Identifying Entrepreneurial Opportunities

This document discusses the sources of entrepreneurial ideas and innovation, as well as the rationale and market gap for a specific entrepreneurial idea. It also applies the SWOT framework to assess the idea objectively. The subject is entrepreneurship and the document type is a report.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Determining and evaluating distinct sources related to entrepreneurial ideas as well as
innovation....................................................................................................................................1
TASK 2............................................................................................................................................3
P2. Explanation of rationale as well as market gap in context to specific entrepreneurial idea
by using relevant techniques along with tools.............................................................................3
TASK 3............................................................................................................................................5
Covered in PPT............................................................................................................................5
TASK 4............................................................................................................................................5
P5. Application of SWOT framework for collating evidence for supporting objective
assessment of specific entrepreneurial idea.................................................................................5
P6. Evaluating competitive as well as market environments wherein idea will be launched for
assessing potential viability.........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneur refers to the personality who have huge capacity and willingness for
developing, organise, run together with manage a venture for making profit. Entrepreneurs
identifies opportunities by listening potential clients in the surrounding areas (Bridge and
O'Neill, 2012). For such purpose, research practices are undertaken by individuals to identify
customer choices, market trends and many other aspects. At same time, they also analyses
competitors, existing market trends, legislative concerned with business addition to factors that
can influence the venture. For gaining insights about entrepreneurial opportunities, Detox Juice
Bar is the new idea that will offer organic and detox beverage drinks which will be made on
order as per diet and choices of population of Wembley. UK. Entrepreneur of the new idea will
take help from Virgin Money for consultation and finance for starting the venture. Present report
highlights about possible sources for ideas and innovation of entrepreneur, rationale and market
gap for the idea through relevant techniques and tools. Further, the report applied SWOT
framework and evaluation of competitive and market environment.
TASK 1
P1. Determining and evaluating distinct sources related to entrepreneurial ideas as well as
innovation.
In present era, there are various sources which are related to entrepreneurial ideas
addition to innovation that stimulates entrepreneurs to set and manage a new business venture
(Burns, 2016). Detox Juice bar is a new innovative idea whose entrepreneur is looking to launch
the venture at Wembley, London. Dynamic market demands and changing population
perceptions for organic juices, smoothies and other beverage commodities influenced the
personality to set this business. The targetted population are the youngsters and people who
focuses on taking detox beverages. Some of sources for ideas and innovation of entrepreneur as
provided by Peter F. Drucker are the following:
The unexpected: In modern era, innovation arises from unexpected situations. Business
world posses various unexpected circumstances which helps entrepreneur to generate idea and
innovation for new venture. For example, innovation of juice was one of unexpected source for
humans. It will benefit new business by introducing detox beverages that are unexpected by
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population and to gain huge responses. Where as, disadvantage of the source is that various
failures are associated with it.
Incongruities: Incongruity is the another entrepreneurial idea source that is related to
some discrepancy among what is to that of what should be (Campos. and et. al., 2015). For
example, while resolving current incongruities for beverage drinks, entrepreneur innovate the
idea of detox drinks which are healthy and helps in loosing weight. Benefits of the source is that
it resolves dissonance and create something unique. But, weakness is that it is tricky and time
consuming.
Process need: Needs are said to be mother of innovation. Needs of market helps in
innovating something. Process need includes identifying organisational process weak spots, later
redesigning them. In case with Detox Juice Bar, the entrepreneur identified weak spots of other
business process and redesign own idea through task oriented solution. The source helps in
focusing on situations or aspects that are weak and then creating innovative solutions to take
leads is major advantage of the source. However, identifying weak links and redesigning them is
complex and creates huge difficulties to analyse that whether they will help in gaining profits or
not.
Changes in industry and market structure: Changes within market structure as well as
industry give rise to innovations and new ideas. For instance, In beverage industry, various
changes arised helped budding entrepreneur to gain idea for innovating detox beverage drinks for
market of Wembley. Benefit of the source is that adoption of changes will help the new venture
to strengthen its product line as per market structure. In contrary, changes in industry together
with market structure shrinks ways of operations.
Demographics: Changes in lifestyles or income level of population is other source for
entrepreneurial innovation or idea. When budding entrepreneur of Detox Juice Bar analysed
changes occurring in income level, age ranges as well as education, they sourced the idea for the
offering detox beverage products. Benefits of demographics source to the new venture is that
focusing on changes in education and income level provides opportunities for offering suitable
drinks. However, considering all is unsuitable and creates cumbersome issues in success.
Changes in perception: Perception is said to the ways people perceives things in the
world. Changes in perception occurs often in regards to drinks and juices (Ceci and Prencipe,
2013). For instance, population of Wembley are changing their perceptions towards detox drinks
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from soft drinks. This was considered as major source for idea of Detox Juice Bar. The benefit of
the source is that it helps in analysing population preferences and further making changes in
existing business products as per the preferences. However, aligning perceptions with the
products is difficult and complex that is weakness of such source.
New knowledge: Innovation speed is improving with new knowledge that offers huge
opportunities to initiate new business idea in dynamic environment. For example, with new
knowledge about making using ingredients in such manner that produces detox drinks acts as
source for the idea of Detox Juice Bar. Benefit of new knowledge source is that it helps in
analysing opportunities and searching new ways to perform operations. While, weakness of it is
that adapting changes as per new knowledge and discoveries can show failure results.
Thus, above mentioned sources assist budding entrepreneur to identify innovative idea.
With all these sources, Detox Juice Bar is one of idea that are developed through all these
sources.
TASK 2
P2. Explanation of rationale as well as market gap in context to specific entrepreneurial idea by
using relevant techniques along with tools.
Entrepreneurial idea: Budding entrepreneurs have various ideas for setting a business
or launching a new product in market (DeMarr and De Janasz 2014). In beverage market, there
are ample number of growth addition to development opportunities which entrepreneurs can grab
through launching or introducing new venture as an innovative idea. With these opportunities,
budding entrepreneur can launch new idea of Detox Juice Bar and offer organic as well as detox
beverage commodities in accordance to needs or choices of population. In UK, various investors
such as Virgin money and many more are assisting these entrepreneurs for starting the venture.
The investor invests after considering the innovative idea. In context to Detox Juice Bar, it is the
venture which will emphasis more on offering beverage drinks that have low calories and the
intakes of these juices will help people to loose weight and gain stamina. Its target market is
basically adults and youngsters that leads active lifestyles as they highly prefers shakes and
juices for purpose to build stamina, loose weight, removing toxics, boosting immune functions,
increasing energy level and improving complexion. In present market of Wembley, UK, no
company offers detox and organic beverage drinks and introducing the new idea will assist in
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meeting choices of the population of such area and gaining huge advantages in terms of profits
and recognition in market. By offering detox drinks such as Lemona, Cucumber Mint Detox,
Pomegranate smoothie, Radiant Lemonade, Honey lemon ginger ice tea, Coconut water with
mint as well as lemon, Ginger litchi Lemonade, Fruit infused tea and Aam panna will help in
filling gap of need satisfaction of the targetted market.
USP's of new idea: Unique selling proposition refers to the factor which differentiate the
business from rivals. An business can have various types of USP such as lowest cost, first ever
commodity of its kind, highest quality and so on. In relevance with the idea of Detox Juice Bar,
its USP is that it will provide detox healthy drinks at reasonable cost which will grab attention of
huge customers.
Gap Analysis: It is the method that helps business venture to analyse differences among
actual and desired conditions of the market. With this analysis, companies or businesses frame
action plan so that the gap can be fulfilled effectively (Elenurm, 2012). By using the tool of gap
analysis, Detox Juice Bar can monitor gaps among current market conditions to that of desired
performances and accordingly plan actions. Majorly, companies undertaken tool of market gap
analysis for identifying market opportunities in order to gain various benefits. In current
condition, only healthy drinks are offered by companies to grab customer attention. Whereas, it
is analysed that the desired conditions of the population of Wembley market are for detox drinks
that boost their immune system, improves complexion, loose weight and so on. Moreover, it is
also analysed that there is market gap because of different choices and preferences of targetted
population in context to the beverage drink products. By examining the opportunities, launching
the new business of Detox Juice bar, market gap can be effectively filled through offering drinks
as per desired choices of market and through this, all needs will also be satisfied properly.
Competitive market: In present era, it is important of a new venture to conduct
systematic investigation about competition level in the industry where they wants to operate or
are operating. The main competitors of Detox Juice bar are My detox Diet, Blended Drinks,
Innocent Drinks, Cpress Chelsea, Juice Executive and other domestic and International juice
companies that offers variants of juices in market. The business is in service sector as it is a new
concept and offers heath and organic juices and smoothies, it will be more in demand among
people that are heath conscious and consumes juices on regular basis that will make it successful
in market. The juice company will provide juice as per orders and will also provide option of
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home delivery that will generate more demand about its juices and will help in achieving success
in nearer future. For such purpose, suitable tool is Porter's five Force model that assist in
determining competition in the sector. In association to the Detox Juice bar, the analysis of five
forces of the model are as follows:
Bargaining power of buyers: In beverage industry, organisations depends on buyers.
Powers of customers in beverage industry are generally high as they are the one for whom
products are manufactured and sold. So, for Detox juice Bar, buyers will have huge bargaining
power for the products and their prices. For dealing with this, the business will set low cost
pricing strategy in order to attract maximum buyers.
Bargaining power of suppliers: Suppliers are the mediums that provide required
materials to manufacture products and at same time, delivering them to final consumers.
Existence of wide suppliers provides high bargaining power to suppliers. Moreover, by making
relations with huge suppliers, Detox Juice Bar will be able to produce detox juices and supply
them to targetted audiences.
Competitive rivalry: In beverage industry, there are various companies that offers drinks
and juices (Falcao, 2010.). Some of them are My detox Diet, Cpress Chelsea and so on which
provide healthy drinks in market. However, limited or no business offer detox drinks and when
the chosen venture will provide the detox products they can gain competitive advantage which
will help in fulfilling gaps.
Threat of new entrant: Economies of scale is very difficult to achieve for a new
company within beverage industry. But it makes easier for the business that have huge capacities
for having cost advantage and selling differentiated commodities. As Detox Juice Bar will offer
differentiated products that are detox juices and smoothies which will provide huge opportunities
to enter in the market. All these makes threat of entrant weak for the business.
Threat of substitute: Substitute products are those which can be used in place of other.
In beverage industry, healthy drinks and smoothies are few substitutes which are produced at low
quality against detox drinks. This shows that there are limited threat of substitutes for Detox
Juice Bar that will help in grabbing the opportunity and offering quality detox juices and other
products to fulfil the market gap.
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TASK 3
Covered in PPT
TASK 4
P5. Application of SWOT framework for collating evidence for supporting objective assessment
of specific entrepreneurial idea.
SWOT framework is the method through which internal factors are analysed for
determining strengths, weaknesses, threats along with opportunities of any business or idea
( Fisher, 2012). It is considered as an essential tool for the entrepreneurs to plan strategies for
future. Moreover, the framework which highlights about various aspects related to the
entrepreneurial idea.
Detox Juice Bar is a new entrepreneurial idea which have thoughts to offer healthy
together with organic drinks and smoothies. For supporting objective assessment of the idea,
application of SWOT framework is as followed:
Strengths Weaknesses
 Products which are healthy and organic
will be offered by Detox Juice Bar that will
satisfy choices of wide population.
 The offerings of the idea are prepared after
considering heath of individuals and
related legislations (Hansen, Monllor and
Shrader, 2016).
 As per changing population preferences,
Detox Juice Bar also makes modifications
in taste and ingredients of its commodities.
 The cost are some products are
reasonably high due to which
various population segment do not
purchase them.
 The company has to make huge
investment for making strong
customer base for its detox drinks.
 It requires to go through
cumbersome processes to get
organic addition to detox
certifications.
Opportunities Threats
 Detox Juice Bar have huge opportunities
for expanding in other areas where
population have strong choice for detox
 Changes in legislations by political
system for the standards of juices
and drinks is major threat for the
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drinks.
 It also have opportunity to make relations
with Zyms and restaurants so to make
people aware about the idea.
 Usage of social media platform is also an
opportunity for the entrepreneurial idea to
generate demand for the products among
wide located audiences.
idea.
 Available of substitutes in the same
market where Detox Juice bar
prefers to operate is another threat
for it.
 Lack of funds addition to expert
personnel impacts business
negatively to move towards success
(Jayeoba, 2015.).
Thus, analysing the strengths and opportunities, it can be said that the new idea that is
Detox Juice bar will be able to satisfy market needs and attain objectives successfully. At same
time, the entrepreneur must emphasis on working with provisions and making juices and drinks
at standards quality will help in overcoming from the threat of changing political decisions in
context to standard of the detox products. Moreover, by attracting various investors and
motivating them for investments in the respective idea and hiring competent individual from
local residents will also help in overcoming for threat related to lack of funds and unprofessional
personnels.
P6. Evaluating competitive as well as market environments wherein idea will be launched for
assessing potential viability.
In Business era, availability of different factors has impacted on business organisation so,
it is important to focus on external factors in order to maintain a business effectively. There are
many factors such as political, economical, social, technological, legal and environmental that
helps to run a business (Karimi and et. al., 2016). For competing from other organisation there is
need to innovate something new which can influence customers and increase the sale volume.
For instance, the new entrepreneurial idea is for providing healthy food and services to
customers, decided to bring new product that is Detox Juice Bar will helps to increase the
organisational productivity and profitability. There are different factors which can affect the
business by introducing new products such as:
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PESTLE Analysis – This is a framework, used by marketers of organisation to analyse
and monitor the macro environmental factors that have impacts on organisation. The PESTLE
analysis in context to Detox Juice bar is defined as:
Political - This is all about government intervenes in economy by involving political
stability, instability, tax rates, government policy and foreign trade policy that may affect
business. For Detox Juice bar is important to follow all government regulation of UK that can
support its new idea of healthy juice will be success. Due to government instability and changes
in tax rates, organisation has to face many challenges that states negative impacts.
Economical – This factor states how a corporation is doing business and its profitability
by including interest rates, exchange rates, disposable income, economic growth and inflation.
The management of Detox Juice bar is focusing on this factor and providing innovative products
according to disposable income of people that helps to run a business effectively. On the other
side, increase in interest rate will be disadvantageous for the idea because it has to pay advance
amount on loan taken which can reduce profitability.
Social – This is related with social culture by involving shared belief, population growth,
age group, career, health consciousness and attitude of people which helps to increase
organisational productivity by purchasing products and services. The operation and business
activities of Detox Juice Bar are increasing continuously as organisation is innovating Detox
beverage drink that is health consciousness drink will help to keep healthy to customers.
Technological: Technology is the another factor of business organisation that is adopted
by corporation in order to take competitive advantages. By adopting this factor, organisation
become able to introduce something new and attractive which increases organisational
effectiveness. This factor supports the idea of Detox Juice Bar by introducing Detox Beverages
that will help to run a business effectively and increasing organisational productivity.
Legal – Laws and legislation are formulated by governmental authority which is required
to follow by organisation, to run business and increasing productivity with the help of employees
(Klaff, 2011Morris and et. al., 2013). Detox Juice Bar is need to know about legal and illegal
activity that can help to trade successfully. Such as it is following minimum wages, equality act
and consumer protection act that ensures customers and employees that it is working properly
that helps to increase organisational productivity.
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Environmental – This factor is related to environment that is important due to
population targets, increasing scarcity of raw material, carbon foot prints targets etc. By
considering this factor Detox Juice bar is producing Detox juice by reducing carbon effect and
optimising raw material that helps to increase the operation of business organisation effectively.
CONCLUSION
The above report concludes that proper analysis of the market helps entrepreneurs to
identify opportunities to enter in market and satisfying market choices and preferences. The
major sources to determine entrepreneurial idea includes incongruities, new knowledge,
demographics, perception changes and many more. Market gap analysis determines the
situations of current position addition to desired positions of specific market. Through applying
SWOT analysis, all the strengths and weaknesses of particular ideas are properly determined.
Along with this, areas related to opportunities and threats are also evaluated through it. PESTLE
framework is suitable tool to evaluate market environment where in the idea will be launched for
assessing viability of potentials.
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REFERENCES
Books and journals:
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Campos, H. M. and et. al., 2015. Creative thinking style and the discovery of entrepreneurial
opportunities in startups. Revista de Negócios. 20(1). pp.3-12.
Ceci, F. and Prencipe, A., 2013. Does distance hinder coordination? Identifying and bridging
boundaries of offshored work. Journal of International Management. 19(4). pp.324-
332.
DeMarr, B. and De Janasz, S., 2014. Negotiation and Dispute Resolution. New International Ed.
Harlow: Pearson.
Elenurm, T., 2012. Entrepreneurial orientations of business students and entrepreneurs. Baltic
Journal of Management. 7(2). pp.217-231.
Falcao, H., 2010. Value Negotiation: How to finally get the win-win right. Harlow: Pearson.
Fisher, R., 2012. Getting to Yes: Negotiating an agreement without giving in. London: Random
House Publishing.
Hansen, D. J., Monllor, J. and Shrader, R. C., 2016. Identifying the elements of entrepreneurial
opportunity constructs: Recognizing what scholars are really examining. The
International Journal of Entrepreneurship and Innovation. 17(4). pp.240-255.
Jayeoba, F. I., 2015. Entrepreneurial intention and entrepreneurial abilities. IFE PsychologIA: An
International Journal. 23(1). pp.219-229.
Karimi, S. and et. al., 2016. Fostering students’ competence in identifying business opportunities
in entrepreneurship education. Innovations in education and teaching international.
53(2). pp.215-229.
Klaff, O., 2011. Pitch Anything: An Innovative Method for Presenting, Persuading, and Winning
the Deal. New York: McGraw-Hill.
Morris, M. H. and et. al., 2013. A competency‐based perspective on entrepreneurship education:
conceptual and empirical insights. Journal of Small Business Management. 51(3).
pp.352-369.
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