Identifying Entrepreneurial Opportunities

This document discusses the sources of innovative entrepreneurial ideas and how to fill the market gap using relevant tools and techniques. It also includes a SWOT analysis to assess the entrepreneurial idea.

Unit 27 : Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Sources of innovative entrepreneurial ideas.....................................................................3
TASK 2............................................................................................................................................5
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques. 5
TASK 3............................................................................................................................................8
Covered in PPT ......................................................................................................................8
TASK 4 ...........................................................................................................................................8
P5. SWOT Analysis to assess the entrepreneurial idea..........................................................8
P6. Evaluation of competitive and market environment to assess potential viabilities..........9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An individual who seeks to take the necessary risks and perform certain types of
business activities inclusive of products and services that are totally desirable by the market. Te
opportunities of entrepreneurship are the determined ideologies and innovations that creates a
connecting bond between the individual and commercial market (Siegel and Renko,2012). The
report paper here is prepared on the dimensions of a new hotel. This hotel is about to launch in
upcoming period of time, the name is decided as West Inn and it will be established in London,
England. Its main objective will be to provide the unique and special services to its customer, to
capture the effective proportion of accommodation oriented market positively. The star service
of this venture would be possible customisation in case of one month prior to actual
consumption.
The project on this subject will consist the major principles of entrepreneurial ideas, the
evaluation of market gap and findings for the whole idea will be discussed. Along with that
essential informations will be provide to overcome the barriers of market gap. The other element
of this report will be of internal analysis of its strengths, weaknesses, objectives and threats. That
will take place by evaluating the conditions through SWOT model. The environment within the
respective region has a heavy influence of its current competitor. Thus all these measures will
give an idea to respective entrepreneur to formulate a effective plan of action for attainment of its
desired goals and objectives. This would help the said organisation to gain more profitability the
business would prove as successful.
TASK 1
P1. Sources of innovative entrepreneurial ideas
The major aspect within the growth and development of a nation are its businesses, which
are operating their business domestically as well as internationally. The corporations of a
country directly plays the role of essential element in its growth by contributing in its
infrastructure and boosting its rates of income and GDP (Kohlbacher, Herstatt and Levsen,
2015). It promotes a culture of industrialisation in the respective nation. Thus it became
necessaries for the new entrepreneurs to understand the need and demand of market and
introduce their own offering in to the market. This will provide an effective alternative to the
co0nsumers as well as it will also support the economy of nation. With all such importances of
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entrepreneurship in the country it is significantly essential to determine the sources of
entrepreneurship ideas. These ideas are the foundation of any entrepreneurial business. Thus for
the responsible authorities in the nation it became quite helpful to influence young and potential
candidate for the generation of entrepreneurial ideas and promote their process and overall
functions for the betterment of individual, society, and country.
The ideas for the creative and innovative approach to be understand by the potential individual
are determined by seven sources of famous management consultant Peter F Drucker which are as
follows :
The Unexpected: The source is considered as the unexpected and the innovative
approach of that unexpected idea is justified as the uneventful placement of any activity (Tang,
Kacmar and Busenitz, 2012). The outcome from these activities are generally more effective and
helpful in terms of evolution as the demand and need of an existing market helps new individual
to perform the experiments with new innovation, that can give a permanent solution to the
consumers and establish the business.
Incongruities: These are the gap of understanding between what exists in the current
state of market and what is the need of market. Thus the incongruence of the business scenario
gives a scope to new entrepreneur to fill the gap of incompatibilities of consumer share of
market. This tendency of completing the missing factors in the existing offerings of market helps
entrepreneurial ideas to take place and nurtured in a way to increase the profitability of their
potential product and services.
Process need: The process need factor emphasises on the overall aspects of ideas and
process of entrepreneurship within the range of each and every step of procedure that take place
in the business operations. It is a crucial type of evaluating the entrepreneurial idea as the
common errors of the process can be rectified and major problems are eliminated by this
activity. This creates an impact on the effective practice of the business idea in the real scenarios
of market.
Changes in Market and Industry Structures: The certain changes in the market aspects
that gives an opportunity to entrepreneurs to introduce the offerings and other services in respect
of the current trend of market. These changes within the industries and markets facilitates the
potential new comers to grow with the flow of market as it is not effective for the giant
commercial organisations as they cant adapt these changes frequently.
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Demographics: The transition of population, majority or minority of genders, age group,
income status all these functions are a part of demographics that is analysed by the entrepreneur
to establish their working and all the practice of respective business. Thus for the effective
practice of business of West Inn hotel and getting the efficient outcomes from its unique ideas of
providing the services, it is essential for the entrepreneurs to analyse and study the demographic
values of the respective market share.
Changes in Perception: The thoughts and perception of customer segment toward any
product or service are volatile and can be changed through a course of time by the affect of
various factors (Suddaby, Bruton and Si, 2015). Those perception plays a wide role in the growth
and survival of respective offerings by the company. The enhanced gap of ideas can be fulfilled
by this source as the entrepreneurs will get certain help from the perceptive tools.
New knowledge: the advancements of specific technologies and tools of performance it
enable to gain the necessary information about these changes of operations and practices in the
business. The effective new knowledge on the relevant source of product and services can be
beneficial to the business as it will give them a chance to maintain the effective balance of
operation as well as the growth of the business in terms of profitability and market expansion.
The entrepreneurial idea of opening the hotel is selected as the number of tourist within the
country is high and the customers seek better services as per their expectations within their
budget. Also the hospitality industry is growing due to related aspects as the tourism and the
chances of better profitability with better quality services to the customers.
TASK 2
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques
Entrepreneur here is a designing a systematic and strategic plan of action for the launch
of a new hotel. This hotel is established with a view to provide the distinctive facilities to its
customised and these are formulated by the management (Grégoire and Shepherd, 2012). As
providing the maximum level of customization in the services by customer will be the core
facility of this hotel. It will be named as West Inn , the respective customization will only be
available to those customers who does their reservation in the hotel before 2 weeks of check in.
These customization will include all the element and their modification in the respective booked
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room. This customization will go through the bedding, carpet, curtains, entry, bathing
accessories , flower, linen, laundry and so on. These activities will lead to gain the efficient
share of competitive market and it will does consider on the marketing gap. Thus to provide
quite distinctive services and offering in the market and making available that type of goods and
services which are not yet introduced in the market. These type of scenario are termed as the
market gap, which can be analysed by a respective entrepreneurial firm to perform better and
establish it self by the help of understanding the market gap. The marketing gap is classified in
the form of these factors which are as follows:-
Technological advancements: The current era of emerging trends in the technological
environment of hotel and accommodation service sector is enforcing the consumer segment to
make the demand and feel the need of respective product that is advanced and up to date with the
current technology policies in the nation. The fulfilment of this gap can enhance the popularity of
the respective hotel, West Inn and it can certainly drive an increased traffic of visitors.
Identification of opportunities: countering of most profitable opportunities is the most
efficient tool to fill the market gap. In simpler words it can be ascertained that the proper
analyses of market conditions and the desire, need of the respective consumer base can be
studied. This activity will certainly help the efficient entrepreneurs to moderate the facilities and
other services of West Inn in such a way to fulfil the market gap by understanding the
opportunities of lack of customisation. The organisation can offer here the maximum options to
customise their respective rooms or suites as well as the reservation.
COMPETITIVE ANALYSIS
Basis West Inn Hotel J W Marriott Hotel Four Seasons London
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Products and
Services
They provide the best in
class services with a
determined standard of
products and
differentiated service
packages, according to
the consumers need and
demand.
The hotel here provides
twenty four seven services
and offers five star rated
amenities in a feasible price
criteria.
This hotel is considered
as the top most
hospitality business
tycoon in London as they
provide numerous
additional services with
the package of basic room
check inns.
Organization
structure
The organisation
follows the determined
functional structure for
the operations. Each
task is assigned to the
respective personnel or
to a whole team.
Hotel has the wide area of
operations so the
management has devised
multiple sections of work.
They follows departmental
structure of organisation.
where every individual
staff is regulated to ask or
report to their respective
departmental manager.
They enforces a manger
or executive to work
according to the process
and need of the specific
product and services.
The matrix structure is
being followed here.
Major
Attractions
The major focus of
hotel is on the effective
and positive customer
interaction. The front
office and its efficient
work culture are the
influential attributes
Specialised staff for every
task, multi cultured
corridors and a wide variety
of food services are its
major attractions.
The major services
including leisure and
entertaining elements
such as private pools,
sauna, multi cuisine
foods, etc. are the real
centre of attractions.
Promotional
strategy
The hotel here uses
wide tools and
techniques to promote
their service, including
physical event
The hotel use quite
extensive measures to
promote the brand and its
elements. The marketing
and promotion of Marriott
They use distinctive
marketing strategies for
the promotion. As the
organisation provides a
quality services in
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promotion, print media
and digital media
promotions etc.
hotels is already on the
desired level, they use
social media , mobile apps
and so on to interact with
the potential audience on a
global level.
favourable prices, it
promote the hotel though
positive mouth publicity.
Also they use billboards
and leaflets for the
interaction with
consumers.
TASK 3
Covered in PPT
TASK 4
P5. SWOT Analysis to assess the entrepreneurial idea
It is necessary for entrepreneurs to rationalise whether the business idea developed by them in
context to starting a venture is feasible or not. For this, SWOT Analysis can be used by
entrepreneur. It is a strategic tool that assist in evaluating and determining the probable strengths
and opportunities to feasibly promote the new business idea while carefully taking into
consideration the weaknesses and threats to tackle them to ensure success of idea. Launching
West Inn hotel within the hospitality market of London that offers visitors the option of
maximum possible customisation is a distinctive and unique idea . Thus by conducting SWOT
analysis, entrepreneur can gain knowledge of the positive and negative aspects of business. The
SWOT analysis of proposed idea is below:
Strengths:
The major strength of every organization needs to gain larger support from public and
leads to success within a upcoming time. At the time of launch of West-Inn in London, the
specific strength of this venture is having a beautiful and strong element of creativity hidden with
it. Having a alternative made-to-order, from the virtue of customer preferences that can bring the
nostalgic customised in the rooms as well as nearby surrounding which it reaches to customers’
expectations related to the accommodation. Furthermore, the other features which implies the
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strength of West Inn is that the staff are well groomed as well as excellence in service with
good productivity of work which satisfied the guest's demand.
Weakness:
During the time of launching of new venture into the market is the most important aim to
identify and examine all upcoming business as competitors which can acquire in the market. The
location decided for launching of West Inn in London which is one of the prime and beautiful
place to start but it has some drawbacks. The prices of materials and other resources in London is
very expensive as well as the area where the West Inn have to launched is also one of the
expensive transportation system across the globe.
Opportunities:
It is necessary for entrepreneurs to seek the knowledge of further scope of business which
can ease to build up a business in possible manner. It helps to assessment of opportunities that
might to be happen in future perspective. At the time of launching of West Inn they proposed the
option of different made-to-order at the time of bookings, it is important for business
entrepreneur having a continuous market research and grab an opportunity and pinch it which
gives a benchmark to a business.
Threats:
There is always a competition in the market with business competitors while the time to
start a new venture. In case of West Inn it is a five star property which provides elite kind of
services where the other competitors like Hilton and Ritz Carlton they are already stabilized and
having a goodwill in the market in which these competitors provides the excellence level of
services to customer but it very expensive, the possible threats for this hotel is decremental in
prices from rival business, operating cost, other cost which can be negotiable as well as new
entrant of threats in hospitality industry.
P6. Evaluation of competitive and market environment to assess potential viabilities
In order to effectively convert a business idea into a prosperous venture, examination of
marketplace and industrial conditions hold immense significance. It will provide assistance to
gain comprehensibility of the trends and patterns prevailing within the confines of market. It is
important that the business idea which is being converted into venture is feasible and capable of
catering to the needs as well as demands of people. In relation to West Inn, the evaluation of
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market and rival environment is done with a view to examine the potential viabilities. It is
presented as follows:-
Competitive Market
It is quite important for a business to take into account the nature of rivalry prevailing
within the corporate sector in which it operates. In relation to an upcoming ventures, it becomes
all the more important as it is one of the bases on which the feasibility of an entrepreneurial idea
is dependent. Thus, the competitive environment for West Inn is determined with the help of
Porter Five Force Model.
Competition within Industry:
The extent of this force with respect to hotel industry is identified to be immensely high
owing to the presence of entities dealing in same service line. Some of the examples of top notch
hotels functioning within London are acknowledged to be Marriott, Four Seasons, Hilton and
many more. It is important for the entrepreneur of West Inn to beware of such rivals and develop
strong strategies accordingly. The competition within the hotel industry is high due to which the
new hotel such as West Inn must take into consideration various innovative services so that they
can manage the impact of the level of competition . Various strategies such as use of the LED,
effective waste management system etc. so that the impact of the competition can be managed.
Threat of New Entrants:
The magnitude of this factor in relation with accommodation sector is acknowledged to
be be low owing to the heavy investment required by businesses. Thus, this will act as an
opportunity for West Inn to gain the attention of large customer base and satisfy their needs by
giving them offer of possible customisation in case of one month prior booking. The hotel
industry requires a large investment due to which the entry of the new entrant becomes difficult
and thus it can lead to huge capital losses. Due to this the impact of this force on the West Inn is
low as entry of new player in the market is not possible. But even in case they faces such
situation then customer loyalty must be ensured with better services.
Bargaining Power of Buyers:
The power of this force is high within hotel industry as there are several hotels which
provide accommodation services within London. However, as the service provided by West Inn
would be unique, the venture would not face threat of this element. Within the hotel industry the
power of the buyers is high as the services are provided as per the taste and preferences of the
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customers due to which they have bring changes in their stargates and actions. Some of the
buyers such as tour operators, domestic and international airlines etc. pressurise the hotel and in
case of West Inn they are also influenced by the tour operators as they have to make changes as
per the requirement of different customers.
Bargaining Power of Suppliers:
The extent of this force within the confines of hotel sector is low. This is because hotels
generally maintain networking with several vendors and thereby can shift the supplier in case
they are charging high. The hotel industry does not faces power of suppliers as the number of
suppliers for the required materiel is large but for managing the cost of the hotel the West Inn
must establish better relation so that they can ensure reduction in the switching cost for the
suppliers.
Threat of Substitutes:
The power of this force is moderate for West Inn as the service provided by this venture
would be unique and totally exclusive. Thus, this will act as an opportunity for the respective
venture while conducting operations within London. The hotel industry faces various issues in
context of substitutes as the switching cost in this is low due to which the hotel such as West
Inn faces various issues but for their clients such as business travellers the threat of this force is
low.
Market Environment
Macro as well as micro environment influence the working of a business entity. Both are
discussed in context of West Inn as follows:-
Macro environment
This has been analysed with the assistance of PEST analysis as underneath:-
Political: The strong political conditions of UK would support the growth and
development of West Inn within the boundary of London. As a result of this, the upcoming hotel
would be able to appeal to a large customer base thereby enhancing its revenues and profits in
the long run.
Economic: West Inn Hotel would have the opportunity of capitalising upon the strong
economic state and infrastructural development of United Kingdom. Through this, the hotel
would be able to ensure sustainability in market for long period of time.
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Social: West Inn has come up with a new service named possible customisation in case a
customer books the hotel at least one month prior to the date of actual consumption. This service
has been developed and proposed by the entrepreneur of this venture after thoroughly
researching and analysing the market. The aim of the venture is to cater to the needs and
demands of people in London and to retain them for a long period of time.
Technological: Over the course of time, rapid progressions come within the domains of
technology. These can be significantly tapped by West Inn to gain a large share in market place
of London. As a result of this, the upcoming hotel would be able to earn high revenues as well as
profits.
Micro environment
This consists of internal aspects such as staff members, values, practices, cultures,
traditions and customs of the entity. These portray that the idea is capable of being converted
into commercial business in upcoming future.
On the basis of above mentioned analysis of competition as well as market environment,
it can be stated that the idea of developing West Inn Hotel is feasible and thus can be introduced
in London market in near future.
CONCLUSION
On the basis of above discussion, it can be said that the present era is constantly altering
as per the changes taking place in business environment. This consists of opportunities for a
potential business idea to be converted into a successful venture. Besides this, it has been
determined that there are various sources of a potential business idea such as Incongruities, New
Knowledge, Change in Industry & Market Structure and many more. In addition to this, it has
been acknowledged that gap analysis provides assistance in analysing the strategies through
which market gap can be filled by the upcoming venture. Apart from this, it is recognised that
rivalry is one of the primary factors which need to be taken into due consideration by
entrepreneurs to ensure long term existence of an upcoming venture in market place. Feasibility
test needs to be conducted of the proposed business idea in order to make sure that the idea is
capable of fulfilling the needs and demands of people in market.
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REFERENCES
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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.
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