Identifying Entrepreneurial Opportunities

This document discusses the process of identifying entrepreneurial opportunities for a new business venture called 'Fruity Juicy drink shop'. It covers topics such as different sources of entrepreneurial ideas, rationale and market gap, competitive analysis, and the application of SWOT analysis. The document also evaluates the competitive and market environments in which the business idea will be launched.

Identifying
Entrepreneurial
Opportunities

Contents
INTRODUCTION...........................................................................................................................1
Activity 1.........................................................................................................................................1
Determine and evaluate different sources of entrepreneurial ideas and innovation....................1
Explain the rationale and the market gap for specific entrepreneurial ideas...............................2
Competitive analysis at competitive marketplace.......................................................................3
Activity 2.........................................................................................................................................4
Covered in to PPT........................................................................................................................4
Activity 3.........................................................................................................................................4
Application of SWOT analysis to collect evidence to support an objective...............................4
Evaluate the competitive and market environments in which the ideas will be launched to
assess potential viability..............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
An entrepreneur is an individual who working as an employee to convert is innovative thoughts
and ideas in to business. Entrepreneurship is the study of how business are established and the
accurate process of operating a new venture. Before set up a business the person determine the
growth options in a particular business industry (Hjalager and Kwiatkowski, 2018). This written
document is based on a new business venture “Fruity Juicy drink shop” that is starting by an
budding entrepreneur. It a healthy and organic juice drinks shop which is located at Oxford
Street, Marylebone, London. The report will covers information different sources of
entrepreneurial ideas and innovation, rational and market gap, SWOT analysis for gathering
information to support and evaluation of competition and market environment in which this new
idea will be launched.
Activity 1
Determine and evaluate different sources of entrepreneurial ideas and innovation
To establish a new business, there are requirement to analyse and determine several sources
of entrepreneurial ideas and innovation. These origins are required for business of “Frutiy Juciy
drink shop”. With the help of Duker;s 7S model, the information about different sources can be
evaluated. The explanation of them as below:
The incongruity- it is an activity of offering things that are out of place or ridiculous in
respect to its surroundings when things do no match as they are expected to. For instant, it can be
connected to customers that the businessperson of “Frutiy Juciy drink shop” assume about
consumers that number of people are attracted by this shop but in reality it cannot be possible
due to rivals.
Process need- It is an act of identifies the weaknesses of the firm and trying to make
correction in them. For instant, if the owner of respective business that customers wait too long
and stand in queue for their entry so to overcome this weakness they decided to recruit a chief to
offer fast service.
Industry and market structure change- It can be connected to innovation in techniques and
structural problems that arises time to time. So to deal with this issue to firm can make change in
technologies by replace with new ones (Hachana, Berraies and Ftiti, 2018). For example, in
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“Frutiy Juciy drink shop”, by offering new techniques in term of pay through mobile application
or using a coffee machine.
Demographics- It is affiliated to the demographic components like age, gender, education, taste
& preferences. For instant, This shop is located in a bust are there is corporate office where
employment and age are a favourable element for the business of healthy drinks (Ahmadian and
Abdolmaleki, 2018). Because working people highly conscious about their health and prefer
healthy and organic juice.
Changes in perception, meaning and mood- This innovation growth option is connected to
change in taste & preferences of people. For example, in UK a wide portion of population is
working and they are highly conscious about their health. So now theses their tastes are changes
in form of demanding healthy and organic drinks.
New knowledge- It can be affiliated to change that are arise in a firm due to change in
technologies. For instant, now these digitalisation change scenario of each business so by
adopting online payment and net banking technology, the firm can get information about new
things which help in success and growth of it.
Explain the rationale and the market gap for specific entrepreneurial ideas
Introduction business idea- The business idea of the entrepreneur is to start a business of Drink
shop in which the businessperson produces healthy and organic juice and drinks. This idea was
arise in the mind of individual when the person was in a restaurant and there the person cannot
get a sugar free and organic juice. In UK, the demand of these kinds of drinks is high and the
national authority also offers financial support to young graduate businesspersons to maximising
the rate of employment. Apart from this, there is several financial form that are ready to invest
find in an innovative business idea which is able to provide them a better return. Virgin money
is a financial enterprise that is ready to invest money in Fruit Juicy Healthy Drink shop in term of
serving community by offering effective products and services. This shop located at Oxford
Street, Marylebone, London which is corporate area (Turner and Gianiodis, 2018). Here, the
business can get number of people in form of customer as in UK, individual are health conscious
and prefer healthy drinks. Healthy juice and organic drinks is a good concept and product for
them which is able to fulfil their needs and demands.
Main target audiences of the firm is young age people and working people as they are high
concentrate on their health so for them it can be an effective product. The firm target young age
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and working people as they youths high prefer healthy items rather junk food, hard and high
sugar drinks so it can be a good drink for their health. Whereas office worker face more stress
and work hard so to maintain their energy level they can prefer healthy drinks. The shop is
situated in a corporate area so it is easy to find out effective and potential consumer there.
Competitive analysis at competitive marketplace
Competitive analysis
It is an activity of finding out competitors and analysing plan of action to determine the
capabilities and weakness of product and services that are produced by a firm (Farsi and et. al.,
2019). In context of Fruity Juicy Healthy drink shop, can use Porter’s five force analysis and the
description of this tool is as under:
Supplier’s power- The business of respective firm exist within drink sector and there are
number of suppliers that offer required material to venture at affordable prices. So the risk of
bargaining power of providers is low.
Buyer power- Fruity Juicy Healthy drink shop produce healthy and organic drinks that is
liked by consumers so the bargaining power of buyers is low and this force less affect the
business in term of competition. The firm offer different products in comparison to others and
cost of switching of purchaser is low.
Competitive rivalry- This factor is also less affect the business of the firm because this
venture offer new product in form of organic drinks so there is no high competition in particular
marketplace and this firm is able to get attention of number of people.
Threat of substitute- The firm is located in to a corporate area and there are number of drink
shop that offers different kind of drinks. So this force moderately affects the business due to
number of shop within a place.
Threat of new entrants- This force less affect the firm because to establish a business in to drink
sector, there are numerous laws and legislation that are compulsory to follow and different
license like hygiene license etc. So it is not easy to set up a business and there is large
competition so it is also crucial to set up a successful business (Kusumawardhany and
Trisnawati, 2019).
The businessperson can do differentiation in the products by manufacturing them in
different flavours. There is low risk of competition because the firm offer unique and different
products from others. A low level risk can be occur due to change in consumer’s taste &
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preferences but cause of availability of this product in different flavours will not be affect the
development of business.
Activity 2
Covered in to PPT
Activity 3
Application of SWOT analysis to collect evidence to support an objective
SWOT analysis
It is a strategic tool which is used for identifying capabilities, weaknesses, growth option
and risks of a business (Shu, Ren and Zheng, 2018). The description of this analysis in context of
Fruity Juicy Healthy drinks shop is as under:
Strengths Weaknesses
 Organic drinks are a healthy product
that gets attention of range of
consumers.
 The shop is situated in a corporate area
that is beneficial for the growth and
development of firm.
 It is a new business and new products
so it is not sure that customer will like
it or not which is a weakness.
 Opening and closing timing can be
affecting the people who are working in
nigh shift.
Opportunities Threats
 By offering this product in different
flavours the firm can make
development.
 The ability to appeal to a different
market than other shops and
restaurants.
 Number of competitors like restaurants
and drink shops can create competition.
 Change in consumers tastes and
preferences generate threat for the
business.
Evaluate the competitive and market environments in which the ideas will be launched to assess
potential viability
Business idea of healthy and organic drinks will be determine in form of feasible and viable
opportunity for new businesspersons (Izadi, Yaghoubi and Ataei, 2020). By producing new and
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healthy drinks that are high in demand and have less number of competitors can offer maximum
chances of development for business. In this business idea, the national authority also provides
support in form of providing finance to set up business. There is limited competition and the
availability of the products is not so high and the profitability can be executed for this business in
upcoming time frame.
Risks and the potential opportunities for growth and development
Risk is a complementary aspect in a business with the thought of making development
and success. If there are high risk then it offer If high profit margin to the firm. It s crucial and
necessary for respective venture to reduce the risk connected to issues. High competition in
marketplace the biggest threat to small businesses that affect business (Jamali and et. al., 2018).
It is essential to analyze this threat so that it can be remove of reduce by utilizing effective action
regarding it. In Fruity Juicy Healthy drinks shop, quality and healthy juice and organic drinks
products can be effective to resolve these kinds of complexities an assist in maximising sales,
number of consumers and profit or productivity of it.
CONCLUSION
This has been concluded form the above mentioned data that before establishing a business,
it is important to have information about the growth and development area of that business the
particular business area in which is going to set up. To have the information about completion in
the specific sector also help in framing strategies and plan so that business can effectively
survive. With the assistance of market research, the data regarding particular problem can be
collect in effective manner.
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REFERENCES
Books & Journals
Hjalager, A.M. and Kwiatkowski, G., 2018. Entrepreneurial implications, prospects and
dilemmas in rural festivals. Journal of Rural Studies. 63. pp.217-228.
Hachana, R., Berraies, S. and Ftiti, Z., 2018. Identifying personality traits associated with
entrepreneurial success: does gender matter?. Journal of Innovation Economics Management.
(3). pp.169-193.
Ahmadian, S. and Abdolmaleki, S., 2018. Network typology and international opportunity
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Research. 8(1). p.17.
Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding entrepreneurial
education outside of the business school. Journal of Small Business Management. 56(1). pp.131-
149.
Farsi, J.Y., Azizi, M., Mohammadkazemi, R. and Ziya, B., 2019. Identifying factors of fitness
between business model and entrepreneurial opportunity for effective opportunity
exploitation. Revista Gestão & Tecnologia.19(5). pp.71-86.
Kusumawardhany, P.A. and Trisnawati, J.D., 2019, March. The effect of prior knowledge and
business idea alertness to entrepreneurial opportunity in Indonesia. In 16th International
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Research. 85. pp.197-208.
Izadi, N., Yaghoubi, A. and Ataei, P., 2020. Determinants for Entrepreneurial Behavior among
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Jamali and et. al., 2018. Theories of opportunity creation and effective entrepreneurial actions in
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Wu, J., Li, Y. and Zhang, D., 2019. Identifying women’s entrepreneurial barriers and
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Entrepreneurship and Management Journal. 15(3). pp.905-928.
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Maroufkhani, P., Wagner, R. and Ismail, W.K.W., 2018. Entrepreneurial ecosystems: A
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Online
Peter Ducker's seven sources of innovative opportunity. 2012. Available Through :
<http://www.incrementalinnovation.com/innovation-management-development/7-
sources-innovative-opportunity>.
Porter's Five Force Model. 2019. [Online]. Available Through.
<https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html>.
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