Identifying Entrepreneurial Opportunities

This report explores entrepreneurial opportunities available to Sainsbury, focusing on the introduction of a separate store for vegan products and groceries. It discusses different sources of innovation, the rationale and market gap for the idea, and presents data to support gap analysis. The report also applies a SWOT framework to assess the idea's potential viability.

Identifying
Entrepreneurial
Opportunities

Table of Contents
Table of Contents..................................................................................................................................2
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation..................3
TASK 2.................................................................................................................................................4
P2. Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice....................................................................................4
TASK 3.................................................................................................................................................5
P3. Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea...................................................................................................................................................5
P4. Interpret data appropriately to provide evidence of market potential.......................................6
TASK 4...............................................................................................................................................11
P5. Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea..........................................................................................................11
P6. Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.................................................................................................................13
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................15

INTRODUCTION
Entrepreneurial opportunity is usually defined as a situation for a scenario in which the
products and services which are offered by the entrepreneur are sold at a higher price than the cost
of the production incurred (Hansen, Monllor and Shrader, 2016). Therefore an opportunity with
such benefits arises in front of entrepreneurs is a time they take actions not just conducting the day
to day business transaction but to earn higher profit units. The current report is developed on such
entrepreneurial opportunities available to Sainsbury where the organisation is planning to introduce
there separate store vegan products and grocery. Sainsbury is the second largest supermarket store
in United Kingdom which was founded in 1869 and headquartered in London, UK. The report
acknowledges different sources of innovation and entrepreneurial ideas along with providing the
rationales and the market gap. Moreover the report is supported by graphical analysis and
interpretation of the gab identified. At the end SWOT and porter’s five forces model is utilised for
identifying the capabilities and competitive advantage of the new innovative entrepreneurial
opportunity explored by Sainsbury.
TASK 1
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation.
There are numerous sources of innovation available in the market and to Sainsbury from
where the company can determine the new innovative entrepreneurial opportunity. Drucker’s 7
sources of innovation are used by Sainsbury to identify and assess the opportunity available to it.
Drucker’s 7 sources of innovation model are discussed underneath in the next section.
 The unexpected states that every innovation takes place in very unexpected and uncertain
scenarios. Therefore they are identified as uncertain occurrence of events.
 Incongruities what is the next stage suggesting that innovation occurs because of the
demand and supply fluctuation and nature presented by the people. Such as earlier people
used to love junk food but now with changing Times their demands are changing and
customers are moving towards more healthy food and beverages.
 Market structure is the third source of innovation, highlighting that uncertainty and
fluctuation in market structure gives rise to innovation and invention (Wood and McKelvie,
2015).
 Necessity is another source of innovation where human needs and demands gives the
entrepreneur and opportunity to develop offerings accordingly.

 Demographic factor is also very influential factor of innovation as the periodical change
taking place in the attitude of people and their dynamic behaviour generate the requirement
for innovation.
 Changing perception is a similar to the incongruities source as the people's requirement
and the changes taking place in the perceptions is the main reason behind fluctuations taking
place in their demand structure.
 New Knowledge refers to the new ideas and expertise adopted by people which guide them
towards the path of innovation and allows them to bring new changes in the society and in
the world.
TASK 2
P2. Explain the rationale and the market gap for a specific entrepreneurial idea using relevant tools
and techniques to support your choice.
Business Idea
The opportunity which is identified and which is very potential for Sainsbury is of providing
vegan grocery products and food to the potential customers. The name of the new entrepreneurial
opportunity that is been explored by Sainsbury is to target entirely new and diversify customer base
of those individuals who are looking for more healthy and organic grocery items along with food
and beverages (Thursby and Berbari, 2016). Sainsbury has the opportunity to open a new store in
London initially which specifically attracts customers with vegan food and beverage requirements
along with groceries. The innovation is not the products but the service which Sainsbury is willing
to provide to the customers. Sainsbury is not just opening a new we can store in London along with
it the organisation is also providing home delivery services to the customers. The new online
application is developed by Sainsbury which is specifically for those customers who are looking for
vegan store online. Through this application the customers can easily order all the Vegan grocery,
food and beverages they require. Along with it the delivery service is available to customers on
24*7 basis. That means people hold the flexibility to order the required food and beverages and also
grocery items anytime.
This is an innovative service where Sainsbury has to run its store for customers 24/7 without
any break. Also there is no other supermarket available in United Kingdom offering such unique
services to the customers with the highest amount of flexibility and ease. The aim of Sainsbury to
explore such opportunity is just to on higher profits by implementing new ideas and plans along
with attracting and adding a new customer base also adding a new product and service to their

product portfolio. Further it is also very crucial for the Enterprise to offer innovative and unique
offerings to consumers for gaining competitive advantage over its rivals and maintaining the second
largest supermarket Store position in the market.
Segmentation, Targeting and Positioning (STP) model
This model is used by entrepreneurs for appropriate dividing then market into specific
segments and targets the particular segment use requirements and designers are matching with the
company’s offering third stages of positioning where the identified and developed new product or
service is position in front of the targeted audience and in the marketplace. The STP model for a
new product offering of Sainsbury that is a vegan Store along with the 24*7 service awesome
delivery is as follows:
 Segmentation is the first step standing for segment your market. For organization it is not
possible that the new brand, product and services is satisfactory for all the people and which
create the need for market segmentation. It is the process which divides the customers into
separate groups of people with common characteristics and requirements. Segmentation can
be done through demographic, geographic, psychographic, and behavioural approaches.
Sainsbury have used behavioural and psychographic segmentation where the lifestyle and
the utilisation of the product and service is focused by the people (Kohlbacher, Herstatt and
Levsen, 2015).
 Targeting is the second stage where the segments which are divided in the segmentation
stage are now targeted by finding the most attractive ones to the company according to their
requirements and offerings. The targeted audience and market which is profitable for
Sainsbury for their new offering is those individuals and segment of society who are aware
about their health and turned themselves into vegan food consumers only.
 Positioning is the last stage setting the entities goal for identifying how it wants to position
their offerings and entrepreneurial idea to the targeted audience and to attract the most
valuable customer segment. In Positioning stage Sainsbury will present its new store and
service showing their value to the customers and the considerations that why we should
purchase their offerings.
TASK 3
P3. Present data needed to support gap analysis in the evaluation of a specific entrepreneurial idea.
QUESTIONNAIRE

NAME:
GENDER:
AGE:
ADDRESS:
 QUESTION 1
Do you what exactly vegan means and what food products and beverages belongs to the category?
YES
NO
 QUESTION 2
Will you choose vegan products over any other junk food or beverages?
YES
NO
 QUESTION 3
Do you know the benefits of an individual moving to vegan food consumption by leaving their and
healthy eating practices?
YES
NO
 QUESTION 4
Do you think there is a need for a separate vegan super store to be opened in London according to
the preferences of people?
YES
NO
P4. Interpret data appropriately to provide evidence of market potential.
QUESTIONS FREQUENCY
QUESTION 1
Do you know what exactly vegan names and what food products and beverages
FREQUENCY

belongs to the vegan category?
YES 16
NO 4
QUESTION 2
Will you choose vegan products over any other junk food or beverages?
FREQUENCY
YES 14
NO 6
QUESTION 3
Do you know the benefits of an individual moving to vegan food consumption by
leaving their and healthy eating practices?
FREQUENCY
YES 17
NO 3
QUESTION 4
Do you think there is a need for a separate vegan super store to be opened in
London according to the preferences of people?
FREQUENCY
YES 14
NO 6
THEAM 1
QUESTION 1
Do you know what exactly vegan names and what food products and beverages
belongs to the vegan category?
Frequency
YES 16
NO 4

INTERPRETATION: From the data collected and presented in the graph it has been identified and
analysed that 16 out of 20 individuals knows what exactly vegan means and what are the different
vegan food offerings. On the other hand 6 of the respondents was unaware or partly aware about the
vegan food (Mat, Maat and Mohd, 2015).
THEAM 2
QUESTION 2
Will you choose vegan products over any other junk food or beverages?
Frequency
YES 14
NO 6

INTERPRETATION: The graphical representation and data collection exactly highlights that out
of 20 candidates 14 are ready to choose vegan offerings by ignoring their unhealthy food products
and beverages. But 6 respondents are attracted and propose to eat non vegan food and other junk
food over any vegan products (Suddaby, Bruton, and Si, 2015).
THEAM 3
QUESTION 3
Do you know the benefits of an individual moving to vegan food consumption by
leaving their and healthy eating practices?
Frequency
YES 17
NO 3

INTERPRETATION: The research and survey conducted with the help of questionnaire showed
that almost 17 respondents have appropriate knowledge of reducing their unhealthy eating practices
and moving towards vegan offerings such as food, beverages and groceries. But out of 20
respondents 3 not at all informed or aware about the benefits of vegan products and changing their
and healthy eating practices (Nikraftar and Hosseini, 2016).
THEAM 4
QUESTION 4
Do you think there is a need for a separate vegan super store to be opened in London
according to the preferences of people?
Frequency
YES 14
NO 6

INTERPRETATION: Form the questionnaires and research conducted it is identified that 14 out
of 20 candidates are showing their willingness and requirement of holding a separate vegan grocery
super store in London providing innovative services and products that are been identified by
Sainsbury. The Other 6 candidate’s dicey and holding mixed thoughts about having a super store in
London which is offering vegan food and beverages (Hang, Garnsey and Ruan, 2015).
TASK 4
P5. Apply a SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea.
The analysis framework is adopted by Sainsbury as an entrepreneur for analysing the internal
strengths and weaknesses of the new business opportunity of providing vegan sources to the
customers. The SWOT analysis of a the new business opportunity is as follows:
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
 The Strength of
the new
business idea
and opportunity
explode
 The most
potential
weakness with
the new
offering it is
 The
opportunities in
that are
available to
Sainsbury in
 Currently the
increasing
structuration
and dynamic
nature of

advisory is its
uniqueness and
innovation that
is been
provided by the
company in
form of service.
No competitor
at present is
available in the
market as no
other
supermarket
store open
unique and
individual
vegan store for
the customers
which
specifically
attracts those
who are
interested in
buying vegan
food beverages
and groceries.
Also the
innovation is
the service
which is being
offered to the
customer of
home delivery
for 24*7 (Xie
and Lv, 2016).
very prominent
that every new
product or
service which
is entering the
market is
associated with
some of the
weaknesses
while entering.
The most
influential
factor of these
weaknesses are
it is very
difficult in the
very beginning
for the
entrepreneur
and even the
large
organisation
like Sainsbury
to identify
these
weaknesses and
which becomes
the biggest
reason behind
failure of the
new of rains
and in this
series can be
associated with
the vegan store
relation with
opening a new
vegan Store
what the
respective
customer base
is first of
expansion (Al
Mamun and
Ekpe, 2016).
That is if the
install and the
service is
profitable
enough the
company can
International
with their
offerings
attracting
largest
population and
improving their
competitivenes
s in the market
as well.
customers and
their buying
behaviour is
the biggest
threat that is
associated with
the new
business
opportunity of
Sainsbury
because the
fluctuation and
regularly
changing social
trends can
impact
negatively on
the business as
it is impossible
to the nature
also the buying
behaviour of
individuals that
are being
targeted by
Sainsbury.

and service that
very is
planning to
provide to the
customers.
P6. Evaluate the competitive and market environments in which the idea will be launched to assess
potential viability.
THREAT OF
NEW
ENTRANT
THREAT OF
SUBSTITUTES
BARGAINING
POWER OF
SUPPLIERS
BARGAINING
POWER OF
CUSTOMERS
COMPETITIVE
RIVALRY
The threat of new
entrants is very
significant and
high as there are
other several
International and
national
supermarkets that
are available in
United Kingdom
and resources for
engineering in
market with the
new opportunity
that is being
explored by
Sainsbury.
The threat of
substitute
products and
offerings is
moderate because
only if other
competitors enter
the similar market
then the other
have to provide
their services by
other innovative
idea or it is
impossible to
develop any other
substitute of a
retail store
(Jaskiewicz,
Combs and Rau,
2015).
The bargaining
power of
suppliers is
moderator and
will eventually
reduced because
Sainsbury holds a
large number of
suppliers and do
not depend on
one specific
supplier. The
same strategy will
be adopted by
Sainsbury in their
new vegan so as
well keeping the
suppliers and
their power flow.
The Bargaining
power of
customers is also
know because the
offering which is
offered by
Sainsbury is new
and innovative.
currently there
are no other
supermarkets who
holds entirely
different Store for
vegan offerings
food beverage
and grocery
items. Also, the
24*7 service
offering is also
not very common
and no other
supermarkets
The competitive
rivalry is high for
Sainsbury
because there are
several large
competitors who
already exist in
retail business
and present on the
international level
such as Tesco
Walmart etc. Also
there are other
conventional and
low priced
supermarkets as
well which exist
in the market and
leads it due to
their
competitiveness
of cost leader

provide 24*7
delivery services
to customers.
such as Lidl and
Aldi (Boling,
Pieper and Covin,
2016).
CONCLUSION
From the above report and the discussion conducted it can be clearly concluded that innovation and
creative entrepreneurial opportunities are very important for businesses to explore in order to be
competitive enough for making them sustainable and profitable in the respective marketplaces. In
the report occurs seven innovation sources are used for identifying a new business opportunity and
STP model is utilised for is actively dividing the market into separate groups and then appropriately
targeting one or two specific sector of consumers. The new offering is entirely new vegan store
been opened by the business entity providing grocery food and beverages that too with the facility
of home delivery that is available to consumers for 24*7. At the end the SWOT and Porter’s five
forces model is implied for identifying the capabilities of the new entrepreneurial opportunity and
analysing the competitive environment and force is available to it.

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