Identifying Entrepreneurial Opportunities

This document provides detailed information about different sources of entrepreneurial ideas and innovation. It also explains how to analyze the market gap for an entrepreneurial idea using various tools. The document includes data and statistics for assisting the analysis of the gap and evaluates and interprets the data collected from the market. Additionally, it uses the SWOT tool to identify a specific kind of entrepreneurial idea.

Unit 27 - Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
TASK 1...................................................................................................................................................3
P1. Different sources of entrepreneurial ideas and innovation.................................................................3
TASK 2.......................................................................................................................................................5
P2 Explain rationality and gap of market for an entrepreneurial idea by using kinds of tools.................5
TASK 3.......................................................................................................................................................7
P3 Provide data and statistics for assisting analysis of gap while analyse entrepreneurial idea...............7
P4 Evaluate and interpret data by collecting evidences from market.......................................................8
TASK 4.....................................................................................................................................................10
P5 Use SWOT tool to identify specific kind of entrepreneurial idea.....................................................10
P6 Examine competitive marketplace and business environment while launch idea by accessing its
viability.................................................................................................................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Entrepreneurship is the development and growth of a corporation or a business for benefit. But
it's a little constrained as a foundational concept of entrepreneurship. The more recent concept of
entrepreneurship often includes the development of the environment through solving major
problems. Just like societal reform, creative product development or a revolutionary approach
that transforms life (Hansen, Monllor and Shrader, 2016). The project report is based on an
entrepreneurial idea that is related to making startup of cloth manufacturing in the United
Kingdom. The name of business is Clark’s clothing and on the basis of it different types of tasks
are covered. The project report covers detailed information about different sources of
entrepreneurial idea, analysis of market gap as well as usage of primary and secondary data to
find out market growth. In the further part of report, different types of tools have been applied to
make competitive analysis.
MAIN BODY
TASK 1
P1. Different sources of entrepreneurial ideas and innovation.
There are a range of sources of entrepreneurs from which they can gather new ideas and
thoughts to start own business. Herein, underneath some sources are mentioned that inspired to
entrepreneur of above business:
Peter F Drucker’s Seven Sources of Innovative Opportunity: Peter F. Drucker known as the
modern management founder who gave us useful leadership, management, industry, creativity
and entrepreneurship tools. It has profoundly influenced the corporate community, bringing
industry executives and businessmen his enduring reputation as a reference and motivation.
 The Unexpected- The corporate environment is packed with surprises – not just the
unpredictable mistakes, but even its unforeseen performance will motivate creativity.
Unforeseen performance and unforeseen defeats should not be ignored and as incentives

for progress should not be neglected (George, Lahti and Wincent, 2016). Unforeseen
circumstances in the corporate environment can be incredibly intense, as they motivate
administrators and innovators to take a more optimistic or pessimistic approach at the
circumstance and to take advantage of the possibilities that emerges. Such as in the above
entrepreneurship idea, they may have faced some unexpected change in the environment
of business that enforced to owner to make a start up of clothing.
 Incongruities- Often businesses get into the pit of designing their goods without
investigating what the intended buyers actually want. The disparity between what is and
what is to be versus what everybody else thinks will contribute to a slowdown but can
also be a significant source of creativity inspiration. The easiest way to assess incongruity
was always consumer comments, suggestions or grievances.
 Process need- Drucker is more task-driven than situational centered at this center of
creativity. Here, after carefully looking at the organizations' systems and specifically
recognizing the weak points and forms they can be strengthened, the root of potential for
creativity arrives. Knowing what the poor links are, the teams will create more efficient
and creative approaches after a thorough evaluation of the company's capacities.
 Industry and market structure change- Industry and business systems will stay unchanged
for years, but many markets are disrupted almost immediately by technological advances.
Such developments will be monitored by politicians and not viewed as challenges, rather
as incentives. The entrepreneur of Clark clothing, might get innovated or motivated to
make new start up for clothing due to change in the market of cloths.
 Demographics- The shift of population impacts businesses in one direction or another.
These adjustments influence the markets while assessing the need for the goods, who
sells them and how often the commodity is priced (Jarvis, 2016). Demographic trends in
age, schooling, jobs, influence the course in which the business goes and will give the
company broad horizons, whether it succeeds in finding the opportunity. In the United
Kingdom, people are changing their clothing sense and this is the reason which motivated
to entrepreneur of above Clark’s clothing entrepreneur to start a new business.
 Change in perception- Over the years, the way citizens view the universe has shifted
considerably. Wisdom evolves over time and these shifts arise more quickly than ever
today because of the presence of technology and the influence of social networks. People

will shift their opinion instantly of other goods, labels or industries. The shifts in thinking
open the way for businesses to reinvent and create innovative goods and services, which
resonate with consumers' modern insights. This change in perception of clothing of
United Kingdom people enforced to entrepreneur of above business.
 New knowledge- New awareness is also seen as a creative slogan. The invention engine,
which businesses cannot ignore, is the technical and science breakthrough. Firms who
struggle to accept modern discoveries-inspired improvements are destined to failure.
However in each area of the business, new information may be introduced – from
knowing more about consumers through analytics to optimizing the supply chain and
recruiting the right workers. This is also another key aspect that motivated to owner of
Clark’s clothing to start a new business.
TASK 2
P2 Explain rationality and gap of market for an entrepreneurial idea by using kinds of tools.
Market void is an opportunity for a business to manufacture and distribute anything that is
not currently available (Reuber, Liesch and Zhou, 2018). Gap relates to the gap between
production and demand for a particular product. This type of situation becomes an opportunity
for entrepreneurs to start own business. Such as owner of new business, Clark’s clothing
identified market gap. This helped them in order to find out what is condition of UK clothing
market.
Target audience: The target audience for Clark’s clothing new products is people who are
brand-oriented and are very environmentally friendly. Throughout this context, the desire of
particular entities throughout their respective companies applies characteristics to their offering,
in order to obtain future outcomes.
Segmentation: This is an important aspect that must be considered by business entities. By help
of proper segmentation of customers, it becomes easier for companies to offer products in
accordance of demand (Nikraftar and Hosseini, 2016). Such as in the above Clark’s clothing, this
is essential for them to address their customers’ need and dividing into different groups.
Behavioral: Segmentation is focused on customer buying habits, such as frequency of usage,
brand loyalty, advantages needed and much more.

Demographic segmentation: Under it, various kinds of aspects are included such as age,
gender, education level. For above business, this is necessary for them to know about culture of
UK that what kinds of cloths people like to wear.
Porter' five force model:
To analyze the competitor’s strength it is very important to use Porter' five force model that are
as follows:
Buyer Power: Purchasing power represents purchasers' desire to reduce their costs. With respect
to above business, this is relatively high in the retail industry where buyers have a relative
strength compared to other clothes shoppers. Consumers have alternative shopping locations and
are encouraged to stay with the organization.
Supplier power: The respective strength of the competing companies consists of suppliers to
increase the cost of its products and services. The supplier in the cloth manufacturing industry
has relatively small and insignificant strength in relation to Clark’s clothing. As most apparel
companies, third-party producers who receive only a portion of their profits supply their
products.
Competitive rivalry: In the cloth and sportswear sector, the level of competition is very strong,
because there are many competitors that now offer very similar goods on the market. In the
context of Clark’s clothing, there already are a large number of rivals on the market, such as
Nike, Adidas and next, who are market leaders.
Threat of new entrants: This is related to threats of new entrants as in clothing market of
United Kingdom; there are not too many restrictions to enter in market. It can become a threat
for above Clark’s clothing business. This is so because a new business or entrepreneur may
affect their revenues and market share.
Threat of substitution: There is no substitute apparel accessible on the market in the textile
industry. Respective power is almost zero in essence, since replacement in the respective sector
is essentially rivalry. Since rivalry is very intense, in which no brand can keep selling and remain
at the top of the list, radical changes are very likely for business to achieve desirable outcomes
(Hu, Wang, Zhang and Bin, 2018).

TASK 3
P3 Provide data and statistics for assisting analysis of gap while analyse entrepreneurial idea.
In order to assess the gap, it is very important for the administration to gather data and
information using the following methods and techniques:
 Primary method- This is the source of capturing first-hand and direct information. There
are different methods in which the company can gather primary data, like assessment,
questionnaires, interviews, and so on. This is one of the most powerful approaches that
will help to gather more accurate knowledge on the topic (Ilonen, Heinonen and
Stenholm, 2018).
 Secondary method- This approach involves the manner in which researchers will obtain
and interpret data from numerous other outlets. This study is able to collect knowledge
rapidly and efficiently. There are several ways researchers may collect information, such
as electronic records, the newspaper, books and magazines, and many more. This
approach would allow researchers to compile knowledge in a way that is precise to take
correct decisions.
Questionnaire: Questionnaire is one of the most significant testing instruments that consisted of a
collection of questions for the purpose of gathering possible material (Sedkaoui, 2018). In the
respective report, with the aid of the respective resource management, it might be possible to
include the required details as follows:
Frequency (Out of 50 respondents)
Question 1. How many times you visit at clothing
store?
(a) Once in a month
(b) Often
30
20
Question 2. Which kinds of cloth you like to wear?
(a) Traditional
(b) Modern
23
27

Question 3. What is the key factor that you consider
during purchasing the cloths?
(a) Price
(b) Quality
30
20
Question 4. What are the factors that motivate you to
visit in clothing store?
(a) Advertisement
(b) Own needs
15
35
P4 Evaluate and interpret data by collecting evidences from market.
Question 1.
Once in a month Often
0
5
10
15
20
25
30
35
30
20
Series1
Analysis- The above mentioned line chart is showing data of 50 customers which indicates that
there are 30 customers who come at Clark’s clothing once in a month. On the other hands, there
are 20 customers who go often at store. Hence, this can be interpreted that above clothing store
should consider on those customers who never visits at store.
Question 2

Traditional Modern
21
22
23
24
25
26
27
28
23
27
Series1
Analysis- The above chart is indicating that there are different types of customers who have
various approaches about clothing sense. Out of 50 customers, there are 23 customers who like
traditional cloths. While 27 customers like modern cloths. Hence, it can be interpreted that above
company should focus on modern clothing products.
Question 3
Price Quality
0
5
10
15
20
25
30
35
30
20
Series1
Analysis- The above line chart is indicating about factors about clothing store. There are 30
customers who consider price factor and 20 customers focus on quality factor. It can be
interpreted above company should consider pricing as a main factor.

Question 4
Advertisement Own needs
0
5
10
15
20
25
30
35
40
15
35
Series1
Analysis- The above chart is indicating that, there are 15 customers who come in clothing store
by advertisement. As well as 35 customers out of 50 customers visit to store as per their needs.
So from above chart this can be interpreted that Clark’s clothing must focus on identifying need
of customers so that they can fulfill their needs.
TASK 4
P5 Use SWOT tool to identify specific kind of entrepreneurial idea.
SWOT Analysis: SWOT analysis is a common method of finding appropriate applications
through a range of administrative skills and exercises," says the Chartered Institute of
Management as reproduced in the magazine "Business visionary". It is usually right at the
beginning of the advertisement. The study takes into account internal resources and capabilities,
for example merits and shortcomings, and external components, for example openings and
dangers (Samo, 2016).
The ultimate goal of Clarks Original: The Collection for Women is to lift the cake piece of the
female headliner crowd ages 18 - 35. Despite this goal, Clarks has chosen to interact with the
crowd sourced through its diverse melodic tastes utilizing the melodic skills of Pop, R&B and
Country within their advertising efforts.
Strengths:

 Making high-end clothing at exceptional costs
 They have expanded their number of stores which will provide more power on the market
for the distribution of their products.
 Clarks has an incredible brand mentality in the North American market.
Weakness:
 Competitive prices of other shoes and brands at comparable prices have damaged Clarks'
profit margin.
 Clarks is forced to compete with similar retailers who transport their products.
 Small product range.
 Clarks has not yet been able to pursue niche marketing on its fine clothes.
 It has difficulty predicting fashion trends (Abedini and Yadollahi, 2016).
Opportunities:
 Clothing is a highly developed and gradually developed business led by a large group of
lifestyle departments and style models.
 Lifestyle patterns have increased somewhat as more people have more money.
 Promotion of articles in the growth of product offerings to boost different populations.
 Expand Clarks' global brand recognition as a whole.
 The women's market is a commercial segment in strong and sensible development.
 Not to be affected by the recession of the male market, as women seem to buy shoes
without much regard to the financial atmosphere.
Threats:
 The retail sector is very competitive in terms of prices and consumers are very sensitive
to prices between similar products.
 Competition depends a lot on the brand image and potential.
 Many agents to console.
 The price sensitivity of the sector must remain competitive with other footwear
companies that produce similar clothing.

P6 Examine competitive marketplace and business environment while launch idea by accessing
its viability.
In a marketing environment, the controversy of contenders is an important part of the general
approach of private enterprise and should include careful evaluation of existing competitors
’merits, shortcomings, openings and risks current and forthcoming just as the politicians, finance
and mechanics influence the way a company supports. One of the best tools for assessing a
company's bad looks is the Five Force Competitive model created by Michael E. Doorman of
Harvard Business School. Before deciding on any operating option, private companies should
use these five powers as an institution to rigorously examine their face (Nijssen, 2017).
Clarks Brands is in a favorable position to acquire active funds from its Australian banks. They
can find many talented producers at cheaper prices. In addition, its base camp is located in
Melbourne and its stores are located in important Australian urban communities such as Sydney,
Perth, Canberra and Adelaide. Urban areas are therefore an important market for the products
they control.
The improvement in the quality of the organization's assistance in terms of adequacy, legitimate
positioning of its object for its target market, an adequate number of successful goods, such as
work, money and products, have given it a high advantage over others. The geographical scope
of the organization and a high capacity in the transport of quality items has made it a market
leader (Mrożewski. and Kratzer, 2017).
A competitive environment is the dynamic external framework in which businesses compete
and operate. The more the sellers of a comparable thing or management, the worse you will be.
Get a table at the driveways - there are so many to overlook; the face is high. Be that as it may, in
case you see carriers crossing Hawaii, not many fly to the islands.

CONCLUSION
From the above discussions, we tend to emphasize that, while Pacific Brands has a dominant
position in the apparel sector, they have a great approach to maintaining the bad situation. They
need to sketch the minimum effort structure and improve their online business progress with the
goal of getting a good outcome for their customer base. If they end their use of imaginative
methods with legitimate use of their accessible goods, sooner or later they become a definite
name in the field of clothing.

REFERENCES
Books and journal:
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.
George, N.M., Parida, V., Lahti, T. and Wincent, J., 2016. A systematic literature review of
entrepreneurial opportunity recognition: insights on influencing factors. International
Entrepreneurship and Management Journal, 12(2), pp.309-350.
Jarvis, L.C., 2016. Identification, intentions and entrepreneurial opportunities: an integrative
process model. international Journal of entrepreneurial Behavior & Research.
Reuber, A.R., Knight, G.A., Liesch, P.W. and Zhou, L., 2018. International entrepreneurship:
The pursuit of entrepreneurial opportunities across national borders.
Nikraftar, T. and Hosseini, E., 2016. Factors affecting entrepreneurial opportunities recognition
in tourism small and medium sized enterprises. Tourism Review.
Ilonen, S., Heinonen, J. and Stenholm, P., 2018. Identifying and understanding entrepreneurial
decision-making logics in entrepreneurship education. International Journal of
Entrepreneurial Behavior & Research.
Sedkaoui, S., 2018. How data analytics is changing entrepreneurial opportunities?. International
Journal of Innovation Science.
Hu, R., Wang, L., Zhang, W. and Bin, P., 2018. Creativity, proactive personality, and
entrepreneurial intention: the role of entrepreneurial alertness. Frontiers in psychology, 9,
p.951.
Mrożewski, M. and Kratzer, J., 2017. Entrepreneurship and country-level innovation:
Investigating the role of entrepreneurial opportunities. The Journal of Technology
Transfer, 42(5), pp.1125-1142.
Samo, A.H., 2016. Entrepreneurial alertness among business school students. International
Journal of Humanities and Social Science Studies, 3(1), pp.127-137.
Abedini, Z. and Yadollahi, J., 2016. F, SM Moghimi, Identifying Individual Factors and
Effective Backgrounds in Distinguishing Social Entrepreneurial Opportunities. Journal of
Administrative Management, Education and Training, 12(3), pp.11-19.
Nijssen, E.J., 2017. Entrepreneurial marketing: an effectual approach. Taylor & Francis.