Identifying Entrepreneurial Opportunities : Ideas and Innovation

IDENTIFYING
ENTREPRENUERIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK1 ............................................................................................................................................4
P1. Different sources of entrepreneurial ideas and innovation...................................................4
TASK2 ............................................................................................................................................6
P2. Rationale and market gap for a specific entrepreneurial idea with the help of relevant tools
and techniques.............................................................................................................................6
TASK3.............................................................................................................................................7
P3. Present data which will be needed in supporting gap analyses of new entrepreneurial idea.
.....................................................................................................................................................7
P4. Interpret data appropriately to provide evidence of market potential...................................8
TASK4...........................................................................................................................................11
P5. SWOT Analyses..................................................................................................................11
P6. Evaluate the competitive and market environment in which the idea will be launched.....12
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Entrepreneur is the person who is responsible for bringing new, innovative ideas and
opportunities for the businesses. The individual who is interested in starting own business looks
for several opportunities through which they can attain the profits and revenues. The
identification of such opportunities is referred to as entrepreneurial options. This report will
evaluate the possible sources of entrepreneurial ideas and innovation. It will also explain the
choice of specific entrepreneurial idea for investigation and market gap. Furthermore, this will
adopt the primary and secondary sources of data collection for identifying the potential of
markets. The last part of the report will concentrate on identifying entrepreneurial idea in context
of market and competitors and further makes an assessment of potential viability.
TASK1
P1. Different sources of entrepreneurial ideas and innovation.
Each and every entrepreneur has different set of mind, goals, skill and have different
innovative ideas which they wish to put into the action. Even the ideas which the entrepreneur
have today in mind can be changed by tomorrow due to the highly competitive world. These
ideas are required to be changes time to time because of changing market conditions. Changes
are inevitable part of business life and creates a numerous opportunities for an entrepreneur.
Such changes occurs when the external environment changes and develops innovative means for
an entrepreneur. For instance, if the use of technology increases then the entrepreneur will adopt
different types of technologies in order to maintain the sustainability and productivity of the
organisation. For better understanding of different sources of entrepreneurial ideas and
innovation, the Drucker model will be used.
Drucker 7 sources of innovative opportunities
The model of innovative opportunities was developed by Peter F. Drucker where the 7
different sources are explained. The Drucker is considered to be one of the most important
consultant in management. The 7 different sources are discussed below:
 The unexpected: The market of business is highly dynamic in nature and unexpected is a
key term which can make the entrepreneur satisfied and dissatisfied as well by bringing
unexpected success and unexpected failure. The unexpected situations can be the very
powerful source for the businesses

 Incongruities: There is always the inconsistency between what is and what should be.
The incongruities are the important ingredient for developing successful business but this
is a complex procedure. The best way to know the drawbacks and plus points for the
company is taking customer feedback, complaints, etc.
 Process need: This source of creating innovative opportunities is highly focussed
towards the specific set of tasks. It helps in examining the tasks thoroughly and deeply
and identifies the weak points and the manner in which it can be improved. With this, the
entrepreneur and their team will be able to create more appropriate plans.
 Industry and market structure change: The industry and market structure can be
constant and consistent in functioning and operation but due to the changes in external
business world, they can be affected adversely and needs to be changes as rapidly as
possible for the existence of the company. The leaders and other expert people needs to
continuously review the changes and ready to accept them as the newer opportunity for
the business rather than threat.
 Demographics: The demographics changes have a very crucial impact on developing
new opportunities of the businesses. For instance, the changes in the trends and demands
of the customer creates an opportunity for the company to create new products and
services in order to attain business goals and objectives.
 Changes in perceptions: During the last few years, the people have become persistent in
seeing the world with different perspectives. Perceptions of the individuals changes very
quickly which creates a need for the company to identify and understand the customers
way of thinking and treating a respective products. For instance, people are now become
more shopaholic with the online trends and offers which demands the use of technology.
 New knowledge: Innovation and invention is increasing at a greater rate. This creates a
need for new knowledge, skill, expertise for the businesses. The technological and
scientific area has developed a lot from last few decades and this involved that the
organisation kept on renewing its businesses structure, methods, etc. and leaves the
traditional way of doing businesses.

TASK2
P2. Rationale and market gap for a specific entrepreneurial idea with the help of relevant tools
and techniques.
For creating new and innovative ideas, the entrepreneur has to examine various types of
things like who will be the target market, identifying the different set of customers. Apart from
this, to analyse the market gap, industry analyses must be done to know the different types of
competitors, suppliers and buyers power, etc. For this, STP and Porter five forces model will be
analysed.
Segmentation, targeting, positioning
The term segmentation, targeting and positioning is concerned with the various strategies in
the marketing model. They are the most commonly used marketing tools and practices and with
this and entrepreneur will be able to create a communication plan because with this marketers
will be able to prioritise propositions and can deliver the message properly to the audiences.
 Segmentation: The process of market segmentation is concerned with identifying the
different type of customers. Under this, the entrepreneur will divide the broad market into
smaller segments and puts the group of customers together who shares similar needs and
requirements. For instance if an entrepreneur deals in automobile sector, then he will put
the group of individuals together who want fast speed of car and put different group of
people together who want different style and design.
 Targeting: When the market is segmented then the entrepreneur focuses on devising
various marketing strategies and various methods of promotions by taking into
consideration the different tastes and preferences of the customers for a specific market
segment. For instance, the entrepreneur who is involved in selling mobile phones to the
customers, they contain the mobile of all the range for all types of customers.
 Positioning: The positioning is the last step in the STP model where the entrepreneur
focuses on making its company’s products and services unique and exclusive. In this, the
different promotional tools are used through which the customers are made aware of the
products and services of the company by describing the unique characteristics and
features of the products. For instance, the dealer of Audi sells the products by describing
the unique style, design and feature of the car.

Furthermore, the market segmentation is of different types which must be taken into
consideration by an entrepreneur in order to market the product and they are discussed below:
 Behavioural segmentation: Behaviour segmentation of the market is concerned with
dividing the market according to the different behaviours and lifestyle pattern like
purchase, consumption, lifestyle and usage. For instance, the young generation people
prefers to shop online while the old generation people are still stick to their old habits.
 Demographic segmentation: The demographic segmentation is concerned with dividing
the market on the basis of age, gender, class, marital status, and enables the marketers to
develop a more targeted and segmented approach.
 Geographic segmentation: The geographic segmentation is concerned with dividing the
market on the basis of different regions, areas because the targeted customers also have
different needs and requirements across boundaries.
TASK3
P3. Present data which will be needed in supporting gap analyses of new entrepreneurial idea.
For analysing the gap and shortcoming, the entrepreneur will assess and evaluate the market. For
this purpose a market research will be conducted by an entrepreneur. In conducting market
research, the entrepreneur will use different sources of data collection. The data collection
methods have two different sources that is primary and secondary.
 Primary data collection source is one in which the data is collected by an investigator for
the first time and is treated as first hand information which has never been collected yet.
Under this, the entrepreneur will use the questionnaire form for collecting information
from the market.
 Secondary data collection method is one where the investigator makes use of already
collected information which can be derived from sources like internet, newspaper,
journals, magazines, etc.
Furthermore, various other tools which can be used by an entrepreneur to conduct the
research is like use of big data analytical tool to assess the market. Market trend analytical tool is
a method which helps in knowing the marketer regarding the movements of the market that
whether the market is stagnant, growing or declining. This is one of the most important tool

which must be done by the companies at least once in a year through which the company can
make better strategic and tactical decisions.
Apart from this, the people are becoming more tech prone now a days. The use of internet
is growing and so investigator can conduct the research by using internet forum and social media
test where people in mass number will participate and the results obtained will be more accurate
and reliable. Therefore, this research will use social media test where questionnaire will be
displayed on social media site and people will have to answer.
P4. Interpret data appropriately to provide evidence of market potential.
QUESTIONNAIRE
Q1. What is the most ongoing trend in the market in retail industry?
A. Food
B. Clothing
Q2. Did you prefer to shop online?
A. Yes
B. No
Q3. What innovative tools are required in market?
A. Gadgets
B. Quick delivery service
Q4. Any recommendation for improving services.
THEME1: Ongoing trend in the market in retail industry
What is the most ongoing trend in the
market in retail industry?
Frequency
Food 40%
Clothing 60%

Interpretation: From the above graph it has been concluded that from the social media
testing, the most ongoing trend in retail segment has been examined. 40% people assumes that
food is the most ongoing trend in retail industry because due to increasing health problems
people are becoming extremely health conscious and always searches for healthy food products
and avoid those which contains high level of fats and carbohydrates. Whereas 60 percent
believes that people are becoming more trendy and fashionable and buys clothes on regular
basis. This has become the part of every day life style to look different and carries good looks.
So from this, an entreprenuer can think of bringing innovation or new idea in clothing sector.
THEME2: Preference to shop online
Did you prefer to shop online? Frequency
Yes 70%
No 30%

Interpretation: From this graph it has been analysed that the trend of online shopping is
increasing at a greater rate. 70 percent of the total respondents believes that they prefer to shop
online more because of various types of discount offers available and also the customer gets
varied options just on click. The another reason they prefer to shop online is, the product is
easily available at their door step and have effective and efficient return policies. Whereas 30
percent of the people do not prefer to shop online because they think that money gets blocked by
shopping online and also there is lack of financial security and various types of frauds and
hacking incidents are taking place where customer suffers a lot. Therefore, an entreprenuer can
think of launching a business into online market because it has huge scope.
THEME3: Innovative tools are required in market
What innovative tools are required in
market?
Frequency
Gadgets 78%
Quick delivery service 22%

Interpretation: From this graph it has been analysed that after conduction social media
test, 78 percent of the population believes that the companies must concentrate on improving the
technological gadgets because it is the most prevailing aspect in the present business world.
Gadgets are so important in personal and professional life and so customer requires regular
innovation in the design, style, colour, features, etc. regularly. Whereas, 22 percent people
assumes that delivery services must be improved becase they may have faced the problem of
delivery of products which has created a feeling of dissatisfaction among them. Therefore, an
entreprenuer can also think of launching a unique gadget which meets the needs and
requirements of the different set of customers.
TASK4
P5. SWOT Analyses.
After conducting the market research, the entrepreneur has devised with a new innovative
idea of launching a retail store which will contain clothes of all types and for all market segment
people under different brand names for different set of customers. For this idea, the entrepreneur
is conducting a SWOT analyses which will help the person in identifying and analysing the
internal strength and weaknesses and external opportunities and threat. It is the most commonly
used tool for auditing and analysing the business environment and helps in developing proper
solutions and decision making. By conducting this, an entrepreneur will have a proper idea to
take the advantages of opportunities which are available in the market, determine the strategies

for overcoming the weakness and threats and makes complete use of power and strength which
the company poses. The following is the SWOT of new idea of launching a retail store :
Strength
 The strong financial resources can
be invested properly so that the firm
can make the use of available
resources effectively and efficiently.
 Expert and effective workforce who
can contribute immensely for
developing the new entrepreneurial
idea with their full capabilities and
potential.
 The risk taking ability of an
entrepreneur will help in generating
greater returns because of the
courage and confidence possessed
by them.
Weaknesses
 Lack of experience is one of the
major disadvantages which can
affect the entrepreneurial idea to the
greater extent.
 The market research which has been
conducted can either be true or not
because many times either
respondents do not show any
response and even if they show,
then it is very hard to judge that the
response shown is accurate and
authentic or not.
Opportunities
 The entrepreneur has several other
opportunities in order to expand the
new idea like using competitors
pricing strategies, etc.
 Furthermore, the entrepreneur can
also avail the different discount
options.
 Apart from this, the entrepreneur
must focus more on selling the
products online because of
increasing trend of online shopping
which will help in getting more sales
for the company.
Threat
 The retail industry of UK is very
high and the entrepreneur will face
higher level of competition from
brands like Asda, Mark and
Spencer, Zara, etc.
 The changing tastes and preferences
of the customers will require quick
changes which can incur a lot of
extra cost for the company and leads
to lower profitability.

P6. Evaluate the competitive and market environment in which the idea will be launched.
Under this, the entrepreneur will assess the market environment of UK where the new idea
will be launched but before this, the entrepreneur will apply Porter five forces model.
Porter five forces model
Porter five forces model is a tool which makes use of five different forces in order to
determine the level of intense competition and profitability. It was created by Michael Porter in
1979 in order to understand the important factors which have a significant impact on an
entrepreneurial venture. The following are the five different forces discussed below:
 Rivalry among existing competitors: This force is concerned with determining the
quantity of competitors in the market. If there is a large number of competitors of the
company then the entrepreneur will suffer adversely because it will create problem for
the company and if there is low number of competitors then the entrepreneur can take
various steps in order to gain a competitive advantage.
 Bargaining power of suppliers: This force is concerned with explaining the power of
the suppliers in order to maximise the prices of the suppliers. Under this, the entrepreneur
will focus on identifying the number of suppliers available, if there are less number of
suppliers then the bargaining power will be and vice versa.
 Bargaining power of customers: Customers are the most important people they have a
strong bargaining power in every situation because the products which are produced by
the companies are such which will satisfy the needs and requirements of the customers.
Customers can either demand for low prices products or high quality products and in both
the conditions, the profitability of the company is adversely affected.
 Threat of new entrant: The new entrant is concerned with the new company which
enters the market. If the existing company has higher level of financial liquidity and good
brand name, then it will become difficult for the new company to enter the market while
if the existing companies are not able to proper acquire the market share then new
company with heavy investment in advertisements can create a threat for the already
existing companies.
 Threat of substitute: The substitute products are concerned with those which can be
used in place of original products. If the substitute products are easily available in the

market and have low switching cost then this will create a threat for the company
otherwise vice versa.
CONCLUSION
From the above report it has been concluded that entrepreneur need to work very hard in
order to derive the different market opportunities. In present business world where the
competition is very high, the new idea which is to be launched by the entrepreneur is required to
be analysed in detail and proper plans must be made so that the idea can be successful. For this,
in the report, social media testing is used to analyse and interpret the mind set of different kind of
customer segments and this can be very helpful for the entrepreneur in order to develop the new
innovative idea. Simply launching a new product is not a viable approach because it becomes
very important to know that the product which the company is planning to launch will be
preferred by customers or not. Hence, identification of customer requirements plays a greater
role.

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