Identifying Entrepreneurial Opportunities

Identifying Entrepreneurial Opportunities INTRODUCTION 1 P1 External or macro environmental sources of changethatcreate opportunities 1 P2 Identification of customers 2 P3 Market research to support viability for your business idea and identify market potential using a range of sources that could be both primary and secondary2 Use of big data to access market trends, internet forums and social media to test market responses and evaluation8 P4 and P58 CONCLUSION 10 REFERNCES12 12 INTRODUCTION Entrepreneurial opportunities are defined as the situation in which

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................1
P1 External or macro environmental sources of change that create opportunities ....................1
P2 Identification of customers ...................................................................................................2
P3 Market research to support viability for your business idea and identify market potential
using a range of sources that could be both primary and secondary...........................................2
Use of big data to access market trends, internet forums and social media to test market
responses and evaluation ............................................................................................................8
P4 and P5 ....................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERNCES ................................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
Entrepreneurial opportunities are defined as the situation in which products and services
are sold at greater prices than the cost of production. An entrepreneurial opportunity is a future
oriented action of entrepreneurs (Baldacchino, 2013). Entrepreneurs are looking for new and
innovative ideas for earning growth and profits for their business. The individuals who wants to
expand their business must make effective strategies and plans for converting these into
successful actions. In the following report, entrepreneurial ideas and the different ways of
funding them are described. This report has competitive analysis as well as gap analysis for
making business viable. An effective market analysis is given for analysing the strengths and
weaknesses as well as opportunities for doing business.
P1 External or macro environmental sources of change that create opportunities
The seven sources of innovation are given by Peter Ducker. He gave these sources which
are helpful in making innovative opportunities for the company. They are given below-
The unexpected success and failure – According to Drucker, the best source for
innovation is from an unexpected failure or success. This means that when companies start a new
business without taking care of it's loss or profit. This can be explained by an example- Marriott
started it's business of hotel chain just like that the owner was not knowing that it will be
appreciated by customers and make huge profit for the enterprise. Earlier it was involved in
restaurant chain.
Incongruities- According to Drucker, incongruity is described as a discrepancy or
dissonance between what is actual expectation and what is assumed need of the customer. The
incongruity between perceived and actual values and expectation of customers. This is the most
common type of incongruity. The companies must know exactly what are needs and demands of
customers and then make products (Elenurm, 2012). The marketers cannot just assume
requirements needed by customers and make products.
Innovation based on process needs – The incongruities in process should look into weak
processes. Opportunities for innovation are present if there is a recognised demand for
completing the process.
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Changes in Industry and market structures – The changes in market and industry
structure generally takes place while change in customer preferences, new values and tastes. The
growth of any company is indicator for changing structure of the organisation.
Demographics – Innovation depends upon demographic and population changes like age,
education, income, geographic shift, etc (Grégoire and Shepherd, 2012). Any industry or
company considers these factors before launching a new product in market.
Changes in meaning and perception – Customers have different perception about the
innovation and company has to take care about requirements of customers for making products
that are liked by them.
New scientific and non-scientific knowledge - New knowledge is a source of innovative
opportunities. The employees of the company must have knowledge about new technologies and
trends that will help in making good and effective products for the company. This will help in
increasing profits and sales of the company.
P2 Identification of customers
There are different ways by which marketers estimate the condition of market for
introducing new products and services. Marketing and entrepreneurs take care that they do not
have to face any problems while launching the product or service in market. The Porter's Five
forces Model analysis includes several estimations which are given below -
Bargaining Power of Buyers
The bargaining power of customers depends upon quality and price of the product. When
the number of buyers are less, then they have more power for influencing suppliers to provide
products and services on price estimated by customers (Hang, Garnsey, and Ruan, 2015). The
price set by Techfirm for it’s new smartphone is less as compared to price of other smartphones
in market. This is done in order to attract more number of buyers.
Bargaining power of suppliers
The bargaining power of suppliers is defined as the extent up to which a supplier can
baragain for a product. The bargaining power of supplier is based on availability of the number
of suppliers. The suppliers of software, systems, hardware required in making of smartphone
have less number of supplier. Thus it is the power of supplier to sell hardware and software on
their estimated price.
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Threat of new entry
In business, there is always threat of other products taking place of the existing product
(Hansen, Monllor, and Shrader, 2016). In case of smartphones, new technology is features are
added in every few days so Techfirm has to make efforts for promoting it’s new smartphone in
order to attract more number of customers. This will increase the sales of this phone in
marketplace.
Threat of substitute
The companies always have threat of substitute of their product. So, if there exist any
availability of substitute then it helps in increasing the switching capacity of customers. The
new product of Techfirm i.e. new Smartphone can be substituted by other gadgets like tablets,
other phones with new features.
Competitive rivalry:
When there exist large number of competitors of the firm in marketplace then it become
difficult for the organisation to control the price of goods and services. As in highly competitive
market, price of the product is determined by different market forces. Techfirm has set the price
of new Smartphone wioth good features are very low as compared to other Smartphone of other
companies.
After making an analysis, Techfirm company has planned to launch new Smartphone as
this is an affordable phone which has all features that are required by customers. Chances of
being successful in marketplace terms to be high because nowadays all individuals require
smartphones in which they can use applications and other features (Kohlbacher, Herstatt, and
Levsen, 2015). This Smartphone has low price as compared to other companies. Thus company
can easily sell this product in market. Therefore in order to analyse consumer reactions niche
market strategy is being used.
P3 Market research to support viability for your business idea and identify market potential using
a range of sources that could be both primary and secondary
A marketing research is defined as the systematic process of collecting data and
information related to market trends. The entrepreneurs always conduct market research for
estimating needs and preferences of customers as well as competitors. Generally market research
consists of primary and secondary data sources. Techfirm is a new company which is going to
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introduce a smart phone with a reasonable price. Due to this, the marketing research is
conducted for knowing the viability of this new product.
Primary research- In this kind of research, data is collected by using surveys,
questionnaires, interviews, surveys, etc (Mitchelmore and Rowley, 2013). In the present
research, data is collected for evaluating choices and needs of targeted customers. Primary
research is helpful n knowing about market conditions and business ideas.
Secondary research- In this type of research, data and information are collected from
already existing sources such as books, journals, internet, newspapers, etc. When entrepreneurs
are looking for launching new product in the market, this type of research is helpful for knowing
the needs and demands of customers (Neneh, 2012). In the present scenario Techfirm has
conducted a secondary research in which data is collected from customers through a
questionnaire. The number of respondents in this research are 30. These respondents and
customers are asked about suggestions and opinions related to the new smart phone of Techfirm.
Questionnaire
Name:
Gender:
Age:
Address:
Q1 Are you aware about new smart phone of Techfirm?
Yes
No
Q2 Are you thinking to buy this new smart Phone with the given price?
Yes
No
Q3 Are you satisfied by the services of Techfirm's products and services?
Yes
No
Q4 Have you faced any issue related with Techfirm's new smart phone?
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Yes
No
Q5 Did you purchased new smart phone of Techfirm?
Yes
No
Q6 Are you satisfied by the features of this new smartphone?
Yes
No
Q7 Do you think this Smartphone is able to compete in market?
Yes
No
Interpretation
Q1. Are you aware about new smart phone of
Techfirm? Frequency
A. Yes 16
B. No 14
Total 30
Mean 15
Median 15
Mode 2
5

A. Yes B. No
13
13.5
14
14.5
15
15.5
16
Frequency
16
14
Interpretation: From the above graph, it can be analysed that out of the 30 respondents,
there are 16 people who are aware about the new smart phone of Techfirm. On the other hand,
other 14 respondents do not have any information related to the new smart phone and its
features. Thus, it is advisable for Techfirm to advertise and promote it's products more
effectively. The Mean of this data is 15, median is also 15 and mode is 2.
Q2. Are you thinking to buy this new smart
Phone with the given price? Frequency
A. Yes 25
B. No 5
Total 30
Mean 15
Median 15
Mode 0
6

A. Yes B. No
0
5
10
15
20
25
30
Frequency
25
5
Interpretation: From the chart it is analysed that out of 30 respondents, 25 respondents
are thinking for buying the new smart phone of Techfirm. The other respondents are not intrested
in buying the new smart phone as they are not satisfied by features and facilities of this new
smart phone. Mean of this data is 15, median is also 15 and mode is 0.
Q3. Are you satisfied by the services of
Techfirm's products and services? Frequency
A. Yes 12
B. No 18
Total 30
Mean 15
Median 15
Mode 12
7

A. Yes B. No
0
2
4
6
8
10
12
14
16
18
20
Frequency
12
18
Interpretation: From the above chart, it is concluded that out of the 30 respondents , there are
12 individuals who are not satisfied by the services and products of Techfirm. On the other hand,
The remaining 18 respondents are fully satisfied by the products and services of Techfirm. This
new smart phone is having an anti glare screen and 10 Gb ram with an affordable price and thus
customers are satisfied by this product. Mean of this data is 10, median is 8 and mode is 12.
Q4.Have you faced any issue related with
Techfirm's new smart phone? Frequency
A. Yes 17
B. No 13
Total 30
Mean 15
Median 15
Mode 4
8

A. Yes B. No
0
2
4
6
8
10
12
14
16
18
Frequency
17
13
Interpretation: From the above analysis, it can be concluded that form the 30
respondents, there are 13 individuals who did not like the new smart phone as they have some
complaints like system hangs after using it for more than one hour, some applications are not
supportive, etc. And on the other side there are 17 respondents who have no issue with this new
smart phone. Mean of this information is 15, median is 15 and mode is 4.
Q5. Did you purchased new smart phone of
Techfirm through online sources? Frequency
A. Yes 17
B. No 13
Total 30
Mean 15
Median 15
Mode 14
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A. Yes B. No
13
13.5
14
14.5
15
15.5
16
16.5
Frequency
17
13
Interpretation: From the above chart it can be stated that out of the 30 respondents,
there are 17 individuals who buy the smart phone of Techfirm from online websites and rest of
the 13 respondents buy it from stores and complexes. Mean of this information is 15, median is
15 and mode is 4.
Q6. Are you satisfied by the features of this
new smartphone? Frequency
A. Yes 16
B. No 14
Total 30
Mean 15
Median 15
Mode 2
10

A. Yes B. No
13
13.5
14
14.5
15
15.5
16
Frequency
16
14
Interpretation- From the above graph, it can be analysed that out of the 30 respondents, there
are 16 people who are satisfied by the features of this new smartphone. On the other hand,
other 14 respondents who are not satisfied by the features of this phone. All customers are
not satisfied by the features of this Smartphone. The Mean of this data is 15, median is
also 15 and mode is 2.
Q4. Do you think this Smartphone is able to
compete in market? Frequency
A. Yes 17
B. No 13
Total 30
Mean 15
Median 15
Mode 4
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A. Yes B. No
0
2
4
6
8
10
12
14
16
18
Frequency
17
13
Interpretation: From the above analysis, it can be concluded that form the 30 respondents,
there are 13 individuals who think that this smartphone is not capable to compete with other
smartphones of other companies. But there are 17 respondents who think that this
smartphone has very good features and it can beat other smartphones existing in market.
Mean of this information is 15, median is 15 and mode is 4.
Use of big data to access market trends, internet forums and social media to test market
responses and evaluation
There are some new trends by which marketers analyse the demands of customers for
improving their products. One of the best way to analyse customer demand is customer data
analytics which is a systematic examination of customer information and customer behaviour for
identifying, attracting and retaining the most profitable customers. There are some internet
forums and social media by which market conditions are analysed before launching new
products and services. Marketers collects data from Instagram, Facebook and other sites by
which they get to know the issues and problemns they face while purchasing and using a
smartphone.
P4 and P5
SWOT based on macro environment factors
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Techfirm is introducing a new smartphone and thus it is important for the company to
check whether this new innovation is viable and feasible opportunity for entrepreneur. When
new product is launched in market, marketers analyse the number of competitors, market
conditions, demand and need of customers, etc. There is a high competition in smartphone
market and so Techfirm must innovate it's product and add features for making best product for
customers. The SWOT analysis of Techfirm is given below-
Strength Weakness
 The Techfirm is a company that sells
new technology gadgets like
smartphones, smart watches, ipod,
music systems, etc (Siegel and Renko,
2012). The new smartphone which is
going to be launched by company is an
example of great functioning of this
firm. By selling this smart phone the
company is trying to increase growth
and profits.
 The smartphone launched by this
company has a long battery life and anti
glare screen that attracts a number of
customers. It has a great storage of 10
Gb. The video and audio quality of this
phone is also good.
 Technology keeps changing every day.
There is no limit to new innovations in
technology and therefore smartphone
technology can not sustain for longer.
 As Techfirm is a small scale company,
it requires a lot of fund in investing
money for launching and selling new
smartphone.
Opportunities Threats
 There are various modification that can
be made in smartphone for enhancing
it's features and demand. One of this
may be introducing retina lock for
opening system. By doing this, product
can achieve high growth in the market
 Due to advancement in technology,
chances of replicating the product by
competitors are high which is a major
threat for this firm.
 New and improved smartphones from
the competitors can be threat for the
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and increase its customer base.
 The Firm can make offers with these
smartphones like it can introduce other
gadgets with this phone and sell it at an
affordable price.
 When products and services are sold at
reasonable prices, this increases the
image of company in front of
customers.
firm as the technology is upgrading due
to which other companies can introduce
new smartphone with more features and
ideas.
Porter's Five Forces analysis
The Porter's five forces analysis was given by Michael Porter in the year 1979. This
analysis gives idea to the marketer about how he can make effective strategies that can help in
increasing sales and profits of the company. The main objective of the Porter's five forces model
is to find a position for industry where a company can defend against competitive forces of
market. In case of the mobile technology industry, the analysis of Porter's Model analysis is
given below-
Threat of new entrants
The threat of new entrants in mobile technology is not high as investment required in
mobile industry is very high.
Threat of substitute
The threat of substitute is low as there are added functions in smartphones and mobile
phones. Over single featured technology products like digital cameras.
Bargaining power of supplier
The bargaining power of supplier is medium because Techfirm rely on it's suppliers for
several quality component parts given at competitive rates and operating software like android is
an open source which can be used by any company.
Bargaining power of buyers
 The bargaining power of buyers is medium as there are a number of smartphones
available in market (Tang, Kacmar and Busenitz, 2012). Generally, customers have major
brand choices and they can pay more if the features of smart phone are good.
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Ways to overcome the risks of competition
 Every organisation has to face competition while they introduce any new product
in the market. There are Certain risks in every business but entrepreneurs must know how
to overcome the risks. In context of Techfirm, recently they have launched their new
Smartphone in the market. Entrepreneurs have to know strategies of their competitors and
promote this product effectively for increasing the sales of the company (Tseng, 2013).
As their product is new and for taking advantages over their competitor they must follow
following methods:
 Techfirm must follow the cost leadership theory where they will focus on cost reduction.
 Techfirm should use the strategy of differentiation in which their customer will value
their product more than competitor.
 Company must have innovative ideas regarding advertisement and promotional
campaigns.
 Techfirm must know what are requirements of the customers regarding particular
product.
 The smartphone company, Techfirm should focus on providing different offers with
expanding the period of warranty to attract their customer.
CONCLUSION
From the above given report, it can be concluded that there is a huge competition in
market in technology field. Techfirm is involved in selling new technological gadgets and
therefore when it has to introduce new products, it is important for this company to analyse
market condition through Porter's Five Forces model and SWOT analysis. This helps in
knowing opportunities and threats of this company in doing business. A market research like
secondary or primary research is helpful for company to estimate the profit that can be made by
new products offered by the firm.
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