Identifying Entrepreneurial Opportunities

Identifying Entrepreneurial Opportunities

P 2 Entrepreneurial idea and the market gap by using relevant tools
and technique
Entrepreneur is coming up with the idea of getting into a business of accommodation provider
such as Airbnb.
The name of the venture is going to be Cloud 9.
The reasons for choosing this business is because it deals in service industry and the flow of
money and rate of success is high if right amount of strategies is used to attract the consumers.

Porter's five force analysis
This is most appropriate method or framework that helps in analyzing external environment
of company so that firm can take suitable action to gain success.
Threat of new entrants-
Usually the threat from new companies entering into the same sector is low but it takes just a
website to enter into this industry. Still there are many barriers which affects the growth of cloud 9 in
the industry such as time when the company entered into the market, raising the capital is not easy and
barriers which are related to legal aspects.
Rivalry among existing firms-
This aspect exists in this industry at a high level there are many factors which the
entrepreneur of the company needs to keep in mind in order to survive the competition. Growth rate of
business needs to be assessed in the industry. Other than this strategies and target audience of the
competitors needs to be kept in mind so that new and effective strategy can be taken. The most
important factor is equity of the brand as it helps them to generate more consumers and earn more
revenues.

P3 Gap analysis in evaluation of particular entrepreneurial idea-
How did you get up with idea for your business?
Customer needs
Change in hotel trends
Growth in hospitality sector
What problems did hotels are facing today?
High competition
Change in customer needs
Do you think customer will like your business idea?
Yes
No
What gap is your business trying to fill?
Fulfil customer needs
Providing more facilities