Identifying Entrepreneurial Opportunities

This report examines the concept of entrepreneurial opportunities by analyzing the case of AJ Auto-mobiles, a newly established organization. It investigates the sources of new and innovative business ideas, market gaps, and applies tools like Drucker's seven opportunities model and Porter's five forces model. The report also includes a SWOT analysis and a PESTLE analysis to evaluate the competitiveness and market environment for AJ Auto-mobiles' electric car with a high-power engine.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Evaluation of the possible source for the new and innovative business ideas ................1
TASK 2............................................................................................................................................3
P2. Examining the specific entrepreneurial idea for investigating the market gaps, by using the
tools and techniques.....................................................................................................................3
TASK 3............................................................................................................................................4
P3. Illustrating the relevant data for supporting the analysis in evaluation of entrepreneurial
idea...............................................................................................................................................4
P4. Interpretation of the relevant data to render the evidence of the market potential ...............4
TASK 4............................................................................................................................................4
P5. Applying SWOT framework to evaluate objective assessment of a specific entrepreneurial
idea...............................................................................................................................................4
P6. Evaluating the competitiveness and market environments in which the product and idea
will be launched to assess potential viability...............................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The context of “entrepreneurial opportunity” is comprises the theory of entrepreneurship.
Entrepreneurs are the individual who takes advantages of the entrepreneurial opportunities,
without the help of entrepreneurial favourable circumstances, no one can perform the
entrepreneurial process(Zamfir, 2015). In other words, the entrepreneurial activity refers to the
situations where the entrepreneurs are able to make the advantages of profit creation by
converting the entrepreneurial or innovative ideas into the business opportunities. Moreover, for
the motive of making the entrepreneurial opportunities benefited, the government of several
countries renders the entrepreneurial developmental programmes and provides the necessary
guidance, motivation and capital for ascertaining the level of entrepreneurship and to reduce
unemployment.
This report pertain the brief knowledge about the entrepreneurial opportunity al
opportunity by illustrating it with newly establishing organisation named AJ Auto-mobiles and
besides this, the report also comprises with the relevant knowledge about the the sources for new
innovative and business ideas, entrepreneurial ideas for investigating the market gaps, primary
and secondary data to identify the market and perfect analysis of entrepreneurial ideas in context
of competitors and market, with the help of SWOT model.
TASK 1
P1. Evaluation of the possible source for the new and innovative business ideas
The entrepreneurial opportunities can be defined as the programmes or chances
specialized with the main aim to enhance the entrepreneurial development or to enable the
entrepreneurs to dodge the many entrepreneurial bottlenecks that could inhibit faster growth.
Another motive behind the creation of employment opportunities is to reduce unemployment as
due to advance technology render more and more people jobless, by ascertaining the number of
entrepreneurs with the help of government of several countries like UK, are strengthening such
programmes by injecting substantial capital to enhance the growth of economy(Arief and
Saratian, 2018). As this all and the entrepreneurial process need the innovative or the
entrepreneurial ideas, for examining this, Drucker's seven opportunities model for the sources of
innovation is described below. This model is developed by Prof. Peter F Drucker, and used by
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individuals as source to obtain the creative and innovative ideas helpful for the establishment of
AJ auto-mobiles.
The Unexpected: The business world is full of certainties and uncertainties, as the there
may be unexpected failure and the unexpected success. Such unexpected situations may be
resulted as extremely powerful for the business world, as they acts as the inspirational source that
can motivates the leaders or the founder of the the organisation like AJ auto-mobiles (UK), to
make the advantages of such business or innovative opportunities that emerges. For example,
launching a electric car with high power engine can acts as the an extremely innovative
opportunity for AJ automotive organisation and promotes the organisation to next level.
The Incongruity: Several of organisations engages in innovating their existing products
without forming appropriate research of market and what are the customer's desires. The
dissonance between what is and what it is supposed to be or what is and what everybody else
assumes that it may results in failure of innovative plan as well as organisation's downfall(Suciu
and Florea, 2015). But it also as the valuable source of inspiration and innovation for the
organisations like AJ auto-mobiles. Therefore, it is concluded that the customer's desires, wants,
reviews, feedback and complaints are often the best source of innovation ideas for the business
organisations and beneficial for the determination of the incongruity.
Innovation based on process needs: This also an another source of innovation, source
of opportunity occurs from focusing on the organisations processes and by identifying the short
comes and determining the methods to amend the short comes. After the deep analysis of
organisation's abilities, determines the weak aspects then the research and development team will
able to create more effective and innovative solutions.
Variations in Industry structure or market structure: Sometimes the industrial and
market structure can be stable for a period, along with the technological development(Ginting
and Mashithoh, 2014). The effective entrepreneurs must identify such changes as such variations
can be termed as threats and opportunities, depends on the capabilities of the organisations like
AJ auto-mobiles.
Demographics: The organisations like AJ auto-mobiles can be influenced by several of
variations of demographic. Such variations influences the markets as they find out the need for
goods that who are the customers of such goods and in what quantities that goods are bought by
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its customers. The demographic changes in age, education, employment, influences the
directions that the organisations adapts and if the organisation effectively determines the
opportunities then organisation can adapts new horizons for innovative development.
Changes in Perception: From recent past years, there are variations in the manner
people perceive the business world. Perception changes according to the trends and changes in
time periods. After the evolution of technologism and social networking sites such variations
occurs very fast. Public changes its perception regarding the particular product, brand or industry
after a certain period of time. This variations in perception emerges the need of rapid
innovations for the organisations like AJ auto-motive, in order to develop new products and
services that reorient with the new perceptive of the customers.
New knowledge: This also indicates the context of innovations. The organisations that
refuses to adapts the variations inspired by the new discoveries are tend to fail. New knowledge
about the relevant facts are crucial for the organisations like AJ auto-mobiles in each and every
aspects(Park and Jeong, 2015). With the help of new knowledge the organisation becomes more
able to know perfectly about the customers and this also makes betterment in the supply chain in
recruiting the skilled and highly-educated employees.
TASK 2
P2. Examining the specific entrepreneurial idea for investigating the market gaps, by using the
tools and techniques
It is also essential for the organisations like AJ auto-mobiles, to identify the customer's
needs and wants as well as identify the industrial and market environment. In order to identify
the customer's needs and wants the organisations adapts several of tools or techniques such as
behavioural, demographic and geographic segmentation. As the organisation going to enter in the
market of UK, with their innovative products that is electric car with high power engine. The
need of launching this, kind of car or products and also to determine the types of customers
with the help of such techniques.
Identifying customers:
Behavioural segmentation: This kind of technique involves the needs, benefits, attitude
towards products, type of problem solving, awareness about products and brand. As the
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organisations like AJ auto-mobiles, realizes the need of electric cars due to requirement by
public(because of day by day rises in prices of petrol and diesel), also identified the benefits like
pollution free and environmental friendly, besides this, the organisation estimates that there will
be favourable attitude of people towards their innovative products(Raven and Le, 2015).
Therefore, with the help of this technique the organisation estimates the favourable nature of
market and a good time to take advantages of the opportunity.
Demographic segmentation: Under this technique, the organisations like AJ auto-
mobiles evaluates the some aspects such as Income, Job, Education, Age etc. before launching
their products as the organisation wants to identify these kind of facts about the customers of the
their products. Income of customers determines their affordability, Job and education helps in
determining the standards of customers as they are able or not to understand the functioning of
the products and age determines that which types of age group will more attracted and desires to
purchase the organisations products.
Geographic segmentation: One of the best techniques that a research team can adapts in
their segmentation strategy is geographic. This technique ensures the research team to make
analysis by breaking the market into some partitions such as climate, density, market size, world
or states. some organisations uses climate if their products or services depends on the weather or
are perishable in nature, such as snow shovels, melting pavement salt etc. the organisation such
as AJ auto-mobiles selects the most polluted cities like Beijing, New Delhi for launching their
electric car first as due to they believe that due to more pollution and rise in price of petrol there
would be high demand of electric cars and the organisation may be successful in capturing the
large market segment.
Understanding the industry environment:
The identification of the market or industrial environment can be processed with the help
of Porter's five forces model. The five forces are as follows.
Supplier power: the organisation like AJ auto-mobiles as the supplier can not easily
drive-up the prices as several factors are involved in price determination of the products such as
crucial input, uniqueness of the product, size and strength of organisation etc. if the organisation
is new then it cannot easily fix high prices for the products(Deveci and Seikkula-Lein, 2016).
Buyer power: Under this, analysation is made by the organization like AJ auto-mobiles
how the buyers can drive down the prices of the products. Several aspects are considered such as
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number of buyers, affordability of maximum number of buyers etc. the affordability influences
the selling of organisation's products.
Competitive rivalry: the effectiveness and capability of the competitor also affects the
organization launching of innovative products by the organisation. As if several of competitors
rendering the same products or services then it decline the number of the customers of the
organisation(Hadiyanto, 2015).
Threat of substitution: Substitution effects also influences the sales of the organisation
as the substitutes of the products are available in market then it influences the minds of the
customers switching to alternatives in response to prices increases. This declines power of
organisation as well as the attractiveness of market.
Threat of new entry: the market of profitability attracts the new entrants. Unless
necessary have strong and durable barriers to entry, for example, patents, economies of scale,
capital requirements or government policies, then profitability will decline to a competitive rate.
TASK 3
P3. Illustrating the relevant data for supporting the analysis in evaluation of entrepreneurial idea
Gap analysis refers to the tool mainly apply to make analysis of gap between target and
actual project results. As in case of AJ automotive, is going to be establish in London, UK.
Therefore, it is crucial to make a gap analysation in order to formulate appropriate strategies. For
the completion of this requirement, a systematic research is to be perform with a motive to
accumulate the relevant information of customer's desires wants and preferences. The
information can be accumulated with the help of primary and secondary methods. Both are
described below.
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Primary research: This research is conducted with a motive to obtain the first hand
data , so that the on the basis of relevant information the decisioning process can be performed.
Primary research is beneficial for AJ auto-mobiles to conduct the deep analysis regarding the
desires, wants and needs of their potential customers and their reviews about the products. There
are different sources of gathering primary data such as survey, questionnaire, interview etc. The
relevant information which is accumulated by utilising this method termed as factual and
authentic(Yong, 2016). It is also crucial for the automotive entity, as it can be termed as the base
of formulation of effective strategies.
Secondary research: This research is conducted with a motive to obtain the formerly
researched data is utilise for decisioning and formulating strategies. There are several medium
of accumulating the data from secondary sources. For example, websites, journals, books,
articles etc. It acts as the guidance for the marketers of the organisation like AJ auto-mobiles, to
perform the decisioning process so that whole functioning can be perform effectively. It's a
commonly used kind of research can also be used by the owner of AJ auto-mobiles to
accumulate the relevant information regarding the context of customer's wants, affordability, and
current market trends.
From both the methods primary research is adapted to gather the information, by AJ auto-
mobiles. For this a questionnaire is being prepared to accumulate the market informational facts.
The reviews are gathered from 30 respondents. The questionnaire is presented below:
QUESTIONNAIRE
Name:
Age:
Address:
Q1. Are you aware about the brand AJ auto-mobiles?
A. Yes
B. No
Q2. Are you interested in driving the electric car of high power engine?
A. Yes
B. No
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Q3. Do you like sports cars?
A. Yes
B. No
Q4. Which concept of cars do you like most?
A. Sports cars
B. Luxury cars
C. Hatchback cars
D. Convertible cars
Q5 Are you agree with the concept of AJ auto-mobiles can attain competitive advantage in the
market?
A. Agree
B. Disagree
P4. Interpretation of the relevant data to render the evidence of the market potential
Q1. Are you aware about the brand AJ auto-mobiles?
A. Yes 20
B. No 10
Mean 15
Mode 0
Median 15
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Interpretation: On the basis of above chart it is concluded that among 30 people, 20
people are aware about the and remaining 10 are not aware about the brand. The mean mode and
median are evaluated as 15,0,10 respectively.
Q2. Are you interested in driving the electric car of high power engine?
A. Yes 23
B. No 7
Mean 15
Mode 2
Median 15
8
A. Yes B. No
0
5
10
15
20
25
Column B

Interpretation: from the survey of 30 people, 23 people are interested in driving of an electric
car and remaining 7 are not. Moreover, the calculated mean(15), mode(2) and median(15)
respectively.
Q3. Do you like sports cars?
A. Yes 22
B. No 8
Mean 15
Mode 6
Median 15
9
A. Yes B. No
0
5
10
15
20
25
Column B
A. Yes B. No
0
5
10
15
20
25
Series1

Interpretation: from the survey of 30 people, 22 people like sports car and remaining 8
people dislikes the sports car. Moreover, the calculated mean (22), mode (8) and median(15)
respectively.
Q4. Which concept of cars do you like most?
A. Luxury cars 4
B. Sports car 18
C. Hatchback cars 5
D. Convertible cars 3
Mean 7.5
Mode 1
Median 3.5
Interpretation: From the survey of 30 people, 4 people likes the concept of luxury
cars , 18 people likes the concept of sports car, 5 people likes the concept of Hatch back cars and
3 people likes the concepts of convertible cars. Moreover, the calculated mean(7.5), mode(1) and
median(3.5) respectively.
Q5 Are you agree with the concept of AJ auto-mobiles can attain competitive advantage in the
market?
A. Agree 21
B. Disagree 9
10
A. Sports cars
B. Luxury cars
C. Hatchback cars
D. Convertible cars
Mean
Mode
Median
0
2
4
6
8
10
12
14
16
18
20
Column E

Mean 15
Mode 3
Median 15
Interpretation: from the survey of 30 people, 21 people agree with the concept of AJ
auto-mobiles can attain competitive advantage in the market and remaining 9 people are not.
Moreover, calculated mean(15), mode (3) and median(15) respectively.
TASK 4
P5. Applying SWOT framework to evaluate objective assessment of a specific entrepreneurial
idea
Strengths Weaknesses
 The innovative business idea of
electric car is depends on customer's
trend, desires and wants which will be
beneficial for entity and increased its
market share(Rae and Wang, 2015).
 Insufficient professional workers to
train the new workers that may create
issues in maintaining the amount of
production in future.
 Due to the shortage of sufficient
finance that ruins the smooth
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A. Agree B. Disagree
0
5
10
15
20
25
Column B

 The electric car is going to be launched
by AJ auto-mobiles, pertain unique
functioning of no need of petrol and
diesel which will target large number of
customers.
functioning of the organisation.
Opportunities Threats
 AJ auto-mobiles is launching the
electric car with high power engine to
its customers which will target the large
number of buyers and also helpful in
capturing the large market.
 The innovative idea of the organisation
is unique beneficial in acquiring the
large market share as well as creating
the value of brand.
 Due to high competition with the MNC
s in global market and it may influence
the planning of the organisation.
 Customer's desires, wants and needs
Zhang, Y., Duysters, G. and Cloodt,
M., 2014.Mishra, C.S. and Zachary,
R.K., 2015variates according to the
market trend and due to unavailability
of funds the organisation will not able
to render the products according to the
rapid changes in customer's
preferences(Wilson and Martin, 2015).
P6. Evaluating the competitiveness and market environments in which the product and idea will
be launched to assess potential viability.
Competitive market analysis refers to the process which pertain the deep analysis of
current market competition that may leave unfavourable impact on the functioning or the
establishment of the new business entity. The best techniques or methodology are crucial for the
entity like AJ in order to analyse competitive market conditions, PESTLE model is described
below.
 Political: the governmental interference drastically influences the functioning of the
auto-mobile as it contributes high amount to the economical development by the paying
the high amount of taxes due to their high income from abroad trading. Besides this, the
organisations also have to face the governmental interference in several projects, for
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removing the government role or interference the organisations becomes liable to settle
this by corruption. This all affects the earnings as well as the profits of the organisations.
Hence it is essential for the AJ auto-mobiles to get the support if the powering politicians
in order to ensure the long survival and smooth functioning of the organisation.
 Economic: In UK auto-mobile sector is growing massively. The auto-mobile sectors
contributes very high amount in the national income UK. Therefore, government supports
auto-mobile sector(Zhang, Duysters and Cloodt, 2014). It is crucial for AJ auto-mobiles
to get the support of the legal or political parties will support it contributes high efforts
top economical development.
 Social: All those factor that help to determined the customer or other individual taste,
preferences, lifestyle and education level are termed as social factors. It is observed the
common people of UK's people wants car that are quick and use less petrol and generate
less smoke. So AJ Automotive is introducing new electric car according to preference of
customer. They also make sure to set best price for their product so that sales can be
increased.
 Technological: Company are focused to implement new techniques and technologies in
order to produce innovation product. In UK common people are interested to use new car
with totally different technical feature that make them satisfy. In case AJ automotive
manufacture new car that is produced with effective technologies. The make sure that
feature provided by them are not offered by any other company.
 Legal: Specific rules and principle set by legal authority of UK must be consider by
every company as it may help to smoothly run the business. So it is very important for
manager of AJ automotive to manufacture car and sale car according to the guidelines set
by government of UK.
 Environmental: It is very important for company to consider environmental protection
law while manufacture new product. They also have to make sure that product do not
harm any environment of place at any cost(Mishra and Zachary, 2015). So AJ automotive
keeps in mind while producing new car as they produce electric car that will not impact
the environment of UK.
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CONCLUSION
From the above report it has been concluded that the innovative business ideas are more
crucial for the economical development of the society and these ideas are basically more critical
to implementation by converting these ideas in business opportunities as due to several of
barriers such as finance, political factors, environmental factors and mainly due to high
competition prevailing in market. Therefore it is crucial for the organisation or the individuals to
make advantage of the governmental support as in above case of UK. The government supports
the individual financially and subsidiary support, therefore it is the entrepreneurial opportunity
and individual must take advantages of such opportunities.
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