Identifying Entrepreneurial Opportunities

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