Identifying Entrepreneurial Opportunities

This document discusses the concept of identifying entrepreneurial opportunities and market gaps. It covers the use of relevant tools and techniques to support evidence, data required for gap analysis, interpreting data for market potential, evaluating SWOT analysis, and assessing the competitive market environment. The document focuses on Tesco as a case study.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT............................................................................................................................3
TASK 2............................................................................................................................................3
P2. Explain rational or market gap for specific entrepreneurial idea by using relevant tools &
techniques to support evidence....................................................................................................3
TASK 3............................................................................................................................................4
P3.Data required to support gap analysis and evaluate specific entrepreneurial idea.................4
P4. Interpret data properly and give data to market potential......................................................5
TASK 4..........................................................................................................................................10
P5. Evaluate SWOT analysis which support the entrepreneurial idea.......................................10
P6. Evaluate competitive and market environment where idea will be launch to assess
potential viability.......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Entrepreneurial opportunities are termed as the events and situations which assist
entrepreneurs to make actions for generating revenues (Clark and Ramachandran, 2019). These
are the linkage among ideas and thoughts of an individual which stimulates them to carry out
activities for launching own idea as innovative business. Tesco is chosen organisation for the
report which is multinational retailer having locations across the nation. It has headquarters in
England. United Kingdom where groceries along with general merchandise are offered to people.
The report explains about choices of particular entrepreneurial idea for investigation and market
gap which is addressed by it. It also covers use of primary and secondary data for identifying
potential market. At last, potential viability are assess with different tools.
TASK 1
Covered in PPT
TASK 2
P2. Explain rational or market gap for specific entrepreneurial idea by using relevant tools &
techniques to support evidence
In order to identify market gap, Tesco use Porter's Five Force Model to identify the
attractiveness of industry and market. Detoxify Drink is the new entrepreneurial idea of Tesco
Plc which helps the business to maximise its productivity as well as profitability.
Bargaining power of buyers: In retail sector, firm totally depend upon buyers, so
powers of customers in retail industry are high. In context of Detoxify Drink, buyers has huge
bargaining power so managers of Tesco need to highlight its features which attract consumers
and force them to buy (De Massis and et.al., 2018). Company need to adopt low pricing strategy
to raise product demand and it further increase number of buyers.
Bargaining power of suppliers: There are moderate number of suppliers who provide
raw material to manufacture Detoxify Drink. In result, there are high bargaining power of
suppliers for company, so Tesco need to find substitute material or suppliers to reduce their
power. In addition, they should build effective relations with suppliers which provide them
timely material without any delay because it can further affect the production level. Detoxify
Drink produce and supply to its target audiences.

Competitive rivalry: In the market, there are already huge drinks manufacturing
companies such as Cpress Chelsea, My detox Diet etc. These manufactures provide healthy
drinks but there are very less competitors which provide Detoxify Drink. Effective positioning of
products helps in making their drink more popular among market. Marketing helps Tesco to
increase competitive advantage to minimise the gap.
Threat of new entrant: In the UK market, economies of scale is quit difficult to
maintain for new company in retail industry. It will provide advantages to another organizations
such as Tesco, it is well know company of UK market which has capacity to sell new products in
the market. Detoxify Drink is prepare with juice of detox and it include smoothies which attract
those people who love to be live fit and healthy. There are low threat of new entrant and
opportunity for Tesco.
Threat of substitute: In the market, availability of substitute products are major threat
for the Tesco. In beverage industry, detox juice with smoothies are rarely available in the market
and which has low quality (Hjalager and Kwiatkowski, 2018). It is observed that, Tesco has low
threat of substitute for Detoxify Drink and it provide more business opportunity to grow in the
market or achieve their operational goals & objectives.
TASK 3
P3.Data required to support gap analysis and evaluate specific entrepreneurial idea

Questionnaire
Name:
Age:
Email Id:
Q1. Do you like Detoxify Drink? Frequency
a. Yes 25
b. No 15
Q2. What type of Detoxify Drink do you prefer? Frequency
a. Detox dandelion Tea 14
b. Detox Juices 06
c. Detox smoothie 10
d. Organic smoothies 10
Q3. Before that, do you heard about Detoxify Drink? Frequency
a. Yes 26
b. No 14
Q4. How often you make spending on Detoxify Drink? Frequency
a. Daily basis 12
b. Once in a while 11
c. Once in a week 11
d. Once in a month 6
Q5. Do you think that Detoxify Drink will attain success at Tesco? Frequency

a. Yes 22
b. No 18
P4. Interpret data properly and give data to market potential
Detoxify Drink is the new entrepreneurial idea of Tesco where they manufacture healthy
drinks with smoothies and they target those people who wanted to live fit and healthy (Ilonen,
Heinonen and Stenholm, 2018). This drink helps in boosting stamina of a person which is an
attractive product or provide competing market to Tesco. Company collect information from
primary or secondary sources which helps in increasing awareness about new idea. Market
potential discussed below along with interpretation of data.
Theme 1: Preference of Detoxify Drink among consumers.
Q1. Do you like Detoxify Drink? Frequency
a. Yes 25
b. No 15
a. Yes b. No
0
5
10
15
20
25
Column B
Interpretation: Above mention column graph represent that around 25 people out of 40
sample like Detoxify Drink and remaining people that is 15 do not like Detoxify Drink. It has

been concluded that, Tesco can introduce Detoxify Drink in the market and it helps in
maximizing demand as well as productivity.
Theme 2: Consumer preference in the variety of Detoxify Drink.
Q2. What type of Detoxify Drink do you prefer? Frequency
a. Detox dandelion Tea 14
b. Detox Juices 6
c. Detox smoothie 10
d. Organic smoothies 10
a. Detox dandelion Tea
b. Detox Juices
c. Detox smoothie
d. Organic smoothies
0
2
4
6
8
10
12
14
14
6
10 10
Column B
Interpretation: Above mention graph shows the preference of 40 respondents where
around 14 people select Detox dandelion Tea, 6 people for Detox Juices, 10 respondent for
Detox smoothie and remaining that is 10 preferred to select organic smoothie (Kusumawardhany
and Trisnawati, 2019).
Theme 3: People are aware about Detoxify Drink.
Q3. Before that, do you heard about Detoxify Drink? Frequency
a. Yes 26

b. No 14
a. Yes b. No
0
5
10
15
20
25
30
Frequency
Interpretation: From the above represented graph, it has been analysed that around 26
people out of 40 heard about Detoxify Drink and remaining respondent are not that is around 14.
It is observed that, marketing or promotional strategy of Tesco is effective, so they can introduce
this product into market and able to achieve its goals & objectives.
Theme 4: Individual spending on Detoxify Drinks.
Q4. How often you make spending on Detoxify Drink? Frequency
a. Daily basis 12
b. Once in a while 11
c. Once in a week 11
d. Once in a month 6

a. Daily basis
b. Once in a while
c. Once in a week
d. Once in a month
0
2
4
6
8
10
12
Frequency
\
Interpretation: Above mention column graph represent that how frequent consumer
spend on these drinks. While conducting survey on 40 respondent, it has been observed that 12
people out of 40 spend on regular basis, 11 people once in a while and similarly 11 people spend
once in a weak and 6 respondent spend once in a month.
Theme 5: Is Tesco able to get success with Detoxify Drinks?
Q5. Do you think that Detoxify Drink will attain success at Tesco? Frequency
a. Yes 22
b. No 18

a. Yes b. No
0
5
10
15
20
25
Frequency
Interpretation: With the help of above table and graphical representation, it has been
observed that according to 22 respondent Tesco able to get success to introduce this product in
the UK market. On the other side, as per 18 people out of 40 company unable to get success but
majority of respondent will going to consider.
TASK 4
P5. Evaluate SWOT analysis which support the entrepreneurial idea
SWOT analysis is the strategic planning technique which helps organization to identify
their operations and products ability to perform in the market. This framework evaluate strength,
weakness, opportunities and threats of company when they introduce any new or existing
product in the market. Managers will make decisions after analysing every aspect which can
affect the productivity as well as profitability.
Detoxify Drink is new entrepreneurial innovation by Tesco Plc, they offer organic or
healthy juice drinks along with taste (Maroufkhani, Wagner and Ismail, 2018). In order to
identify that product is working in the UK's market not, management need to implement SWOT
framework and evaluate what are the strength, opportunists, weakness or threats for the products
which they has to face. Further management build their success strategies after evaluating this
tool and it discussed below:

Strengths Weaknesses
Healthy and organic drink that is tasty as well,
so it will defiantly like by those consumers
who are focus on their health and wanted to
live fit.
Wider range of population will like Detoxify
Drinks because of its healthiness.
Tesco follow all the food & beverage
legislation to produce this drink and supply in
the market.
Change in the taste or preferences of
population also modify with help consumer
feedback or suggestions.
Cost of Detoxify Drink is competitively high to
other drinks, it will affect the overall demand
because few segments not going to purchase
because of high price of demand.
Another weakness is that, it required huge
investment which Tesco can done but it is a
risk if product not Detoxify Drink not perform
well in the market.
Tesco need to follow cumbersome processes to
get detox certifications to manufacture drinks.
Opportunities Threats
Detoxify Drinks has huge opportunity to grow
in the market due to demand of healthy drinks
increases because population attracted towards
healthy life.
Another opportunity for Tesco is that, they can
collaborate with Gym and diet restaurants
which helps in providing growth.
In order to make Detoxify Drinks popular
among consumers, company should use social
media platform for this entrepreneurial idea
which generate huge demand.
Rules & regulations are the biggest threat for
the company because production of detox has
separate legislation which manufactures has to
follow (Miao and et.al., 2019).
Low cost available substitutes are the threat for
Detoxify Drink, so company need to highlight
its features or done effective promotion.
It required huge fund to implement this idea at
such as big platform and it also include the risk
to the failure of product.
New entrepreneurial idea that is Detoxify Drink has enough strengths or opportunities
which help this product to satisfy their consumer's needs. In addition, company focus on basic
standards and make sure that all legislation they follow otherwise government will interfere
which affect the reputation of company. Along with this, company need to focus on product

quality because it is the essential factors which required to consider by consumers at the time of
making their shopping decisions. This analysis also help investors to make their decisions
accordingly because company required huge investment so they need to attract investors.
P6. Evaluate competitive and market environment where idea will be launch to assess potential
viability
In the organization, there are various external factors which affect the productivity as
well as profitability. There are various factors which affect Tesco at the time of implementing
new entrepreneurial idea that is Detoxify Drink. These factors are political, social, economical,
technological, legal and environmental. Company innovate something new which helps in
attractive consumers in order to increase sales revenue. External factors describe with the help of
PESTEL analysis and these are discussed below:
Political: This factor is all about the government policies and rules which can affect the
business operations and productivity. It includes political stability, tax rates, government rules,
foreign trade policies etc. At the time of introducing Detoxify Drink into market, company need
to follow every regulation of UK for the success of new entrepreneurial idea. Because of change
in tax rates and instability in government will generate many difficulties for Tesco which
negatively impact production.
Economic: It include various sub factors such as interest rates, disposable income,
exchange rates, economic growth, inflation etc. Tesco's managers need to focus on economic
factors and make their success strategies accordingly which helps getting growth (Olanrewaju
And et.al., 2018). Increase in the interest rate will negatively affect Tesco because they borrow
money from investors, so they have to pay higher amount of interest which minimise the profit
margin of Detoxify Drink.
Social: This factor include the social culture, individual behaviour, growth of population,
age group, career, health consciousness and their values. If these factors are in favour of new
entrepreneurial idea that is Detoxify Drink then Tesco grow in the market or get success. These
drinks keep customer healthy and energetic which are essential aspect to attract them.
Technology: Change in technology helps the organization to increase overall
productivity or profitability. Detoxify Drink is new entrepreneurial idea that is supported by this
factor and Tesco able to attractive many people. Use of latest technology helps in minimising
cost of Drinks which can helps in improving consumer demand as well as productivity.

Environmental: Detoxify Drink helps in reducing carbon effect and further beneficial in
optimising use of raw material. This production process is in favour of environment, so Tesco
positively affect from this factor and manager need to build strategies accordingly.
Legal: Every organization have to follow some legislation which imposes according to
industry. Tesco produce Detoxify Drink, so they need to follow legislation related to beverage
industry. In addition, company should aware about the minimum wages of workers, health &
safety related to products, make sure employees are safe in the production unit. Managers need
to build their strategies accordingly after analysing these factors.
CONCLUSION
From the above discussion it has been observed that, at the time of introducing any new
entrepreneurial idea company have to done some research regarding micro or macro
environment. Identify factors which can further affect and done competitive analysis to make
strategies which helps in maximising production or profitability.

REFERENCES
Books & Journals
Clark, K. and Ramachandran, I., 2019. Subsidiary entrepreneurship and entrepreneurial
opportunity: An institutional perspective. Journal of International Management. 25(1).
pp.37-50.
De Massis, A. and et.al., 2018. Sector-based entrepreneurial capabilities and the promise of
sector studies in entrepreneurship.
Hjalager, A. M. and Kwiatkowski, G., 2018. Entrepreneurial implications, prospects and
dilemmas in rural festivals. Journal of Rural Studies. 63. pp.217-228.
Ilonen, S., Heinonen, J. and Stenholm, P., 2018. Identifying and understanding entrepreneurial
decision-making logics in entrepreneurship education. International Journal of
Entrepreneurial Behavior & Research.
Kusumawardhany, P. A. and Trisnawati, J. D., 2019. March. The effect of prior knowledge and
business idea alertness to entrepreneurial opportunity in Indonesia. In 16th International
Symposium on Management (INSYMA 2019). Atlantis press.
Maroufkhani, P., Wagner, R. and Ismail, W. K. W., 2018. Entrepreneurial ecosystems: A
systematic review. Journal of Enterprising Communities: People and Places in the
Global Economy.
Miao, Q. and et.al., 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.
Olanrewaju, A. S. T. And et.al., 2018. October. Identifying Social Media’s Capability for
Recognizing Entrepreneurial Opportunity: An Exploratory Study. In Conference on e-
Business, e-Services and e-Society (pp. 344-354). Springer, Cham.