Identifying Entrepreneurial Opportunities

This document discusses the sources of entrepreneurial ideas and innovation, the rationale for market gap addition, and the evaluation of the competitive market environment. It also explores the application of the SWOT framework on a specific entrepreneurial idea.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Determination of different sources of entrepreneurial ideas as well as innovation with
examples......................................................................................................................................1
M1. Detailed evaluation of Drucker's seven sources related to systematic innovation...............3
D1. Critical evaluation of benefits and drawbacks of different sources that leads in identifying
entrepreneurial ideas....................................................................................................................3
TASK 2............................................................................................................................................4
P2. Explanation about rationale addition to market gap for particular entrepreneurial idea with
relevant tool and techniques.........................................................................................................4
M2. Justification related to ways a particular entrepreneurial idea fills market gap through
different techniques for gap addition to competitive analysis.....................................................5
D2. Evaluation of particular entrepreneurial idea on the bases of interpretation as well as
investigation of competitive market place...................................................................................6
TASK 3............................................................................................................................................6
Covered in PPT............................................................................................................................6
TASK 4............................................................................................................................................6
P5. Application of SWOT framework on specific entrepreneurial idea......................................6
P6. Evaluation of competitive market environment wherein idea will be launched for assessing
potential viability.........................................................................................................................7
M4. Critical evaluation of particular entrepreneurial idea in context with marketplace and
competition..................................................................................................................................8
D4. Formulation of valid conclusions and recommendations on ways specific entrepreneurial
idea can be developed, managed and sustained in competitive marketplace. ............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurs are the individual who exercises initiatives to take benefits of available
opportunity by establishing a venture (Cloutier, Cueille and Recasens, 2017). Entrepreneurial
opportunities are mentioned to situations in which unique items are provides to audiences at
relative higher prices than production cost. Different situations motivates the individuals to take
actions that further makes profits for them. For developing insights for identifying
entrepreneurial opportunities, a new business is introduced that is “Blended Drinks” by a
budding entrepreneur who will take consultation and financial help from Virgin Money in order
to start the venture. The new idea will offer various frozen drinks, painkiller Slushie, organic
juices and detox products which are more demanded by customers of Hackney, UK. The report
covers distinct sources for entrepreneurial ideas, rationale of market gap, SWOT framework and
evaluation of market environment in which the idea will be introduced to assess viability.
TASK 1
P1. Determination of different sources of entrepreneurial ideas as well as innovation with
examples.
Entrepreneurial ideas are termed to the concept which are used to gain financial success.
The ideas are generally unique, profitable, innovate and problem solving that helps entrepreneurs
to grab maximum attention of audiences and make position in market. There are some sources of
ideas and innovation which are listed by Peter F. Drucker in the book named as “Innovation and
Entrepreneurship”. In this, discussion on power along with needs of systematic innovation is
done that acts as innovative opportunity. In context to Blended Drinks, it is a new innovation
wherein entrepreneur is looking ahead to introduce it in Hackney, UK. The business idea is in
service sector. Moreover, it will provide fresh and organic juices according to taste and
preference of heath consciousness people that is more in demand in market. By performing the
activities in such manner it will achieve success in upcoming duration. Along with this, the juice
company will also provide home delivery options that to in convenient costs and ease. Following
are some sources that inspires the entrepreneur for the idea and innovation:
The Unexpected: In this, entrepreneurs recognise changing patterns and then build a new
idea on those patterns. Moreover, innovation in various situations happens by chance. For
example, idea of beverage drinks was unexpected source for an individual. By introducing
1

Blended drinks, it will benefit in gaining huge responses. In contrary, wide types of failures are
part of the source.
Incongruities: The situation in which choices are in congruent with supply then there are
more chances of innovation. It is the source which resolves current incongruities with a new
idea. For example, at the time when brainstorming was done to resolve present incongruities in
context to beverage drinks, budding entrepreneur sources the idea of Blended Drinks that will be
healthy, tasty and will kill pains of audiences. Its advantages are that it assist to resolve
dissonance together with creates unique ideas. In contrary, its disadvantage is that it consumes
more time and also creates conflictary situations (Ding, 2019).
Process need: The another source in which major focused towards tasks despite of
situations. It results in innovation after identifying weak spots within processes and then
converting them in new ideas. For instance, the budding entrepreneur analysed loopholes of
another business process and further innovated the solution of Blended Drinks. The advantage of
the source is provide direction to creating innovative solution. In contrary, it is very complex to
understand any weak spot of another firms and then making innovation that is its main
disadvantage.
Demographics: Changes within population, size, usage, composition and income enables
entrepreneurs to find suitable opportunities as innovation (Hanohov and Baldacchino, 2018). It
was analysed by budding entrepreneur that various changes occurred in education, frequency of
usage and income level, they sourced idea related to a of Blended Drinks which will provide
painkiller Slushie, detox products and frozen drinks. Its advantage is that it offers wide
opportunities through considering changes in demographic factors.
Industry along with market structure change: When some changes arises in market
and industry of a nation then it results in innovation. The entrepreneurs keeps eye on these
changes along with treat them as opportunities for new ideas. For instance, beverage industry and
market of UK are undergoing with changes that helped budding entrepreneur to adapt them and
make new innovation. Its advantage is that it strengthen products line according to structure of
market. However, changes leads to shrink various operational ways which is major disadvantage
of the source.
Changes in perception: Perceptions of external people gives birth to new ideas and
innovation. For example, in past era, overweight citizens were seen as healthier people than
2

leaner ones. But presently, social perceptions are undergoing huge changes. Based on changed
perception, entrepreneur sources the idea for Blended Drinks. Its advantage are that it assist to
identify population perceptions and accordingly offering them products to gain recognition. In
contrary, analysing the perception is cumbersome difficult and time consuming (Huang-Saad,
Fay and Sheridan, 2017).
New Knowledge: When some new knowledge is gained by an individual then it become
source of innovation. For instance, budding entrepreneur gained new knowledge to use beverage
ingredients in new manner to make healthy and detox drinks which further resulted in source for
Blended drinks. The advantage of the source is that it generates new ways to deal with existing
situations. However, working with the new knowledge can creates failures that is its
disadvantage.
With the help of above mentioned sources, budding entrepreneur identified innovative
idea of Blended Drinks that is not recognised by others till yet.
M1. Detailed evaluation of Drucker's seven sources related to systematic innovation
There are some sources provided by Peter F. Drucker so that innovation can be made in
systematic manner. The seven sources that are described by Drucker includes new knowledge,
changes in perception, demographics, incongruities, unexpected, changes in industry and market
structure as well as process need (Lin and et.al., 2016). These sources provides wide
opportunities to Blended Drinks that are gaining huge responses, resolving dissonance, creating
unique items, provides direction, strengthens product line and identify population perceptions.
However, some of limitations of seven sources are that they are time consuming, creates
conflictary situations and hampers various operational systems.
D1. Critical evaluation of benefits and drawbacks of different sources that leads in identifying
entrepreneurial ideas.
An entrepreneur identifies opportunities with the help of seven sources that are explained
by Peter F. Drucker. The sources involves some benefits and limitations also. In context to
unexpected source, its benefit is that it gains huge responses and its limitation is involvement of
failures. The another source is new knowledge that have benefit of generating new aspects to
deal with current circumstances and its limitation is implementation of new knowledge may
result in uncertainties. The benefits of Industry along with market structure change strengthen
products line and at same time diminution operational ways are its limitation. Demographics
3

source have benefit of offering wide opportunities but have limitation of creating cumbersome
issues. Process need source have benefit of providing direction but it is causes complexities in
understanding weak spot. Incongruity source benefits in resolving dissonance but consumes
more time which is its limitation (Martin and Javalgi, 2016).
TASK 2
P2. Explanation about rationale addition to market gap for particular entrepreneurial idea with
relevant tool and techniques.
Market gap can be consider as hidden opportunities which is analysis by marketers in
order to attain the competitive advantages and business goals. This gap occurred due to specified
area which is not served yet and demanding a lot. In other words, if needs of potential customers
are unmet then market gap is rises (Melissanidou, 2016). Blended Drinks is provided drinks and
juices to customers that attracts customers effectively. The management of such organisation
find a market gap by using different different tools and techniques that are as defined:
Segmentation: This is the process of dividing market in to different segments and
characteristics in relation to market. Blended Drinks has divided its customers in to different
segments that are as explained:
Geographical: In this segment, customers are targeted on the basis of boundaries and
geographical area which helps to attracts customers. This mainly related to place, country and
region where people are demanding different products and services. Blended drink can find out
the market gap on the location such as it provides products in London that is target point.
Demographical: It classify the market gap on the basis of age, education level, lifestyle,
gender, family size etc. Therefore, organisation need to provide products and services according
that can satisfy them.
Behavioural: This represents buying pattern of customers, frequency, brand loyalty, occasion etc.
where organisation make decision to provide products and services. Blended drinks can focus on
behavioural segment in order to increase sale and performance.
Demographical segment is using by Blended Drinks that will help to target younger
customers. This mainly target to all ages people who wants juices and drinks to live healthy.
Porter five forces: This is a model which is used by organisation to take the competitive
advantages. In this, management identify the opportunities and implement in their organisation
4

that helps to complete the goals (Mueller and Shepherd, 2016). Blended Drinks is using five
forces to get the opportunities by reducing market gap that are as explained:
Bargaining power of suppliers: This means people from raw material are purchased by
an organisation. In context to Blended Drinks, there is high threat of suppliers because they have
power to charge high amounts for its material.
Bargaining power of buyers: This means prices are set by buyers while purchasing a
products. In Blended Drinks, the bargaining power of buyers is less as it provides better quality
of drinks and juices to customers that attracts customers. This create opportunity for chosen
organisation to sale its products as their setting prices that helps to take competitive advantages.
Competitive rivalry: This is stated as competitor industry which can create a
competition for existing company. In context to Blended Drinks, has many competitor such as
Pepsico, Nestle, Coca cola, Welch's etc. These companies are top players in the industry that
offers wide variety of juices and soft drinks in market. Along with these, the domestic
competitors of Blended drinks are Juice executive, Innocent Drinks, juice premium and so on
which can create tough competition for the proposed business. Therefore, there is high
competition that can be threat for Blended drinks to face the competition.
Threat of new entrants: If new organisation has entered in to market then profits of
existing organisation can be reduced (Nambisan, Siegel and Kenney, 2018). In case of Blended
Drinks, new entrants is high because there is no restrictions and legislation to start a business.
Moreover, to open a new juice and drink firm there is no requirement of high amounts so it can
be threat for organisation and could reduce profits.
Threat of substitutes: The substitution of Blended Drinks is soft drinks etc. that can
attracts customers to buy it. Therefore, chosen organisation has to defined the reasonable prices
of its products and produce healthy drinks that can helps to retain customers and stop them to
move towards substitutes.
M2. Justification related to ways a particular entrepreneurial idea fills market gap through
different techniques for gap addition to competitive analysis.
The entrepreneurial idea of Blended Drinks will fill the market gap through adopting STP
technique in which it will segment entire market, then target suitable segment and position its
products in front of the targetted market. With this, it will be able to analyse needs of the
customers residing in the market and offering then suitable organic and healthy drinks in the
5

manner that will result in fulfilment of market gaps (Neto, Rodrigues and Panzer, 2017).
Moreover, Porter's Five force model will also be used for competitive analysis as it assist in
gaining opportunities by analysing movements made by new entrants, competitors, suppliers,
buyers and substitutes so to devise effective strategy that will fulfil gaps within market.
D2. Evaluation of particular entrepreneurial idea on the bases of interpretation as well as
investigation of competitive market place.
As per the investigated competitive market place, it is interpreted that the new idea of
budding entrepreneur which is Blended Drinks have huge willingness to reduce market gap and
make position in the market through fulfilling needs for organic, healthy and other drinks.
Moreover, the new idea will gain huge opportunities to achieve recognition in competition and
compete with established juice organisations. At same time, new entrants and suppliers can limit
its workings for reduction of market gap (Nieuwoudt, Henning and Jordaan, 2017).
TASK 3
Covered in PPT
TASK 4
P5. Application of SWOT framework on specific entrepreneurial idea.
SWOT Framework is termed as a method that determines strengths, weaknesses, threats
addition to opportunities. It develops full awareness regarding all factors that are part of business
decisions. Moreover, it is planning method which assist managers to identify and overcome
challenges together with what opportunities will help in pursuing further. Companies consider it
as most renowned tool for the purpose of auditing and analysing entire strategic positions and
internal environment of company.
Blended Drinks is new idea of budding entrepreneur that will provide suitable juices and
products as per clients preferences. To support the objective assessment of this innovative idea,
SWOT Analysis is as applied:
Strengths Weaknesses
 Blended Drinks will provide those
items which are healthy, organic and
have willingness for satisfying
 Blended drinks will be needed to
perform complex and uncountable
procedures for getting license to sell
6

population demands.
 Th idea is build after focusing on
individual health along with wide legal
provisions (Razin, 2017).
 Various changes in taste and
ingredients will be easily made in the
products according to some changes in
preferences of market.
organic and related items.
 Prices of few of its juices and items are
relative high because of which lower
and middle segment will not able to
purchase them.
 As it is a new idea which will require
huge time to gain customer trust and
loyalty.
Opportunities Threats
 Blended Drinks can make contractual
agreement with online food delivery
companies that will help in delivering
drinks and juices to wide locations.
 It also have opportunities for expansion
on other locations in which there is
more demand of organic items,
painkiller slushie and frozen drinks.
 Political system of UK time to tim
changes amendments related to
standards of beverage items that is
major threat for Blended Drinks.
 Limited financial resources and
experienced personal is another threat
of new idea.
P6. Evaluation of competitive market environment wherein idea will be launched for assessing
potential viability.
In business market, environmental analysis is important which is used to know which
factor can affect the business organisation (Reid and et.al., 2018). The new idea of Blended
Drinks will be launched in city of Hackney, UK. The idea of launching Blended Drinks is
analysed through PESTLE framework that helped to make profits and increase business
performance. The analysis is defined as:
Political factor: The relation of this factor involves political system, corruption, foreign
exchange, government interference etc. While assessing the idea of launching new business by
Blended Drinks all factors are focused by management that helped to set a business of healthy
drinks and juice by following all government regulations.
7

Economical factor: This factor is related to inflation rate, interest rate and economical
activities that helps to run a business if all are managed properly. The management of Blended
Drinks have evaluated this factor while launching new business and they set the prices of
products as per customers group that helps to operate business successfully.
Social factor: The involvement of such factor is related to lifestyle, exchange rates, age,
distribution and income level. In this, Blended Drinks attracts by offering different and healthy
drinks that increases performance and profitability effectively.
Technological factor: This involves new technology, automation and innovation that are
uses to run a business and increase performance (Trong Tuan, 2017). This factor is analysed by
Blended Drinks who brought innovation in its juice and drinks that helped to compete with
others and maintain business effectively.
Legal factors: This includes legislations which are important to follow by a organisation
that supports a business. Blended Drinks worked under this and ensures that all laws and rules in
relation to launching new business are followed properly that have affected business in positively
and increase profitability.
Environmental factor: While launching Blended Drinks, this factor also analysed by
management that stated that it may affected business negatively due to climate change,
increasing wastages and changing in weather that can reduce demand of drinks. Therefore, to
reduce the negative impact of this, management need to follow regulations regarding reducing
wastages, carbon emission and protecting environment that may increase business effectiveness.
M4. Critical evaluation of particular entrepreneurial idea in context with marketplace and
competition.
The entrepreneurial idea of Blended Drinks has various strengths and weaknesses also.
As per the information, it is evaluated that Blended Drinks have strengths of providing healthy
and organic items, making changes on time and working by considering legal provisions.
However, its has certain weaknesses that are high prices of products and uncountable procedures
to acquire licences (Zali and Chaychian, 2017). It is also evaluates that existence of some factors
also influences its performance in the market place. At same time, it works very hard to gain
competitive edge in Hackney city.
8

D4. Formulation of valid conclusions and recommendations on ways specific entrepreneurial
idea can be developed, managed and sustained in competitive marketplace.
The entrepreneurial idea of Blended Drinks is a successful idea as it has potential to meet
market needs for healthy and organic items. It will perform practices to sustain in competition
and manage all working effectively (Linand et.al., 2016). At same time, it is recommended that
the idea can be developed through promoting it by using various methods such as pamphlets and
billboards. To manage the idea, experienced professionals must be hired who have strong
decision making potential. Also, it can sustain within competitive marketplace through providing
superior services to customers, lower pricing structure and acquiring patents for its products.
CONCLUSION
From the above report it can be concluded that entrepreneurial opportunities means to
start a new business that can help to provide good living by satisfying customers. The main aim
of this is to create a different identification and get profitability. Market gap is a process which is
used to identifying the unmet needs of customers and provide them products and services
accordingly. Drucker has defined 7 sources of innovation which is used to bring innovation in
organisation. PESTLE analysis is required to analysed the environment and get their impacts on
business. Organisation can get competitive advantages by evaluating opportunities and running a
business effectively.
9

REFERENCES
Books and Journals:
Cloutier, L. M., Cueille, S. and Recasens, G., 2017. Entrepreneurs’ perspectives on the
structuring phase of the entrepreneurial team. In Research handbook on entrepreneurial
teams. Edward Elgar Publishing.
Ding, T., 2019. Understanding the design of opportunities: Re-evaluating the agent-opportunity
nexus through a design lens. Journal of Business Venturing Insights. 11. p.e00108.
Hanohov, R. and Baldacchino, L., 2018. Opportunity recognition in sustainable entrepreneurship:
an exploratory study. International Journal of Entrepreneurial Behavior & Research.
Huang-Saad, A., Fay, J. and Sheridan, L., 2017. Closing the divide: accelerating technology
commercialization by catalyzing the university entrepreneurial ecosystem with I-
Corps™. The Journal of Technology Transfer. 42(6). pp.1466-1486.
Lin, D. and et.al., 2016. International knowledge brokerage and returnees’ entrepreneurial
decisions. Journal of International Business Studies. 47(3). pp.295-318.
Martin, S. L. and Javalgi, R. R. G., 2016. Entrepreneurial orientation, marketing capabilities and
performance: the moderating role of competitive intensity on Latin American
International new ventures. Journal of Business Research. 69(6). pp.2040-2051.
Melissanidou, E., 2016, April. Entrepreneurial Leadership in Times of Fiscal Austerity: a Case
Study of the Greek Local Government. In International Conference on Management,
Leadership & Governance. (p. 226). Academic Conferences International Limited.
Mueller, B. A. and Shepherd, D. A., 2016. Making the most of failure experiences: Exploring the
relationship between business failure and the identification of business opportunities.
Entrepreneurship Theory and Practice. 40(3). pp.457-487.
Nambisan, S., Siegel, D. and Kenney, M., 2018. On open innovation, platforms, and
entrepreneurship. Strategic Entrepreneurship Journal. 12(3). pp.354-368.
Neto, R. D. C. A., Rodrigues, V. P. and Panzer, S., 2017. Exploring the relationship between
entrepreneurial behavior and teachers' job satisfaction. Teaching and Teacher
Education. 63. pp.254-262.
Nieuwoudt, S., Henning, J. I. and Jordaan, H., 2017. Entrepreneurial competencies and financial
performance of farmers in South Africa. South African Journal of Economic and
Management Sciences. 20(1). pp.1-13.
Razin, E., 2017. Immigrant Entrepreneurs in Israel, Canada, and California. In Immigration and
entrepreneurship. (pp. 97-124). Routledge.
Reid, S. W. and et.al., 2018. Blazing new trails or opportunity lost? Evaluating research at the
intersection of leadership and entrepreneurship. The Leadership Quarterly. 29(1).
pp.150-164.
Trong Tuan, L., 2017. Organizational social capital as a moderator for the effect of
entrepreneurial orientation on competitive intelligence. Journal of Strategic Marketing.
25(4). pp.301-315.
Zali, M. R. and Chaychian, A. S., 2017. Business startup in Iran: entrepreneurial skills,
personality, and motivation of Iranian nascent entrepreneurs. In Iranian
Entrepreneurship(pp. 55-71). Springer, Cham.
10