Understanding Entrepreneurial Opportunity Identification

This assignment requires students to analyze the concept of entrepreneurial opportunity identification, understanding how it is essential for a company's success in the market. The task involves examining the role of intuition and cognitive versatility in opportunity identification, as well as the importance of analyzing competitors' strategies and identifying available opportunities. Students are also expected to eliminate gaps identified and develop business ideas according to existing and future trends.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................1
1. Background information about those sources that inspired your idea and what motivated
you personally in wishing to set up your own business..............................................................1
2. Introduction of business idea and the potential customers and targeted market.....................3
3. Competitor analysis for closer look at the competitive marketplace......................................3
5.Market research to support viability for your business idea and identify market potential
using a range of sources that could be both primary and secondary...........................................7
.........................................................................................................................................................9
6. Why your business idea is viable and feasible and how you qualify this belief. What are the
strengths and weaknesses? .......................................................................................................14
7. Ways to overcome the risks of competition .........................................................................15
8. Also prepare your business plan and your cash flow............................................................16
CONCLUSION .............................................................................................................................17
REFERECES................................................................................................................................18

INTRODUCTION
Entrepreneurship is defined as the process of developing, designing and launching a new
business plan. Individuals who develop their own ideas and starts business are known as
entrepreneurs. This significantly helps in the growth and development of the national economy.
This project focuses on launching a new business venture by determining the available
opportunities in UK, new business idea developed under the report is Coffee Delight which will
made with natural and organic ingredients in order to increase customer health awareness
(Baldacchino, 2013). In addition to this it also determines the target customers and the market in
order to gain market share and also evaluates gap and risk analysis. Along with this it signifies
the potentiality of the project through collection of primary and secondary data.
1. Background information about those sources that inspired your idea and what motivated you
personally in wishing to set up your own business.
Expanding business is of crucial importance which assist in the development of the
national economy. As in the given scenario, UK government has started initiative which is
encouraging young graduates to start their entrepreneur business and helps in the growth of
economy. By analyzing the available opportunities new business developed is Coffee delight
which will be organic in nature and targets health conscious people. As this market idea will
reduce market dominance and provides customer satisfaction. Below is the seven sources of
Peter Drcuker for innovative entrepreneurship ideas -
The unexpected
Business idea is developed is unexpected whether they can achieve success or leads to
failure. This creates a source for more innovative ideas. This may prove useful for the young
entrepreneurs to create a new business ideas and develops their own business. As the idea
developed of organic coffee will achieve high success in UK market (Elenurm, 2012).
Incongruity
Before introducing or launching a new product it is necessary for the company to launch
a new product. Normally the business idea fails when there is inappropriate information is
collected. While developing a new product customers needs and preferences should be
prioritized , as customers showed interest in coffee it led to the developed of the organic coffee
to satisfy their demands.
Process need

It is a source of innovation as by identifying the weakness and developing the
opportunities, this inspire entrepreneurs to develop a new idea. Market analysis identified the
need of change in coffee for health conscious customers and want something new that could
fulfill their needs.
Industry and market structure change
With the technological advancements there is a change in market structure. This change
should be carefully analyse in order to develop a new business idea. Even with the change in
rules and regulations Coffee delight should keep pace with this changes in order to launch new
product (Grégoire and Shepherd, 2012).
Demographics
Demographic includes factors such as age, gender, education, employment etc. Changes
in the demand of such demographic factors leads to the innovation of new idea. As health
conscious people demand changes in Coffee which leads to the development of new business
idea that is organic Coffee.
Changes in perception
Perception of the customer about the product changes from time to time. Entrepreneur
should be well aware about the changes in perception of the customers. Demand for the organic
coffee has increased, so this business idea can be successful.
New knowledge
Adopting new ways and technology gives the source for developing the new business
idea Changes in the consumer demand leads to the development of organic Coffee.
Critically evaluate the benefits and drawbacks of different approaches and sources of entrepreneur
ideas
As the company has used Peter Drcuker seven sources for identifying entrepreneur ideas its
main advantage is that it gives company an idea of customer needs and wants and also provides
an insight to the changes in industrial and market change (Hang, Garnsey and Ruan, 2015). This
allows Coffee Delight to develop business idea properly but it lies with the major drawback as it
has seven sources for developing ideas which makes the entrepreneur very confusing regarding
developing entrepreneur ideas.

2. Introduction of business idea and the potential customers and targeted market.
Business idea is developed by collecting proper market information and analyzing
customer demands properly. This will assist to gain higher financial income and achieve long
sustainability in market. In context to Coffee Delight it is aiming to launch a new product that
would be a organic Coffee and would target mainly health conscious people. This new business
idea is developed by analyzing the market as well as analyzing past experience of the customer’s.
This new product developed will satisfies the need for health conscious people and will capture
maximum market share (Hansen, Monllor and Shrader, 2016). It is a very innovative and a fresh
idea that will be financed by the UK government in order to enhance growth of economy.
Government has decided to sanction the project value of £150,000 out of which £90,000 will be
in the form of a low-interest loan with an interest rate of 1.5% payable in 10 years. The
remaining £50,000 will be in the form of grant and £10,000 need to be brought by entrepreneur.
Target audience-
As the Coffee Delight is aiming to introduce a organic coffee it will mainly target health
conscious people. New product awareness can be increased advertisement and promoting on
social media tools. Mainly it targets old aged people and young generations who are very health
conscious will definitely purchase the product and satisfies their needs. Providing customers
satisfactions is the main motive for developing this new product idea as well as customers
suggestions would be taken to make the product more innovative an better. Moreover through
collecting appropriate information changes can be made accordingly to existing trends and
customer perception regrading the product.
3. Competitor analysis for closer look at the competitive marketplace
Competitors analysis should be conducted effectively in order to develop the idea for
entrepreneurship. Moreover company's products and the strategies adopted by them provides a
closer view to make changes in the business idea developed. Effective strategies are adopted by
them to identify and grab the available opportunities. Competitors mainly would be Costa Coffee
and Starbucks and other competitors could be Green tea available by many other companies
(Kohlbacher, Herstatt and Levsen, 2015). The most important strategy would be adopting
Porter's five forces model which will provide Coffee Delight a complete analysis of competitors.
It is described as follows-
Porter's five force model

This model provides a complete analysis of competitive environment and shows the
attractiveness of the business idea in term of profitability.
Source: Porter's five force model, 2018
Threats of new entry- In order to maintain long term sustainability in market it is necessary for
Coffee Delight to keep its products upgraded and changing with the changes in consumers
demands and preferences. Company should make a huge investment and allocate the resources
properly so as to gain profitability and capture larger market share. Thus when company will
introduce organic coffee there would be little chance of the threat of the new entry as with the
changes in consumers demand company keeps on changing their products. Coffee Delight should
focus on the quality of the drink so as to gain competitive advantage.
Threat of Substitutes
Company producing similar products can be a great competitor to each other. When the
substitute of the product is there it lowers the profit margin of the company's products. As for
organic coffee substitute is the organic tea, such substitutes leads to higher switching of the
Illustration 1: Porters Five forces model

customers to another products. Thus Coffee delight should add some extra flavours in their
coffee so as to reduce the threat of substitute products.
Competitive Rivalry
As it has been determined that when there are large number of competitors in the market
place then it becomes difficult for the organisation to have a control on their prices of goods.
Coffee Delight producing organic coffee should make sure that quality of the coffee should be
standardised in order to capture larger market share. Moreover with the minimum competition as
being the monopoly company producing and distributing organic will face low level of
competition. This will prove to be advantageous for the Coffee delight to sustain in the market
for long time period (Mitchelmore andRowley, 2013).
Bargaining power of Suppliers
This is concerned to which suppliers bargain with the company in order to provide raw
materials. If there are large number of suppliers available in the market it leads to low bargaining
power but when the suppliers are less in quantity there would be more bargaining power. As the
suppliers of the raw materials for Coffee Delight is less, they will enjoy more bargaining power.
Bargaining power of Buyers
Bargaining power of the customers mainly depends upon the quality and the price of the
product and also takes into consideration the availability of the substitute products. If the
customers are huge in quantity for particular product then with their high bargaining power it
will influence suppliers ton provide products at a predetermined price and vice versa. In context
to Coffee Delight it doesn't target all age group of customers, in such case price of the products
will be moderate, not high and low would be elastic in nature to attract the number of customers.
Thus porters five forces model gives a clear view regarding the competitive factors in the
present idea so that Coffee delight could make necessary changes in their product to attract large
number of customers. As it has been analysed that in the current and existing trend customers
needs and preferences keeps on changing with the change in social factor. Customers are more
preferring quality products over the price. Hence taking such changes into consideration Coffee
Delight has aimed to introduce or launch a new business venture of developing a organic coffee
which will made out with the use of organic ingredients to serve the needs of health conscious
people. Therefore launching or developing a new business idea will be successful as the product
is developed by proper analysing the demands and preferences of the customers. It will also

provide company an aid to competitive advantage in the market and assist in gaining more
profitability.
4. Gap analysis, current and future situations and objects of business ideas.
Gap analysis is the method of analysing the differences in performance of the company
by comparing actual comparison with the desired outcomes. In order to remove the gap analysed
Coffee delight should implement effective strategies so as to achieve the desired outcomes. It is
an effective way of comparing the actual performance by also analysing the current and future
situations and leads to the development of effective strategies so as to achieve the desired
outcomes. Identifying gaps in the performance of the company is very important so that
necessary changes can be made and allow company to achieve desired outcomes.
The major goal or the objective of Coffee Delight is to provide maximum satisfaction to
its customers and hence thereby earns large profit margins for the company. This is the unique
product developed in the market according to the requirements of the health conscious people
which will indirectly assist the company in generating more profit margins for the company
(Neneh, 2012). Moreover in order to improve this performance they can take customer feedback
regarding the new product so that necessary changes could be made and gap analysed in their
performance could be easily managed so as to remain attractive in the competitive environment.
Coffee Delight could achieve this objective by ensuring proper quality of products produced
which provides maximum satisfaction to its consumers.
Justification of how a specific entrepreneurial idea fills a market gap using different
techniques for gap and competitive analysis.
In order to identify gaps and competitive analysis company should conduct Porters five
forces model as it provides clear view in identifying their competitors strategy so that necessary
gaps can be identified and effective actions can be taken to develop a specific entrepreneur ideas.
Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and
investigation of the competitive market place.
As the new product developed is organic coffee which is appropriate as analysing
competitors strategy it has been determined that this product is new to the market and have less
competitors. Moreover there is a special demand of the customers regarding the change in coffee
to maintain thir health.

5.Market research to support viability for your business idea and identify market potential using
a range of sources that could be both primary and secondary
Before launching a new product or in order to gain understanding regarding the
development of new product. Market research should be properly conducted by proper
collecting, gathering and analysing the appropriate information. Entrepreneurs greatly conducts
market research in order to analyse demands and preferences of customers. Coffee Delight is
introducing a new organic coffee as they are assessing the liability of the new product in market
by conducting appropriate information. This would assist the company in identifying the
available opportunities in the market and take the advantage. proper information can be collected
using primary and secondary data collection which is described as follows-
Primary research- This is research in which data is collected using primarily through
the questionnaires, surveys and interviews. This is the primary information especially collected
for a a specific purpose. In this data are collected by conducting surveys and target customers are
asked questions. This type of research is useful for analysing the market potential opportunities
and assist business in developing business idea (Siegel and Renko, 2012).
Secondary research- In this type of research data is collected from the available sources
such as books, journals and internet facilities. This data is easily available and is secondary in
nature as it has been collected by other individuals for other specific purpose. Here for
developing and making necessary changes in business idea information is collected through
questionnaire and 30 respondents are taken into consideration from whom suggestions will be
taken regarding the new product.
Questionnaire
Name:
Age:
Address:
Q1 Are you aware about the new organic coffee available in the market?
Yes
No
Q2 Does Coffee Delight includes ingredients in coffee according to customer's requirements?
Yes

No
Q3 Do the organic coffees is provided at an appropriate price?
Yes
No
Q4Do you find any issues regarding the new organic coffee developed?
Yes
No
Q5 Does the new product developed is properly creating awareness for the target segments?
Yes
No
Q.1. Are you aware about the new organic
coffee available in the market?
Frequency
Yes 40
No 30

Interpretation- From the above graph it has been analysed that out of 70 respondents 40 are well
aware about the organic coffee and rest 20 are unaware about the new product developed. This
shows that customers are well aware new product but company should create more awareness
through advertising and social media tools.
Q2 Does Coffee Delight includes ingredients in
coffee according to customer's requirements?
Frequency
Yes 50
No 20
Yes No
0
5
10
15
20
25
30
35
40
Column B

Interpretation- From the above presented graph it has been analysed that among 70 respondents
feel that company is using the right ingredients in making the coffee and the rest are not in
favour of that.
Q3 Do the organic coffees is provided at an
appropriate price?
Frequency
Yes 30
No 40
Yes No
0
5
10
15
20
25
30
35
40
45
50
Column D

Interpretation
From the above graph it has been concluded that Consumers are very much conscious or
aware about price so that they have to fix price accordingly. So that everyone fix price
accordingly. Only 30 respondents feel that new product developed has an appropriate price.
Q4Do you find any issues regarding the new
organic coffee developed?
Frequency
Yes 35
No 35
Yes No
0
5
10
15
20
25
30
35
40
Column C

Interpretation
From the above graph it has been summarised that customer in equal manner like or
dislike their products and services. Company should analyse the problems and make necessary
changes.
Q5 Does the new product developed is
properly creating awareness for the target
segments?
Frequency
Yes 30
No 40
Yes No
0
5
10
15
20
25
30
35
Column D

Interpretation
From the above graph it has been concluded that there are lot of consumers aware about the
product and majorly not known about products and services.
Justify specific sources and methods of data collection chosen and how data collection
chosen and how data relates to identifying market potential.
While developing the new product company has made use of primary data so as to collect proper
information regarding consumer demands and desires. This data collection will assist the company in
developing a proper business idea and makes necessary changes according to information collected in
questionnaire.
Analyse appropriate specific sources and methods of data to provide justified business
objectives and identify market potential
From the data collected through primary information with the help of questionnaire and
surveys conducted it has been analyzed that customers are in favor of the new business idea as it
satisfying their requirements and maintaining their health (Tang, Kacmar and Busenitz, 2012).
Yes No
0
5
10
15
20
25
30
35
40
Column C

Through proper surveys customers needs can be identified and its inspires and motivates
entrepreneurs to develop business idea.
6. Why your business idea is viable and feasible and how you qualify this belief. What are the
strengths and weaknesses?
To judge the viability and feasibility of the project Coffee Delight should take various
steps in order to avail the opportunities so to capture larger market share. Respective company
should properly analyze the strengths, weaknesses, threats and opportunities of the business in
order to make effective decisions.
Strength Weakness
 Its new product will target health
conscious customers as it is the
important product introduced by the
company and would be capturing larger
market share.
 Its gives new addition to the coffee
products and have less fear from the
competitors in the market.
 Prices kept of the new organic coffee is
moderate which targets large customer
base.
 Product is developed for the first time
which lacks awareness about the
experience.
 For launching this product, huge
investments are required which is not at
present available with the company.
Opportunities Threats
 Company can add more flavours to the
organic coffee as well as can make
them sugar free which will attract large
number of customers (Tseng, 2013).
 Company can supply their products in
niche market at a lower price to capture
larger market share and enhance brand
 Due to changes in consumer demands
and preferences there is high chance of
replicating the product which is a major
threat for the firm.
 Threat of substitute products is always
present there customers can easily

image. switch the products.
Critically evaluate a specific entrepreneurial idea in the context of the marketplace and
competition.
As the entrepreneur idea is introducing a organic coffee in the market to target health
conscious customers it has its own advantages and disadvantages in context to market place and
competition. Organic coffee introduced will satisfy needs of old age people and young
generations which are health conscious and has a major drawback that the business idea
developed is not sure that it would satisfy their needs as well as require huge investment
regarding its development.
7. Ways to overcome the risks of competition
When any new business idea is developed company faces lot of risk and competition.
There is lot of risk associated with the business in which company should adopt appropriate
strategies so as to overcome the risk of competition. In context to Coffee Delight company
should be aware of the rivalry firms so that strategies could b planned according to it. It is
recommended to the companies to adopt to various strategies to overcome the risk of
competition.
 Coffee Delight should focus on cost leadership strategy which continuously makes
effort for reducing the production cost.
 Coffee Delight should provide many discounts and offers to the consumers while
developing new business idea (Kohlbacher, Herstatt and Levsen, 2015).
 Company can also focus on customer focused strategy in which modifications can be
made as per the customers requirements.
 Respective company should add more innovative features in their product so as to
remain competitive.
 In order to grab the available opportunities company should interact with the customers
to know their demand and make changes in product accordingly.
Formulate valid conclusions and justified recommendations on how a specific
entrepreneurial idea can be developed, managed and sustained within the competitive
market place

It is highly recommended to the company to adopt cost leadership strategy and customer
focused strategy to target large number of customers and provide products at an appropriate
price. This would allow entrepreneur to remain competitive and sustained in the market for long
period of time.
8. Also prepare your business plan and your cash flow.
Business plan is a document which describes the new business idea developed along the
budget allocated in starting the business. It includes product and service description, the
competitive analysis and the swot analysis of the company.
Summary
This business plan is about developing a new product by the Coffee Delight in order to
capture larger market share by targeting health conscious people. As it is a fresh and a innovative
idea for introducing a new organic coffee and generates large profitability for the company
(Siegel and Renko, 2012).
Product Description
The new business idea developed by the entrepreneur is regarding the development of the
organic coffee which will make use of natural ingredients such as herbs to maintain the health of
the customers. It will be available at a moderate price so that customers can easily purchase the
product and take the advantage out of it.
Industry analysis
To determine the attractiveness of the business idea developed, industry analysis helps to
analyse competition in the market
Threats of new entry Thus when company will introduce organic coffee there would be little
chance of the threat of the new entry as it requires investment and lot of risk to establish this
venture.
Threat of Substitutes There is a high threat of substitutes as the company can easily switch to
another products.
Competitive Rivalry With the minimum competition as being the monopoly company
producing and distributing organic coffee will face low level of competition.
Bargaining power of Suppliers As the suppliers of the raw materials for Coffee Delight is less,
they will enjoy more bargaining power

Bargaining power of Buyers As it doesn't target large group of customers price of the products
will be moderate, not high and low would be elastic in nature to attract the number of customers.
Competitive analysis
Their are no such competitors of organic coffee but the relative competitors includes
Costa Coffee and Starbucks, changes in the quality and prices of the product could attract the
customers towards the product.
SWOT analysis
Before developing a new business idea it is necessary for the company to evaluate its
strengths weaknesses, opportunities and threats-
Strengths- Its new product will target health conscious customers as it is the important product
introduced by the company and would be capturing larger market share (Neneh, 2012).
Weaknesses- Product is developed for the first time which lacks awareness about the experience.
Opportunities- Company can add more flavours to the organic coffee to make it attractive for
the customers
Threats- Due to continuous changes in consumer demands and preferences there is high chance
of replicating the product which is a major threat for the firm.

CASH FLOW

CONCLUSION
From the above report it has been concluded that starting entrepreneurship business
greatly increases the national economy of the country. Proper market research and analysis
should be conducted so as to identify consumer needs and wants so that business idea can be
developed accordingly. In order to be success in market place and remain sustainable for a long
period of time they should analyze competitors strategy and identify and grab the available
opportunities. It is necessary for the company to eliminate the gap identified and develops
business idea according to existing and future trends.