Unit 27: Identifying Entrepreneurial Opportunities through Market Analysis

Unit 27 Identifying
Entrepreneurial

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
ACTIVITY 1....................................................................................................................................3
P1 Determining the different sources of entrepreneurial ideas....................................................3
P2 Rationale and the market gap of the eco-friendly clothing.....................................................5
ACTIVITY 2....................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A successful entrepreneur can be a result of the effective and sustainable ideas and
innovation that leads to the various entrepreneurial opportunities. Identifying entrepreneurial can
be done with the help of analysing and understanding the various aspects and gaps of the market
that a unique idea that has been innovated by the entrepreneur can fill (Clausen, 2020).
The report will explain about the various aspects of identifying the entrepreneurial and
the factors that can affect it. The aim of the report is to analyse and understand the various
aspects of the successful entrepreneurship.
MAIN BODY
ACTIVITY 1
P1 Determining the different sources of entrepreneurial ideas
A successful entrepreneurial idea or the innovation can be evaluated with the help of the
various aspects and factors of the market. The idea of clothing that will made out of the recycled
bamboo mesh is the result of the various aspects that has been founded in the market. There are
various types of sources that can help an entrepreneur to come up with the unique idea that can
fill the gap in the market (Ratten and Rashid, 2020). The various examples can be seen to
understand that how the various resources can lead to a successful unique idea that can fill the
gap in the market.
Consumers
The consumers can be an effective source of generating idea that can help in filling the
gap in the market as the customers are the main aspect of a successful innovative idea. The
customers can help in generating idea as the latest and changing trends in the market can be
understood only by their opinion. The idea of recycled bamboo mesh clothing is the innovation
that has been created after analysing and understanding the trend of sustainable and eco-friendly.
Existing products/ Services
The existing product can be a great source of generating idea as it can help in
understanding the mistake that the existing products are making that is leading to the gap in the
market. The recycled bamboo mesh clothing will be able to fill the gap with sustainable and eco-
friendly products that are not being founded easily in the market.

The Drucker's 7 sources of systematic innovation
The Drucker's 7 sources of systematic innovation can help in understanding the various
resources that can lead to the effective idea or innovation. The model provides the various types
of resources that can help in understanding the situation or the practice that can lead to the
innovation.
 The unexpected- The factor explains about the unexpected event that can take place that
leads to the innovation of a new product or idea. This explains that there was no need of
looking for the innovation but the event provided the source of innovation.
 The Incongruity- This factor explains about the unawareness of the brands that what the
customer desires. It explains that the desires of the customer are different and the
understanding of the desires by the brands is different. This can be a source of generating
idea as the benefit can be taken by understanding the actual desires of the customers.
 Process needs- It explains about the sources that can be internally founded in the existing
process of the company or the organization. The idea can be found by generated by
analysing the existing problem in the current method of the business (Karimi, 2020).
 Industry and market structure change- The factor explains about the resource of
innovation that can be found when there is a change in the structure of the industry and
the market. The changes provide the opportunities for generating idea for overcoming the
problem that the market or the industry can face due to the change.
 Demographics- The changes that can occur in the population, level of income and ages
can provide the resource of innovation for meeting the needs of the customers after the
change. The changes in the various factors provides the organizations with the
opportunities and the resources that can be used for generating innovative idea.
 Changes in perception, meaning and mood- The view and aspects of the people changes
all the time that is required to be met by the organization to provide the customers with
the products or services that can meet the desires of them.
 New knowledge- This factor explains about the information that can be gained time to
time with the help of technology. The resources can be found that provides the
opportunity of generating new idea with the help of new knowledge.

P2 Rationale and the market gap of the eco-friendly clothing
The recycled bamboo mesh clothing is one best idea that will be helpful in filling the gap
with affordable eco-friendly clothes in the market.
Rationale
The reasons of innovating the recycled bamboo mesh clothing is the lack of affordable
eco-friendly clothes that can help the people in contributing towards the betterment of the
environment.
Identifying specific customer types
The specific customer type for the recycled bamboo mesh clothing can be done with the
help of using the segmentation tools that can provide the information about the customer types.
Demographic segmentation
The tool of demographic segmentation can be used for understanding the specific
customer type for the idea (Goktan and Gupta, 2021). The product will be segmented by the age
group as the clothing will be more focused on targeting the youth audience that are following the
latest trend of eco-friendly clothing.
Benefits to the youth
The product will benefit the youth in terms of affordability and reachability. The product
will be priced lower than its competitors so that it can benefit the youth by providing them with
the affordable products.
Technical feasibility of the idea
The technical feasibility of the idea is effective as the product will be manufactured with
the help of the latest technology driven methods that will be helpful for reducing the cost of
production and harm to the environment (Bocken and Snihur, 2020).
Level and scope of research and development required
The level and scope of research and development is large as the business will be planning
for the research that will lead to the development of product and will be tested at the end of
research and development.
Profitability of the idea
The profitability of the idea is very high as the idea is new and unique that will attract the
customers towards its products. The appeal of the idea in the market is high as the latest trend in
the market is of the eco-friendly clothing. The product will be priced at the lower costs and very

competitive to the rivals so that every customer can afford it and can purchase the products.
There will be production cost and the marketing costs that will be made so that the new product
can be brought in the market. The overall cost of the bringing will be €1,20,000 and the per unit
cost of the product will be €9.99.
The gap of the market
The product fits perfectly in the market as it will be able to fill the gap with eco-friendly
products that are affordable for every customer. The product will be able to provide the
opportunities to every customer so that they can also contribute towards the betterment of the
environment (Slávik, 2020). The product is very close to its competitor products as there are
various types of eco-friendly clothes in the market but at a very high cost that the normal people
are unable to purchase that makes them to choose the regular fabric cloth that is harmful in
production and non-recyclable. The product is very affordable so that it can compete with its
competitors and attract the audience.
Resources that will be required for development
The various resources will be required for the development of the clothes.
 Recycled bamboo mesh
 Machineries
 Land for production unit
 Man power
 Latest technology driven equipment
Marketing potential of the idea
The marketing potential for the ideas is that the promotion will be done on the social
media so that it can attract the youth audience. The audience can be attracted by the promotion
on the social media as most of the audience on the social media is youth (Tajpour and Hosseini,
2021).
Fit with the business profile and business objectives
The business profile is that the name of the organization will be Nature's element clothing
and the company will be providing the customers with the affordable eco-friendly clothes. The
business will be located at the Birmingham as there will be a lot of opportunities for the idea.
Objectives
 Providing customers with sustainable products