Sources of Systematic Innovation and Entrepreneurial Opportunities

This assignment delves into the concept of systematic innovation and entrepreneurial opportunities. It highlights various sources of innovation, including Peter Drucker's seven sources, and explores how they can lead to entrepreneurial opportunities. The assignment also discusses Porter's Five Force Model and its relevance to understanding market dynamics and identifying potential entrepreneurial opportunities.

Identifying
Entrepreneurial Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.........3
TASK 2............................................................................................................................................5
P2 Rationale and the market gap analysis for Shop In Style ...............................................5
TASK 3............................................................................................................................................8
P3 Data which supports gap analysis in evaluation of idea ..................................................8
P4.Interpretation of data.......................................................................................................10
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.................................................................................................10
P6 Evaluating competitiveness and market environments...................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurial opportunity could be described as a situation that holds immense
potential new economic value by either creating new business or significantly making
improvement in market position of current that intensive its profits and sales. Conversion of a
idea in to whole new concept requires an in depth analysis of entire procedure starting from
manufacturing a good, deciding about its distinctive characteristics or USP (Alvarez, Barney and
Anderson, 2013). It is important part so as to make its easy for consumers to differentiate
between firms products from that of various other substitutes available in market. The
assignment will discuss about the Shop In Style company that is a retail store dealing in wide
variety of products like groceries, fruits, home appliances, cosmetics, dairy products and other
general merchandise. The project will evaluate various sources that could be considered for
nurturing a business idea and analysing various techniques that could be used for finding out
market gaps.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
In today's business market every firm is subject to intense competition for maintaining
its market share and to hold down its customers loyalty. It is due to frequently changes and
emergence of new fashion, technology, customers trends and demands. Thus, it makes utmost
important for firm to continuously scan for market opportunities that can be grabbed and
converted into a distinctive unique business idea. Therefore, for a entrepreneur, it is critical to
analyse and evaluate most innovative idea from the plethora of available sources that are not yet
been worked upon or explored by anyone else in the market and can provide an edge over others.
Mentioned below are certain sources that Shop In Style can take into consideration while
developing its business idea:
Drucker's 7 Sources of innovative opportunity model-
This model is based on a 7 sources for generating innovative ideas-
 The Unexpected-For any company to produce a new and distinctive product or service it
is necessary to continuously scan out prevailing market opportunities to be aware of latest
trends, customers requirements, government policies etc. (Cuervo, Barakat and Turnbull,
2015). Shop In Style to enhance its customers can make use of latest technology in its
retail stores such as LoweBot that are NAVii autonomous retail service robot that assist

customers in enhancing their shopping experience and also to assist its employees in their
back end work and keeping shelf inventory up to date and many more.
 Incongruity- No plan is full proof and there is always chances of some deviations
between what is planned and in its final implementation and in end result. Therefore for
Shop In Style it is high of importance to identify and make use of distinctive tools,
processes and techniques that could help company to effectively implementing its ideas
as they were originally perceived and conceptualized (Seven Sources of Systematic
Innovation, 2016)
 Process Needs- It s concerned conducting a SWOT analysis in order to identify point of
competencies as well as weaknesses that could be improved by taking undertaking
corrective action in form of redesigning a process or further developing it (Dimov, 2011).
This sources is to reveal important information about Shop In Style areas of core
competitiveness and about new opportunities in form of developing a new product or
process. This will help Shop In Style to enhance its position by generating higher profits
and providing lead over competitors.
(Source: PETER DRUCKER'S SEVEN SOURCE OF INNOVATION, 2013)
Ill
ustration 1: PETER DRUCKER'S SEVEN SOURCE OF INNOVATION

 Industry and Market structure change- A firms operations are majorly impacted by its
micro environmental factors like laws, change in technology, competitors strategies etc.
Shop In Style for gaining sustainability and growth for long run are subject to be aware
of and keep an close watch on recent developments that are taking place in market related
to legislation ,technical upgrades etc. so that they could be adopted at early stage,. For
instance Shop In Style is to follow various rules laid down under Sale of Goods Act
Consumer Protection from Unfair Trading Regulation and others. Also firm could keep
on introducing changes in its store layout, introduce new technology for product scanning
and so on for enhancing its customers shopping experience (Foss and Klein, 2012).
 Demographic: It includes changes emerging in people income level, population etc.
This is to assist Shop In Style to find out about their potential target markets, their
demands and aspirations. Thus its is to prove as an important source for bring out new
innovation in its products and services or process.
 Changes in perception, meaning and model- Slightest change in demographic
situations is reflected in perception of people i.e. in the way they thinks, feel and
requires. For Shop In Style this could be serve as a source of innovation as company
could track down and monitor these behavioural pattern and analyse change in attitude
and demands to cater needs of its new potential consumers developing and launching a
distinctive product and service as per their desires
 New Knowledge : To be figurehead in industry it is critical for a company to be
proactive in launching new, advanced and innovative products, technologies , services or
process in context to changing requirements of its target audience. For Shop In Style it is
important to adhere by latest retail trends such as Omni channel retail strategies, giving
personalized services adopting digital technology for accepting payments like API's, e
wallets, for creating new channels and for other business operations.
TASK 2
P2 Rationale and the market gap analysis for Shop In Style
There is always certain variation among what products are been manufactured by a
company and the actual market demands (Gonzalez-Alvarez and Solis-Rodriguez, 2011). Thus,
to maintain its position and brand value it is of high significance for firm like Shop In Style to

critically analyse these gaps and bring out necessary changes in its product, services, technology
or process so as to efficiently cope up with market dynamics and for attaining growth and
development. Also it is involves making estimation about the tangible and intangible resources
of the firm that are mentioned below:.
Tangible Resources Intangible resources
 Land
 Vehicles
 Equipments
 Machinery
 Furniture
 Inventory
 Securities including stocks and cash
 Copyright
 Patent
 Trademarks
 Goodwill
 Company's brand name
 Technology
Mentioned below one of the most efficient techniques that could be adopted for identify gap:
 Gap Analysis Porter's Five force Model
Gap Analysis : Shop In Style can make use of this technique for identifying its market
gap. It is the process that involves comparing present performance of the company with desired
performance that is measured on the basis of pre determined standards. This reveals out probable
deviations that could be analysed and eliminated by undertaking corrective measures. This will
therefore protect Shop In Style for hampering put its productivity or performance in long term
and to attain its objectives within specific time frame with higher outputs and maximum returns
(Grégoire and Shepherd, 2012). Gap Analysis also involves regularly monitoring firm's
operations so that any deviation or gap could be detected at earlier stage and could be rectified
then and there before giving it chance to widen up .
Porter's Five force Model : This model will assist Shop In Style for gaining an
understanding about competitiveness of its business environment through five forces that
majorly impacts a firm's ability to cater requirement of its consumers and to generate higher
profits. Also, it reveals out strength and weaknesses of Shop In Style which can assist in
identifying opportunities and can use for modifying its present strategies and policies in
accordance to market dynamics.

 Competitive Rivalry: The number of competitors present in the market is one of the
major determinants of the competitiveness of the firm. In case of retail sector, there is
high intensity of competitive rivalry. Thus, this scenario surely is to impact profitability
of Shop In Style they have to initially lower down prices of its products and services.
Therefore, in order to cope up with this situation and to manage its profits Shop In Style
is to work towards product differentiation by either introducing new features or
innovation in products and services which it is offering. Threat of new entrants: New entrants in retail industry keeps on bringing latest innovate
technologies, products and services that is to increase pressure on Shop In Style to adopt
competitive pricing or low pricing strategies and also to offer value addition to its
consumers (Karlesky, 2015). Also, established relationship of current big market players
of this industry with suppliers and requirement to set up their own distribution centres
and supply chain by new entrants can become probable barrier for Shop In Style
Illustration 2: Porter's Five Force Model
Source 2: (Porter's Five Force Model, 2017)

 Bargaining power of Suppliers: As in retail industry, suppliers hold dominant position
having high negotiating power, they could charge high price from firms. Although it
totally depends upon the brand name of supplier and size of market in which firm deals.
For Shop In Style bargaining power of suppliers will be moderate. Bargaining power of Buyers: In retail sector almost all firms offers products that are
homogeneous in nature. This provides high bargaining power to the consumers as cost of
switching from one brand to others is low (Khaksar, and et. al. 2011). Thus, for
maintaining its market position and holding its customers it is of high importance for
Shop In Style to provide unique and distinctive products and service s of high quality at
affordable prices to its consumers. With availability of number of options for customers
like grocery. stores, convenience stores, fresh food markets etc. where in they are ready
to pay high for their comfort threat from substitute is moderate to high for Woolworths.
To handle this company can shift its focus from product to service orientation and can
plan out strategies to increase its switching cost for customers
 Threats of Substitutes: As Shop In Style offers a wide range of products such as
groceries, fresh food, beauty products, dairy items and so on. This helps costumers to buy
there basic essentials at one place (Kohlbacher, Herstatt and Levsen, 2015). Thus, they
willingly pay high for their comfort which make threat from substitute aspect moderate
for Shop In Style to be worry about.
TASK 3
P3 Data which supports gap analysis in evaluation of idea
Shop In Style for analysing its competencies, performance and position in the market,
conducts gap analysis with other leading business rivals on various different factors. Mentioned
below that could be considered for gap analysis:
Basis Shop In Style TESCO
Competition in
market
Shop In Style been a new player in
market needs to capture market share in
order to sustain and grow. For this, firm
could make strategies like competitive
pricing, psychological pricing strategy
Other leading brands in retail
sector like TESCO are providing
tough competition to Shop In
Style in this aspect. It is because
they are producing homogeneous

and market penetration. It assist firm to
capture large number of customers by
offering them quality products that is
affordable for them to purchase.
goods and follows competitive
pricing policy that make
consumers to have number of
substitutes available to choose
from.
New entrants in
industry
To commence a new retail business
requires huge money investment, large
set up, establishing brand by doing
intensive promotion and to attain
economies of scale in business
operations. Therefore in order to
establish its brand name in market Shop'
N' Style can adopt low cost retail started
and could join hands with local farmers
and whole sellers. This will benefit firm
to get quality products at cost effective
prices as expense of paying to
middlemen will be removed. Another
strategy to be adopted by Shop In Style
is to initially provide 10 % discount on
there consecutive two purchase. Thus,
till will help firm to efficiently handle
threat from new entrants which is
moderate.
Even the market leading brands in
this industry are subject to intense
competition among themselves.
All of them compete which each
other over price, product,
promotion etc. intermittently .
Power of
supplier
Shop In Style in order to maintain good
relationship with suppliers follow certain
strategies. These involves providing
sufficient lead time to them after placing
The competitors companies like
TESCO are having established
relationship with major suppliers

an order to them and also keeping them
aware of any changes is quantity. Also
firm involve and share information
related to its new product, special
promotions etc. that help Shop In Style
to find new customers from its suppliers
references.
that provide them more benefits.
Threat of
substitute
As threat from substitutes are quiet high
in this industry Shop In Style requires to
put considerable efforts in order to
provide unique products and services. As
firm is following competitive pricing
strategy, giving discounts and other
tactics are to assist firm in attracting it s
potential target audience. By adopting
latest technology like LoweBot,
accepting payments from API's,
adopting Omni channel retail strategies
and providing personalized services will
help firm to distinguish its products and
services from that of other available
substitutes.
The leading brands in retail
supermarket are providing tough
competition to Shop In Style by
providing quality products at
affordable prices.
P4.Interpretation of data
Mentioned above market and gap analysis data interprets and concludes following
outcomes for Shop In Style :
 For commencing and setting up business in an industry where there is huge competition,
it is requisite for Shop In Style to first and foremost grab attention of its target audience
(Mitchelmore and Rowley, 2013). Thus, for establishing its brand image in market Shop
In Style is making use of various strategies like market penetration, competitive and

psychological pricing in providing quality product at lower price in comparison to other
market players. This is helping out Shop In Style to built a strong image of its brand even
during its initial phase. Also it making various efforts like competitive pricing, market penetration, offering
various discounts etc. which has benefited the company to gain dedicated market base.
 Shop In Style, to induce its potential customers. make a purchase from them is providing
discount of 10% on their consecutive two purchase. This is to reap benefit for firm by
converting these potential customers into its regular and loyal consumers once they get
satisfied from its products and services (Shabani, 2016).
 Moreover company is introducing latest technology in its operations such as LoweBot
that will attract customers as it will develop curiosity in them to get assisted in their
shopping by robots thereby enhancing their shopping experience.
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.
SWOT analysis is a analytical tool that focuses on evaluating the internal and external
factors that are likeable to impact the growth and success of firm. For Shop In Style, this
technique is to provide a reflection of its internal factors that comprises firms Strength and
Weakness and also its external factors that include opportunities and threats.
Strength
Key competency of Shop In Style lies adoption of latest technology that is to provide two
way beneficiary effect for the firm (Siegel and Renko, 2012). It is as it involves extensive use of
API's that makes it convenient for its consumers to make payment besides maintaining their
account security. Also, by using LoweBot in this back end store operations as well as in assisting
customers in their shopping will help firm to maintain efficiency in its store activities in addition
to enhancing consumers shopping experience. As company make bulk purchase that to directly
from farmers and wholesalers it helps company to save a lot of expenditure to be paid to
middlemen. This lead company to keep price of its products and services low and to attain
economies of scale that further benefits in becoming competitive in UK retail industry .
Weakness:
It is quiet tough for Shop In Style to gain an edge over its rivals in its initial phase
because of intense price wars between retailers in UK. Also, at initial stage investing on

advanced technology is quiet difficult for firm. Thus, it is required to earn profits any how to
carry out its day to day business activities smoothly. Also been a new venture Shop In Style
Shop In Style is to face problem related to positioning of its brands. Also in comparison of to its
leading market rivals company is having limited presence with no outlets in other nations yet.
Opportunities
Shop in Style has immense opportunities that if identified firm could help it in its growth
diversification. One such opportunities lies in opening its outlets in emerging economies like
India, Brazil etc. where in there is large population who can afford to buy company's products.
By adopting similar policies like its leading competing brand TESCO it is beneficial for
company to increase it visibility by opening up small outlets that serves essential needs of its
consumers (Suddaby, Bruton and Si, 2015). Also, there company could make use of latest
techniques of promotion to intensify its sales volumes by attracting its potential consumers.
Threats
Major threat for company is it weak brand portfolio. The pressure to provide quality at
low price is very difficult to be maintained by firm specially in its initial phase. Also advance
technologies that are been used by other high market player posses serious issue for firm for its
medium and long term. With digitation, online retailer firms are becoming more popular among
consumers.
Thus from the above SWOT analysis it is evident that Shop In Style's key strength lies in
the latest technology that is benefiting firm in number of ways. As it is enhancing its customers
shopping experience, helping out firm in efficiently handling its back office store operations and
also providing an edge over its competitors. Also firm has immense scope and opportunities to
diversify its business in emerging developing economies like India, Brazil etc. where in firm
could open more outlets as population there can afford its products. However firm is to improve
its areas of lacking that involves it limited market presence as compared to its leading rivals so
that further it is not create threat for firm to be out of market due to its weak brand portfolio.
Also, although initially it is difficult for firm to invest in new technology but firm is requite to
bring alterations as per changes occurring and technological advancement to overcome this
threat. Considering this internal analysis it could be verdict that the business idea opted by Shop
In Style is profitable and feasible for firm to execute.

P6 Evaluating competitiveness and market environments
It is of high significance for a new venture like Shop In Style to gather deep
understanding of various competing factors along with other market environment attributes so
that firm could be proactive in formulating and implementing policies and strategies as per
intensity of impact of these factors (Vasilchenko and Morrish, 2011). Mentioned below are the
analysis of Market environment and Competitive factors for firm:
Competitive Market: It is of high importance for a firm like Shop In Style to be effective
and efficient in making necessary modification in its products and services in accordance to
changes in competitors policies and strategies. Major competitive factors includes: Substitute Products: Due to higher rate of availability of homogeneous products in this
industry it is essential for firm to differentiate its brand's products from that of others.
For this, company has to introduce innovative products having unique features that will
make it easy for its consumers to differentiate with other competing products. Also firm
has to carefully set is price by critically analysing its target audience and by using
psychological and competitive pricing strategies (Gonzalez-Alvarez and Solis-
Rodriguez, 2011).
 Target Audience: It forms another major factor that is to be critically evaluated as it is
major one of the factor in gaining edge over rivals. The firm should target customers of
all age and all sections that are looking for quality products at affordable prices.
Market environment: For finding out its competency in respect to its market
environment Shop In Style can do PESTEL analysis that will involves various factors related top
political, economical, social, technological, environmental and legal aspects that majorly impacts
its business operations. As Shop In Style tagetes all customers therefore it should be priority of
firm to produce quality products at reasonable prices by making use of latest technologies
ensuring that they are as per consumers needs and aspirations.
Micro Factors: It forms another relevant and most crucial factor that significantly
impacts firms success and growth (Grégoire and Shepherd, 2012). These factors studies the
internal factors related to management, human resources etc. that have direct relation with its
business functions. Thus for Shop In Style it is important to find out its workforce perception,
behaviour, attitude,and business culture.

CONCLUSION
The project undertaken concludes that there is great scope for entrepreneurial business
within the competitive marketplace. There is requirement of some sources which helps to
generate business ideas. There are chances of difference in actual and standard results, so it is
essential to take corrective measures to overcome it. When some ideas are generated in mind, it
can be successful with the help of proper evaluation through opting various options. SWOT is
the best techniques which helps to know about internal factors within business. There is much
competition among associations, so it is essential to frame policies according to market trends.

REFERENCES
Books and Journals
Alvarez, S. A., Barney, J. B. and Anderson, P., 2013. Forming and exploiting opportunities: The
implications of discovery and creation processes for entrepreneurial and organizational
research. Organization Science. 24(1). pp.301-317.
Cuervo, H., Barakat, N. and Turnbull, M. J., 2015. Youth, belonging and transitions: Identifying
opportunities and barriers for indigenous young people in remote communities. Youth
Research Centre, University of Melbourne.
Dimov, D., 2011. Grappling with the unbearable elusiveness of entrepreneurial opportunities.
Entrepreneurship Theory and Practice. 35(1). pp.57-81.
Foss, N. J. and Klein, P. G., 2012. Organizing entrepreneurial judgment: A new approach to the
firm. Cambridge University Press.
Gonzalez-Alvarez, N. and Solis-Rodriguez, V., 2011. Discovery of entrepreneurial opportunities:
a gender perspective. Industrial Management & Data Systems. 111(5). pp.755-775.vv
Grégoire, D. A. and Shepherd, D. A., 2012. Technology-market combinations and the
identification of entrepreneurial opportunities: An investigation of the opportunity-
individual nexus. Academy of Management Journal. 55(4). pp.753-785.
Karlesky, M. J., 2015. Identifying Entrepreneurial Opportunities: Cognition and Categorization
in Nascent Entrepreneurs.
Khaksar, S. M. S. and et. al., 2011. The relation between after-sales services and entrepreneurial
opportunities: Case study of Iran-Khodro Company. African Journal of Business
Management. 5(13). p.5152.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people. Technovation. 39. pp.73-82.
Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of women entrepreneurs
pursuing business growth. Journal of Small Business and Enterprise Development.
20(1). pp.125-142.
Shabani, S., 2016. Analysis and Identification of Entrepreneurial Opportunities in Construction
Industry using Composite Technology. Journal of Entrepreneurship, Business and
Economics. 4(1). pp.85-107.
Siegel, D. S. and Renko, M., 2012. The role of market and technological knowledge in
recognizing entrepreneurial opportunities. Management Decision. 50(5). pp.797-816.
Suddaby, R., Bruton, G. D. and Si, S. X., 2015. Entrepreneurship through a qualitative lens:
Insights on the construction and/or discovery of entrepreneurial opportunity. Journal of
Business venturing. 30(1). pp.1-10.
Vasilchenko, E. and Morrish, S., 2011. The role of entrepreneurial networks in the exploration
and exploitation of internationalization opportunities by information and
communication technology firms. Journal of International Marketing. 19(4). pp.88-105.
Online
Seven Sources of Systematic Innovation. 2016. [Online]. Available
through:<https://www.mbaknol.com/strategic-management/seven-sources-of-
innovation-by-peter-drucker/ >.