Innovation and Entrepreneurship

This study material explores the concepts of innovation and entrepreneurship. It covers topics such as start-up business ideas, industry profiles, differentiation, marketing mix, competitors analysis, funding sources, and intellectual property. Gain insights into the world of innovation and entrepreneurship.

Innovation and entrepreneurship
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Contents
Executive summary.....................................................................................................................3
Start-up business idea..................................................................................................................3
Industry profile............................................................................................................................3
Point of differentiation.................................................................................................................5
Prospective customers.................................................................................................................6
Positioning and marketing mix....................................................................................................6
Competitors analysis....................................................................................................................7
Sources of funding.......................................................................................................................8
Intellectual property.....................................................................................................................8
REFERENCES..............................................................................................................................10
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Executive summary
The Healthy organic Food store expect to launch in marketplace that will offer organic
food items and services. Initially, they provide the better services which offered for product and
also maintain the unique experience of retail enterprise across the world. It is mainly targeting
the youths, adults who always shows their interest towards the organic products those are health
conscious.
After Brexit, it become challenging for start-up enterprise to develop but it can be
implemented an innovative idea which always support for enhancing overall business
capabilities in global marketplace (Bostan, Onofrei and Lazăr, 2019). In order to serve the
community of 24,000 residents which will be creation of market in response to grow the demand
towards natural food store. The advantage of food traffic in the retail business. In additional, the
market will be comfortable place to meet the expectation level.
Start-up business idea
The start-up business idea is based on the health organic food store which provide organic
item for customer, locally grown produce chemical and other perspectives. The organic items are
healthy alternative to the product which are available in groceries shop.
Product:
The start-up business will offer the client organic and locally grown produce which are
free from other chemicals. It mainly involves body cookies, breakfast cereals and sodas items.
These items are free of artificial perspective, colours, and chemical additives (Forbes,
Ramkrishnan Balasubramanian, 2019). These are processed and unadulterated version which are
currently available in marketplace.
Service:
The organic product enterprise provide facilities and services to purchase particular by
using online medium where customer can buy item. In order to check availability of product as
well as service (Zhao and Dou, 2019). Another option is offline whereas customer directly
purchase item physical store. It will develop physical existence in nearby local areas of London.
Industry profile
Nowadays, organic food industry has rapidly increasingly in global world. It is also
considered in the category of niche market where still to sweep across nation. In coming years,
the demand of organic product has been increased due to incident happen of food adulteration,
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increasing the client consciousness towards items. Consumer in UK preferred to turn completely
organic in their food habit. So as it can easily identified the demand and requirement increases
on regular basis. In this way, it has found that consider as great business idea in development.
The organic food retail industry always focused on the demand of resident, visitor with
upscale organic food store, specializing in the combination of quality (Nguyen and Et.al., 2019).
Initially, start-up cost examined through market research, seeking a small enterprise load in
amount of $200000 to supplement investment which covering entire budget of expenditure (Zhao
and Dou, 2019). The industry has rapidly implementing the innovative idea while offering the
service in drinking such as tea, coffee.
As per analysis, it has identified the every years which has grown from 10% to 15% the
demand of organic food item among customers. In order to calculate or estimate the total
percentage of next five years.
On the basis or geography, the global organic food market which mainly divided into
different countries. It is prodiced by farmers by using reusable resources with having limited
pesticides and other chemicals in food (Pham and NguyenDang, 2019). Generally, It always
maintain the better quality of soil and water which alomost consider as an important in product
development. In recently, it has been increased the demand of organic food item which always
influence customer to consume on regular basis.
The business model
The start-up business related organic food shop that distinctive way of organising the
business activities. It mainly including the delivering its organic food items and services to end
customer (Zhao and Dou, 2019). As business expansion, it will be changing the environment,
client and geographies. The start-up enterprise is confronted with new information and
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communication technologies. In order to support for establishing the interaction with consumer
and identify their targeted customers.
The business model is consider as pattern that serve its customer and stakeholders. It
would be dedicated towards organic food product and service which offered by start-up business.
Furthermore, it also focused on the strategic plan for implementing pricing policies that adopted
by enterprise (Van Huy and et.al., 2019). It must ensure that communication follow to reach out
demanding client while increasing physical existence in global world. The existing business
model is classified the business into independent retailer which providing the better organic
products and services. It will be maintaining their outlets essentially features, proprietors. Many
independent stores tends to be passed on from generation to generation.
Point of differentiation
The substantial potential for product differentiation in the organic through making use of
standard production. it will be understands that start-up business different in term of product and
services because they will use natural ingredient for food product development (Zhao and Dou,
2019). In another way, organic food item can be differentiated themselves from other
competitors within global marketplace. Nowadays, it is better for utilising on the ethical message
based on the proper standards.
On the basis of comparison, it has been understands that organic food item less risk than
other conventional item because they were not added any preservative. In order to maintain the
better quality (Van Huy and et.al., 2019). Apart from that product differentiation depending on
the method of production. Thus, it can optimise the operational size which turn into distinct
distribution system. The organic food item made by natural ingredient which are not considered
any type of side effect for human body.
Challenge to business idea
In start-up business idea, there are various challenges identified during business
establishment. The supply chain not proper developer which extremely difficult for them to
access directly from marketplace. The organic product need separate from storage places and
other convention item because it has chances of food- contamination. So as require the
packaging house but there is shortage of refrigerated vehicle which lead to spoil food items (Van
Huy and et.al., 2019).
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Another challenge is risk of yield when many farmers decided to shift from conventional
chemical food to organic item (Van Huy and et.al., 2019). But there is no an appropriate subsidy
that offered by government. Furthermore, there are lack of necessary equipment that always
support for product manufacturing. For instance, it has led to the destruction of food items.
Prospective customers
The ideal business will focus on the significant customer groups: families, Student etc. many
young families moving into the organic food item because they become so much health
conscious. It always tried to maintain their health condition (Zhao and Dou, 2019). In this way, it
has identified that young families purchase organic food item in the marketplace. On the other
hand, large number of students prefer to shop at natural organic food store. It will make more
convenient place to shop item in their local areas.
Positioning and marketing mix
The business will have the positioning as there natural and organic food segments as the
big food entering natural retail channels with the accomplishments of store which provide
organic item for customer, locally grown produce chemical and other perspectives. The organic
items are healthy alternative to the product which are available in groceries shop.
The business will have the proper positioning as the ‘Live healthy’ as experiences in level
of marketing to an unfamiliar consumer group. The firm will try to have the proper engagement
value-based customers with having the shops across natural and conversational outlets. This will
be helpful in been increased the demand of organic food item which always influence customer
to consume on regular basis. It will be maintaining their outlets essentially features, proprietors.
Many independent stores tend to be passed on from generation to generation.
Products - It mainly involves body cookies, breakfast cereals and sodas items. These items
are free of artificial perspective, colours, and chemical additives. These are processed and
unadulterated version which are currently available in marketplace the firm will have offering of
the 365 everyday value which have differential pricing by having proper targeting of whole
foods market brands.
Place - the firm will have the more expansion in more physical stores as the whole organic
market stores. In addition to that’s the food market store in online website which will increase
the level of accessibility. However, the firm also has an online store where people can place their
orders. The firm offers delivery service for online purchases.
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Promotions – the firm will use the varying level of promotion activities which have the
clear dependence on the variety of season and industry conditions. The major level of activities
with national advertising campaign such as the “Values Matter” campaign that highlights health
and a deeper purpose for business. There is major level of offering various regional public
relations programs with communities. In addition to that’s firm will have major discount sand
sales promotion with variant discount.
Pricing – the firm have the efficient premium pricing as the product have higher prices
compared to alternatives available. This is having the standard high-quality standards to
guarantee customers. This is having generic strategy for the broad differentiation.
Competitors analysis
Threat of new competition
This industry is considered to lucrative term which have been surpassed the proper level of
growth of the total sales of food. The firm have the among the all farms as organic farm have
enjoyed a higher level of net income. There is increase in sales along with awareness of
consumers and the benefits of the organic foods an increase in level of profitability. So, the threat
is high due to reduce pricing form competitors.
Threat of substitute products or services
The firm have the major dependency on the differentiated market which is accumulating of the
American collapse which have already dealt with lower level of profits during the recession time
period. There is threat of international expansion which is threat to have including to diversify its
operational resources.
Bargaining power of buyers.
The bargaining power of the buyers is regarded as the major dependence on the consumer
perception. There is low level of sale growth due to the overpricing and overcharging its
customers. This have extended to many backlashes which have company deliberately with the
product are considered to be expensive. So, the bargaining power in high.
Bargaining power of suppliers.
The supplier powers are low as the advisability c the cheaper products which is vainly to have
the other brands in the market. The suppliers have the high prices of products which have the
limiting the potential customers. As there is existence economic fluctuation which have effects
their business operation.
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Rivalry
It has been understanding that organic food item less risk than other conventional item because
they were not added any preservative. In order to maintain the better quality. The firm have the
among the all farms as organic farm have enjoyed a higher level of net income. There is threat of
international expansion which is threat to have including to diversify its operational resources.
Sources of funding
Short time of financing needs a smaller period which is less than years which is also known as
working capital financing. On the other hand, long term financing has the hedging full fled long-
term loan from the banks which have rage all there meeting working capital aspects.
In addition to that’s firm will have the account receivable financing which have providence of
invoice discounting the level of facilities. This is the methods especially among small traders by
offering large teem credit can carry on their operations without having to wait for the customers
to settle their bills.
On the other hand, the firm have the retaining more level of long-term loans with is part of long
term which have their opting of full-fledged long-term loans from the banks which have the
allowing them to have meet all their working capitals for more than two years. Companies
cannot rely only on limited sources for their working capital needs. They need to tap multiple
avenues. They also need to constantly evaluate what their needs.
Intellectual property
This part plays an important role as the assets of business which is helpful in developing,
mentioning and projecting the major level of portfolio which have requirement of seamless and
sophisticated approach. This is lifeblood of many business in today competitive markets as
Balancing rights are strong enough to encourage the creation of intellectual goods but not so
strong that they prevent the goods' wide use is the primary focus of modern intellectual property
law.
This have inclusion of the large set and intellectual property rights which have inclusion of
patents, trademarks, industrial design, utility models along with services marks as per the trade
names with geographical indication.
Patents
This is form have the right is granted by the government to an investor with their successor in
titles which have giving there tights which have exclusion of others from making, using,
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selling, offering to sell, and importing an invention for a limited period of time, in exchange for
the public disclosure of the invention. This is helpful in enriching the body knowledge along
with simulated innovation which have providence of obligation to disclose valuable information.
Copyrights
This have providence gives the creator of original woks which have usually from the limited
ones. the copyrights may have application of wide ranges of creatives, intellectual, or artistic
forms, or "works”. Copyright does not cover ideas and information themselves, only the form or
manner in which they are expressed.
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REFERENCES
Book and Journals
Bostan, I., Onofrei, M. and Lazăr, C.M., 2019. An Integrated Approach to Current Trends in
Organic Food in the EU. Foods. 8(5). p.144.
Forbes, S. and Ramkrishnan Balasubramanian PHD, M.B.A., 2019. The USDA National Organic
Program and the Effort to Maintain Organic Food Integrity. Scitech Lawyer. 15(2). pp.10-
17.
Nguyen, H.V. and et.al., 2019. Organic food purchases in an emerging market: The influence of
consumers’ personal factors and green marketing practices of food stores. International
journal of environmental research and public health. 16(6). p.1037.
Pham, P.U. and NguyenDang, Q., 2019. Developing Quality of School Meal and Start-up
Business Plan of New Canteen Model in Viet Nam.
Van Huy, L. and et.al., 2019. Effective segmentation of organic food consumers in Vietnam
using food-related lifestyles. Sustainability. 11(5). p.1237.
Zhao, J. and Dou, X., 2019. A Study of British Organic Food Market.
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of Retailing, 94(2), pp.113-135.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah, 4(6), pp.25-37.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Jindal, P., Zhu, T., Chintagunta, P. and Dhar, S., 2020. Marketing-Mix Response Across Retail
Formats: The Role of Shopping Trip Types. Journal of Marketing, 84(2). pp.114-132.
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