Entrepreneurship Report: Opportunity Analysis

This report provides an overview of the business opportunity in the UK tourism sector and analyzes the personal skills and experience required for running a venture in house rentals. It also includes market research, SWOT and PESTLE analysis, competitor analysis, growth potential, and capital requirements.

The Entrepreneurship Report / Opportunity Analysis

TABLE OF CONTENTS
1. BUSINESS OVERVIEW.......................................................................................................3
2. PERSONAL ANALYSIS......................................................................................................3
3. MARKET RESEARCH.........................................................................................................4
3.1 SWOT analysis.................................................................................................................4
3.2 PESTLE analysis..............................................................................................................5
3.3 Competitors analysis........................................................................................................6
4. GROWTH POTENTIAL.......................................................................................................7
5. CAPITAL REQUIREMENTS...............................................................................................7
REFERENCES...........................................................................................................................9

1. BUSINESS OVERVIEW
In UK, tourism is increasing with the very high pace which in turn makes significant
contribution in economic growth and development. By doing research, it has assessed that
travel & tourism sector includes revenue generated through foodservices, hotels, travel
intermediaries and gaming etc (Global Travel & Tourism, 2019). According to research, in
2020, tourism will be high in UK to the significant level. Moreover, due to brexit foreign
holidays become highly expensive now (Lu and Tabari, 2019). There are several reasons such
as deterioration in the pound value, strict visa requirements etc due to which trend towards
UK stay cation increased prominently (Goh and Jie, 2019). Referring this trend and to
capitalize market opportunities business entity is planning to start business of ‘Tiny holiday
home rentals’ which offers amazing experience to tourists on vacations. According to this,
business entity will give villa on rent to the tourists who want to stay for long in UK.
Business will be started with the name of ‘Extraordinary Homes’. By visiting the site one
can see all the details regarding location, amenities etc and book the same. Through market
evaluation it has assessed that such business will grow in the near future caused by brexit.
Now, competition is not immense which shows that by offering luxurious hospitality services
business entity can get desired level of outcome or success.
2. PERSONAL ANALYSIS
There are several skills which an entrepreneur requires for running venture in relation
to house rentals. In order to carry out personal analysis effectually SWOT analysis too has
been applied. This helps in assessing strengths and weaknesses that needed to run new
venture successfully pertaining to Tiny holiday home rentals. By taking into account the
outcome of personal analysis competent strategies can be developed for the near future.
Strengths Weaknesses
 Creative thinking
 Problem solving / customer handling
skills
 IT skills
 Not having in-depth knowledge about
legal formalities
 Low networking

 Effective communication skills
 Time management
Skills and experience: Business entity is having degree in the field of hospitality
management. This in turn helps an entrepreneur in managing all the business activities
effectually pertaining to cash management, research & development, strategic thinking, time
management etc. Along with this, an entrepreneur has experience about hotel unit and
services offered by it. By keeping in mind such aspects, entrepreneur will introduce luxurious
facilities to the guests in vila’s that make their accommodation memorable.
3. MARKET RESEARCH
3.1 SWOT analysis
Strengths
 Highly skilled and competent
workforce who attended training &
learning sessions.
 Online booking system which offers
convenience to the customers
 Target market is wide that includes all
individual group from students to
elderly people.
 Exceptional interior and exterior
designs which help in attracting more
customers.
 High focus on research &
development so that customers are
provided with an innovative service.
Weaknesses
 There is no physical presence because
entrepreneur is dealing only through
website. Usually, customers around
the globe are afraid in relation to
doing online booking and payment.
 Need to focus on the creation of
attractive pages so that customers can
be targeted
Opportunities Threats

 Business entity has opportunity to
attract more people and enhance
customer base by updating website
with vibrant colors and information.
 By emphasizing on advertisements
(social media marketing) entrepreneur
can influence more customers.
 Extraordinary Homes will face threat
from existing business entities who
are offering tremendous house rental
services
 In addition to this, business entity will
also face competition from the
entrepreneurs who offer house rental
services at lower prices.
3.2 PESTLE analysis
Pestle analysis in the context of Tiny house rental business is enumerated below:
Political
From external analysis, it has found that, in
UK, people are allowed to rent their homes/
vila’s to strangers. In this regard, people have
accountability in relation to comply with all
the housing laws and legislation. In the case
of non-compliance, brand image of the firm
will be affected adversely.
Economic
Now, customers prefer to make their vacation
memorable. In this regard, customers prefer
to select best accommodation at affordable
prices. Thus, economic condition such as
inflation and deflation has significant on
purchasing power or decisions of customers.
In this way, economic condition highly
impacts home rental business.
Social
Now, customers share their experience in
terms of positive or negative on social sites.
Thus, negative reviews of the customers
adversely impact other’ decision making.
Accordingly, business entity of Extraordinary
Homes is required to solve queries of
customers frequently so that satisfied
customer base can be built or maintained.
Technological
With the motive to reach more people or
enhance customer base now business entities
started to focus on both traditional and
modern marketing. With regards to
traditional mediums, entrepreneur will give
advertisements on newspapers, magazines etc
(Pestle analysis of tourism industry, 2020).
Further, for persuading or providing
information to the customers about services

business entity will focus on doing marketing
through Facebook, Twitter etc.
Legal
Business entity of Extraordinary Homes
needs to comply with several rules and
regulation for doing Tiny home rental
business. It includes housing, health &
safety, taxation as well as tourism
regulations.
Environmental
Now, visitors give priority to the service
provider who carries out business activities
and operations in an eco- friendly or
sustainable manner. Thus, for gaining
competitive edge business entity requires to
lay emphasis on sustainable operations.
On the basis of above analysis, it can be stated that through emphasizing on
innovation, eco-friendly operations and social media marketing entrepreneur can meet
predetermined goals as well as objectives.
3.3 Competitors analysis
In order to exhibit innovative practices and analyzing capabilities competitor analysis
has been done. This helps in ascertaining strengths and weaknesses that Extraordinary Homes
possess over its rivals.
Basis of difference Extraordinary
Homes’
Royal Vila Banner haven
B&B and cabin
rentals
Pricing strategy Penetration pricing
strategy will be used
by Extraordinary
Homes. By setting
lower prices at initial
level business entity
can grab high market
share.
It undertakes
competitive pricing
strategy for
influencing decision
making of customers.
Premium pricing
strategy is used by
the firm. As it is
involved in
offering luxurious
services to the
customers (Banner
haven B&B and
cabin rentals,

2020).
Promotion For promotional
purpose focus is
placed by business
entity on modern
techniques (social
media marketing).
It promotes services
using both traditional
and modern forms of
advertisements.
Likewise, Royal
Vila, it emphasizes
on undertaking
both the
promotional tools.
Uniqueness Luxurious vila with
all the facilities
All the amenities
available
All the amenities
available and food
as well
Physical evidence Online presence only Having both physical
and online presence
which in turn
develops confidence
among the
customers.
Similar to Royal
Vila
4. GROWTH POTENTIAL
As per the market evaluation it has been assessed that the business of Extraordinary
Homes will attain high success and growth in the future because of Brexit. The growth is also
being reflected because increased trend of travelling and exploring the places for a longer
time period. In addition to this, Mintel report clearly exhibits that in the upcoming time
period tourism will increase with the very high pace (Global Travel & Tourism, 2019). This
business will also help the students who come for studying from outside countries as they
could be able to stay in the villa on the rental basis. In accordance to the results seen in recent
years, a rising demand from leisure and travel businesses has meant the hotels as prospered.
In the future periods, this demand for such kind of business will increase at a high pace
because travelers would be preferring more of such rental villa as it provides them with
greater flexibility and privacy so that if they want they can enjoy their holidays for a long
period with proper relaxation.

5. CAPITAL REQUIREMENTS
By doing assessment, it has identified that £1400000 needed for purchasing vila’s or
house in UK. Moreover, in the current times, tourists prefer to stay in fully furnished houses
which make their vacation luxurious (Prices of Luxury Vila in London, 2020). In this regard,
there are several sources which an entrepreneur can employ for meeting funding
requirements. This in turn includes following:
 Personal savings: For initiating business entrepreneur will use personal savings of
£600000 respectively. This is the most effectual source as in this business entity has
no liability in relation to making payment of interest and loan amount.
 Bank loan: Entrepreneur will also take loan from banking institution for the
collection of funds regarding new venture. This source will offer benefit to the
business entity in tax brackets (Staniewski, Szopiński and Awruk, 2016).
 Venture capitalists: In the current era, venture capitalists prefer to invest their money
in the venture which is highly growing. Thus, by approaching to venture capitalist’s
business entity will collect funds for the new venture.

REFERENCES
Books and Journals
Goh, E. and Jie, F., 2019. To waste or not to waste: Exploring motivational factors of
Generation Z hospitality employees towards food wastage in the hospitality
industry. International Journal of Hospitality Management. 80, pp.126-135.
Lu, L. and Tabari, S., 2019. Impact of Airbnb on Customers' Behavior In the UK Hotel
Industry. Tourism Analysis. 24(1). pp.13-26.
Staniewski, M. W., Szopiński, T. and Awruk, K., 2016. Setting up a business and funding
sources. Journal of Business Research. 69(6), pp.2108-2112.
Online
Banner haven B&B and cabin rentals. 2020. Online. Available through: <
https://www.tripadvisor.co.uk/Hotel_Feature-g48937-d1629105-zft1-
Banner_Haven_B_B_and_Cabin_Rentals.html >.
Global Travel & Tourism. 2019. Online. Available through: <
https://store.marketline.com/report/ohmf1891--global-travel-tourism/ >.
Pestle analysis of tourism industry. 2020. Online. Available through: <
https://www.marketingtutor.net/pestle-analysis-of-the-tourism-industry/>.
Online. Available through: < https://www.marketingtutor.net/pestle-analysis-of-the-tourism-
Prices of Luxury Vila in London. 2020. <https://www.googleadservices.com/pagead/aclk?
sa=L&ai=DChcSEwjW_LOxuo3oAhXBiI8KHTpSAT0YABACGgJzYg&ohost=www.go
ogle.com&cid=CAASEeRobJ8-
LAFkHxV5zF6He0XY&sig=AOD64_28swsbVmlPzSqG8RI_V0vir_C1rQ&q=&ved=2ah
UKEwjTyaqxuo3oAhXFF3IKHW6lDncQ0Qx6BAgPEAE&adurl=>.