Sources of Innovation Opportunity

This assignment provides a comprehensive analysis of the sources of innovation opportunity, drawing from various studies and research papers. It examines the role of market and technological knowledge in recognizing entrepreneurial opportunities, as well as the importance of entrepreneurial competencies and opportunity evaluation. The assignment also touches on disruption opportunities and how they can be leveraged by entrepreneurs and businesses. By understanding these sources of innovation opportunity, entrepreneurs and business leaders can gain a competitive edge and drive growth and success.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Sources that inspire the new business idea and motivated for set up a new business.............1
2. Introduction of business idea, finding potential and targeted audience for the product..........3
3. Competitor analysis that looks at competitive marketplace....................................................3
4. Gap analysis, current and future situations and objects of business ideas...............................5
5. Market research to support viability of business using range of sources such as primary and
secondary.....................................................................................................................................6
6. Viability and feasibility of business idea, strength and weakness of business......................12
7. Risk of competition and potential opportunities for growth and development.....................13
CONCLUSION..............................................................................................................................13
REFERECNES..............................................................................................................................14

INTRODUCTION
Entrepreneur is a person who finds a business opportunity and willing to take all risk to
start a new business venture. Creative ideas and smart way of conducting all the business
activities helps to survive in the competitive business environment. Entrepreneurial opportunity
can be defined as the process of establishing a business which is based on a new idea. Finding a
new business opportunity is important for introducing a business in the competitive market.
Competition is changing and increasing day by day and business needs to provide some unique
products and services to sustain in long run (Grégoire and Shepherd, 2012). This report is based
on the idea of launching a Selfie Drone by “Bluelights Technology”. Report consist of methods
and framework that helps in development of business venture. This included defining product or
service introduced, target market for the product and understanding the competitors. Market
research and primary and secondary research that is applied to the business is mentioned in this
report. SWOT analysis for the organisation is also done in the report.
1. Sources that inspire the new business idea and motivated for set up a new business
New business idea is inspired by recent trends that is abbreviated on the basis of analysis
of current market conditions. Entrepreneur gets business ideas from various sources whether it be
through online research or on future perspective. A new business which is inspired by recent
trends is established in Milton Keynes, UK. It is a company which provides drone that is
specially designed for selfies. The concept of introducing this business venture is developed by
Drucker's in his famous book “Innovation and Entrepreneurship” that defines sources of
innovation that are described as follows:
 The Unexpected: The world is full of surprises and these surprises may leads to a
business for success or failure. Unexpected success and failure both are notices by
business as opportunity. Unexpected situations in the business can be extremely powerful
to inspire leaders and innovates to get different perspective to a particular situation. This
helps Bluelights Technology to take advantage of opportunities that emerges with
unexpected technological changes (Siegel and Renko, 2012).
 Incongruities: Success and failure of an business idea depends on what is served by the
businesses and what needs to be served to satisfy consumers needs. Proper research needs
to be done before introducing a product or service for determining what the target
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consumers really need product. Consumers reviews, feedback and complaints are best
way to determine incongruity. Information regarding consumer about their preference
technological products will be help Bluelights Technology for introducing their new
product in the market (Drucker's Seven Source of Innovation Opportunity, 2015).
 Process Needs: This source of innovation is said by Drucker to be more task focused
rather then situation-focused. Opportunity and innovation needs to be closely assessed to
identify weak and strong spots of the business. Pre identification helps to improve
performance and leads to success of business. Knowing weak links after detailed
evaluation of the Bluelights Technology's capabilities, team will be able to create more
effective and innovative solutions.
 Industry and market structure change: Stability in the business industry may remain
for years but technological development may destroy an industry almost overnight. In the
past years it is seen that technology is changing day by day and leaders needs to keep eye
on these changes. Eveluation of the change in technology industry helps Bluelights
Technology by changing threats into opportunity for new business opportunity.
 Demographic: Change in demographic may affects business of a company in any
manner. This change affects demand for the product, who is buying the product and
qualities of the product on the basis of which it is bought. Demographic change in age,
education, employment affects business and provides new opportunity. This change helps
Bluelights Technology to introduce their product to generation which demands high-tech
products.
 Change in Perception: Over the period of time there is significant change in the way
people perceive the world. Now a days due to technological change social networks are
getting strong and changes are taking place faster then before. This helps Bluelights
Technology to introduce their innovative product which is specially designed as per
consumers requirements (Hang, Garnsey and Ruan, 2015).
 New Knowledge: Knowledge helps to introduce innovation in most effective manner.
Change needs to be adopted to meed new demands and requirements of the consumers.
Usage of new technology helps Bluelights Technology to gain advantage through new
business opportunities.
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All these sources inspires company to find new business opportunity and introducing new
product to the consumers by critically analysing demand for the products.
2. Introduction of business idea, finding potential and targeted audience for the product
Technology makes everything smooth to perform and helps in completing task in most
productive manner. Demand for the product which is high in technology and better the before
sets trend in the market and highly demanded all over the world. By considering the importance
of technology and analysing trend and obsession of peoples for selfies brings this new business
opportunity ((Mitchelmore and Rowley, 2013). Bluelights Technology grabs this opportunity by
introducing a drone which is designed to take selfies. Government of UK is highly appreciating
entrepreneur who has recently qualifies as graduates to introduce a new business. Before
introducing new venture idea needs to be demonstrated before government through presentation.
When government of UK finds business idea reliable then funds for establishing business will be
provided to the entrepreneurs. Value of introducing new business opportunity in the market is
£150,000 out of which £90000 is provided as loan by government at low interest rate. Together
with this £50000 is provided as government grant and remaining £10000 will be invested by
entrepreneur as capital. As introduction of this business at high level requires more investment so
it will be introduced in the niche market.
Target consumer for the product belongs to generation which is young and friendly to
adopt new technology. Young generation is highly adoptive to technology and prefers new
technology which makes day to day activity easy to perform. Selfie drone is a product which is
slightly costly for general public and considers targeted consumers who belongs to upper middle
class family (Wood and McKelvie, 2015). Consumers who prefer high technology and move
with trend will ultimately gets attracted towards the product. Potentite consumers that may be
targeted in future are individuals with all age groups and availability of products at different
price may attract consumers from different income groups.
3. Competitor analysis that looks at competitive marketplace
It is defined as analysis in marketing and strategic management that provides assessment
of strengths and weakness of current and potential competitors. The analysis provides strategies
to identify threats and opportunities through offensive and defensive strategies. Competitive
analysis is important and critical for planning. The best technique that can be used by Bluelights
Technology in order to analyse competitive market is Porter's five force model.
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Porter's five force model: In this model forces of market is defined that make up the
competitive environment and can erode profitability of business. An industry will be considered
unattractive if competition reduces profitability of the business (Porter's five force model,
2018). This framework was first published in Harvard Business Review in 1979. Five forces of
the model are as follows-
Source: Porter's five force model,2018
Suppliers Power: It represents the extent to which supplier can influence the price.
Availability of number of suppliers decides bargaining power of suppliers. Small number of
suppliers possess more bargaining power then large number of suppliers. Suppliers of products
like selfie drone is less so Bluelights Technology will enjoy high bargaining power.
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Illustration 1: Porter's five force model, 2018

Consumers power: Bargaining power of consumers is effected by ability of consumers
to affect pricing and quality of the product and service. When number of consumers of a product
is low then they possess much more power to affect pricing and quality. Large proportion of
buyers makes price of the product inelastic. Product introduced by Bluelights Technology do not
possess large consumer group and price is elastic to number of consumers (Tang, Kacmar and
Busenitz, 2012).
Threat of new entry: Businesses that requires large investments and possess strong
competition are difficult to make new entry. Organisations can sustain a favourable position and
gain competitive advantages. Industry belongs to technology keeps on changing at a very high
rate. Bluelights Technology will face threat of new entry as technology keeps on going outdated
and new businesses are joining in the industry with latest technology.
Threat of Substitutes: When rate of availability of substitutes products is high then
buyers in the business determine price of the product. Availability of substitute products
increases switching capacity of buyers. Product introduced by Bluelights Technology is unique
and substitutes are not available and buyers do not possess multipal options to switch for the
product.
Competitive rivalry: In highly competitive industry no single organisation can control
prices of the product or service. On the other hand monopolist possess all power to control price
of the product. Bluelights Technology possess minimum competition and faeces low level of
competition.
Analysing current trend by Bluelights Technology for requirement of selfie drone is
unique idea that will meet requirement of trend. Chances of being successful in the business
venture that belongs to technology is high as level of competition in the market is not high.
Availability of drones is already existed in the market but a drone that is specially designed for
selfies will meet requirement of recent trend (Hansen, Monllo and Shrader, 2016). To introduce
this product at niche market is strategy that will help to analyse consumers reactions and
adaptation for the product introduced. Business of technology is always available with high risk.
Business with more risk will generate higher profits for the company.
4. Gap analysis, current and future situations and objects of business ideas
Gap analysis involves the comparison of actual performance with potential or desired
performance. Organisation needs to utilise its resources in best possible manner that helps to
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attain ideal and desired results for the company. It helps to determine whether business
requirements are being met or not. Identifying gap between performance and reason for this
difference helps in filling gap in the performance by taking corrective steps towards loop holes.
In current situation it is analysed that technology industry is changing tremendously as change in
taste and preference of consumers are changing (Neneh, 2012). Introducing selfie drone business
in Milton Keynes, UK will face less competition for drone business. Future of this business is
expected to be competitive as dependence on technology will high in future. More and more new
business opportunities will generate in technology sector and competition will increase.
Objectives of business launched by Bluelights Technology are:
 Introducing innovative technology: Technology will always be appreciated whether in
long term or in short term. Introducing latest technology to consumers is considered as
one of the basic objective of business. Those who introduce technology for first time will
always get advantage of this through high profits. People are crazy for selfie and
introducing this innovative technology will give competitive advantage to Bluelights
Technology.
 Profitability and employment generation: Long term object of every business is to earn
profits. For survival and success of the business profits needs to be generated. A new
business introduced by Bluelights Technology will generate employment for others.
Business is introduced at small level at its initial stage but when it will generate large
consumer base then more profits and employment opportunity will be there in the
business.
 Capturing market share: Introducing business that possess low level of competition is
termed as golden chance for organisations. It increases chances of success of business
and large market share can be captured by organisation. When market share of Bluelights
Technology is more then competition in future can be faced easily (Kohlbacher, Herstatt,
and Levsen, 2015).
5. Market research to support viability of business using range of sources such as primary and
secondary
When a new business is being introduced by a entrepreneur then research needs to be
conducted that provides answers to some specific issues related to business. For research two
methods are adopted by businesses one is primary and another one is secondary. In primary
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research information is gathered that is collected for the first time. It involved questionnaire,
survey or interview with individual or some small group. Information in primary research is
directly collected with individuals with whom it belongs. Information which is collected earlier
is not considered for decision making. This research is conducted to provide solutions in relation
to a particular research (Walsh, 2012).
On the other hand secondary research involves collection of information that is already
existed. For this research new data is not collected and information id procured for past records
and processed according to new requirements. Secondary data is constructed on the basis of
primary data and considered as desk research. From the above methods primary method is
selected for Bluelights Technology. Information is collected from 30 respondents through
questionnaire which is as follows-
QUESTIONNAIRE
Name:
Age:
Address:
Contact Number:
Q1. Are you aware about Selfie Drones?
A. Yes
B. NO
Q2. Are you a Selfie lover?
A. Yes
B. No
Q3. Does future dependents upon on technology ?
A. Agree
B. Disagree
C. Don't Know
Q4. Do you think that selfie drones may get success in the market?
A. Agree
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B. Disagree
C. Can't Say
Q5. Do product offered by Bluelights Technology will gain competitive advantage?
A. Yes
B. No
Q1. Are you aware about Selfie Drones? Frequency
A. Yes 17
B. No 13
Total 30
Mean 15
Median 15
Mode 4
Interpretation: From the above chart it is analysed that from the group of 30 individuals 17 are
aware about selfie drones. Mean of this information is 15, median is 15 and mode is 4.
Q2. Are you a Selfie lover? Frequency
A. Yes 25
B. No 5
Total 30
Mean 15
8
17
13
Q1. Are you aware about Selfie Drones?
A. Yes B. No

Median 15
Mode 0
Interpretation: From the chart available above it is concluded that 25 persons out of 30 love to
take selfies. Mean of this data is 15, median is also 15 and mode is 0.
Q3. Does future dependents upon on
technology ? Frequency
A. Agree 16
9
A. Yes B. No
0
5
10
15
20
25
30
25
5
Column B

B. Disagree 8
C. Don't Know 6
Total 30
Mean 10
Median 8
Mode 4
Interpretation: from the information provided above it is concluded that 16 persons out of 30
believes that future depends on technology on the other hand 8 disagree to this statement. 6
persons are not in favour or against. Mean of this data is 10, median is 8 and mode is 4.
Q4.Do you think that selfie drones may get
success in the market? Frequency
A. Agree 13
B. Disagree 10
10
A. Agree
B. Disagree
C. Don't Know
0 2 4 6 8 10 12 14 16 18
16
8
6
Column B

C. Can't Say 7
Total 30
Mean 10
Median 10
Mode 6
Interpretation: 10 persons out of 30 agree on the statement that selfie drone will success, on the
other hand 13 are disagree. 7 persons do not possess any opinion. Mean of this information is 10,
median is 10 and mode is 6.
Q5. Do product offered by Bluelights
Technology will gain competitive
advantage? Frequency
A. Yes 16
B. No 14
Total 30
Mean 15
Median 15
Mode 2
11
13
10
7
Q4.Do you think that selfie drones may get success in the
market?
A. Agree B. Disagree C. Can't Say

Interpretation: 16 persons believes that organisation will gain competitive advantage and 14 do
not believe this. Mean and median of this statement is 15 and mode is 2.
6. Viability and feasibility of business idea, strength and weakness of business
Business idea of introducing selfie drones will be considered as feasible and viable
opportunity for new entrepreneurs. As introducing new technology which is high in demand and
possess less competitors creates chances of success of business. This business idea will be
supported by government by providing funds for business to start up. Competition is minimum
and availability of products is not high and profits in near future can be expected by business
enterprise (Elenurm, 2012).
To analyse strength and weakness of Bluelights Technology SWOT analysis will be
performed which is as follows:
Strength Weakness
 Business opportunity is based on high
technology which satisfy consumers
requirements that helps in acquiring
large market share.
 Product that is offered by Bluelights
Technology possess unique features
and will attract large consumer group.
 Technology is changing continuously
and old technology has fear of getting
outdated soon.
 To introduce this business at large scale
more funds are required and lack of
finance is faced by the business
organisations.
Opportunities Threats
 Adoption of new and latest technology
is high and love of public for selfie will
attract large consumers towards
product.
 Idea of introducing selfie drone is
unique that will help to gain
competitive advantage and capture
large market share.
 Switching from one product to other
due to slight change in technology is
prime concern of Bluelights
Technology.
 Entry of new entrepreneur in the
technology sector with high technology
will be considered as threat to business
in long run.
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Analysing strength and weakness of business helps to adopt methods that reduces
problems created by these hurdles.
7. Risk of competition and potential opportunities for growth and development
Risk in a business is complementary with the idea of getting success. Higher the risk will
bring high profits in the organisation. It is important for Bluelights Technology to manage risk
related to various issues. Managing risk will be considered as avoiding it. Risk of high
competition is biggest threat to small and medium organisations. Risk must be analysed so that
effective steps can be taken to minimise it. A team in the organisation that focus on changing
environment, new entry and old competition is required. As this will be turned as biggest tool
that will contribute towards sustainability in long run. Bluelights Technology possess
opportunity for growth and development by introducing its business in national and international
market to create large consumer base (Baldacchino, 2013).
CONCLUSION
From the above report it is concluded that a new business requires an opportunity to get
started. There are various sources that provide background information that helps in setting up
own business. A new business idea needs to be introduced to manage funds through government
help. Each market possess competition that needs to be assessed to make effective planning and
targeting consumer for the product. Business perform gap analysis to calculate dilution from the
target of the actual results. Market research provides information regarding a particular issue for
which it is conducted and provide support if business idea is feasible or not.
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REFERECNES
Books and Journals
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.
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.
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.
Wood, M. S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
Identifying conceptual themes and empirical trends. International Journal of
Management Reviews. 17(2). pp.256-277.
Tang, J., Kacmar, K. M. M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of
new opportunities. Journal of Business Venturing. 27(1). pp.77-94.
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.
Neneh, N. B., 2012. An exploratory study on entrepreneurial mindset in the small and medium
enterprise (SME) sector: A South African perspective on fostering small and medium
enterprise (SME) success. African Journal of Business Management. 6(9). pp.3364-
3372.
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.
Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Elenurm, T., 2012. Entrepreneurial orientations of business students and entrepreneurs. Baltic
Journal of Management. 7(2). pp.217-231.
Baldacchino, L., 2013. Entrepreneurial experience and opportunity identification: the role of
intuition and cognitive versatility (Doctoral dissertation, University of Warwick).
Hang, C. C., Garnsey, E. and Ruan, Y., 2015. Opportunities for disruption. Technovation. 39.
pp.83-93.
Tseng, C. C., 2013. Connecting self-directed learning with entrepreneurial learning to
entrepreneurial performance. International Journal of Entrepreneurial Behavior &
Research. 19(4). pp.425-446.
Online
Drucker's Seven Source of Innovation Opportunity. 2015. [Online]. Available through:
<https://thepitcher.org/peter-f-druckers-seven-sources-innovative-opportunity/>
Porter's five force model. 2018. [Online]. Available through:
<https://www.visual-paradigm.com/guide/strategic-analysis/what-is-five-forces-
analysis/>
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