Identifying entrepreneurship opportunities

This document discusses the process of identifying entrepreneurship opportunities and the market gap for a specific entrepreneurial idea. It covers topics such as rationale, market analysis, data interpretation, and evaluating competitive marketplaces. The document also includes a questionnaire to gather data on market potential.

Identifying
entrepreneurship
opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO 1.................................................................................................................................................1
Covered in ppt.............................................................................................................................1
TASK 2............................................................................................................................................1
P2) Explain the rationale and the market gap for a specific entrepreneurial idea.......................1
M2) Provide justification of how a specific entrepreneurial idea fills a market gap..................5
D2) Critically evaluate a specific entrepreneurial idea based on interpretation and
investigation of competitive market place..................................................................................5
TASK 3............................................................................................................................................6
P3) Present data needed to support gap analysis in the evaluation of entrepreneurial idea........6
P4) Interpret data appropriately to provide evidence of market potential..................................8
M3) Justify the specific sources and method of data collection and how it relate to market
potential.....................................................................................................................................14
D3) Analyse appropriate specific sources and method of data to provide justified business
objectives...................................................................................................................................14
TASK 4..........................................................................................................................................15
P5) Apply SWOT framework to collate evidence to support an objective assessment of
entrepreneurial idea...................................................................................................................15
P6) Evaluate the competitive and market environment in which idea will be launched..........17
M4) Critically evaluate a specific entrepreneurial idea in context of marketplace and
competition................................................................................................................................17
D4) Formulate the valid conclusions and justified recommendation on how specific
entrepreneurial idea can be developed......................................................................................17
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Entrepreneurship is a process through which new business is developed, planned,
designed and the person who develop that business is known as entrepreneur. Entrepreneurial
opportunities are the conditions that provide benefits to an entrepreneur in terms of increment in
profit and growth (Foss, 2018). It is the advantage that an entrepreneur get by selling there
product and services in the market with comparative higher cost as compared to cost of
production. Tesco is one of the largest retailing company in UK that was founded by Jack Cohen
in 1919 and have headquarter in Welwyn Garden City Hertfordshire. It deals with different
products and services like groceries, clothes, furniture, electronics and many more. But to gain
more competitive advantage Tesco plans to diversify their product and services for that they
enter in new segment that in cosmetic sector. This report includes the rationale and market gap
for an entrepreneurial idea with that analyse the support gap that is needed to evaluate the idea.
Furthermore, includes the analyse the strength, weaknesses, opportunities and threat that support
the assessment of entrepreneurial idea.
TASK 1
LO 1
Covered in ppt
TASK 2
P2) Explain the rationale and the market gap for a specific entrepreneurial idea.
As Tesco has around 2,318 store worldwide and have 13 international market apart from
UK. Thus Tesco uses geographic segmentation by which they supply there product and services
as per the development and requirement of the society (Gianesini, 2018). Whereas in
Behavioural segmentation Tesco supply there product and services as per the behaviour of the
customers and that depends on education, qualification, values, mentality etc. While
demographic segmentation includes the sex, age, family size etc. with that Tesco provides the
services as per the requirement of market.
Porter's five forces model: It is a model that is used by Tesco to measure the market
competition as they innovate their cosmetics product for the young generation. As they are very
much conscious about there skin thus Tesco innovate there cosmetics by adding herbal purity in
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that and add the organic material. With that there are various competitors in the market for that
company performs this model that is as explain below as:
( Source: Porter's five force analysis, 2019)
Bargaining power of suppliers: There are various suppliers that supply the raw material
to the retailing company. Suppliers are more ascendant that they can directly affects the profit
that is gained by the company. If suppliers sells the raw material with higher rate that decreased
the overall profit that is gained by the retaining companies. For that Tesco must maintain the
supply chain management with different suppliers with that also performs different experiments
by changing the designs and material of the products. Also analyse there competitors like Asda,
Walmart about there relations with the suppliers and then balance the relationship with there
suppliers to earn the profit through bargaining.
Bargaining power of buyers: As customers always want new products with less price
that it is important for Tesco to maintain the profit for a longer period of time. With that large
customer base expects they expect more discounts and offers by the company. For that Tesco try
to builds the large customer base that helps them to reduce the bargaining power with that
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enhance the sale and profit. For that Tesco innovate the new product and offers the discount to
the customers that maintains the increment of the productivity of the company.
Threat of substitute: With that innovation of new product and services it is always a
threat for Tesco that if its competitors (ASDA, Walmart, Morrisons etc.) brings the same product
that divide the sale of the company. Thus Tesco manages that by focusing of service orientations
rather than product orientations. With that induce the changes as per the requirement and demand
of the customers with that company retain there customers and gain long time competitive
advantage (Gümüsay, 2018).
Threat of new entrants: New entrant always brings more competition in the market and
that reverts the pressure on Tesco to lower downs the pricing strategy, cost also get decreased
and that provides more benefit to the customer. Tesco must manage there strategies to remain
balanced and secure their competitive edge. For that Tesco innovates there product and builds
the strong customers base with that to enhance the profit and sales Tesco must reduce the cost of
per unit product.
Rivalry among existing competitors: Rivals are the competitors that always try to
reduce there cost price to grab the attention of the customers. Tesco also imparts the competition
in the market by reducing their overall production cost. Tesco manages the rivalry by providing
the better scale to the customers with that increases the size of the market to gain more
competitive advantages.
By analysing the porter's five forces model Tesco made the best strategies to reduce the
overall production cost with that also manages the changes in the market trends and then
innovate there new product. With the help of innovation company enhance the competition and
measure the profit.
Retailing industry life cycle: It is a cycle that defines the different stages of product and
services that is offered by Tesco to the customers that is as explained below as:
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( Source: Industry life-cycle, 2020)
Start-up It is a stage in which customer are not aware and familiar about the product and
services of the company. In this stage company supply there product with very less revenue and
also measure the negative flow of cash within the business as because company invest a lot of
amount in new technologies, raw materials and equipments.
Growth: It is a period in which company measures the higher profit as product and
services has been already advertised in the market. This is a stage in which gross margin is
increased as marketing and production cost decreases with that measures higher profit as
compare to cost of products.
Shake-out stage: It is a stage that strengthen the business as some of the business get
loss as they didn't get established there business whereas, Tesco gets the profit in terms of market
growth and development. This is a stage at which company profit slays down as business
formulate to maturity period (Hueter, 2019).
Maturity : It is a stage in which company already feels the growth and higher sale and as
faster the product reached at maturity rate that much sustainability in market in increased. And
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with that company faces a lot of competitions thus they also insert different strategies to remain
in the market with that sometime re-launched the product and services with new advancement.
Decline: It is the stage in which company feels the recessions as by gaining the profit and
higher market growth product and services eventually falls down and company performs the
penetration strategy to enhance the sale and profit. Company also provides the discount to the
customer to liquidate the availability of the stocks and at last product vanished from the market.
M2) Provide justification of how a specific entrepreneurial idea fills a market gap.
Market gap is the different between the need of the customers with the product and
services that is provided by the company. This gap provides the growth to the business as it
provides the opportunities to the companies to expand their business by spreading the awareness
in the market about their product and services. As youngsters are more aware and conscious
about there skin and for that they uses higher quality products and that are quite more expensive
thus it is not possible for all to purchase that. With that is not possible and easy to purchase those
highly expensive products. For that Tesco launch the new innovative product that is less
expensive and easy to purchase. The new product includes the herbal and organic products that is
suitable to all the skin tones and with that it is beneficial for both male and females. Thus Tesco
fulfils the gap of market by providing the product that is economical for all.
D2) Critically evaluate a specific entrepreneurial idea based on interpretation and investigation
of competitive market place.
The new and innovative idea is based on the interpretation and investigation of market
place competition. As there are a lot of competition that is faced by the retailing industry because
of there are more then one business that produced the similar product and services to the
customer. Competition has been raised as customers has a lot of variety and for that company
reduces the cost to attains the maximum profit (Joll, 2018). For that Tesco analyse the
requirement and demand of the customers and with that interpret the competition of the market.
And with that investigate the product and services that is already presented in the market. With
that made the product that is not developed in the market and insert the changes that is needed by
the customers.
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TASK 3
P3) Present data needed to support gap analysis in the evaluation of entrepreneurial idea.
Gap analysis is a description of the difference between the product and services that is
offered by the company and requirements of the customers. For that Tesco maintains the
difference between the current and future situations.
Basis Current position Desired position Action plan
Products and
Services
Tesco Provides
different products
include groceries,
furniture, clothes, toys,
telecom and financial
services, electronics
and many more
(Korte, 2018).
To manufacture
cosmetics products
that is more herbal and
organic for both male
and female.
To producing these
cosmetics products,
Tesco purchase
different machinery
and provide training to
the employees to
manage the production
of new products.
Cost Tesco offers the
product with
appropriate prices by
which customers
easily get connect with
the company.
Tesco manage the
prices of there product
and services by
analysing the pricing
strategies of the
competitors to gain
the competitive
advantages.
Tesco developed the
product with reliable
price and uses price
penetration strategy to
attain the attention of
customers.
Innovation The new innovate idea
is very much creative
that attracts the large
customer base.
By inducing the
innovation in the
cosmetics products
Tesco has the large
scope to gain the
advantage and market
share.
By accepting the
feedbacks and
reviews, from the
customers Tesco
implement the further
change and follows
the customer centric
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appraoch.
Objectives Strategies
The major objective of Tesco with this
new product is to gain the large
customer base by satisfying the need
and demand of the customers.
 To manufacture the good herbal and organic
products.
 Using penetration strategy to attract the
customer towards the new innovative product.
To balance the sustainable business  For that Tesco collects the feedback and review
of customer and then implement the change as
per requirement of customers.
 Tesco also offers discount to all the customers
and special offers to permanent customers
(Kreps, 2019).
Gantt chart: It is a chart that defines the time that is required to perform a certain task
within the business for to complete the process that is as explained below as:
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P4) Interpret data appropriately to provide evidence of market potential.
There are different sources from which company collects the data and then analyse the
different factors to measure the success. There are two type of sources one is primary in which
data is collected by the very first time as from interview, surveys, questionnaire. Whereas,
secondary sources are in which data is collected from the already published data like from
journals, books, magazines etc. For the new innovative product Tesco follows the primary
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research and for that company collects the information from 30 people with the help of
questionnaire that is as follows as:
QUESTIONNAIRE
Name:
Age:
Address:
Contact Number:
Q1. Did to know about herbal and organic products?
A. Yes
B. NO
Q2. Did you use herbal beauty products?
A. Yes
B. No
Q3. Is herbal and organics product healthy for skin ?
A. Agree
B. Disagree
C. Don't Know
Q4. Do you think that herbal and cosmetics products get the success in the market?
A. Agree
B. Disagree
C. Can't Say
Q5. Do you think Company gains the competitive advantage with this innovative product?
A. Yes
B. No
Q1. Did to know about herbal and organic
products? Frequency
A. Yes 17
B. No 13
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Total 30
Mean 15
Median 15
Mode 4
Interpretation: As from the above graph it is measured that as from the 30 peoples 17
are aware about the herbal and organic products (Markard, 2018). Thus as per the information
mean is 15, median is 15 and mode is 4.
Q2.Did you use herbal beauty products? Frequency
A. Yes 25
B. No 5
Total 30
Mean 15
Median 15
Mode 0
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Interpretation: As from the above graph it is measured that as from the 25 peoples 30 are aware
about the herbal and organic products. Thus as per the information mean is 15, median is 15 and
mode is 0.
Q3. Is herbal and organics product healthy
for skin ? ? Frequency
A. Agree 16
B. Disagree 8
C. Don't Know 6
Total 30
Mean 10
Median 8
Mode 4
11
A. Yes B. No
0
5
10
15
20
25
30
25
5
Column B

Interpretation: As from the above graph it is concluded that 16 persons out of 30 believes that
herbal and organics product healthy for skin. Whereas, 8 are disagree with the statement. There
are 6 persons who are nor in favour or against. While Mean is 10, median is 8 and mode is 4.
Q4.Do you think that herbal and cosmetics
products get the success in the market? Frequency
A. Agree 13
B. Disagree 10
C. Can't Say 7
Total 30
Mean 10
Median 10
12
A. Agree
B. Disagree
C. Don't Know
0 2 4 6 8 10 12 14 16 18
16
8
6
Column B

Mode
6
13

Interpretation: 10 out of 30 persons are agree on the statement that herbal and cosmetics
products get the success in the market, Whereas, 13 are disagree. 7 persons are neutral. Mean of
this information is 10, median is 10 and mode is 6.
Q5. Do you think Company gains the
competitive advantage with this innovative
product? Frequency
A. Yes 16
B. No 14
Total 30
Mean 15
Median 15
Mode 2
14
A. Yes B. No
13
13.5
14
14.5
15
15.5
16
16.5
16
14
Column B

Interpretation: 16 persons believes that Company gains the competitive advantage with this
innovative product and 14 doesn't believe in this.. Mean and median of this statement is 15 and
mode is 2.
M3) Justify the specific sources and method of data collection and how it relate to market
potential.
Internal sources of data collection: This is the data that is collected within the company
that is as follows:
 Stakeholders: These are those who equally participate in the profit and loss of the
company these are employees, creditors, owner, suppliers etc. thus they provide the brief
accords to there knowledge (Newman, 2018).
 Financial reports: It is a report that is developed by the company itself and it includes
the record of performance of the business with different product and services.
External sources of data collection: This is the data that is collected from outside the
company that is as follows:
 Customers: Company collects the feedback and review in the form of questionnaire,
survey etc.
 Journals: It is a secondary source of data collection as it is already published data of
some author and that is needed for the business as it provide the brief about the already
happened activities.
D3) Analyse appropriate specific sources and method of data to provide justified business
objectives.
Primary source: It is a source in which data is collected for the very first time as by
conducting the survey and collecting the feedback, by preparing the questionnaire, by taking the
interview of different people. There are different benefits of this as it helps to justified business
objectives are as follows:
Advantages of Primary source Disadvantages of Primary source
As from this company gets the exact
information as per there requirement.
It is very much time consuming as collection
of data takes a lot of time.
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Tesco gets the accurate and reliable results
from the primary source of data collection.
It takes a lot of cost to get performed as
everything is conducted by humans.
Secondary source: It is a source in which data is collected from the already published
data i.e. from journals, books, articles etc.
Advantages of Secondary source Disadvantages of Secondary source
It is very much less expensive and very much
practical work is required.
Sometime company doesn't get the reliable
results according to requirement.
It takes lesser time to get searches the data as
per the requirement.
Somehow data is outdated and doesn't fulfil the
objective of the company (Nicholas, 2018).
TASK 4
P5) Apply SWOT framework to collate evidence to support an objective assessment of
entrepreneurial idea.
To measure the strength and weakness Tesco performs the SWOT analysis as per the gain
the market knowledge that is as explained below as:
Strength Weaknesses
 New innovative herbal and organic
product of Tesco has all the
components that is required by the
customers thus it attract the large
customer base.
 Tesco made the product that is
demanded by the youngsters and Tesco
has strong value and image thus
customers easily accept the change
(Phadermrod, 2019).
 Customers always get switched to
different product inside of getting stick
to similar product.
 Tesco needs the large number of funds
to introduce the product at large scale
and there is no surety that product is
accepted by the customers or not.
Opportunities Threat
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 Customers wants a product that is more
reliable and less expensive and Tesco
has the same target that attracts the
large customer base.
 Tesco work with unique and creative
idea that covers both male and female
and they both are very much conscious
about there skin problems.
 Tesco has various competitor and they
also try to made the same product with
less price that brings huge loss in Tesco
business.
 New entrant also comes with new
technology and ready to work with less
revenue that is the biggest threat for
the well established retailing company.
Market and competitor analysis: It is an analysis that defines the different aspect of
Tesco and its competitor that is as explained below as:
Basis Tesco Walmart ASDA
Products and services Provides all the
different
merchandisers and
groceries and covers
all the relevant
requirements of the
customers.
They provides the
large variety of
products and services
includes retail goods,
financial services,
photo lab services,
pharmacy and many
more.
ASDA provides there
own brand products
with other companies
product and also offers
car insurance, credit
card services etc.
Organisational
structures
Tesco has hierarchical
structure that helped
them to focus on every
department of the
company and they use
that as because Tesco
is a very large
organisation.
They are using
hierarchical and
functional
organisational
structure and follows
the command from the
higher authority and
work in a vertical line.
They also use
functional hierarchical
structures as they
works on large scale
and have different
functions.
Major attractions They follows the
customer centric
Provides good quality
services and better
They provides the
holiday trip to there
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approaches to grab the
attentions of the
customers.
environment in there
stores with that made
separate column for
every product that
induce easiness for the
customers (Sedkaoui,
2018).
customer to visit the
popular tourist
attractions.
P6) Evaluate the competitive and market environment in which idea will be launched.
PESTLE Analysis: It is an analysis that defines the macro-environment factors of the
Tesco that is as explained below as:
Political Tesco introduce the changes with that they need to follows all the rules and
regulations and the policy of the government and company gets the benefit of
that as UK government is very much stable and doesn't get fluctuate.
Economic It is a factor includes the interest rate, inflation rate and all thus company gets
the benefit as UK infrastructure if well developed thus company easily gets
the land and labour as per the requirement (Shephard, 2019).
Social As Tesco innovates the product and services to the customers and fulfil the
requirement of the customers that builds the strong relationship with that
customers.
Technological It includes the technological advancement and Tesco brings that by
innovating the product and provides the new herbal and cosmetics product to
the customers.
Legal As company must ensures that product doesn't harm the people and maintain
the proper balance of all the required components within the product.
Environmental New product of Tesco is very much environmental friendly and doesn't harm
the customers.
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M4) Critically evaluate a specific entrepreneurial idea in context of marketplace and
competition.
To be in a market for a longer period of time and to measure the competitive advantage
Tesco performs different functions. And thus company compares the different slot as per there
competitors and thus innovate the product that includes the organic components in that (Uygur,
2019). As youngsters have interest and with that thus company gains the more competitive
advantage. Market has that cosmetics products but that is very much costly and it is not in range
of all. Thus it is very hard for the customers to use the product that they want too. Thus with that
Tesco comes with that product that is more beneficial and less costly.
D4) Formulate the valid conclusions and justified recommendation on how specific
entrepreneurial idea can be developed.
It has been concluded from the above discussion that Tesco develop the product that is
beneficial for all and covers both male and female. With that produces the herbal and organic
products for all the skin tone that is helpful to reduce the skin related problem thus a large
number of customer base gets attracted towards there new products and services (Yun, 2018). It
has been comprehended that company must collect monthly basis feedback and reviews from the
customers and thus with that imparts the changes as per the requirements of the customers.
CONCLUSION
It has been concluded from the above report that there are different sources that is used
by an entrepreneur to brings the innovation in the business. With that concludes the rationale and
market gap for an entrepreneurial by the usage of tools and techniques. Company also needs the
primary and secondary sources to collect the data that is related to there innovation. Then
company performs different interpretation that provides the exact information about the
innovative product that provides the competitive advantages. Furthermore, concludes the macro-
environment factor with SWOT analysis to measure the strength and weaknesses of the business,
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REFERENCES
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Foss, N. and Klein, P., 2018. Entrepreneurial opportunities: who needs them?. Academy of
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Gianesini, G and et. al., 2018. Entrepreneurial competences: comparing and contrasting models
and taxonomies. In Entrepreneurship and the industry life cycle (pp. 13-32). Springer,
Cham.
Gümüsay, A.A., 2018. Unpacking entrepreneurial opportunities: an institutional logics
perspective. Innovation. 20(3). pp.209-222.
Hueter, G.J. and Quandt, S.C., CERTONA CORP, 2019. System and method for automating
market analysis from anonymous behavior profiles. U.S. Patent 10,290,039.
Joll, C. and et. al., 2018. Developments in labour market analysis. Routledge.
Korte, R., 2018. Identifying as an Entrepreneur: A Social Identity Perspective of the
Entrepreneurial Mindset. Advances in Engineering Education. 7(1). p.n1.
Kreps, D.M., 2019. Microeconomics for managers. Princeton University Press.
Markard, J., 2018. The life cycle of technological innovation systems. Technological Forecasting
and Social Change, p.119407.
Newman, A. and et. al., 2018. The effects of employees' creative self-efficacy on innovative
behavior: The role of entrepreneurial leadership. Journal of Business Research. 89.
pp.1-9.
Nicholas, J., 2018. Lean production for competitive advantage: a comprehensive guide to lean
methodologies and management practices. Productivity Press.
Phadermrod, B. and et. al., 2019. Importance-performance analysis based SWOT analysis.
International Journal of Information Management. 44. pp.194-203.
Sedkaoui, S., 2018. How data analytics is changing entrepreneurial opportunities?. International
Journal of Innovation Science.
Shephard, A., 2019. Marriage market dynamics, gender, and the age gap.
Uygur, U., 2019. An analogy explanation for the evaluation of entrepreneurial opportunities.
Journal of Small Business Management. 57(3). pp.757-779.
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Yun, J.J., Won, D. and Park, K., 2018. Entrepreneurial cyclical dynamics of open innovation.
Journal of Evolutionary Economics. 28(5). pp.1151-1174.
ONLINE
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