Identifying entrepreneurship opportunities

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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