Identifying Entrepreneurial Opportunities

This document provides insights into identifying entrepreneurial opportunities. It covers different sources of entrepreneurial ideas and innovation, rationality and gap of market for an entrepreneurial idea, data and statistics for assisting analysis of gap, SWOT analysis to assess the entrepreneurial idea, and evaluation of competitive and market environment to assess potential viabilities.

Identifying
Entrepreneurial
Opportunities

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Different sources of entrepreneurial ideas and innovation...............................................4
TASK 2............................................................................................................................................5
P2 Explain rationality and gap of market for an entrepreneurial idea by using kinds of tools5
TASK 3............................................................................................................................................7
P3 Provide data and statistics for assisting analysis of gap while analyse entrepreneurial idea.
................................................................................................................................................7
P4. Interpretation of data to provide evidence of market potential........................................8
TASK 4..........................................................................................................................................11
P5. SWOT Analysis to assess the entrepreneurial idea........................................................11
P6. Evaluation of competitive and market environment to assess potential viabilities........13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is really for the purpose of creating and increasing a company or a
venture.Entrepreneurship is an endeavour involving the exploration, assessment, and
development of possibilities to implement new products and services, methods of managing,
economies, procedures and manufactured goods by coordinating activities which have not
happened previously (Hansen, Monllor and Shrader, 2016). The Toughleather a shoes company
with new innovative idea of making shoes with plastic waste is selected.
In this report details on the different channels of entrepreneur, real economy gap evaluation
and the use of primary and secondary data to discover the market growth. Various kinds of tools
are being implemented to make competitor analysis.
TASK 1
P1. Different sources of entrepreneurial ideas and innovation
Peter F. Drucker regarded as the father of management practice that gives manager
of company valuable resources for leadership, marketing, business, growth and innovation. This
has had a tremendous impact on the global world and carried its everlasting prestige as a guide
and inspiration to company managers and entrepreneurs. These are discussed in the
organisational context:
 The Unexpected: The business world is filled with uncertainties not just the unexpected
failures, but innovation can be encouraged also by the unthinkable success. As in the
above-mentioned field of development, Toughleather might have encountered some
unforeseen adjustment in the market world that has prompted the holder to design
products in such a manner that can attract customer attention and increase revenue.
 Incongruities: By researching what the target customers really desire, companies
sometimes fall into the trap of producing their products. The difference between what is
needed and what is delivered can lead to a decrease Toughleather growth, but may also
be a big source of motivation for innovation a manager of start thinking to produce
something new.
 System requires: Drucker focused on task driven than relational oriented in this
innovation business environment. Thus the origin of possibility for innovation

in Toughleatherarrives after looking closely at the processes and primarily respecting the
weaknesses to be more strengthened in existing market.
 Shift of industry and structure: Industries and business structures will remain stable for
years, but technical developments threaten certain businesses nearly instantly.
Toughleather apparel entrepreneur, due to shifts in the textile industry, may get
modernized or inspired to create a fresh start for apparel.
 Demographics: The change of demographics affects industries in one way or the other
and such changes influence the economies by determining the demand for the products,
who buys products and how much the product is sold (Jarvis, 2016). Consumers in the
UK are evolving their perception about shoes and that is the explanation why
entrepreneur of Toughleather inspired to launch a new company with customer
demanding cloths.
 Shift of perspective: The world has changed significantly through the years and
customer also brings changes in their views about certain products, brands or sectors. The
changes in thought open the way for companies to reimagine and generate new goods and
services that complement modern perspectives of consumers. This change in the
perception of UK peoples of new lighter and reliable, long lasting shoes has enforced the
Toughleather entrepreneur to create respective shoes at decent prices.
 Modern experience: Modern knowledge of market condition is often used as a symbol
for creativeness. Companies which refuse to embrace advancements driven by new
developments are guaranteed to fail. However, new technology may be implemented in
each field of the market-from learning more about customers via data to managing the
supply chain to hiring the right employees in Toughleather.
TASK 2
P2 Explain rationality and gap of market for an entrepreneurial idea by using kinds of tools
Market gap offers a company with the ability to develop and sell something that is not
already distributed (Reuber, Liesch and Zhou, 2018). Toughleather as a new company,
recognized market gap which support them to discover the UK people shoes demand and desire.
Target audiences: Mainly company target all the age group and focus to provide best quality
shoes with light weight so that customer do not feel burden at the time of running, playing or

attending parties and can also wear for long time during office hours. Toughleather have
produced all types of footwear and prices are lower so that any type of customer can buy.
Segmentation: Based on appropriate market segmentation it is possible for businesses to sell
goods according to requirement (Nikraftar and Hosseini, 2016). It is important for Toughleather,
to meet the interests of their clients and separate them into various classes.
Behavioural: Segmentation reflects on consumer purchasing patterns, like use intensity, brand
satisfaction, the incentives required for respective firm.
Demographic segmentation: It involves different kinds of factors such as age, class, degree of
education. Thus, shoes are wore by all kind of people for different purpose depending upon their
needs and requirement which makes easier for new company to hit customer with most suitable
shoes at decent prices.
Porter' five force model:
Power of buyer: Buying force reflects the ability of consumers to lower their prices. Throughout
the Shoes industry where consumers have a relative importance opposed to several other shoes
store this is fairly strong in terms of Toughleather. Consumers have alternate buying spots and
are allowed to stick with the business.
Supplier power: The rival firms' relative power includes of suppliers to raise the prices of their
goods and services. The distributor seems to have fairly tiny and insignificant power throughout
the footwear industry. Like for Shoes Company, they sell their goods to third-party
manufacturers who earn just a fraction of their earnings.
Competitive rivalry: The degree of competitiveness is very high in the clothing and sportswear
industry, as there are several rivals in the marketplace currently providing similar goods at
competitive prices. Although there are a significant number of competitors in the market for
Toughleather like Nike , Adidas etc. which are consider to be market leaders for a long period of
time.
New entrant’s threat:This really is relevant to new companies dangers as in United Kingdom’s
footwear market. This is mainly due to absence of strict restrictions for market entry. It might
become a risk for the Toughleather mainly because their sales and profit margins can be
influenced by a new company or sector.
Substitute danger: There really is no widely available replacement sportswear on the footwear
industry market. The power is actually nearly zero, as all substitution is basically rivalry

throughout the respective industry. Since competition is very strong, in which no company will
continue to sell and stay at the forefront, continuous improvements are more likely to produce
positive results for businesses (Hu, Wang, Zhang and Bin, 2018).
TASK 3
P3 Provide data and statistics for assisting analysis of gap while analyse entrepreneurial idea.
It is really necessary for the government to gather evidence and knowledge in order to
determine the void. In the case, of Toughleather primary source of collecting information is used
where various questions are posed to particular audience number. Questionnaire is among the
most important testing tools that composed of a series of questions to obtain potential materials
(Sedkaoui, 2018). With the assistance of the appropriate resource control, the necessary
information may be provided as followed in the applicable document:
Frequency (Out of 50 respondents)
Question 1. How many times you visit at Footwear store?
(a) Once in a month
(b) Often 30
20
Question 2. Which kinds of Shoes you prefer to wear?
(a) Traditional
(b) Modern
23
27
Question 3. What is the main thing you remember while buying
the shoes
(a) Price
(b) Quality
30
20
Question 4. What things affect you to enter footwear shop?
(a) Advertisement
(b) Own needs 15
35
P4. Interpretation of data to provide evidence of market potential
Theme 1: Number of visits at Footwear store
Question 1. How many times you visit at Footwear store? Frequency

a) Once in a month 30
b) Often 20
Interpretation: The above graph state that around 30 people visits Footwear store once
in a month whereas on the other hand remaining 20 respondents that they often visit the stores at
constant basis.

Theme 2: Preferences in shoes
Question 2. Which kinds of Shoes you prefer to wear? Frequency
a) Traditional 23
b) Modern 27
Interpretation: The above specified pie chart that 23 people believes that they prefer
mainly traditional form of shoes in terms of their preferences. Whereas, remaining 27 thinks that
they prefers Modern form of shoes to wear while going outside.

Theme 3: Main thing you remember while buying the shoes
Question 3. What is the main thing you remember while buying the shoes? Frequency
a) Price 30
b) Quality 20
Interpretation: On the basis of above specified graph, it can be said that 30 respondents
thinks that the main thing they remember while buying the shoes is price. Whereas, leftover the
20 thinks that quality is the most essential thing at the time making buying decision towards the
shoes.

Theme 4: Things affects while entering footwear shop
Question 4. What things affect you to enter footwear shop? Frequency
a) Advertisement 15
b) Own needs 35
Interpretation: This graph depicts that there are several things which affect the
respondents while entering into the footwear shop. This pie chart depicts that according to 15
people advertisement is the most important thing which influences them while entering footwear
shop. Whereas, the leftover 35 respondents expressed that their own needs are the main things
which influences them at highest level.
TASK 4
P5. SWOT Analysis to assess the entrepreneurial idea
Swot analysis is basically acknowledged as the one of effective framework which supports
businesses in determining their own strength and weakness on their past and present performance
where as it also allows the same company in forecasting future opportunity as well as threat that
would influence their performance in the near future. With reference to the current chosen
entrepreneurial idea of Toughleather, it can be said that the main motive of this entity is to make
use of plastic waste for developing shows for the customers. The developed idea is highly
environmental friendly as it is contributing in using recycled plastic for developing their own

designer shows which would give better comfort and satisfaction to the customers in an
appropriate manner. SWOT analysis of this company is specified as below in detailed manner:
Strengths:
 Making use of plastic as the sole of their leather shoes becomes main strength of the
company as customers appreciates them a lot.
 Strong support of customers makes them more power within the sector and develops
strong brand image at marketplace.
 Effective accessibility for the customers towards the shoes with the help of strong
distribution network.
Weakness:
 The company makes use of non effective marketing and promotional technique which
makes it difficult for them popularise their products among customers.
 In order to meet the customers’ expectation the keeps very less profit margins that is
ultimately affecting their profitability as well sustainability within the same sector.
 Small product range.
Opportunities:
 The Toughleather can easily gain opportunity by the expanding its delivery zones in
order to reach maximum number of customers and maximise their profitability.
 Lifestyle patterns have increased somewhat as more people have more money.
 Usage of social media marketing would bring higher opportunity for them as they will be
able to approach maximum number of customers and raise their sales performance in
effective manner.
 Expand Toughleather' global brand recognition as a whole.
Threats:
 Increasing competition within the retail sector could be seen as its most inlfience threat
for Toughleather.
 The price sensitivity of the sector must remain competitive with other footwear
companies that produce similar products.
 Many agents to console.

P6. Evaluation of competitive and market environment to assess potential viabilities
Assessing viability of the business is highly important for the company as it shows that
whether the company is able to sustain within the industry or not. In order to evaluate the
viability of the business it is highly important to analyse the competitiveness as well as market
environment. Here, it can be competitiveness with the retail sector especially the companies
which are offering the shoes to the customers is very dense. But, it has been analysed that for
Toughleather competitiveness is highly low as shoe manufacturer within the industry are not
making use of plastic for the sole of the shoe. This clearly depicts that the Toughleather does not
worry about the competitiveness in terms of differentiation as their offered product is completely
different and they do not have to worry about the rivalry. Here, it can be said that the company
might face competition I terms of prices as there are many competitors within the same sector
which are shoes with fine quality at lower prices in comparison of the Toughleather. In order to
the delay with this, the respective company is required to make use of effective marketing
strategy with which they can easily popularise their products and services among customers and
maximise their sales performance within the same market.
Apart from this, market environment of the company can be easily done by making use of
the porter’s five force analysis in order to analyse the market effectively and determine available
opportunities and threat for the same company that is Toughleather within the same industry.
Making use of this framework also helps in assessing the market with the motive identifying
existing competitors ’merits, shortcomings, openings and risks current and forthcoming just as
the politicians, finance and mechanics influence the way a company supports.
CONCLUSION
On the basis of overall information provided in the above report, it has been analysed that
competition within every industry is increasing day by day. This simply creates requirement of
bringing modifications within the same sector so that customers can get new products and
services. This simply creates opportunities for the entrepreneurs as they have access to broader
market pace and introduce their pre planned business ideas. Along with this, it has been further
seen that entrepreneurs are required to analyse and evaluate macro environment factors with the
motive of ensuring that their business idea would be successful in the near future. Also, usage of

SWOT analysis supports businesses in determining their current strength and weaknesses as well
as future opportunity and threat that might affect their future growth of launch of new
entrepreneurial idea.

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
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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:
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Nijssen, E.J., 2017. Entrepreneurial marketing: an effectual approach. Taylor & Francis.