Importance of Entrepreneurship and SWOT Analysis

This report highlights the importance of entrepreneurship in achieving success in the marketplace. It emphasizes the need to understand competitor strengths and weaknesses to succeed. The assignment also touches on how ideas from family background, primary, and secondary education contribute to collecting data and information for entrepreneurial ventures.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
1) Background information about sources and motivated factors for set up your own business3
2) Introduction to business idea and its potential customers and target audience.......................5
3)Competitor analysis at marketplace along with failures and successes and differentiation....5
4) Gap analysis, overcoming gaps and current and future situation along with business
objectives.....................................................................................................................................7
5) Market research for business idea and identify primary and secondary market potential......8
Interpretation.............................................................................................................................11
6) Business idea viability and feasibility and strengths and weaknesses..................................11
7) Overcoming risks of competition and opportunities for growth and development in future
...................................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
In order to start any business by entrepreneur in competitive market, it is very essential to
identify opportunities which are available for them. Entrepreneurship is the procedure for
launching, designing and running new business and person who establish those organisation is
called entrepreneur (Audretsch, 2012). They came up with new idea in market along with
innovation and creativity. Before establishing entity it is essential to know need and demand of
customer and accordingly start venture. There are various requirement which should be known
by entrepreneur. As per scenario given in report, young graduate entrepreneur are planning to
start new venture in London named at Fitness Freak Juice Corner for gym going people. This
assignment covers entrepreneurial ideas and source of information and motivation behind it.
There are gap between entrepreneurial ideas and supported through data. SWOT analysis,
competitive and market environment has been analysed.
1) Background information about sources and motivated factors for set up your own business
In order to expand market in better ways it is essential to evaluate different opportunities
and future want and demand of customers. Entrepreneurship helps in creating different
employment opportunities for both organization and individual. Here, Fitness Freak Juice Corner
identify new opportunities and launch new product that is fitness drink for gym going people.
The entrepreneur will launch venture near gym as those required healthy drink in order to burn
calories and work out. There are different sources of entrepreneurial ideas which can be
described through Drucker's seven source of innovation such as:
Drucker's Seven Source of Systematic Innovation
Peter Drucker developed this concept of 7 sources of innovative opportunity in book
called innovation and entrepreneurship. The following are sources of innovative opportunity
which are given below:
The Unexpected- It is essential for entrepreneurs to identify unexpected failure or
success of products for generating opportunities to create innovation (Autio and et. al., 2018). As
business world has many surprises where not only unexpected failures occurs but unexpected
success come across to organization which is source for innovation and inspiration. Both
unexpected should be noticed and looked for opportunities. This situation can help Fitness Freak
Juice Corner as it inspire innovators and leaders to take advantage of opportunities which arise in
business.

The Incongruity- In order to develop new product, it is essential to do proper research to
kn ow about customer need and demand. The organization which fall to do research for new
product cannot survive in market. Here, Fitness Freak Juice Corner has done analysis of market
to know about concept of gym going people regarding fitness juice. Also they took feedback,
customer review and complaints for determining incongruity.
Process Need- It is regarded as task focused approach than situation based. The
opportunity comes for innovation through process used by company and identifying weaknesses
and ways for improving it (Barazandeh and et. al., 2015). Identification of capabilities of
organization helps in creating innovative and effective solutions for problems. The process used
by Fitness Freak Juice Corner is unique as it contain all pure ingredients for producing juice to
gym going individuals.
Industry and Market Structure Change- For certain period of time, market structure
and industry can remain stable but technology development leads disruption in business. It is
very important for entrepreneur of Fitness Freak Juice Corner to keep eyes on changes and work
accordingly.
Demographics- Due to change in demographics factors, companies are affected highly as
their need and want changes which leads to change in products they used. There is change in
education, age, employment affect direction where business is operating. The opportunities need
to be identified so that proper decision can be made.
Changes in Perception, Meaning and Mood- There is change in the perception of
people over time due to technology and social networks. Individual can change perception about
brand, product, industry. This help business to do innovation for products, develop unique goods
and service which can meet perspective of consumers.
New Knowledge- New knowledge can be gained through scientific knowledge and
technological factors (Dimov, 2011). Organization refusing to adopt new technology and
changes has to bear loss and fail to survive in competitive market. It is significant to apply new
knowledge in every enterprise in order to learn more about customer through improving supply
chain and hire suitable staff for adopting those changes.
There are different factors which motivate to become entrepreneur. It includes money,
controlling each and every work, flexibility in working pattern according to own, teamwork, bear
risk and appreciation which they get from people for new idea and thought. Also, individual get

influenced by their family background to become independent and became entrepreneur and earn
more money.
2) Introduction to business idea and its potential customers and target audience
Business idea is opinion that is used for financial gain which is centred on goods and
services offered for money. Idea is regarded as base of pyramid for running of business (Fuentes
and et. al., 2010). The features for business idea includes uniqueness and innovation.
In case of Fitness Freak Juice Corner, it is launching new venture near gym. It is offering
health drink to gym going people which helps in burning calories and workouts. This venture has
found potential opportunities through market analysis and accordingly planned for developing
new product for expanding market base. They has focused health conscious and gym going
people. The idea came for such venture because of customer's need and demand. Before coming
into market, Fitness Freak Juice Corner need to study about their consumers. The potential
customers and target audience of Fitness Freak Juice Corner are described below:
Potential Customers
It includes those people who are capable of becoming buyer or purchaser of goods and
service (Grégoire and Shepherd, 2012). The potential customers of Fitness Freak Juice Corner
are youth who are coming to gym as they does not focus on price and want to keep their body to
be fit and healthy. They can buy product at any cos to remain fit, as juice provided by Fitness
Freak Juice Corner helps in burning lots of calories which is important for them. These young
generation people are health conscious about their health and want to keep fit.
Target Audience
It is intended readership or audience of advertisement, publication or other message. It is
regarded as specified group of individual within determined target market. In case of Fitness
Freak Juice Corner, target audience is all people coming to gym which includes children, young,
adult. They are selling their juice to only such people who prefer are health conscious and diet
conscious. It is essential to take healthy diet after gym so this juice helps in providing and
keeping them healthy and fit.
3)Competitor analysis at marketplace along with failures and successes and differentiation
Competitor analysis is identification of competitors and evaluation of their strategies for
determining strengths and weaknesses according to product and service (Kohlbacher, Herstatt
and Levsen, 2015). Competitive analysis is regarded as critical part of marketing plan. It helps in

providing defensive and offensive strategic approach for finding of threats and opportunities.
There are competitors of Fitness Freak Juice Corner such as new entrepreneur who can come
with more innovative and unique idea as juice corner is providing better products than existing
organisation. The enterprise should grab large market share by providing attention on policies,
rules and regulations of their competitors and work accordingly to make changes and provide
best goods and services to consumers. It is essential for Fitness Freak Juice Corner to analyse its
competitors effectively and efficiently for surviving in competitive market.
Success in industry
The success of Fitness Freak Juice Corner is based on providing best quality products and
services to consumers so that they can experience better. Also, at the initial stage of venture, they
can offer low price in order to attract large number of customers by maintaining quality level
more high. In order to get success, Fitness Freak Juice Corner need to promote their products in
their market and can target all gyms where it can supply product. The promotion and advertising
tools helps in grabbing large number of customers base and get success. Juice Corner can make
their product available everywhere in order to serve in better manner. Thus, through adopting
this above strategies, organisation can get success.
Failure in industry
Fitness Freak Juice Corner can face failure, if employees are not aware about new
products and implementation not done properly. Lack of training leads to failure of industry in
competitive market. If company does not have sufficient funds to for carrying out business
activities. There is high chance for failure of Juice Corner because of dependence on single
customers and fail to understand market and their consumers for providing products. The
industry cannot get success because of lack of communication between employer and consumers
which leads to low profits. The inappropriate market analysis gives negative results. These are
reason due to which Fitness Freak Juice Corner get failure in market.
Differentiation
It is marketing strategy which entrepreneur and businessman employ in order to make
goods and services stand out, unique and different from its competitors. The main objectives is
making products attractive as compared to competing goods. As Fitness Freak Juice Corner is
providing different and unique products to their competitors in order to satisfy their customer
needs and want. It is providing fitness and healthy drink to gym coming people for burning

calories and workout. Individual are health conscious so in order to provide solution, juice has
been launched. Thus, in this way, product is different from competitors.
Growth with low and medium risk
There is risk involved in each and every business whether it is new venture or existing
industry. Fitness Freak Juice Corner is also facing risk before getting growth in their
establishment. The risk faced by enterprise is not high as it is new venture as concept of product
is totally new for customer so it can get success and survive in market.
4) Gap analysis, overcoming gaps and current and future situation along with business objectives
Gap analysis is tool which enables in accessing differences in business performance and
determining whether requirements of entity are met or not and in case of not, different steps
should be taken (Siegel and Renko, 2012). It is important to analyse gap in order to know about
scenario of organisation. The gap can be closed through proper steps which is given below:
 Identification of those areas that need to be analysed and goals to be accomplished
 Establishing ideal future state
 Analysing current state
 Comparison among current with ideal state
 Describing gap and quantifying through differences
The current situation of Fitness Freak Juice Corner is moderate as it is not earning
sufficient amount of profits but not going through loss too. In coming future, it can gain
maximum profits as it is providing goods from existing industry and fulfilling need and demand
of customers by maintaining quality and price. Thus, it need to work for sustainability and
survival in competitive market along new innovation and creativity.
The objectives of Fitness Freak Juice Corner are:
 To fulfils need and demand of gym going people.
 To manufacture high quality and healthy drink.
 To increase maximum profits and growth.
This objectives can be achieved by doing proper market research in order to know more
about their consumers to meet their expectations. It need to focus on maintaining quality of
product and making availability of goods everywhere. Thus, Juice Corner can increase their
profit and growth by maintaining their efficiency level high.

5) Market research for business idea and identify primary and secondary market potential
Market research is organised efforts for collecting information of target customers or
market and regarded as important component of organisation strategy. The market potential
which using a range of sources which could be primary and secondary are given below:
Primary Research
It is new type of research carried through answers of specific questions such as surveys,
questionnaire, interview including individual and group (Suddaby, Bruton and Si, 2015). It is
suitable method for evaluating need and demand of customers and Juice Corner has used
questionnaire before launching new product in market.
Secondary Research
The researcher use already published data and information from different sources such as
newspaper, magazine and others. Juice Corner has used data which are already available in
market.
Questionnaire
Q1. What kind of refreshment drink people like most after gyming?
a) Hot chocolate drink
b) Banana shake
c) Diet drink
Q2. What kind of services people generally seek under juice centres?
a) Sitting facility
b) Proper ambience
c) Timely service
Q3. How much time people generally spend after gyming under juice corner?
a) 0-1 Hours
b) 1-3 Hours
c) More than 3 hours
Q4. Would you like to give any recommendation.
Q1. What kind of refreshment drink people like most after
gyming?
Frequency

Hot chocolate drink 15
Banana shake 10
Diet drink 15
Mean 13.33
Median 15
Mode 15
Interpretation
From above chart, it has found that 15 people like hot chocolate drink, 10 likes banana
shake and 15 prefer diet drink.
Q2. What kind of services people generally seek under juice
centres?
Frequency
Sitting facility 10
Proper ambience 25
Timely service 5
Mean 13.33
Hot chocolate drink Banana shake Diet drink
0
2
4
6
8
10
12
14
16
Column B

Median 14
Mode 10
Interpretation
From the above chart, it can be said that 15 consumer prefer sitting facility service in
juice centre, 25 prefer ambience facility and remaining that is 5 prefer timely service.
Q3. How much time people generally spend after gyming under juice
corner?
Frequency
0-1 Hours 20
1-3 Hours 10
More than 3 hours 10
Mean 13.33
Median 10
Mode 10
Sitting facility Proper ambience Timely service
0
5
10
15
20
25
30
Column B

Interpretation
From above pie chart, it can be said 20 people spend less than hour in juice centre, 10
individual spend more than hour bust less than 3 hours and 10 prefer to spend more than 3 hours
in centre.
6) Business idea viability and feasibility and strengths and weaknesses
For accessing viability of business report, measures should be taken for knowing
competitors and market conditions which helps in better decision making. It can be expalined
with help of SWOT analysis which are described below:
Strength- The strength of Fitness Freak Juice Corner are providing high quality drinks to
youth and gym going customers. Through help of advertising it can attract large number of
consumers and it is regarded as healthy and health conscious drink. Also, it is available at online
for their individual where they can buy at bulk which possess long expiry date.
Weaknesses- There are some weaknesses of Juice Corner as it mainly focus on gym
people so target consumers are very few. The quantity of juice is less as compared to other. Price
charged by Fitness Freak Juice Corner is high from other competitors which is negative points
for it.
Opportunities- Fitness Freak Juice Corner has opportunity to grab other market also by
launching new products for other category of consumers. It can produce more flavours juice in
market as compared to competitors. Thus, it can do more advertising and bring uniqueness in
juice.
Threats- The threats which can be faced by Fitness Freak Juice Corner are of its
competitors as they can come up with new and more innovative products. Also there are many
0-1 Hours
1-3 Hours
More than 3 hours

drink available at market for burning out calories which can beat Juice Corner. Thus, in order to
get rid from threats, it should do innovation in products.
7) Overcoming risks of competition and opportunities for growth and development in future
The risks of competition and potential opportunities for growth and development in
future can be done through PESTLE and Porter five model analysis which are given below:
PESTLE Analysis
It is tool used by marketers for analysing and monitoring micro environmental factors
that impact an organisation. The PESTLE analysis of Fitness Freak Juice Corner are as follows:
Political Factors- It includes issues like guidelines and ruling of government on
nutritional information on food and drink. Fitness Freak Juice Corner need to apply all regulation
before manufacturing juice in order to meet standards. The Brexit impact trade agreement and
increase cost of ingredients which impact organisation.
Economic Factors- Fitness Freak Juice Corner can face operational and labour cost
issue with increase in recession that impact business and its activities. Due to exchange rates, tax
rates, Juice Corner is facing issues while selling of product which leads to low profits.
Social Factors- Due to change in need, demand, taste and preferences of consumers lead
impact in their drinking habits. It is important for Juice Corner to analyse market and understand
their consumers effectively.
Technological Factors- As it is not easy for organisation to adopt daily new and updated
technology for manufacturing. Lot of research is required and incurred training and development
cost for using of that technology. Juice Corner is impact by technological factors.
Legal Factors- Juice Corner should not violate laws and regulation while manufacturing
products. In order to get success in competitive market, various regulations need to be followed
for survival and sustainability.
Environmental Factors- The customer prefer health and organic products for their use.
Here, Juice Corner is producing eco-friendly products for their consumer to meet their demand.
The cost might increase because of rules and regulations of different countries.
Porter's Five Force Model
It is tool used by market in order to analyse competition of business and their position.
There are five force of industry which are described below:

Threats of New Entrants- In every industry there is threat of new entrant which effect
business. There is high threat for Juice Corner as there are many company which can come up
with same and innovative concept.
Threats of Substitute Products- The substitute power for Juice Corner is low as there
are very few companies which provide health conscious and healthy juice to gym going people.
Bargaining Power of Suppliers- The bargaining power of Juice Corner supplier is very
high as they are few supplier from where it can purchase goods. Due to this, supplier can charge
any price from company.
Bargaining Power of Buyers- It influence individual or group of consumer in market.
As bargaining power of Juice Corner is low as they don't have substitute product for it. It is
benefits for organization to charge any price from buyer and earn maximum profits.
Competitive Rivalry- There are very few rivalry for Juice Corner business as there are
no other companies manufacturing such type of juice for consumers.
CONCLUSION
From above report, it can be concluded that entrepreneurship is important factor for
organization and individual. For success in marketplace, they have to understand competitor
strength and weaknesses and work accordingly. Hence important indicators is very essential to
access important insights and helps in taken important decisions. The ideas of entrepreneur
comes form family background and also primary and secondary helps in collecting data and
information.

REFERENCES
Books and Journals
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Autio and et. al., 2018. Digital affordances, spatial affordances, and the genesis of
entrepreneurial ecosystems. Strategic Entrepreneurship Journal. 12(1). pp.72-95.
Barazandeh and et. al., 2015. Investigating the effect of entrepreneurial competencies on business
performance among early stage entrepreneurs Global Entrepreneurship Monitor (GEM
2010 survey data). Journal of Global Entrepreneurship Research. 5(1). p.18.
Dimov, D., 2011. Grappling with the unbearable elusiveness of entrepreneurial opportunities.
Entrepreneurship Theory and Practice. 35(1). pp.57-81.
Fuentes, M. D. M. F. and et. al., 2010. Prior knowledge and social networks in the exploitation of
entrepreneurial opportunities. International Entrepreneurship and Management
Journal. 6(4). pp.481-501.
Grégoire, D. A. and Shepherd, D. A., 2012. Technology-market combinations and the
identification of entrepreneurial opportunities: An investigation of the opportunity-
individual nexus. Academy of Management Journal. 55(4). pp.753-785.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people. Technovation. 39. pp.73-82.
Siegel, D. S. and Renko, M., 2012. The role of market and technological knowledge in
recognizing entrepreneurial opportunities. Management Decision. 50(5). pp.797-816.
Suddaby, R., Bruton, G. D. and Si, S. X., 2015. Entrepreneurship through a qualitative lens:
Insights on the construction and/or discovery of entrepreneurial opportunity. Journal of
Business venturing. 30(1). pp.1-10.
Tang, J., Kacmar, K. M. M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of
new opportunities. Journal of Business Venturing. 27(1). pp.77-94.
Welter, C. and Alvarez, S., 2015. The state of opportunities: clarifying the transitions between
opportunity types. Management Decision. 53(7). pp.1398-1411.
Online
SWOT Analysis. 2019. [Online]. Available through:
<https://www.investopedia.com/terms/s/swot.asp>.