenance. This type of business is directly
related to the opportunities which provide solution of customer and satisfied through an effective
service. There are different ways to increase revenue of automobile industry such as market
approach, agent, investor and many more. While GIG app innovation will improve growth
process of automobile companies in global marketplace.
Financial Viability
As per estimation of conservation, GIG Motors app is expected to maintain the healthy
financial position in next further years. The Automobile industry is mainly focused to break
down operations in equally. In this way, developers are established team for dividing equal work
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for GIG Motors app development. the application will be starts with total expenditure
approximately £50 000. As a result, it will be cost effectiveness within five next years.
The automobile industry repay loan will be generated cash flow from different operations
performed within organization. In this way, it easier to identify financial growth by using cash
flow. After initialization for next years, organization will able to make further expansion and
increasing growth through GIG Motors app within global marketplace.
Pricing and credit strategies
Automobile industry consumers are especially sensitive about the services value. It must
ensure that service and price, perceived to be good values. GIG app will offer high quality of
services at reasonable price, but price will certainly not be lowest in multiple areas. On the other
hand, Pricing strategy is the most important concept in competitive environment where rely on
selling cost to overshadow other benefits for automobile industry (Fei, Wang and Liang, 2019).
This type of pricing strategy is crucial success of industry where GIG app provides information
about discounts and offers so as reduce the price over limited time at hours. In order to increase
the usage of application frequently in marketplace.
Franchising
Many automobile industries are providing franchised dealership to other auto seller that
give GIG app services to customer. In this way, it will increase demand of app among people,
who are visiting app to search information regarding vehicle maintenance.
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Funding operations
After funding spending several months for market analysis and identify demand of new
technology so that organization has decided to expenses for launching new GIG App which
providing various type of services (Rondović, Djuričković and Kašćelan, 2019). It will start to
invest total start-up cost of £50,000 and afterwards, it reflecting the overall capital funding. The
investor and owner welcome to participate in funding operation’s which offered 29 % ownership
of $12,000 company capital. In this way, it will provide the enough amount to use essential
resources that require for application design and development.
Growth strategies
Growth strategy is based on the winning larger market share even at expense on the basis
of short term earning. It will require for automobile industry to implement the core growth
strategy which help for increasing demand of business in marketplace.
Internal and external growth strategies:
Figure 1 Internal and external Growth strategies
Internal growth strategies
It is based on the growth within industry by using different internal resource which
mainly focused on the innovation, new product development, increasing performance and
efficiency, better marketing approach and recruit right person.
 New product development: it will create the sale of new products in marketplace which
increases revenue of automobile organizations. It is beneficial in the competitive
environment that improve demand in global world. It will consider some common keys
during new product development.
1. Identify the need of customer and fill it accordingly.
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2. Develop an innovative product which provide better service that added more
values in marketplace.
3. Focused on the specific target market.
4. Conducting ongoing feasibility analysis.
 Product strategy: It will help for improve the existing services by implementing
innovative. It also expanding to the geographical locations and often the business that can
increase its revenue while simply increasing quality of service (Xing, Huang and Lai,
2019).
 International expansion: It is also another common strategy in terms of growth for
automobile industry. Internationally, it derives to seek significant competitive advantage
by using different resources to launch new services in different nations. Although, it
associated with the selling overseas which is fairly complex form especially in growth.
External growth strategies
The strategies are mainly focused on the generating output and how business reach with
aid of resources and capabilities that are not properly internally developed in proper manner. The
automobile industry is obtained the resources through partnership, merger with other nation.
External strategy can be divided into different groups:
 Strategic Alliances: The acquisitions and mergers bring together with automobiles
organizations through complete changes in their ownership. In this way, organizations
can share their resources as well as activities to ensure common strategy without sharing
in their parent’s organizations (Rondović, Djuričković and Kašćelan, 2019).
Equality alliances mainly involves the creation of new entity that owned by partners
which involved. The common form is Joint venture when two organizations remain
independent but also setup new business with the help of innovative concept. Alliances can
be formed with multiple partners.
 Merger and Acquisitions: It mainly offering growth strategies in automobile industry
which improve the overall competitive strength of acquirer. It may allow for business
with maintain or balance their strong sheet in which combine with another firm. It
enabling the latter to save on interest payment through assets to pay.
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Challenges of Growth
An entrepreneur is one who plays important role within organization, operates and
assume the multiple risk of enterprises venture. The intensity of challenges always promotes to
the culture that evolve in terms of sustainable and competitive varies between different countries.
There are two main challenges considered for growth of automobile industry.
 Managerial capacity problem: it is one of most problem occurs in Automobile industry
where organizations are collected the productive resources that are organised in proper
manner. It goes about its routine activities and recognise the opportunities to growth.
When the problem arises where organizations are not always prepared and able to grow
business in marketplace because of their limited managerial capacity (Leminen, Nyström
and Westerlund, 2019). In additional, another challenge is that when organization grows
their business in market but faced issues due to Moral hazard as well as Adverse
selection.
 Daily basis challenges of growing business: In automobile industry, there are lot of day
to day operations performed for purpose of growth and development. in this way, it is
necessary for understanding essential element which maintained overall business
operation and functions. The most common challenge in day to day is cash flow
management because organizations will require the increasing amount of cash which help
for implementing innovative idea like GIG Motors app, investment. Another challenge is
price stability when it will growth the expense of competitors in marketplace. it become
automatically increase market share, price war among business(Rondović, Djuričković
and Kašćelan, 2019).
Quality control is challenge in business where it will increase the activities of
automobile industry in terms of quality control issues where organizations unable to
increase its resources to handle extra work.
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CONCLUSION
From above study, it Concluded that innovation is an essential part of business growth and
development because it helping for designing, launching and running the business through
innovative idea. It has summarised about various type of theories and practices that application
in business for implementing innovative idea of GIG Motors app within organization. it also
understands opportunities for entrepreneurial activities on the basis of global, national and local
economies for start-up business. it can be determined about the behaviour, personalities and
competencies towards the innovative idea. GIG Motors app has used for setting up reminder to
services the car of vehicle on time and also better option of driver to prevent unnecessary cost or
price.
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REFERENCES
Book and Journals
Ebrahimi, P., Ahmadi, M. and Alipour, H., 2019. CRM performance and development of media
entrepreneurship in digital, social media and mobile commerce. International Journal of
Emerging Markets.
Fei, R., Wang, Z. and Liang, K., 2019, January. Exploration and Practice of the Model of
Entrepreneurial Compound Talent Based on Innovation and Entrepreneurship Training.
In 2018 6th International Education, Economics, Social Science, Arts, Sports and
Management Engineering Conference (IEESASM 2018). Atlantis Press.
Francke, E. and Alexander, B., 2019. Entrepreneurial development in South Africa through
innovation: A model for poverty alleviation. Acta Commercii. 19(1). pp.1-11.
Kapinga, A.F., Suero Montero, C. and Mbise, E.R., 2019. Mobile marketing application for
entrepreneurship development: Codesign with women entrepreneurs in Iringa,
Tanzania. The Electronic Journal of Information Systems in Developing Countries. 85(2).
p.e12073.
Leminen, S., Nyström, A.G. and Westerlund, M., 2019. Change processes in open innovation
networks–Exploring living labs. Industrial Marketing Management.
Rondović, B., Djuričković, T. and Kašćelan, L., 2019. Drivers of E-business diffusion in
tourism: a decision tree approach. Journal of theoretical and applied electronic
commerce research. 14(1). pp.30-50.
Rong, F.E.I., LIANG, K. and Fang, L.I.U., 2019. Research on the Model of Entrepreneurial
Compound Talent Training Based “Innovation and Entrepreneurship
Education”. DEStech Transactions on Social Science, Education and Human Science,
(icesd).
Suárez-Puerta, B.L., 2019. Technological Innovation, Entrepreneurship and Internationalization
for Colombian Culture. International Journal of Innovation, Management and
Technology. 10(1).
Xing, Y., Huang, J. and Lai, Y., 2019, February. Research and Analysis of the Front-end
Frameworks and Libraries in E-Business Development. In Proceedings of the 2019 11th
International Conference on Computer and Automation Engineering (pp. 68-72). ACM.
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