Identifying Entrepreneurship Opportunities

This assignment discusses the sources of entrepreneurial ideas and innovation, the rationale and market gap for a specific idea, and the competitive market environment for an innovative business idea. It also includes a SWOT analysis to support an objective assessment of the entrepreneurial idea.

Identifying entrepreneurship
opportunities
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Evaluate different sources of entrepreneurial ideas and innovation.......................................3
P2 Explain rationale and market gap for specific idea................................................................4
P3 and P4.....................................................................................................................................5
Covered in PPT............................................................................................................................5
P5 SWOT Framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea.....................................................................................................................5
P6 Competitive market Environment for the Innovative Business Idea......................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
In recent competitive business environment, it is necessary to innovate new products and
services to fulfil needs of people. Also, with technological advancement new processes and
methods are developed. Innovation benefit in attracting people and enhancing their social life.
There are various types of innovation which is implemented such as product, process, paradigm,
etc. alongside, with change in customer needs and taste and preference they require something
new (Njoku and Cooney, 2020). This results in innovation of services and products. Innovation
is essential as it increases lifestyle of people.
In this assignment it will be described about sources of innovation. Also, rationale of
market gap analysis will be done and data regarding new business idea will be explained.
Moreover, SWOT analysis of business will be discussed along with the competitive market
environment.
P1 Evaluate different sources of entrepreneurial ideas and innovation
Innovation is process of producing something new that is either a product or service. It
usually uses new ideas and knowledge which helps in gaining competitive advantage within
marketplace. Furthermore, it also fulfill needs of people and enhance their way of living. An
entrepreneur is someone who introduces new products or service in the market through
innovation. He uses his knowledge and skills in finding out needs of people and then
implementing his new idea practically. Generally, there are various sources of innovation but
internal and external are main two source. Here, internal is found within organisation like
employees, process, and other while external refers to market, competitors, customers, etc.
Different sources are
Consumers- they are source through which needs and wants of people are identified. This also
include analyzing their problems and finding out solution to it. through that idea is developed
to solve their problems or fulfill their needs.
Existing products- it is a source in which existing products is evaluated and then idea is
developed. Here by including unique features into product or service entrepreneurial idea is
generated
R&D- as name depicts it states that by doing R&D entrepreneurial idea is generated. It provide
insight about what changes may occurs in future, trends, etc. related to market or needs of
customers
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however, Peter drucker 7 sources of innovation are :
Unexpected- as name depicts it is known as an unexpected change in people needs. In this new
market is identified and then people needs are fulfilled (Fairlie and Fossen, 2019). It results in
developing new services or product. For example - need of sanitizer and mask
The incongruity- here, company current actions and required action is evaluated and then
difference between them is identified. This helps in improving performance in market.
Therefore, in procedures or methods changes are made and it leads to innovation. For example-
innovation in operations
Process needs- As name suggest it leads to innovation in process in operations, delivering of
services, production, etc. it enforces organisation to change its process or methods. Through it,
they are able to bring innovation in it. for instance- contact less deliver of online products to
customers.
Market change – here, innovation is occurred due to change in market structure or any other
change. It enforce businesses to bring innovation within it. Besides that, it highly impact on
organisation operations and its growth and development. So, in order to reduce impact
innovation is executed. This support in gaining competitive advantage. For instance- use of
electric cars
Demographics- this source of innovation is related to change in demographics that is age, gender,
income level, etc. of people. It directly leads to change in taste and perception of people. Thus, in
order to fulfill their needs new products are developed (Clark and Ramachandran, 2019). For
example- increase in use of immunity based food products
New knowledge – in this source of innovation is to apply new knowledge in particular product.
Usually, new features and specifications are added into it. Moreover, this type of innovation is
related to technological one. Hence, entrepreneur in organisation implement innovation. For
instance- development of smart phones
Change in mindset – Any change observed in perception of people regarding their needs and
wants. Due to it, they start demanding something new from market. Therefore, companies
implement innovation by changing product or services. For example- use of immunity based
food
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Thus, these all are sources of innovation as defined by Peter drucker. Through it, data and
info is evaluated and entrepreneur uses his knowledge and skills in finding out needs of people
and then implementing his new idea practically.
P2 Explain rationale and market gap for specific idea
In order to start any new business or launch new product or service, it is necessary to
conduct market research so that gap is identified. It highly helps in analysing market situation
and finding out growth opportunities that can be grasped. The gap analysis supports in finding
out gap within market. Here data and info is collected to determine needs of people. Hence, on
basis of that innovation is done (Boudreaux and Nikolaev, 2019).
Entrepreneur idea- the idea is to start an online business where all types of tailoring services
will be provided to people through an App. The services include design, stitching, etc. of
clothes.
Rationale to idea- the main purpose is to save time and money of people by providing the
tailoring services at their home. Also, it will help in generating profits. Besides, it is started so
that people can get services at home easily. So, rationale behind this idea is to provide flexibility
to people and integrating both work at one common platform. It will help in saving their time and
cost. Besides that, all services will be easy to access it from home. Through that, overall
procedure will become easy.
Specific customer type- here, customer type will be based on geographic segment. At initial
stage it will be offered only in major cities of UK.
Benefit to target market- they will be able to save their time and cost and do not go to visit
tailor shop.
Technical feasibility - the idea is highly feasible as services will be offered through App. So,
people will be easily able to use that
R&D required- it requires moderate R&D to find out market situation and needs of people.
Idea is profitable as services will be offered at low cost. Also, there is high growth in
online business in market.
Market gap- Here, market gap determined was that most working people does not get enough
time to visit shop. Alongside, for small stitching work as well they have to visit it that leads to
waste in time. Furthermore, they have to select separately both clothing material and then give it
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for stitching. Another market gap is that design and material are not available at single place. It
become a little complex to get unique design.
Resources required- financial, HR and technological resources
Marketing potential – it can be marketed through digital marketing. This will help in creating
awareness easily among people.
Business objectives- to provide flexibility to people and generating revenue.
Porter five force-
Buyer power
the buyers of the company are affected by the price of the product. It means large buyer
contain less power to influence price of product and vice versa. Here, buyer is more so they will
have less power.
Supplier power
the suppliers are supplying the raw material to the company for the products. Here large
supplier means they possess less power to change price and vice versa. In this the suppliers will
be less so they will have more power to influence price of raw materials
Threat of the substitute products
It refers to number of substitute available for that products. There is only one substitute
available in it as people will have to visit tailor shop for it.
Threat of the new entrants
It means threat of new entrants in the market. The power of threat of new entrant is
high. Many other business can enter in this market.
Rivalry among companies
This mean competition among existing firms operating in that market. The power is less as
there are no such companies in it.
For doing market gap analysis there are different techniques. It depends on entrepreneur
to select it on basis of his business idea. Each one provide different data and info from several
sources. The techniques are as :
Customer survey – it is a technique where market research is conducted. Here, several questions
are asked to people regarding their needs and wants. Thus, the data gathered is than analysed that
gives insight on people future needs. Along with it, competitors product and its features are
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evaluated that what featured are been included in it. Thus, a customer survey was done for e
tailoring services.
SWOT - this technique analysis the market gap into four elements that are strength, weakness,
threats and opportunities. This enables in making things easy and finding out changes in the
market. Basically, focus is on exploring the opportunities in market (Njoku and Cooney, 2020).
P3 and P4
Covered in PPT
P5 SWOT Framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea
SWOT analysis can be used by the organization to effectively analyse the current
analysis of internal strength on the basis of external factor for organization. there are various
factors are analysed by the organization to get effective result from the target market. To
improve the business of the organization. In this process strengths of the organization,
weaknesses of organization, possibilities or opportunities and threats for the organization in
target market. This is how SWOT analysis can be performed in order to improve the
performance of the organization in market place
Strengths of the Idea Developed
 Use of internet the business process will help the organization to address much larger
market in order to gain higher benefit in target market and this will also help the
organization to select wide range of market to provide services and products to the target
audience to the people.
 It will allow people to save their time as well cost as they can avail services as per
their flexibility. Also, it is a unique idea. As online services can save the time of people
lit will also help them to effectively save cost and provide better services to their
customers.
Weaknesses of the Idea Developed
No such type of successful idea has emerged so it can lead to failure as well.
Slow growth in market which can led to low operating cash
Any technical error in App will interrupt entire process
Opportunities of Business Idea
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Company can target new and emerging market to perform business expansion in new market.
company also can look for further expansion in the remote market area to target more people to
gain higher customer base in market place (Zhang and Walton, 2017).
Merging with designers and tailors as well in order to provide more design to people to chose
from
Buying directly cloth material from suppliers which will led to decrease in cost.
Threats of the Developed Business Idea
Threat of new entrants
Advancement in technology will led to rise in maintenance cost.
Issue of data privacy (Bouncken, Kraus and Roig-Tierno, 2019).
P6 Competitive market Environment for the Innovative Business Idea
This is important for the business organization to perform market competitive analysis to
evaluate the success of their business in target market. Competitive market analysis can be
performed with help the of Porter’s Five Force analysis. This can effectively help the
organization to understand current market situation.
Threat of New Entrant
This threat is high for business organization because there are different companies which
are providing similar products and services in different ways. Organization can offer better
services to customer at low cost to grebe larger market place.
Threat of Substitute
The Technology which is used by the organization is easy to access and there is huge risk
of substitution in market place. this threat can be reduced by offering unique services and
products to the customer. Better quality can be offered at marginally lower cost to attract larger
audience.
Bargaining power of Customer
This threat of customer is also high because there are many options are available in
market place (Exposito and Sanchis-Llopis, 2018). This power of customer can be reduced by
offering better services to the customers.
Bargaining power of Supplier
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The bargaining power of supplier is also high because there are different options supplier
have in market place. company can improve their number of supplier in order to maintain power
of supplier low.
Rivalry Among Existing Competitors
In the initial level rivalry among competitor will be low but it will increased with time
and it will affect the business organization market place. this can be reduced by setting bench
marking in production and operation process.
Competitive threats- there are some competitive threats such as new entrant can easily enter in
it with same idea. Also, any change in customer needs will impact on growth of business and
it will affect competitive advantage as well
The idea is viable to be business enterprise as its aim is to earn profits by offering online
tailoring services to people
CONCLUSION
This report is concluding the importance of the innovation for the success of the business
organization in target market. Various sources of the innovative ideas has been discussed in the
report. The market gap analysis has been performed in the report and different type of data also
has been collected I the report. Data collected in the gap analysis process has been interpreted in
the study. SWOT analysis also has been performed in the study that can help the organization to
know their strength and internal capabilities in market place. Competitive analysis also has been
performed in the report to effectively perform business practices in target market.
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REFERENCES
Books and journals s
Boudreaux, C.J. and Nikolaev, B., 2019. Capital is not enough: opportunity entrepreneurship and
formal institutions. Small Business Economics, 53(3), pp.709-738.
Bouncken, R.B., Kraus, S. and Roig-Tierno, N., 2019. Knowledge-and innovation-based
business models for future growth: digitalized business models and portfolio
considerations. Review of Managerial Science, pp.1-14.
Clark, K. and Ramachandran, I., 2019. Subsidiary entrepreneurship and entrepreneurial
opportunity: An institutional perspective. Journal of International Management, 25(1),
pp.37-50.
Exposito, A. and Sanchis-Llopis, J.A., 2018. Innovation and business performance for Spanish
SMEs: New evidence from a multi-dimensional approach. International Small Business
Journal. 36(8). pp.911-931.
Fairlie, R.W. and Fossen, F.M., 2019. Defining opportunity versus necessity entrepreneurship:
Two components of business creation (No. w26377). National Bureau of Economic
Research.
Njoku, K.C. and Cooney, T.M., 2020. The Influence of Ethnicity on Entrepreneurship
Opportunity Formation (EOF) Amongst Immigrants. In Developing Entrepreneurial
Competencies for Start-Ups and Small Business (pp. 192-214). IGI Global.
Vom Brocke, J. and Mendling, J., 2018. Business process management cases. Digital Innovation
and Business Transformation in Practice. Berlin et al.: Springer.
Wojan, T.R., Crown, D. and Rupasingha, A., 2018. Varieties of innovation and business
survival: Does pursuit of incremental or far-ranging innovation make manufacturing
establishments more resilient?. Research Policy. 47(9). pp.1801-1810.
Zhang, J.A. and Walton, S., 2017. Eco‐innovation and business performance: the moderating
effects of environmental orientation and resource commitment in green‐oriented SME
s. R&D Management. 47(5). pp.E26-E39.
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