Identifying Entrepreneurial Opportunities

This report discusses the procedure of emergence of an entrepreneurial idea and the initial analysis done before setup of a venture. It includes sources of innovative entrepreneurial ideas, rationale and market gap analysis, gap analysis in the evaluation of entrepreneurial idea, interpretation of data to provide evidence of market potential, and SWOT analysis to assess the entrepreneurial idea. The case study is based on Grandeur Inn, a hotel offering possible customization in London, UK.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Sources of innovative entrepreneurial ideas.....................................................................1
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques. 2
P3. Gap analysis in the evaluation of entrepreneurial idea....................................................3
P4. Interpretation of data to provide evidence of market potential........................................8
P5. SWOT Analysis to assess the entrepreneurial idea........................................................11
P6. Evaluation of competitive and market environment to assess potential viabilities........13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
An entrepreneur is defined as the person who possesses risk taking as well as innovative
nature, having the motive of coming up with solutions through which market gap can be filled.
Entrepreneurial opportunities are tapped by entrepreneurs to develop venture with the aim of
solving issues faced by the society at large (Audretsch, 2012). The following report takes into
account the procedure of emergence of an entrepreneurial idea and the initial analysis done
before setup of a venture. The idea that has been proposed to be converted into a venture is
acknowledged to be a hotel offering the feature of possible customisation in case the booking is
done by customers 10 days prior to the actual date of accommodation. This entity will be
launched under the name of Grandeur Inn within the confines of London, UK. The project
consists of source of entrepreneurial idea together with competitive analysis & gap identification.
Further, SWOT of the entrepreneurial idea is included. Lastly, the analysis of market is presented
to ascertain the viability of concerned entrepreneurial idea.
TASK 1
P1. Sources of innovative entrepreneurial ideas
Establishment of an entrepreneurial venture is a risky task that holds equal chances of
success as well as failure. In this relation, it has been identified that there are a number of sources
from which an entrepreneur derives the idea of setting up a venture. Such ideas are discussed in
light of Grandeur Inn with the help of Peter Drucker’ 7 sources of innovation, as beneath:-
Incongruities: This can be defined as the difference underlying between the desired and
actual position of an entrepreneurial idea (Kohlbacher, Herstatt and Levsen, 2015). Thus,
effective market researching needs to be done in order to ensure that the venture does not fail
after launch into the market place. In this relation, the entrepreneur of Grandeur Inn should strive
to analyse the customer needs in order to provide an edge to the venture.
The Unexpected: This is linked to the discovery of unexplored business ideas for gaining
support on the part of people prevailing in the market. The constantly changing needs and
demands of customers should be taken into account by the entrepreneur of Grandeur Inn so as to
launch more of features like possible customisation and appeal to them in an effective manner.

Process need: It is linked to ascertainment of weakness of an idea. This provides
assistance in modifying the entrepreneurial idea in order to meet the needs of market. With this,
the entrepreneur of Grandeur Inn will be able to recognise the shortcomings of this hotel venture
and thereby ensure its sustainability at market place for a long period of time.
Changes in Market and Industry Structure: Each and every corporate sector witnesses
changes over the course of time (Siegel and Renko, 2012). Such changes need to be taken into
account so as to appeal to public at large in an effective manner. Thus, it is essential for the
entrepreneur of Grandeur Inn to consider the progressions of hospitality sector so as to
implement the same within the venture and boost its profits.
Demographics: This source is linked to the alterations taking place within the domain of
demographics. These need to be taken into due consideration by the entrepreneur of Grandeur
Inn so as to select the target audience within London and ensure their needs are met by the
venture in an effective and efficient manner.
Changes in Perception: The efflux of time results in changes taking place within the
ideologies as well as perceptions of individuals prevailing in market place. Thus, the
entrepreneur of Grandeur Inn would be conducting constant market research in order to gain
knowledge of the ideologies possessed by people and thereby introduce services that can
significantly appeal to them.
New Knowledge: Technology is progressing with the constant evolution of time creating
opportunities for ventures as well as upcoming venture to take due advantage of it (Suddaby,
Bruton and 2015). Thus, with the execution of gap and competitive analysis, the entrepreneur of
Grandeur Inn would be able to identify the difference underlying between strategies of respective
hotel and its rivals. As a result of this, Grandeur Inn would also be able to fill the gap existing
within the market place.
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques
The business idea that is proposed to be launched by the entrepreneur within London is
the launch of a hotel venture having the option of possible customisation in case of booking in 10
days advance. Market gap can be defined as the procedure of provision of offerings that are not
yet presently offered in market. Competitive analysis is done beneath to identify the gap in
market place.

Basis Grandeur Inn Marriott Hotel Four Seasons London
Products and
Services
Gives effective
customer service
together with the
service of possible
customisation in case of
10 days prior booking.
Provides impeccable &
24*7 customer service and
luxury rooms.
Irreplaceable services
provided by the hotel
management at all the
times together with well
developed infrastructural
facilities.
Organization
structure
Functional structure to
be followed hereby.
Departmental structure is
followed hereby.
Matrix organisational
structure is followed
hereby.
Major
Attractions
Customer centred
approach together with
amiable employees
Multi lingual employees
together with rooms
equipped with lavish
services.
Service excellence along
with multi cuisine food.
Promotional
strategy
Newspaper inserts and
broadcast media would
be leveraged to create
awareness among
people.
Mobile app, M Live Social
Media platform and
website advertising.
Word of mouth publicity
as well as social media
marketing is leveraged by
Four Seasons London.
P3. Gap analysis in the evaluation of entrepreneurial idea
Gap analysis is executed by an entrepreneur while launching any idea into the
marketplace. This helps in ascertainment of difference underlying between actual and desired
performance of the venture. In relation to Grandeur Inn, the gap analysis is done with the help of
questionnaire presented as beneath:-
QUESTIONNAIRE
NAME:

AGE:
ADD:
GENDER:
MAIL ID:
Q1) Do you have knowledge of the pioneering services offered by Grandeur Inn?
 Yes
 No
Q2) Which factor or service comes to your mind while making choice of hotel for staying?
 Game Zone
 Multi cuisine, hygienic food
 Free Wi-Fi
Q3) Do you think the new service of possible customisation within Grandeur Inn will increase
the profits for the hotel?
 Yes
 No
Q4) Is impeccable customer service an essential factor that should be considered by Grandeur
Inn?
 Yes
 No
Q5) Give some recommendations for Grandeur Inn through which the hotel can appeal to a
larger customer base.
Theme 1: Knowledge of the pioneering services offered by Grandeur Inn
Q1) Do you have knowledge of the pioneering services offered by Grandeur
Inn?
Frequency
a) Yes 32
b) No 18

Theme 2: Factor or service comes to mind while making choice of hotel for staying
Q2) Which factor or service comes to your mind while making choice of
hotel for staying?
Frequency
a) Free Wi-Fi 10
b) Hygienic and multi-cuisine food 14
c) Gaming Zone 16

Theme 3: New service of possible customisation within Grandeur Inn will increase the profits
for the hotel
Q3) Do you think the new service of possible customisation within Grandeur
Inn will increase the profits for the hotel?
Frequency
a) Yes 40
b) No 10

Theme 4: Impeccable customer service is an essential factor to be considered by Grandeur Inn
Q4) Is impeccable customer service an essential factor that should be
considered by Grandeur Inn?
Frequency
a) Yes 32
b) No 18
P4. Interpretation of data to provide evidence of market potential
An entrepreneur gathers information related to launch of a business idea from a number
of sources. The major sources of collection of data are primary as well as secondary. In this
regard, following information is gained with respect to Grandeur Inn:-
 The new hotel to be launched by the entrepreneur provides users the facility of bringing
about possible customisation in case of 10 days prior booking. This service is unique and
not yet being provider by any hotel currently.
 The primary emphasis of Grandeur Inn is upon fulfilment of customer demands through
provision of unique and impeccable customer services.

Interpretation of above data:
Theme 1: Knowledge of the pioneering services offered by Grandeur Inn
Central Tendency Data
Mean 25
Median 25
Mode 14
Standard Deviation 9.89
Interpretation 1: In accordance with the above data, it can be said that majority of the people
possess knowledge of the unique and innovative services being rendered by Grandeur Inn at
market place. To increase the brand awareness, the hotel management can leverage social media
marketing.
Theme 2: Factor or service comes to mind while making choice of hotel for staying
Central Tendency Data
Mean 13.34
Median 13
Mode 10
Standard Deviation 3.05
Interpretation 2: In accordance with the data presented above, it can be said that customers are
usually moved by those hotels which offer multi cuisine and hygienic food as food is their first
priority.

Theme 3: New service of possible customisation within Grandeur Inn will increase the profits
for the hotel
Central Tendency Data
Mean 25
Median 25
Mode 0
Standard Deviation 21.22
Interpretation 3: As per the above analysis, it can be said that people believe the new and
innovative service of possible customisation would lead to increment in profits for Grandeur Inn.
This would even enhance their customer base.
Theme 4: Impeccable customer service is an essential factor to be considered by Grandeur Inn
Central Tendency Data
Mean 25
Median 25
Mode 14
Standard Deviation 9.89
Interpretation 4: As per the above analysis, it can be said that customers believe that customer
services is an important aspect to be considered by the management of Grandeur Inn, however,
there are other services also that must be paid attention upon.
GAP ANALYSIS
Basis Current condition Desired condition Action plan
Products The entity provides rooms The customers demand Incorporation of

and
Services
with well equipped
infrastructural facilities.
However, check-in and
check-outs take time there.
automated check in and
out.
automation within check-
in and check-out system.
Cost Availability of rooms at
reasonable prices.
Competitive pricing model
to be adopted to inflate
market positioning.
Devising an effective
pricing strategy to build
sales and profits.
Innovation Possible customisation is
an innovative concept
provided by Grandeur Inn.
More innovative services
can be provided by the
hotel to appeal to public
effectively.
Adoption of customer
centred approach
together with receipt of
regular customer
feedbacks.
Business objectives of Croscett Hotel
Objectives Strategies
Guaranteeing high
contentment on the part
of customers
 Provision of customised rooms and associated services.
 Adoption of consumer centred approach to retain customers in
the long run.
Long term business
sustainability
 Provision of impeccable customer services
 Undertaking regular feedback via customer base to enable
improvement in business offerings of Grandeur Inn
 Leveraging innovations to deal with rival firms prevailing
within hospitality sector
P5. SWOT Analysis to assess the entrepreneurial idea
It is highly important for every entrepreneur to conduct a mini research over their
proposed business idea as well as marketplace so that they can easily find out whether their
venture is feasible or not. SWOT analysis is considered as an effective strategic tool which

supports businesses in assessing core strength, weaknesses, available opportunities and possible
threat that might affect their business activities. Wit reference to the current business idea of
Grandeur Inn, it can be said that its proposed entrepreneur focuses on conducting an effective
SWOT analysis so that they can easily check out whether their idea of providing customised
services would be success after its launch or not. SWOT analysis for Grandeur Inn is specified as
below:
Strengths: The main strength for the proposed business idea of providing customised
services to customers by Grandeur Inn is that it includes range of innovations in their practices
with the motive of serving their customers in lucrative form. The option possible customisation
allows customers to ask for modification in terms of room, surroundings and other things
associated to the accommodation. Also, Grandeur Inn is located at prime location in London
which attracts maximum number of customers towards them in appropriate manner.
Weaknesses: Even though the business idea introduced by Grandeur Inn is highly
innovative but still the main weakness of the proposed plan is that it is highly expensive as it
includes range of new activities. Also, the main expense in this is transportation cost which
ultimately increases cost of each service offered to the customers.
Opportunities: Grandeur Inn can easily obtain proposed opportunities by conducting
effective market research so that they can easily develop their understanding over the customers’
core requirements. This also aware Grandeur Inn about the number of possible booking for their
additional customized service options which ultimately helps them delivering services to
customers in rapid manner with higher quality that leads enhancement of their satisfaction level.
It would also support Grandeur Inn in developing its strong position at marketplace.
Threats: The main threat could be faced by Grandeur Inn is entrance of more number of
entrepreneurial ideas within the same industry that could divert the customers’ interest towards
the rivalry. Another threat that might be faced by Grandeur Inn is reduction in the prices offered
by rivals for the similar kind of services. This would directly become major threat for this
company affect its profitability as their operating cost would be higher compared rivalry. This
simply means that it won’t be possible for Grandeur Inn to reduce its prices possible customised
services offered to customers.

P6. Evaluation of competitive and market environment to assess potential viabilities
It is essential for the entrepreneurs to have appropriate understanding over the industry in
which they are dealing so that they can easily determine competitiveness within the same
industry. With reference to the current case scenario of Grandeur Inn, a detailed industrial
analysis will help the company in knowing about their respective industry in better manner. For
knowing competitiveness of Grandeur Inn within the hospitality sector Porter’s five force
analyses would be helpful for them and also support them in gaining competiveness. The
proposed framework is specified as below in detailed manner.
Competition within Industry (High): The influence of this force is high for Grandeur Inn
as there is huge number of hotels within UK which shows that competition is high here. Also, all
of these hotels exceptional services to customers’ which attracts them at utmost. This clearly
depicts that entrepreneurs are required to develop new strategies accordingly by observing
competitiveness within the industry.
Threat of New Entrants (Low): Risk of new entrant in hotel industry is quite low as it
requires huge investment so that better premises can be developed for the customers which
would contribute in enhancing their satisfaction level. With reference to Grandeur Inn, this hotel
offers highly customised services for its customers that mean there is lower threat for this hotel
from new entrants’ side.
Bargaining Power of Buyers (high): The influence of bargaining power of buyers within
hospitality sector is relatively high as it is completely dependent upon the customers that whether
the respective hotel will sustain or not. In order to deal with the same, Grandeur Inn would
develop low cost strategy for attracting larger number of customers towards them that will
ultimately maximise their profits.
Bargaining Power of Suppliers (Low): Suppliers for the hotel industry are the one who
provide or make additional services available for the customers. As per creative business idea of
Grandeur Inn, it can be said that it offers possible customised services to its customers thus they
contact to suppliers according to their requirement which ultimately reduces influence of
suppliers towards them.
Threat of Substitutes (moderate): Grandeur Inn is already offering possible customized
services to its customers which simply means that there is very least chances of further more

services or other substitute within the same sector. This depicts that Threat of substitute is
relatively moderate for Grandeur Inn.
Market Environment: With respect to any entrepreneurial idea, macro and micro
environment place major impact. Both of them are discussed in light of Grandeur Inn as
underneath:-
Macro environment
PEST analysis is conducted to carry out macro environment analysis for Grandeur Inn.
Political: The strong as well as stable political state of United Kingdom will act as a
supporting factor for Grandeur Inn to sustain in market for a long period of time. Further, UK
government supports the growth of entrepreneurial ventures by way of grants and subsidies.
Economic: The developed economic conditions of United Kingdom support the growth
of Grandeur Inn through the provision of sound infrastructure and other facilities. This will assist
the concerned venture to tap advantage of the well equipped infrastructural facilities of the
country to boost its revenues.
Social: This is concerned with the lifestyle and trends of customers. The idea of possible
customisation offered by Grandeur Inn can be tapped by other rival firms. Thus this factor does
not support the growth of the venture.
Technological: The technologically advanced state of UK supports the growth of
Grandeur Inn. The entity can come up with features like online booking facility, mobile
application to gain a competitive advantage.
 Micro environment- These are the internal factors within business which impact upon the
functioning of hotel. This includes aspects like hotel staff, culture, values, practices etc.
On the basis of above analysis, it can be said that the entrepreneurial idea of possible
customisation is viable as the market and competitive environment favour the conversion of this
idea into a venture.
CONCLUSION
It can be stated that entrepreneurship is a concept which is quite important in today’s
world as it boosts the economy of a nation and seeks to resolve the issues faced by society.
Further, it is determined that gap analysis provides assistance to the entrepreneur in determining

the offerings that can be incorporated by the venture to appeal to people in a more effective
manner. Apart from this, it is recognised that viability of an entrepreneurial idea can be
ascertained with the help of market and competition analysis.

REFERENCES
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