Identifying Entrepreneurial Opportunities

This report discusses the process of identifying entrepreneurial opportunities and evaluating different sources of ideas and innovation. It explores the rationale and market gap using relevant tools and techniques. The report also includes a discussion on market segmentation, product and services, industry environment, and Porter's five forces model.

Identifying entrepreneurial
Opportunities

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.........1
P2 Explain the rationale and market gap by using relevant tools and techniques..................3
TASK 2............................................................................................................................................7
P3) Support the gap analysis in the evaluation of specific entrepreneurial idea....................7
P4) Interpret data appropriately to provide evidence of market potential............................11
TASK 3..........................................................................................................................................13
P5) Apply SWOT framework to collate evidence to support an objective assessment.......13
P6) evaluate the competitive and market environment to access the potential viability......14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurial opportunities are the different situations that are faced by an entrepreneur as in
terms of greater profit that has been raised in return of products and services that are offered by
them. It is an opportunity in which entrepreneur get a lot of profit from the market in terms of
maximum sales. It is the process through which an entrepreneur provides the relatable goods and
services to the customers (Korte, 2018). The need and demand of the customers get resolved and
it generates more opportunity in the market for an entrepreneur to measure more growth and
development. This report is based on the company that sales the cosmetics products and get
supported by the Virgin money that is the brand of beauty products that is used by the three
independent brands having licensees over all across the world. They currently supplied their
services in Australia, UK and South Africa and were founded in 2003 by Richard Branson. As
virgin money wants to expand their business in Oldham and they are looking forward to assist
the community. This report includes the new innovative idea that is used by the company to
rationale the market gap with the help of certain tools and techniques. Furthermore, includes the
SWOT analysis that addresses the possible threat to the business in the market, PESTLE analysis
to know the effect of the marketplace.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
There are different sources that are used by an entrepreneur in order to satisfy the need and
demand of the customers. The innovation will be inserted while conducting the market research
and then the new idea will be implemented within the products and services that are served in the
market by the virgin money (Newman, 2018). The new thoughts will be generated as per the
knowledge, experience, skills, ability, passion, commitment, focus, talent of an entrepreneur. But
business environment goes on changing as per the different requirements of the customers and
has both threat and the opportunity for the business. Some of the changes are as defined below
as:
Macro-environment: beauty products are based on the economic effects of the country or
the economic growth of the certain region. Innovation in the beauty products reflects the
different consequence that has been generated within the change in the economy that is as
defined below as:
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Social factors: It reflects the life standard and the style of the particular society that has been
developed as per the size, scope, educational background, religious, habits, taste of the people
that have been changes on random basis (Miao, 2019). As people have more concern about to
keep secure their beauty products and they get attracted towards the beauty products. It supports
an entrepreneur to keep motivating the people to get connect with the different services that is
served by the company.
Technological factors: It is the factor that defined the technological advancement that
has been introduced as per the different innovation of the market. beauty products has been
introduces a lot of advancement on terms of digitalisation and it is used by the people on larger
scale. It is a source that supports an entrepreneur to grab the market opportunity and helps the
virgin money to get resolved the different problems of the market.
Drucker’s sources of innovation:
It is the source of innovation that is used an entrepreneur in order to gain the opportunity
that helps to gain the higher competitive advantage in the market while measuring the threat
that has negative impact of the performance of the company. The beauty products as like
mortgages, savings, credit saving etc is some of the basic services that attracts the large customer
base. The innovation that is based on the idea that is generated from an entrepreneur is as
explained below 3with the help of by Peter F Drucker are as:
Unexpected: It is the innovation that is very much unexpected to occur as its probability
of happening is quite low thus the new innovation and the idea is stumble. Virgin money
considered this as the uncertain event that has happened by chance. In this the new idea and
innovation will implemented by the businesses order to achieve the better outcome.
Incongruities: It is the behaviour of feeling incompatible and it is in the nature if the
human behaviour that goes change as per the changes that are implemented by the company.
Thus the entrepreneur tries to resolve this issue from the company by motivating an employee by
which they easily accept the change within the business (Ezeahurukwe, 2018). It builds a lot of
opportunity for the Virgin money as it reduces the incongruities and imparts the belief in the
people.
Market Structure: It has been changes on continuous basis as the beauty products has
been served in the market that is all across the world as people get searched that from the Google
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or from the web search engines. It motivates a lot of opportunities for the company to gain the
long time success and development.
Necessity: It is the process that shows the basic requirements of the business and this
innovation is needed to get implement within the company. The virgin company need to get
enhance their funds to make the better utilisation of the resources. Thus the new idea and
innovation will be generated by an entrepreneur in order to fulfil the basic requirements of the
market.
Demographics: It is the source that is required to fulfil the basic lifestyle or the living
standards of the public (Ilonen, 2018). The beauty products will be provided to the customers to
get spread more easiness in the market and impart easy access to the users. It motivates an
entrepreneur to grab the opportunity from the market and provides the easiest solution to the
customers.
Changing perception: It relates to the thinking that assist that changes and innovations
are necessary in the market as it develops the overall standard of the society. It motives an
entrepreneur and brings the change in the mindset by which they develop the safe and secure
services to the customers.
New knowledge: It is the base of the innovation and the creative ideas that keeps
implemented in the market. It is based on the knowledge and the skills of an entrepreneur that
motivates to influence the market and indulging the new and different change in the market. It
provides the opportunity to an entrepreneur in which they get introduced the new innovation in
the digitalisation that reduces the time and the cost of the people and the users as well.
P2 Explain the rationale and market gap by using relevant tools and techniques
An entrepreneurial idea is being set by targeting the specified market and by identifying the
market gap with the help of different tools and techniques (Clark, 2019). In context of beauty
products of the Virgin money the need and demand of the market will get analysed by an
entrepreneur that further meets the requirements of the customers.
Identifying customers
An entrepreneur is the one who works with the creative and unique ideas that satisfies the
need and demand of the customers by providing the adequate solutions in the form of different
products and services. These ideas bring the change and the development in the market that helps
to improvise the performance of the company. As from this an entrepreneur wants to target the
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certain market and then influenced the capabilities of the market. They must get analysed the gap
by conducting the appropriate survey of the market that defines the market state and as from this
extensive as well as expensive research will be received (Olanrewaju, 2018). The beauty
products are the one that attracts the larger share of the market and helps to gain the higher
advantage from the market opportunity. The services will be provided on the basis of society up-
gradation in terms of gender, age, occupation, qualification, income, residential location and
many others too.
Market segmentation
It is the process through which the customers will get segmented as per their potential
and that is divided on the basis of characteristics. Customers are the one that are very much
related to the beauty products and they has huge involve in the certain activities that get affects
the economy of the state. It is helpful for an entrepreneur to get solved different issues of the
customers in an effective manner with the help of certain innovations and creative ideas. There
are different types of market segmentation that are as defined below as:
Behavioural Segmentation: In this segmentation the market will be divided by an
entrepreneur on the basis of behaviour of the public. It affects the buying behaviour of the
customers and for this Virgin money uses brand loyalty, frequency and many others. It has been
used by the company to target the specified market and also influences the decision-making
process of the customers. The behaviour of the people keeps on changing on the basis of usage,
loyalty, occupation, benefits, occasion etc.
Demographic segmentation: It is the segmentation that is based on the age, religion,
education, gender, family background etc. The beauty products is being very much connectable
to the people as they are also get influenced by this different offers that is served by the financial
institutions. It is basically divided into the four basic categories that are as age, life cycle stage,
income, religion and gender (Costa, 2018). The idea of funding is developed by an entrepreneur
by using the different segmented customers.
Geographic segmentation: In this the market will be segmented on the basis of particular
region or the area. It is the approach that is used by an entrepreneur to perform different
marketing strategies by serving the wide area in a certain territory. Beauty products are those
services that are produced by an entrepreneur to improvise the sales and profit of the company.
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Virgin company performs or adopt different segmentation on the basis of size, preferences of the
customers, seasons and many others.
Product and services
Tangible products: These are those services that are physically get touched by the
company as well the customers too. These are the products that get feel or touched by the
customers and it provides more benefits to the company as it enhances the purchasing power of
the buyer.
Intangible products: It is the service that is non get touched by any of the party either it
is company or the customers (Rastkhiz, 2019). It includes the price, accessibility of the brand,
variety promise, marketing and advertising activities, brand reputation, marker belief and values
of the company.
Industry Environment:
It is an environment that get influenced by the economy of the market, rules and
regulations of the government, regulatory authority, social and political factors, technological
advancements etc. The virgin money thus offers an entrepreneur that generates more creative
ideas and the innovatory changes that enhances the economic factors of the company.
Porter's five forces model:
It is the model that defined the strategic planning toolkit that is used by the company to
influence the sale and profit of the company in a sufficient manner. It is beneficial for an
entrepreneur as well as they could analyse the different consequences of the market. It helps to
get resolved the rational gap that has been useful for Virgin money while expanding their
business.
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(Source: Porter's five force analysis, 2019)
Competitive Rivalry: It is the force that defines the number of existing rivals or competitors of
the company in the market. There is a lot of competition in the market and customers also get a
lot of options to get purchased their required products and services from the market. The higher
advantage has been taken out from the customers as they get the best services with the minimum
price. For this all the companies must applies different strategies to gain the maximise profit
(Evansluong, 2019). In this there are different institutions that provides the best beauty products
to the customers thus virgin money also provides best benefits to their customers. Thus in order
to gain the success in an effective manner company must collect the relevant information from
an entrepreneur. It is the force that exerts more risk as different constituent’s works for the same
goals that is to gain the higher market share.
Threats of new entrants: The virgin money gets a lot of profit from the longer period of
time and by attaining the different technologies and special infrastructure. Beauty products is
been attract the large base of customer as everyone wants to get the safety and the security for
future period of time. Thus in this the different strategies or the model that is applied by the
company get supports the company to measure the success and growth. It is quite tough for the
new entrant to gain the belief and faith of the people as they also have the less belief on the well
known organisation as well. Thus Virgin money is in positive back as they have the well known
and well established brand thus customers has high belief of the company.
Threats of substitutes: There are different competitors in the market that deals with the
cosmetics products and they all work to satisfy the need and demand of the customers. Thus it
also get affect the interest rate and offers the best deal to the customers. Thus virgin money
offers a lot of services as like saving account. Insurance, business accounts, mortgages, credit
cards, investments, pensions, travel money, current account etc. That has positive impact on the
brand loyalty, switching cost of the customers and others too (Miocevic, 2018). But on the other
hand they must involve the different strategies for to induce the technological advancement that
has bears the high cost to the company.
Bargaining power of buyers: It affects the pricing and the costing of the company as
they also need a lot of resources in order to manage their operations. Market has a lot of buyers
and they dictate the pricing strategy in the market. Buyers has a huge control on this factor as
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they has huge option to get switch their services with the other company. Customers only get
restrained if they get the high quality services and that same is happening in the Virgin money as
they always takes customers on their priority list. In addition to this company also performs the
survey in order to collect the feedback of the customers and then implement the different
requirement of the customers in an efficient manner.
Bargaining power of Supplier: In this an entrepreneur tries to make the balance relationship
with the suppliers in order to manage the continuous development in their own product and
services. While entering in the newer market it is necessary that price must be set that attract the
attention of the customers and that further improvised the sales and profit of the company
(Maroufkhani, 2018). Thus the business strategy of an entrepreneur helps the Virgin money to
get better establishment in the newer region with more sufficiency.
TASK 2
P3) Support the gap analysis in the evaluation of specific entrepreneurial idea
Market research is the systematic approach that has been used by an entrepreneur through
which they try to understand the different ups and down of the market. This research is based on
the primary as well as secondary data that is collected or performed to know about the behaviour
of the market as well customers (Shu, 2018). The beauty products of the market get analysed by
an entrepreneur in order to provide the support to the Virgin money that helps to gain the higher
advantage from the competitive market. The market research of the market has been defined as
below as:
Primary research: It is the research that is conducted for the very first time and in this
company conducts the survey, interviews or questionnaires etc. It has been conducted to know
about the different problems of the market and especially about the targeted market. It is
furthermore helpful of the virgin money to get connect with the customers.
Secondary research: It is the research that is conducted by the company to get on the
conclusion of a particular basis. In this the data will be collected through the published data,
journals, internet, books etc. It helps to generate the new and innovative idea for the new
business.
Questionnaire
Name:
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Age:
Address:
Q1 Did you get aware about the different beauty products?
Yes
No
Q2 Did you are familiar with the cosmetics products?
Yes
No
Q3 Did you feel satisfied from these products?
Yes
No
Q4 Is there is any issue related with Beauty or Cosmetics products?
Yes
No
Q5 Do you purchase beauty products from online sources of marketing?
Yes
No
Q1 Did you get aware about the different beauty products?
Yes
No
6
4
8

Q2 Did you are familiar with the cosmetics products?
Yes
No
8
2
9

Q3 Did you feel satisfied from these products?
Yes
No
9
1
Q4 Is there is any issue related with Beauty or Cosmetics products?
Yes
No
8
2
Q5 Do you purchase beauty products from online sources of marketing?
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Yes
No
8
2
P4) Interpret data appropriately to provide evidence of market potential.
Q1 Did you get aware about the different beauty products?
Yes
No
6
4
Mean: 5
Mode: 5
Mode: 2
Interpretation: As from the above graph it has been observed out of 10, 6 candidates are aware
about the different beauty products
Q2 Did you are familiar with the cosmetics products?
Yes
No
8
2
Mean: 6
11

Mode: 6
Mode: 0
Interpretation: As from the graph it is noticed that out of 10 there are 8 numbers of candidates
that are familiar with the cosmetics products while other 2 didn’t aware about these products.
Q3 Did you feel satisfied from these products?
Yes
No
9
1
Mean: 5.5
Mode: 5.5
Mode: 1
Interpretation: It is observed that out of 10 there are 9 people who get satisfied with these
products while the rest 1 is not aware.
Q4 Is there is any issue related with Beauty or Cosmetics products?
Yes
No
8
2
Mean: 6
Mode: 6
Mode: 0
Interpretation: It is observed that out of 10 there are 8 number of candidates that has issued
related to the cosmetics products.
Q5 Do you purchase beauty products from online sources of marketing?
Yes
No
8
2
Mean: 6
Mode: 6
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Mode: 0
Interpretation: As from the above observation it is noticed that out of 10 number of people 8
purchases the cosmetics products from online while rest 2 didn’t use online source of marketing.
Gap analysis
It is also known as the strategic tool that is used to analyse the gap of the market that is
based on the products and services that are presented in the market as per the requirement of the
market. It is an analysis that vanish the gap of the market by making the standardised outcome
that has been achieved after some period of time (Farsi, 2019). An entrepreneur works with the
beauty or the cosmetics products and that gap will be reduced by using SWOT framework. It
helps an entrepreneur to expand their business on wider platform with maximise sales and more
profit.
TASK 3
P5) Apply SWOT framework to collate evidence to support an objective assessment
Entrepreneurial idea is based on the different requirement of the market and it is mandatory
that risk and the safety factors must be measure by an entrepreneur. The formulation of different
strategy helps to gain the higher competitive advantage by developing effective plans for the
business.
Strength It states the ability of the company to drives the positivism in the business and in this the
cosmetics products will be distributed with proper channel. They provide and manage their
operations with cost effective manner and this idea has strong market reputation that attracts
large number of customers.
Weaknesses The major weakness is that beauty products doesn’t get suit to all and people must get used
the brand products in order to prevent the skin.
Opportunity It is based on the satisfactory level of the customers and with this the need and demand of the
customers get satisfied (Turner, 2018). The up-gradation and organic ingredients attracts the
customer to get purchase the maximum products of that particular company.
Threat As company has a lot of problems as they have to follow different rules and regulations of the
government as like trade ratios is the biggest threat for the cosmetics companies.
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P6) evaluate the competitive and market environment to access the potential viability.
Market environment includes the macro factors that affect the profitability of the business
and in this they analyse the impact of market on the performance of the company.
Political It includes the rules and regulations of the government as like trade policies, tax rates, fiscal
policy etc. It has direct impact on the beauty products as they have to follow the different
legal policies of the government.
Economical It relates to the economic growth and development of the company and beauty and cosmetics
company has to face the different factors as like raw material, interest rates etc. It affects the
profit ratio of the company that is very much needed for an entrepreneur (Hjalager, 2018).
Social It includes the cultural trend and beauty and cosmetics products company has profit in this as
it has the high demand in the marker and people are also looking forward for new innovation.
Technological It includes the innovation and it generates more favourable conditions to the beauty products
company. As in this new innovation will be introduced on continuous basis.
Legal It affects the performance of the company as they have to follow all the legalities as like
labour laws etc. in order to provide more safety to the consumers.
Environmental It defines the safety and security of an environment and the beauty and cosmetics company
must affects as their raw material operates from the environment.
CONCLUSION
It has been concluded from the above report that the beauty products works with the
behavioural segmentation that is helpful to satisfy the demand of the customers. SWOT analysis
that has been performed to attain the opportunity from the market in order to generate the
economy. The PESTLE analysis that is performed by an entrepreneur to know about the macro-
environmental factors that affects the performance of the company.
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ONLINE
Porter's five force analysis. 2019. [Online] Available through: <https://medium.com/product-
gyaan/porters-five-forces-analysis-868945aa5846>.
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