Identifying Entrepreneurial Opportunities

This report discusses the process of identifying entrepreneurial opportunities and developing a new idea for Nike. It covers market gap analysis, data interpretation, SWOT analysis, and PESTEL analysis. The aim is to assess the viability of the idea for biodegradable water bottles.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO2..................................................................................................................................................3
P2 Market gap for particular entrepreneurial idea......................................................................3
LO3..................................................................................................................................................5
P3 Data for supporting gap analysis............................................................................................5
P4 Interpretation of data..............................................................................................................6
LO4..................................................................................................................................................7
P5 SWOT analysis for entrepreneurial idea................................................................................7
P6 SWOT and PESTEL analysis................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is basically the process for designing, as well as running the new and
different business. An entrepreneur is the one who own their business and thus takes all the risks
for managing its functions. The main aim of this report is to develop the new entrepreneurial idea
which is biodegradable water bottles for Nike and assess its viability.
Nike is predominately the multinational organization being established in 1964 by Bill
Bowerman and headquartered in Oregon, U.S.
This report gives a brief overview of market gap for particular entrepreneurial idea, data
for supporting gap analysis, interpretation of data, SWOT analysis for entrepreneurial idea and
SWOT and PESTEL analysis.
MAIN BODY
LO2
P2 Market gap for particular entrepreneurial idea
Market gap is basically the gap which mainly represents the opportunities for
organization to diversify the customer base through enhancement of the awareness and creating
new products. For producing the new ideas as well as products, it is highly essential for
organization to understand the customer types as well as their segments. The idea of Nike is to
bring the biodegradable water bottles in order to provide the safe water to customers and to
prevent the environmental pollution.
Behavioural segmentation
This segmentation is basically when customers are aminly divided on the basis of their on
their behaviour, attitudes, lifestyle etc. In case of biodegradable water bottles, company will
segment customers according to their lifestyle. For example- customers performing workouts and
other body activities on daily basis will be targeted.
Demographic segmentation
This is the segmentation in which customers are mainly divided on the basis of their age,
gender, sex etc. Nike will target the youth as well as adults who are highly sports enthusiast and
basically will focus on men as men are highly involved in workout activities.

Geographic segmentation
This is the segmentation in which customers are segregated on grounds of country, state,
cities etc. Nike will focus on both rural as well as urban areas for its biodegradable water bottles
in order to enlarge customer base.
Porter five force
Porter five force is basically the framework which helps the organizations to assess their
competitive environment and thus helps in analyzing the attractiveness of market.
Bargaining power of suppliers
The bargaining power of the suppliers for Nike is generally low. As the company
operates in more than 42 countries thus there are large number of suppliers available for the
organization. This basically makes supplier power low and is beneficial for their new idea of
bottles. Nike will face low risk in terms of the suppliers for advertising as well as for supplying
its biodegradable water bottles (Gielnik, Zacher and Wang, 2018).
Bargaining power of customers
The bargaining power of the buyers for Nike is generally low due to high product
differentiation. Due to high attractiveness in products as well as distinctiveness, switching cost of
customers is generally low and this makes their bargaining power much low. This will help the
biodegradable water bottles of Nike to easily attract customers due to differentiation (van Zyl,
2018).
Threat of substitute
This treat is generally moderate for Nike as wide range of competing firs like Adidas,
Puma somewhat make similar products. This might be a threat for its biodegradable water bottles
where other local firms might offer low priced substitute of this. For mitigating this risk, Nike
can build the economies of scale as well as can be highly service oriented in addition to product
oriented (Scott, 2019).
Threat of new entrant
The threat of the new entrants is generally low for Nike because a huge investment is
required for entering the industry along with other requirements. This will help Nike to easily
enlarge the customer base through its new idea of biodegradable water bottles (Miocevic and
Morgan, 2018).

Competitive rivalry
This is highly strong for Nike as there are large number of competitors having good
brand image and awareness like Puma, Adidas. Thus, in this fierce competition the new
biodegradable water bottles might face downfall. For reducing this risk, Nike can build the
sustainable differentiation as well as can collaborate with its competitors for making this product
success (Kuntze and Matulich, 2016).
M2
The new entrepreneurial idea mainly helps the organization to fill the market gap and
enlarge the customer base along with the market share. The new idea of Nike of biodegradable
water bottles will help them to sustain the competitive advantage. Various tools like porter five
force helps the company to know the level of risk for new product. This new biodegradable
water bottles will help the customers to have safe as well as environmental friendly bottles which
can be carried at any place hassle free (Markowska, 2018).
D2
The entrepreneurial idea of Nike for bringing biodegradable water bottles will help Nike
to take their brand message to the wider audience and thus will help to attract the large numbers
of customers. The main feature of this biodegradable water bottles is that it will allow the users
to have safe drinking water as this bottle is made from the natural plat materials. Besides this,
this bottle is mainly equipped with two insulating layers inside it which will help to keep hot
water hot and cold water cold. This product will eventually help Nike to diversify their business
and enlarge the customer base (Uygur, 2019).
LO3
P3 Data for supporting gap analysis
In order to take the new product of biodegradable water bottles to the customers, two
types of research techniques were used. Research techniques are basically the techniques which
are being used for collecting the data as well as for uncovering the new information. Market
research is basically the well-through process through which organizations gather as well as
collect the information about customers, market trends, competitors etc. There are generally two
types of market research namely primary and secondary research. Primary research is basically
the research in which organizations collect the first-hand information as well as data. In short,
primary research is when the researchers collect the new and fresh information from the target

customers. The main advantage of primary research is that this mainly targets the relevant issue.
In the primary research, organizations are able to address the specific issue as well as help them
to collect the relevant information. Besides this, another advantage is that it helps the researcher
to collect genuine as well as fresh information which is highly reliable. There are various
primary research techniques like surveys, questionnaires, interviews etc (Trabskaja and Mets,
2019). In this study, questionnaire has been used for identifying the market gap. Secondary
research on the other hand is the research technique in which researcher mainly relies on the
existing data as well as information. In this, researcher mainly collects the data which has been
already summed by some other individuals. Major advantage of this research is that it is easily
accessible. The organizations are able to easily access the data as well as information without
spending much amount. In this study, secondary sources like internet, journals and magazines
has been used for gathering information.
Upon this research, the data which was being collected showed that there was a moderate
gap in market for targeted customers. This research showed that there are not enough resources
and raw material for making the biodegradable water bottles. Thus, limited resources is one of
the major gap prevailing for Nike. Besides this, the level of quality is the another gap in market
which will dominate the biodegradable water bottles. As customers have become highly quality
oriented thus Nike would have to increase the quality of its bottles in order to increase
attractiveness (Roundy, 2017).
Gantt's chart
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Justification
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Research
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Review of
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Draft
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Conclusion
Submission
M3
There are generally two sources for the data collection external as well as internal and
two methods of the data collection primary and secondary. In this, primary and secondary data
has been used. The main aim of choosing the primary sources is that it helps to provide fresh as
well as genuine information while the main aim for selecting secondary sources is ease of
accessibility (Krueger, 2017).
P4 Interpretation of data
With the advent of new technologies, there has been a growing awareness of people
towards innovation. Nowadays, each and every individual needs some innovative product will
help to solve the various problems. In this, Nike will make use of the big data for assessing the
market trend. The use of various technologies like big data analytic. Big data analytic basically
helps the organizations to harness the data as well as information and thus identify the potential
markets and customers. The main advantage of big data analytic is that it helps the organization
make the quality decision regarding product or services. Thus, through the use of big data, Nike
analyzed the market trends and found that majority of the population have become highly
oriented towards luxurious life and thus wants the products which are highly innovative as well
as fulfill their main requirements like quality, price, features etc. Besides this, internet forums as
well as social media was being used for testing the responses of market as well as evaluating the
various opportunities. The responses from the online forum showed that most of the people look

for bottles which are easy to carry and protect them from harmful chemicals of plastic (El-Awad,
Gabrielsson and Politis, 2017).
D3
The primary as well as secondary methods has been used for collecting the data as well as
information on the market trends and opinion of customers towards biodegradable water bottles.
The primary data and research technique will help Nike to analyze their market position and
brand awareness among customers while secondary sources will help to understand the
importance of this product being conducted by other researchers (Gielnik, Zacher and Wang,
2018).
LO4
P5 SWOT analysis for entrepreneurial idea
SWOT analysis
SWOT analysis is basically the tool as well as framework which helps the organization to
assess their strength, weakness, threats as well as opportunities that will impact the operations as
well as functioning of the organization.
Strength
The main strength of Nike is their brand awareness as well as great brand image. Due to
the great brand awareness. This is one of the biggest strength of company and helps them to
sustain the competitive advantage. Besides this, another main strength of this organization is
their huge base of customer. This will help the new product of Nike which is biodegradable
water bottles to easily make a great position in market (van Zyl, 2018).
Weakness
The major weakness of Nike is their low investment in research and development as well
as new technology. Company generally spend low amount in innovation due to which its
innovation remains low. Along with this another weakness is their footwear focus. Although
company has diversified but it still keeps its major focus on footwear. This might become a
roadblock for biodegradable water bottles to become successful (Scott, 2019).
Opportunities
The biggest opportunity available to the company is growing market. Today even rural
areas has become brand oriented thus Nike can extend its network in rural areas and establish its

position. Nike can make use of this opportunity to take their biodegradable water bottles in the
rural areas and thus can increase its revenue ratio (Miocevic and Morgan, 2018).
Threats
The major threat for Nike is the fierce competition within market. The presence of string
competitors having great brand image might become a great threat for success of biodegradable
water bottles. Besides this, counterfeiting is the another threat which might affect the growth of
new biodegradable water bottles as the competitors might imitate it and offer at low price
(Kuntze and Matulich, 2016).
Upon the market analysis, the new idea of biodegradable water bottles is highly viable
and thus will help Nike to enlarge its customer base as well as establish position in market.
Firstly the great brand awareness of Nike will help this product to gain an effective position in
market. Besides this, the growing awareness of people for innovative products will also help to
make this product a viable product for business. Besides this, the demand of customers for
lightweight and convenient bottles along with great quality will take this new idea to the
milestone (Markowska, 2018).
P6 SWOT and PESTEL analysis
SWOT analysis
Strength
The major strength of Nike which will help this product to become successful is the
strong core brand. Having a powerful core brand which is sporty footwear will be beneficial for
these bottles.
Weakness
The huge dependence upon US market will somewhat hinder the performance of
biodegradable water bottles as any change in policies of US will directly affect it.
Opportunities
The opportunity to diversify and extend the supply chain even in the rural areas will help
Nike to take their biodegradable water bottles to wider audience. This will also help in growth of
this product (Uygur, 2019).
Threats

The powerful and fierce competition within market and presence of competitors like
Puma, Adidas might be a challenge for bottles and this new product might face the brunt
(Trabskaja and Mets, 2019).
PESTEL analysis
Political factors
The major political factors are government stability, corruption rate, tax policy etc. The
high corruption rate in Malta will pose negative impact on the success of bottles but
simultaneously, less trade restriction will have a positive impact on it (Roundy, 2017).
Economic factors
Economic factors are interest rates, inflation rates, exchange rates etc. The high interest
rates will make it difficult for Nike to take bank loans and funds for establishment of its new
product.
Social factors
Social factors encompasses health consciousness, population rate, lifestyle etc. The
increasing lifestyle of people in Malta and to lead luxurious life will help to make this product a
success.
Technological factors
These factors are innovation level, automation etc. The growing awareness of people for
online sites and social media in Malta will help to advertise this product and will affect it
positively (Krueger, 2017).
Environmental factors
These factors consist of weather, climate, environmental policies etc. The mass
production of biodegradable water bottles will impact the company in negative way and thus will
release various harmful pollutants (El-Awad, Gabrielsson and Politis, 2017).
Legal factors
These consist of discrimination laws, consumers laws, antitrust laws etc. The frequently
changing legal policies as well as laws in Malta might become a roadblock for the establishment
of new bottles and will be exposed to high legal liability (Gielnik, Zacher and Wang, 2018).
M4
The idea of launching the new biodegradable water bottles equipped with quality cushion
will help Nike to gain an edge over the competitors and will also help to establish position in the

market. This new idea will generally target the huge marketplace in Malta and will help to
enlarge the customer base. Besides this, this new biodegradable bottles will be a replacement to
the regular polymer and plastic made bottles and will help to achieve the competitive advantage.
This new idea will also help Nike to provide a well-through solution to the customers who are
highly engaged in gym activities, athletes and other workout activities (van Zyl, 2018).
D4
The new biodegradable water bottles can be managed as well as made more effective by
inculcating a great quality inn it. Quality is what the customers firs look for while purchasing any
product. Thus by providing great quality bottles to the customers will help Nike to sustain the
competition (Scott, 2019).
CONCLUSION
It has been summarized that the various tools and techniques like porter five forces helps
the organizations to assess the market gap and analyze effectiveness of entrepreneurial idea. For
supporting the gap analysis of entrepreneurial idea, generally primary as well as secondary data
are being used for gathering the information regarding attractiveness of market and new product.
Apart from this various frameworks like SWOT analysis, PESTEL analysis helps the
organization to assess what are the strength and weakness of company and what external factors
might impact the success of new product.

REFERENCES
Books & Journals
El-Awad, Z., Gabrielsson, J. and Politis, D., 2017. Entrepreneurial learning and innovation.
International Journal of Entrepreneurial Behavior & Research.
Gielnik, M.M., Zacher, H. and Wang, M., 2018. Age in the entrepreneurial process: The role of
future time perspective and prior entrepreneurial experience. Journal of Applied
Psychology.103(10). p.1067.
Krueger, N.F., 2017. Entrepreneurial intentions are dead: Long live entrepreneurial intentions. In
Revisiting the entrepreneurial mind (pp. 13-34). Springer, Cham.
Kuntze, R. and Matulich, E., 2016. Exploring cognitive bias in entrepreneurial startup failure.
Academy of Entrepreneurship Journal.22(2).p.54.
Markowska, M., 2018. The role of action-control beliefs in developing entrepreneurial expertise.
Journal of Small Business and Enterprise Development.
Miocevic, D. and Morgan, R.E., 2018. Operational capabilities and entrepreneurial opportunities
in emerging market firms. International Marketing Review.
Roundy, P.T., 2017. Social entrepreneurship and entrepreneurial ecosystems. International
Journal of Social Economics.
Scott, J.T., 2019. Entrepreneurial Network Effects. Entrepreneurial Complexity: Methods and
Applications. p.49.
Trabskaja, J. and Mets, T., 2019. Ecosystem as the Source of Entrepreneurial Opportunities.
Форсайт.13(4 (eng)).
Uygur, U., 2019. An analogy explanation for the evaluation of entrepreneurial opportunities.
Journal of Small Business Management. 57(3). pp.757-779.
van Zyl, C., 2018. The Entrepreneurial Process and Legal Issues'. The Emerald Handbook of
Entrepreneurship in Tourism, Travel and Hospitality. Emerald Publishing Limited.pp.91-
108.