Identifying Entrepreneur Opportunities : Report
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Added on 2020-07-23
Identifying Entrepreneur Opportunities : Report
Added on 2020-07-23
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IDENTIFYINGENTERPENUREOPPORTUNITES1
ContentsContents...........................................................................................................................................2INTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............3P2 The rationale and the market gap for a specific entrepreneurial............................................6P3 Gap analysis in the evaluation of a specific entrepreneurial idea..........................................9P4 Interpretation of data to provide evidence of market potential............................................11P5 SWOT analysis to assess the entrepreneur idea...................................................................11P6 Competitive and market environments in which the idea will be launched........................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................142
INTRODUCTIONAn individual has variety of options to start a new business with. It is important that themode of commencing same is selected in a way that the most effective outcomes are achieved.With the advancement in globalization this has become more crucial to select the appropriatemode of commercial idea which can lead to enhancement of an individual. The external factorsfor every enterprise keep on fluctuating and therefore it has to be identified that which optionwill have maximum stability and will give positive returns in the long run. For entrepreneur themajor concern is to implement the idea which is being selected in the same manner as expectedas the forces of environment makes it difficult to deal with the continuous changes (Farmer, Yaoand Kung‐Mcintyre, 2011). The business idea which is taken in this report is of launching a newbeauty product for females which will help them in getting rid of different face marks in a shortrun. Kyra is a daily product which will be launched in different parts of UK with a view ofcapturing maximum market share. As people are very much health conscious it is expected thatthis will turn into a favorable option for the entrepreneur and hence the profit margin will beraised. The following report will talk about the variety of sources that are available for anentrepreneur to select the appropriate options and will also discuss the factors affecting sameusing the different tools.TASK 1P1 Determine and evaluate different sources of entrepreneurial ideas and innovationAn entrepreneur is a person who takes risk on his own responsibility with an aim of earninghigher returns. An entirely new concept is launched by him which has the capacity to attractmarket towards it and hence the competitive advantage is achieved. He/she is an individual whoinstead of working under some other superiors commence own start up and achieve the desiredresults. The scale of operation may vary to the degree of investment made as there are option s ofdoing large medium and low allocation of resources. All the rewards and loss are suffered by anentrepreneur alone and there is no liability of the third party in this type of business. He has thecapabilities of exploring the market opportunities into business and earn maximum returnsspecifically at the initial stages. In order to achieve success in long run it is important thatbusiness is started with an option which has minimum chances of failure and involves less risk.When a start-up is launched market study is done so that different ideas can be evaluated and3
compared as this helps in identifying the best suitable option. There is a difference between thetwo concept innovation and invention which can be better understood from the figure givenbelow:Figure 1: Innovation, Invention, and Creativity: What is the Difference?The idea of choosing the cosmetic sector was influenced by different forces some of whichare given below:Economic factor – in order to capture greater market, share it is important that suchbusiness idea is launched which is easily accepted in the market. At initial stages customer’s donot like to spend much as they find it difficult to trust a new brand (Duru, 2011). Therefore, tochoose an idea which demands less investment is good as this way the total risk involve getsreduced and hence it becomes easy to capture more market. The new idea of launching Kyra ischosen as it is an economic product and can be easily placed to sell on a high scale. Social Factors - Apart from this the social factors also includes the demand in society andhence this is the major reason why the idea of launching a beauty product is selected. Women arevery particular about their looks and therefore can be easily influenced with a product that maylead to a positive change in their appearance.Technological factors – To carry out different operations and to start a new business latesttechnologies are also required which demands investment in high amount. As the degree ofdanger involve in the start-ups is high it is risky to choose an option demanding high costapplications. Therefore, to choose the option of a cosmetic is beneficial as through this moreresults can be achieved with the investment of less cost. Manufacturing a new cream is less4
complicated and there are high chances of getting success if an effective medium of marketing isused.Political factors – The selection of a particular business idea is highly influenced by thecurrent political conditions of a particular place. it has to be recognised that weather thegovernment has favourable conditions for the selected business or not. If it is found that there arehigh taxes and restrictions imposed by government towards the selected idea than the same mayget effected. Since the selected start up belongs to an industry which faces limited restrictions thesame may prove to be beneficial (Grégoire and Shepherd, 2012). There are distinct variety ofinnovation in business:1.Process innovation – This is the most common way of innovating the business in whichpresent code of conduct is replaced with an improved method. The new procedure whichis adopted has the capacity to give better results to the firm. 2.Product innovation – It is another option through which modification can be brought inthe business. By adding variety or more feature to the existing product demand for samecan be raised and high revenue can be generated. 3. Incremental innovation – It is a combination of distinct small and continuousimprovements that can be made in different areas of business. It can be product process orany section in which there is a scope of change.Sources of innovationInnovation is the process through which changes in the existing products are made so thattheir overall value can be raised. It is an effective tool that can be implemented in order to raisethe scale of operation and to increase the capacity of a particular unit. Invention on the otherhand is entirely a different process as in this a totally new product is received which is developedon a new scale. In the chooses business idea the concept of invention is used as a fresh cream islaunched for the public which will serve a different objective for the users. In the start-ups boththese concepts are used on a wide scale as without these a business idea is incomplete as it willnot be considered as new. The scope of innovation is high in this type of business asentrepreneurs can use variety of methods in their production process or product. There aredifferent sources of innovation which are as follows:5
1. The unexpected – Any sudden change in the external surroundings can be referred as a sourceof innovation as by exploring to same there are chances that business may earn higherreturns. 2. The incongruity – In case of inefficient present working system it is assumed that byinnovating the same the productivity can be raised.3. The process need – This is another source of innovation in which it is identified that throughchanging the present working system better and effective results can be achieved.4. The industry and market need – Competition is tough in different sectors and in order toachieve the competitive advantage it is of great importance that change is maintained as itassist in maintain the interest of distinct clients.5. Demographics – This is another major source of innovation as investigative look at the linkbetween economic growth, innovation, vitality and entrepreneurship in an aging population,and provides a smart strategy for the future.6. Changes in perception, Meaning and Mood – Chances of modifications develops in case ofalteration in the present system of working. As now society is more health freak it is easy toposition the selected product in market.7. New knowledge – With the increase in present information it is observed that it becomes easyto modify the products. Like in case of Kyra scope has improved as now with the assistanceof same best quality products can be delivered in market. P2 The rationale and the market gap for a specific entrepreneurialThe targeted customers of the new brand launched is females falling under the age group ofthirty to fifty-five. It is very much important that before a product is actually launched in themarket targeting of customers is doe in an appropriate manner. This helps in making the changesin the offerings and delivering the most demanded item. Apart from this targeting process alsohelps in deciding on the marketing activities for the customers as after recognising the behaviourof clients it can be identified that which mode of promotion can act as the most appropriate one.In order to analyse the industry there are various tools that are available among which Porter’sfive force model is the most effective one (Fuentes and et.al., 2010). Through the same it can beidentified that what completion is prevailing in the market so that accordingly arrangements aredone. Give below is the competitive analysis of cosmetic section which will help inunderstanding the problem that will be faced while taking a new entry in the same.6
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