Identifying Entrepreneurial Opportunities

This report evaluates different sources of entrepreneurial ideas, identifies market gaps, presents sources of data, interprets data, discusses SWOT analysis, and analyzes the market using Porter's Five Forces model. The focus is on Velvet Drink, a company that provides low-sugar, natural-flavored juices and smoothies. The report also includes a questionnaire and data interpretation.

Identifying Entrepreneurial
Opportunities

Table of Contents
Contents
Contents...........................................................................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Evaluate different sources of entrepreneurial ideas with the help of examples.....................1
P2 Identify the market gap with the help of tool and techniques................................................2
P3 Present the sources of data.....................................................................................................3
P4 Interpretation of data..............................................................................................................5
P5 Discuss SWOT analysis.........................................................................................................9
P6 Porter five force model.........................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneur play an important role in an organisation as it provides an innovative idea
and thus promote the growth opportunities of a business (Gonzalez-Alvarez, Cooper and Nieto,
2016). This report is based on Velvet Drink that provide wide range of products such as
smoothies, various flavours of juices and milkshakes by putting its major emphasises on less
sugar content and use of natural flavour so as to provide unique taste of food pulp to their
customers. This provide benefit to large group of customers especially to diabetic patients and
also gain a competitive position within the beverage industry. This report comprises of different
sources of innovation and market gaps that provide growth opportunities and also includes
market gaps. This report covers data collection methods and SWOT analysis in order to gain
competitive position.
P1 Evaluate different sources of entrepreneurial ideas with the help of examples
The role of entrepreneur is to provide new and innovative ideas so as to ensure new and
modern changes within the market and also help to gain competitive position across the globe.
The velvet drink ensures good quality products and contain less flavoured sugar drinks so as to
gain large access of customers. Ducker introduces the seven sources of innovation opportunity
that involve the changes that has taken place in organisation with the help of innovative idea (Ip,
Fong, Zhuang, and Wong, 2016). In the context of Velvet Drink, the same is presented as
follows:
Unexpected Successes and Failures: This is regarded as the best sources of
entrepreneurial opportunities as the manager of firm conduct all research and development and
also study the terms and conditions of market and demand and supply of products. This help
firms to gain significant position and it also study the taste and preferences of large of customers
at it provide future growth opportunities and ensure success within the market.
Incongruities: This occur the situation when the companies developed their product
without conducting proper research of identifying the needs of potential customers (Lindgren,
2018). There are various methods to determine incongruity such as reviews, customer complaints
and many more. Also, feedback help in knowing the requirements of customers and to fulfil the
market demand so as to provide them greater convenience.
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Process needs: These involve the process of identifying various needs of company and
combatting the threats and weakness so as to gain excessive competition within the confine
sector of food and beverages industry. The manager of Velvet drink identifies that people wait
too long so it decides to hire new chef in order to provide fast and efficient services.
Changes in Industry and market structure: In a dynamic environment, the changes are
must as it facilitates smooth conduct of activities in an efficient manner. The manager adopts
changes by looking new trends and through proper analysis of market and make sure to accept
these changes in the form of opportunities.
Change in Demographics: these includes factors such as age distribution, education,
population growth, level of employment that are taken into consideration when a business is
launched (Miao, Eva, Newman, and Cooper, 2019). In this criteria, segmentation and targeting
are the two most significant methods that help to combat demographic data by meeting the desire
of market.
Changes in Perception: In a competitive environment, there are changes in the minds
and moods of customers in a drastic way as it provides assistance to the firm in bringing new and
innovative idea to develop new product or services that ensure proper success and coordination
in an organisation.
New Knowledge: It is essential for the top management of company to adopt the new
invention and focus on technological advancement by hiring the best employees that ensure
success and systematic working in a firm.
From the above sources of innovation, the manager of Velvet drink use new and
innovative technology and also provide effective training to their staff as it inculcate confidence
and trust in them which improve the overall performance and enhance the efficiency in a best
possible manner.
P2 Identify the market gap with the help of tool and techniques
Market gap model play a significant role that help in determining the level of resources
and availability of technology within the market. In other words, this model also provides a great
understanding the various gaps and lack of sufficient knowledge which could result in decline in
the value of market share (Nieto, and González-Álvarez, 2016). The Velvet Drinks provide
various flavours of juices by using less sugar content and natural flavours and provide unique
taste of fruit pulp among the customers in the market. This firm aims to provide excellent quality
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of goods or services so as to gain maximum customer satisfaction and thus accelerates the sales
and profit margin of the company. The respective firm uses fish bone model so as to trach the
overall performance for imperfections, variations or failures. In the context of Velvet drink, the
same is presented as follows:
Peak hours: this is one of the major problems that is faced by buyers during peak season
especially summers as they have to wait for long time which reduce the efficiency of a firm.
Environment: this is one of the major factor that is faced by clients as tables are not
cleaned properly and poor coordination reduces their satisfaction level.
Unexpected demand: Sometimes, there is huge demand to add more toppings which is
unavailable thus provide a inconvenience specially to their target customers within the beverage
industry.
Technology: Also, there is possibility of delay in orders due to the reason of technical
fault which is one of the root causes of problem among customers.
Wrong information: Sometimes, customers face a lot of issues due to misleading information
which create high level of dissatisfaction among them.
All these factors provide the cause and effect analysis so as to structure a brainstorming
technique and sort ideas into useful components and is useful in identifying the root cause of
problem which determine the growth rate of the firm.
P3 Present the sources of data
Gap analysis provide the basis of comparison which measure time and human resources
so as to accomplish the desired objectives in a respective time period (Sedkaoui, 2018). There
are various methods of collecting the data which provide a reliable source of information in a
systematic manner in order to enhance the transparency within an organisation. The manager of
Velvet drink put it emphasises on use of less sugar content that especially provide benefit to the
diabetes patient. There are mainly two methods of data collection that are given beneath:
Primary data: These are referred as data which is collected from the primary sources
that includes surveys, questionnaires, interview and many more. It provides original source of
information but is regarded as time consuming and expensive method of data collection. In order
to find the effective solution, the entrepreneur has prepared the questionnaire so as to analyse the
cause of market gap.
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Questionnaire
Name:
Email ID:
Contact No.
Q1. Do you aware about the idea of a firm Velvet Drinks?
 Yes
 No
Q2. Does fruit juices enriched with less sugar content with natural flavour help in providing
greater satisfaction to customers?
 Yes
 No
Q3. Does Velvet Drinks can provide efficient services to different group of individuals at the
same time?
 Yes
 No
Q4. Will smoothies and fruit juices enriched with vitamins and minerals be able to gain
competitive advantage for respective food and beverage industry?
 Yes
 No
Q5. Is there any requirement of implementing marketing campaigns to introduce Velvet Drink?
 Yes
 No
Secondary data: This method requires the collection of information from secondary
sources such as articles, books, journal or magazines and so on. In other words, it provides the
information that is collected earlier that provides specific and authentic information and control
biasness. The manager of Velvet drink can focus on target customer by providing standard
quality of goods or services at a moderate prices in order to gain a competitive position within
the market place.
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Figure 1 Beverage industry UK
Source: United Kingdom Energy Drink Market Growth and Trends, 2019
From the above graph, it can be analysed that the demand of fruit beverages increases
every year because in today’s era, the preferences of customers is shifted towards their health
which is am major aspect in a business environment. By looking this aspect, the mainly focus of
entrepreneur is to make new and innovative products so as to fulfil the criteria of customers. So,
it brings the idea to introduce Velvet Drinks so as to provide variety of flavoured juices and
smoothie by using less content of sugar and adding natural flavour so as to provide unique taste
of food to their customers.
P4 Interpretation of data
The questionnaire which is prepared by the entrepreneur so as to analyse the situation of
Beverages in a market place.
Theme 1: Awareness concept of Velvet Drinks
Are you aware about the idea of a firm Velvet
Drink?
Frequency
 Yes 25
 No 10
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Interpretation: From the above pie chart, it can be interpreted that out of 35 respondents, 25 of
them are aware about the idea of Velvet Drinks and rest of them are not aware about this
concept.
Theme 2: Level of satisfaction
Does fruit juices enriched with less sugar
content with natural flavour help in providing
greater satisfaction to customers?
Frequency
 Yes 12
 No 7
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Interpretation: From the above bar graph, 12 of total 19 respondends have desired level of
satisfaction and rest 7 respondents are not disagree with this.
Theme 3. Various services rendered by the firm
Does Velvet Drinks can provide efficient
services to different group of individuals at the
same time?
Frequency
 Yes 10
 No 9
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Interpretation: From the above graph, 10 out of 19 respondents are satisfied with the level of
services provided to them and rest 9 are not satisfied with the services rendered by Velvet Drink.
Theme 4: Juices and smoothies enriched with vitamins and minerals
Will smoothies and fruit juices enriched with
vitamins and minerals be able to gain
competitive advantage for respective food and
beverage industry?
Frequency
 Yes 25
 No 5
Interpretation: From the above information, 25 out of 30 respondents thinks that juices are
enriched with vitamins and minerals and thus gain a competitive position in the beverage
industry.
Theme 5: Marketing campaigns
Is there any requirement of implementing
marketing campaigns to introduce Velvet
Frequency
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Drink?
 Yes 20
 No 3
Interpretation: From the above bar chart, it can be in interpreted that 20 respondents think that
implementing the promotional idea enhance the brand image and remaining are not satisfied with
it.
P5 Discuss SWOT analysis
This analysis is conducted to identify then positive and negatives of an industry by
assessing the availability of resources so as to gain a competitive position within the market
place (Thursby and Berbari, 2016). In other words, this analysis is conducted to determine the
level of profitability and attractiveness by grapping opportunities and combatting the threats and
weakness. With reference to Velvet Drinks, the same is presented as follows:
Strengths
 The respective firm focus on product differentiation by providing low sugar content and
also use natural flavours that gives the nice fruity flavour.
 One of the major strengths is that the firm uses the local advertising in order to enhance
the brand image among the large group of customers.
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 The major focus is to use fresh fruit by keeping in the mind of diet consciousness of
customers and help to boost sales within the market.
 It provides variety of flavours such as mango, orange, lemon that adds the taste and twist
to the product and also ensure to use standard quality of products.
Weakness
 One of the major weakness is that the concerned firm has large number of players that are
already existing in the market.
 Due to excessive competition, this emphasises the firm to reduce the price and thus
decrease the profits of the company.
 As compared to other brands, it is difficult for the firm to invest huge sum of money on
advertisements which create a weak advertisement.
 Also, the shelf coverage of Velvet Drink is very poor that affect the visibility to the group
of customers.
Opportunities
 By looking the awareness of people towards their health, this provide growth
opportunities with less sugar content and also provides the feeling of fresh fruit.
 Many modern families are replacing tea or coffee and shift their preference towards
healthy drinks as this also generate more sales within the market.
 Velvet Drinks could also provide the facility of online services so as to provide an ease of
convenience to their customers.
Threats
 There large number of competitors of Velvet Drinks that possess a big threat to the
company as it results in price wars among them.
 Also, the biggest threat is people generally does not easily purchase the store bought
juices and prefer to eat fruit rather than drink which reduce the efficiency of a firm.
P6 Porter five force model
It is a business management framework that provide that analysis of competition in a
market place in terms of its profitability (Triguero, Fernández, and Sáez-Martinez, 2018). In
other words, it consists of five components that assist the firm in making correct accuracy of
decision that aims to improve the overall functioning and productivity in the industry. In the
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context of Velvet Drinks, the manager has applied the Porter’s model that are presented in a
following manner:
Bargaining power of Buyer: The magnitude of this factor is acknowledged to be low
due to the reason that customers of Velvet Drinks are few and they buy products in a very small
quantities and there are giant number of competitors present in the market that emphasises on
providing similar products at a same price and thus this create a lower product differentiation
within the market. But the respective firm provides unique taste of juices, smoothies and so on
which help in facilitating the sale of product within the market.
Bargaining power of Suppliers: The extent of this force is regarded to be low as there are
great number of suppliers present in the market that provide the power to company to purchase
product at a low cost as it provides an ease to the firm to easily switch to other suppliers (Wang
and et.al., 2018). This also create less competitive pressure towards the Velvet Drink and also
enhance the profit margin within the confine sector of food and beverage industry.
Threat of substitute: The threat of substitute is regarded to be low. There are large number
of alternatives that provide product at low cost and also offer wide range of products in the
market. In order to reduce the threat of substitutes, the respective firm focus on providing natural
flavoured drink with less content to sugar helps to gain competitive position by looking towards
the changes in social trends and new generations of consumers. This also assist in enhancing the
market share and improve the overall productivity in the beverage industry.
Competitor rivalry: The power of this force is acknowledged to be low. Velvet Drink faces
a stiff competition in the market which determine the level of product differentiation and the
level of innovation. Also, the respective firm provide similar products and give customers the
power to switch to other brands which possess a big threat to the sale and profit of the company.
Threat of new entry: The magnitude of this model is low because Velvet Drink provide is
newly firm as it provides various products or services by keeping in mind the taste and
preferences of customers (Xiong, Rani and Harun, 2019). Also, the manager analyses the current
trends of market which help in achieving a competitive position and thus improves the overall
productivity and profit margin within the confine sector of beverage industry.
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CONCLUSION
From the above information, it can be summarised that entrepreneur provide vast growth
opportunities through new and innovative ideas and thus promote success within an organisation
by systematic conduct of activities. It has been analysed that there are various sources of
innovation that provide sustainable growth and also ensure proper conduct of activities by
identifying the strength and weaknesses and combatting the threats so as to gain competitive
position within the market.
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REFERENCES
Books and Journals
Gonzalez-Alvarez, N., Cooper, S. and Nieto, M., 2016. Culture and the discovery of
entrepreneurial opportunities: The mediating role of social capital. In Academy of Management
Proceedings (Vol. 2016, No. 1, p. 14614). Briarcliff Manor, NY 10510: Academy of
Management.
Ip, I., Fong, S., Zhuang, Y. and Wong, R., 2016, November. Competitive Intelligence Study on
Macau Food and Beverage Industry. In 2016 7th International Conference on Cloud Computing
and Big Data (CCBD) (pp. 170-174). IEEE.
Lindgren, B., 2018. Understanding the Impact of Entreprenurial Activity in Institutional Change:
Gaining Insights on the Embedded Agency Paradox.
Miao, Q., Eva, N., Newman, A. and Cooper, B., 2019. Ceo entrepreneurial leadership and
performance outcomes of top management teams in entrepreneurial ventures: The mediating
effects of psychological safety. Journal of Small Business Management, 57(3), pp.1119-1135.
Nieto, M. and González-Álvarez, N., 2016. Social capital effects on the discovery and
exploitation of entrepreneurial opportunities. International Entrepreneurship and Management
Journal. 12(2). pp.507-530.
Sedkaoui, S., 2018. How data analytics is changing entrepreneurial opportunities?. International
Journal of Innovation Science.
Thursby, M.C. and Berbari, M., 2016. Identifying and Evaluating Market Opportunities',
Technological Innovation: Generating Economic Results (Advances in the Study of
Entrepreneurship, Innovation and Economic Growth, Volume 26) (pp. 33-58). Emerald Group
Publishing Limited.
Triguero, A., Fernández, S. and Sáez-Martinez, F.J., 2018. Inbound open innovative strategies
and eco-innovation in the Spanish food and beverage industry. Sustainable Production and
consumption. 15. pp.49-64.
Wang and et.al., 2018, July. Study on Production and Marketing of Tea: A Company.
In International Conference on Innovative Mobile and Internet Services in Ubiquitous
Computing (pp. 771-782). Springer, Cham.
Xiong, T.Z., Rani, M.F.C.A. and Harun, K.S., 2019. Break Time: A SWOT Analysis for an
Order Management System for Food Court in Universities and Colleges. International Journal of
Psychosocial Rehabilitation, 23(4).
Online
United Kingdom Energy Drink Market Growth and Trends .2019. [online]. Available through:<
https://www.mordorintelligence.com/industry-reports/united-kingdom-energy-drink-market>
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