Identifying Entrepreneurial Opportunity Assignment - Easybay company

IDENTIFYING
ENTRPRENEURIAL
OPPORTUNITY

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2............................................................................................................................................3
P2 Explain the rationale as well as the market gap for a particular entrepreneurial idea............3
TASK 3............................................................................................................................................5
P3 Presenting data to support gap analysis and evaluation.........................................................5
P4 Interpretation of data..............................................................................................................7
TASK 4............................................................................................................................................7
P5 SWOT analysis to assess the entrepreneurial idea.................................................................7
P6 Evaluation of competitiveness and market environments......................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
There are plenty of opportunities that are lying down in the environment in which
business operates, but on which opportunity to capitalise on is a task that can be well understood
only from the mindset of an entrepreneur. An entrepreneur is a person who observes opportunity
within a business environment and arranges necessary resources to capitalise on the same in an
effective as well as efficient manner. An entrepreneur performs various duties and function and it
is not possible for any individual to become an entrepreneur. The various skills as well as traits
that entrepreneurs will posses are leadership skills, team work, co-ordination, Management skills
etc. An entrepreneur can help an economy in various ways, like by opening up businesses, giving
employment to individuals, contributing to the taxation of the country, raising the overall
standard of living of people etc. Easybay is a new start up by an entrepreneur and the company
ahead have distinct opportunities as well as difficulties, the current report will have a detailed
discussion how it is dealing with the same in an effective manner.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
Entrepreneur is the person who is responsible for making right of path and frame plans to
capture the necessary opportunities prevailing within the environment (Tumasjan and Braun,
2012). It is thus quite essential that right kind of environment is available for entrepreneurs to
make sure that they don't face any problems in implementing those opportunities in an effective
as well as efficient way. In order to determine where are opportunities is available, an analysis of
STEEP factors can be done, For the purpose of implementing new and innovative ideas the role
of peter Drucker's 7's Sources of innovation can be significant, these sources are discussed as
follows:
Social Factor: Basically, this factor would mean to have a clear understanding of the social
structure of the surroundings in which he or she wants to start a business or a venture. The social
mindset of people and any changes within such mindset can have a categorical impact on the
opportunities available and thus it is quite essential to execute the same (Messersmith and Wales,
2013). Economical Factor: Various ideas can be drawn from the economical factors that are
available within a country, for example an increase in taxation would be beneficial for
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some companies and negative for other. This can lead to more opportunities to capitalise
upon. Therefore Easybay do have the opportunity to capture online market in an effective
as well as efficient way. Technological Factor: Technological implementation can lead to creation of lot of
opportunities for the people as well as companies. For the purpose of managing these
innovative factors of technology, it is quite important that capable individuals are hired
by these entrepreneurs, who would have the knowledge to handle technology and work
with it. Easybay is a company which is involved in the online business and the growth of
online business is directly related with the implementation of technologies and
technological environment that prevails. Political Factor: It is quite important that right kind of analysis of political conditions is
done, so that it can be estimated that how policies will be turn out in future and thus
frame strategies according to the relevant conditions. Easybay is a company which is
engaged in the business of selling retail grocery online through its websites. It is thus
quite important to know what political decision might affect growth as well as
development of business in future.
Environment Factor: Under this, An entrepreneur will have to make sure that right kind of
environmental practices are followed. The company shall make sure that its working do not harm
environment in any way. It shall also take care that proper ethics related to environment are also
followed while discharging their duties (Kim, Lee and Park, 2013).
Peter F. Drucker has laid down the 7 innovative ideas that can be used by Easybay for expanding
its market reach over period of time. These are discussed as follows: Incongruity: It is basically means producing goods and services based on the needs as
well as desires of the customers in an effective as well as efficient way. Process Needs: Enterprises shall focus on improving its processes so that the needs as
well as demands of individuals can be met in a effective as well as efficient way. Industry and Market Structure Needs: The company shall implement effective pricing
policies for its products. Company needs to innovate different kind of pricing strategies in
order to retain its customers. Demographics: The area and region in which company operates also plays a crucial role
in deciding the innovative ideas for business.
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 Changes is perception, meaning as well as mood: The management of Easybay shall
make sure that proper feed back and views from consumers are gained so that profit level
of company can be maximised. New Knowledge: The company shall make sure that right kind of investment is done in
and innovative knowledge, which would ensure that business growth can be achieved. Unexpected: Entrepreneur of Easybay shall be ready for any unexpected outcome and
planning shall be made accordingly within the business.
Types of Innovation:
Innovation plays a very important role in overall growth as well as development of firm.
The different types of innovation can be described as follows: Product: This would mean innovation within the product itself. A new feature added to
the product or to make a differentiated product from competitors (Yousuf Danish and
Lawton Smith, 2012). Process: This would mean a new and innovative way to produce a product. A process can
be added in the current process structure to produce goods or make service effective. Place innovation: This component would mean innovating accurate production at precise
point so as to increase aid of customers. The selection of this kind of method is known as
place innovation (Sánchez, 2013).
 Incremental Vs. Big Bang Innovation: Easybay can decide on the size of innovation that
it wants to make. The innovation can be incremental or big bang. Incremental would
mean small innovation within products and big bang can mean a completely new and
fresh product or processes.
TASK 2
P2 Explain the rationale as well as the market gap for a particular entrepreneurial idea
It is very obvious that business are changing day by day keeping in mind the end goal to
adjust to different changes that are occurring in outside condition of organization. A definitive
point of different organizations is to make imaginative and innovative thoughts and a legitimate
execution of the same. Because of some enormous occasions like Exit of Britain from European
association there have been different changes and change that includes occurred inside the
enactment procedure of UK but since of this individuals are not totally mindful of these
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progressions that have occurred along these lines, business exercises are not done appropriately.
Subsequently there lies different business openings which can be picked up by business people
through compelling examination of there condition. A smart thought benefits an organization, a
business person as well as to the general public and now and again to the entire nation also. The
unique idea can be to bring those products online which are not available easily within the online
market, these can be items related to premium personal care etc. Accordingly this item has an
exceptional capacity to pull in shoppers and henceforth it might pick up piece of the pie. One
additionally thing which makes it effectively worthy among buyers is the possibility that it is
finely reasonable for all the skin compose whether it is dry, sleek, unpleasant and so on (Wood
and Williams, 2014).
Yet another feature that would make the idea different is that new and premium brand are
usually is not offered through online portals and thus when it will be offered, the demand of
consumers is expected to rise. Such an idea will also develop fresh and innovative environment
within Easybay and will ensure its overall success as well as growth. The various types of
Entrepreneurial idea can be listed down as follows: An example for all: A new kind of product or an idea is always a curious kind of thing
among market, which includes both competitors as well as consumers. If the idea is
differentiated than other competitors within the market then it can set an example for
others to follow the company and its strategies. Creation of benefits for all: A new product or an idea would help in creation of benefits
for all in one way or the other. It will be beneficial for customers, it helps in generation of
employment for people because it is usually understood that new kind of idea will require
more manpower to execute them in an effective as well as efficient manner (Overholm,
2015).
Market Segmentation: It refers to dividing the whole market base on certain basis and then
making strategies as well as policies. This would help company in analysing its customers and
their needs and demands in an effective way, and that would enable company to raise its sales as
well as profitability. The different types of segmentation are as follows: Behavioural Segmentation: Under this, consumers would be judged on the basis of their
behaviour and divided into categories, for example a consumer with high income will
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have certain different needs as well as demands, and a consumer with normal income
level would have different demands, they will be able to sacrifice on quality for price. Demographic Segmentation: This would mean dividing people on the basis of their
income, gender, standard of living etc. Once they are segmented on this basis, Easybay
will be able to make effective strategies for those segments (Palo and Tähtinen, 2013).
 Geographic Segment: Under this, customers as well as consumers are segmented or
divided on the basis of their living cities or areas that means on the basis of their
geographical location, for e.g. A different kind of policy will be framed for people of
Asia and policy for the people of Europe will be different.
Porter's 5 Forces model on Easybay
Competitors: Easybay is a company, which is engaged in the business of providing
online services to its customers, but the level of competition is quite high in this sector because
of Giant players like Tesco, ALDI, etc. they have a deep presence in the online grocery market
and thus it is quite obvious that there is tough competition between them (Arregle, and et.al.,
2015).
Threat of Substitute: The threat of any newcomer taking the market share of company is high
because of the fact, there is no entry barrier in the sector and its also easy to establish a online
business.
Bargaining power of suppliers: Companies that supplies products to companies are big
companies which continuously sell their products through Easy bay's websites. The company is
fairly new and therefore the big multinational buyers do have the bargaining power towards
Easybay.
Bargaining power of Buyers: It refers to the power of buyers to bargain for the products or
services that they purchase. Easybay is a fairly new company within the market and thus it is
quite obvious that it does not enjoy any dominance in terms of its pricing and will have to act
according to the prevalent prices within the market.
TASK 3
P3 Presenting data to support gap analysis and evaluation
Businesses runs in a society, which is quite dynamic in nature and therefore it is very
important to frame policies keeping in mind the dynamic nature of overall society and its
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elements (Baptista, Karaöz and Mendonça, 2014). Because the level of competition is quite high
within the market, and lot of competitors are entering market, Data of Easybay are as follows:
Basis Company Competitive company
Competition within market The main advantage that
Easybay has is their price
competitiveness. They provide
goods at very low prices to its
consumers.
The pricing of companies like
Tesco, Wall-mart etc. is quite
high because of the fact that
they incur heavy expenditure
on various advertising and
promotional campaigns and
thus have to recover the same
from consumers. The prices
are usually 10-12% higher than
Easybay.
New Entrance in Industry This organization offers item
at less expensive rate and they
have outlets which give
simplicity to client in moving
toward brand. They settles 2%
rebate for general clients.
The New entrance in the
industry fight on pricing of
products, they offers products
at considerably low prices than
Easybay, even if they would
incur loss.
Power of Supplier The cost of supplying product
to Easybay for suppliers is
quite low because Easybay
does not charge much profit
margin from its suppliers, it
ranges usually from 5-8%.
The cost to suppliers is quite
high as they have to pay a
higher price to its marketer like
Tesco, wall mart etc.
Power of Customer Business model is customer
oriented and hence, higher
customer satisfaction is there
(Burns, 2016).
More weightage is given to
profits then anything else.
Dissatisfaction of customers.
Threat of Substitute There is always a threat to The current players are big
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existence of company as it is
quite small as of now, and any
new competitor can come up
with same business model.
Easybay has invested around
£10 million in the business,
which can be easily invested
by any other competitor as
well (Cardon and Kirk, 2015).
enough that they do not get
scared from investment made
by any small players in the
sector. Their investment goes
up to £1 billion in their
infrastructure.
P4 Interpretation of data
To collect data and information there are two type of data collection methods which can
be used by the entrepreneur to gather information, they are primary and secondary method of
data collection. In primary data collection method, the information is directly obtained from first
hand sources like surveys, observations and experiments etc. In Secondary data collection
method, the information is collected by the individual though internet, government sites books,
magazines, newspaper and others. In Easybay the entrepreneur can use secondary source of data
collection.
 The competitor's pricing is quite heavy and therefore Easybay has an added advantage
over the other because their pricing level is low.
 Easybay is offering discount to its customers, while other companies are unable to do so.
Hence it is more beneficial for Easybay.
 The cost of providing goods to easy bay by supplier is low and hence suppler do have
necessary bargaining power. But in case of big companies suppliers do not have that
power.
 Easybay believes in delivering to its customers by making a customer oriented business
model.
 The cost of establishing business is quite high, Easybay has invested only £10 million for
its business compare to other competitors who have invested up to £1 billion.
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TASK 4
P5 SWOT analysis to assess the entrepreneurial idea
Easybay require playing out their SWOT investigation keeping in mind the end goal to
check all the effect emerges in inner and outer market and furthermore doing contenders
examination on the SWOT of organization. Their are a few outcomes of outside components on
SWOT investigation are portrayed underneath:-
Strength:- Under this progression organization utilizes distinctive most recent
innovations so as to broadened their business activity at various nations. On the off chance that
item are requesting more in showcase at that point organization require to utilize their
imaginative development keeping in mind the end goal to give standard nature of products and
enterprises with a specific end goal to build benefit in advertise.
Weakness:- The company lacks marketing policy to market its products and services as it
is fairly new and does not have enough fund to spend on these promotional activities. Without
making effective promotion or creating awareness about the products and services of the firm, it
is required fro the organisation that it should use effective promotional channels.
Opportunities: Easybay should make sure that consumers are approached in a way that
will lead to an enhancement in company's performance. They shall increase their overall reach
by launching their retail outlets within city of different countries (Cruz, Hamilton and Jack,
2012).
Threats:- Organization can't spend much cash on investigate advancement part keeping
in mind the end goal to make something other than what's expected in market and it additionally
not extend their task in different nations on account of which they are not getting beneficial
opportunities as contrast with their contention and that influence their manageability in that area.
P6 Evaluation of competitiveness and market environments
Enterprise requires different market examination that will give occasion to feel qualms
about an effect business. Execution of organization can be impacted by various factors, for
example, condition, rivalry and patterns and inclinations. While beginning a business it is vital to
completely investigate contenders display in showcase alongside target advertise condition.
There are a few boundaries that can emerge while propelling new Products and services. It is
quite important to be aware of various macro economic factors before venturing into businesses.
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Competitive Market: It alludes to the contenders that exist inside the market and what
sort of items that they are offering in showcase. How threatful it is for organization and what
negative effects and also impacts it can have on company’s thought process (Kraus, and et.al.,
2014).
Substitute Products: This alludes to the different substitute items that may be accessible
in the market, and which can substitute the items made by Easybay Easily.
Target group of Audience: It alludes to the gathering of people to whom the organization
needs to pitch its items to; the intended interest group is chosen after a watchful investigation of
the market and in addition the need and request of clients
Demand: It alludes to the real request of shoppers of a specific item in the market. A
legitimate investigation for the same is likewise required for making it very clear in the matter of
what sort of items and in addition administrations resemble by buyers.
Small scale condition: It comprises of the interior and smaller scale factors that are
identified with the association, and it would incorporate every one of the partners of the
organization, similar to clients, providers, workers, and investors and so forth
Large scale condition: This would mean the external or outside condition of business
and is comprise of Political, Legal, Social, Technological and different components which do
directly affect the general workings of Easybay (Kuratko, 2016).
CONCLUSION
From the above exchange it is very clear and straight out that a business person is an
extremely pivotal individual for the general public, He is the person who settles on essential
choice to approach and lead, he organizes different assets from the general public and make the
most beneficial utilization of them to accomplish efficiency and in the middle of expects an offer
of benefit for themselves. There are different instruments to survey the opportunities in the
market, these are Gap investigation, Swot examination and so forth by applying this organization
will have the capacity to know its current position, and it can accomplish considerable
advantages than its rivals. There are additionally a few components which impact the general
working of organization, and may likewise impact the developing limit of any start up, these
elements are Micro and Macro in nature like political, social, Service provider or suppliers,
clients and so forth.
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REFERENCES
Books and Journals
Tumasjan, A. and Braun, R., 2012. In the eye of the beholder: How regulatory focus and self-
efficacy interact in influencing opportunity recognition. Journal of Business Venturing.
27(6). pp.622-636.
Messersmith, J.G. and Wales, W.J., 2013. Entrepreneurial orientation and performance in young
firms: The role of human resource management. International Small Business Journal.
31(2). pp.115-136.
Kim, J., Lee, S. and Park, Y., 2013. User‐Centric Service Map for Identifying New Service
Opportunities from Potential Needs: A Case of App Store Applications. Creativity and
Innovation Management. 22(3). pp.241-264.
Sánchez, J.C., 2013. The impact of an entrepreneurship education program on entrepreneurial
competencies and intention. Journal of Small Business Management, 51(3), pp.447-465.
Overholm, H., 2015. Collectively created opportunities in emerging ecosystems: the case of solar
service ventures. Technovation. 39. pp.14-25.
Arregle, J.L., and et.al., 2015. Family ties in entrepreneurs' social networks and new venture
growth. Entrepreneurship Theory and Practice. 39(2). pp.313-344.
Baptista, R., Karaöz, M. and Mendonça, J., 2014. The impact of human capital on the early
success of necessity versus opportunity-based entrepreneurs. Small Business Economics.
42(4). pp.831-847.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cardon, M.S. and Kirk, C.P., 2015. Entrepreneurial passion as mediator of the self‐efficacy to
persistence relationship. Entrepreneurship Theory and Practice. 39(5). pp.1027-1050.
Cruz, A.D., Hamilton, E. and Jack, S.L., 2012. Understanding entrepreneurial cultures in family
businesses: A study of family entrepreneurial teams in Honduras. Journal of Family
Business Strategy. 3(3). pp.147-161.
Kraus, S., and et.al., 2014. Social entrepreneurship: an exploratory citation analysis. Review of
Managerial Science. 8(2). pp.275-292.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Palo, T. and Tähtinen, J., 2013. Networked business model development for emerging
technology-based services. Industrial Marketing Management. 42(5). pp.773-782.
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Wood, M.S. and Williams, D.W., 2014. Opportunity evaluation as rule‐based decision making.
Journal of Management Studies. 51(4). pp.573-602.
Yousuf Danish, A. and Lawton Smith, H., 2012. Female entrepreneurship in Saudi Arabia:
opportunities and challenges. International Journal of Gender and Entrepreneurship.
4(3). pp.216-235.
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