Identifying Entrepreneurial Opportunities: Analysis Report for Amaira

This report provides a comprehensive analysis of entrepreneurial opportunities, focusing on the development of a business concept for Amaira, a company offering beauty products, skin treatments, and fitness services. The report begins by exploring various sources of business ideas, including Drucker's 7 sources of innovation, customer feedback, competitor analysis, and employee insights. It then delves into the rationale and market gap analysis, utilizing tools such as Porter's Five Forces model to assess competition, new entrants, supplier and buyer power, and the threat of substitutes. The report also incorporates gap analysis to compare the current business situation with desired outcomes. Furthermore, it presents data supporting the gap analysis, comparing Amaira's strategies with those of its competitors. A SWOT analysis is conducted to evaluate the strengths, weaknesses, opportunities, and threats of the entrepreneurial idea, followed by an evaluation of competitiveness and market environments. The report aims to provide a framework for identifying opportunities, analyzing market gaps, and developing a viable business concept within the beauty and wellness industry.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Sources of Business Ideas ................................................................................................3
TASK 2............................................................................................................................................5
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques ..............................................................................................................5
TASK 3............................................................................................................................................7
P3 Data which supports gap analysis in evaluation of idea ..................................................7
P4.Interpretation of data.........................................................................................................8
TASK 4............................................................................................................................................9
P5 SWOT analysis to support specific entrepreneurial idea..................................................9
P6 Evaluating competitiveness and market environments...................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A business concept acts like a bridge between an idea and a business plan. Conversion of
an idea into a business concept comprises a in-depth study of whole process starting from
manufacturing a product, its unique features to differentiate it with existing goods, its target
audience, methods of delivery and so on. Thus, crucial task for an entrepreneur is to identify the
opportunities prevailing in a market and cultivate new and innovate ideas into business concept
by using several methods and sources for creating unique and different products that can help
the firm to get an edge over its competitors by gaining the attention of customers (Alvarez,
Barney and Anderson, 2013).
Report discusses about Amaira company which provides beauty products, various skin
treatment and a fitness center for all its customers. This assignment will give a brief about
various sources that can be looked upon for a generating a business idea and different tools and
techniques that can be utilized to study the market gaps. Report will also discuss SWOT analysis
which will help in evaluating competencies of generated idea and its feasibility in current market
environment.
TASK 1
P1 Sources of Business Ideas
In this era of competitive and ever changing market environment, it is critical for every
entrepreneur to continuously evaluate opportunities that can be convert it into a business idea.
Thus the critical task of an business person is to carefully generate best and most innovative idea
from the pool of variety of sources that has not been worked upon by anyone and can provide a
lead in market. Mentioned below are some of the sources that can be considered while working
upon a business idea:-
Drucker's 7 Sources of innovative opportunity model- Following are 7 sources suggested by
Peter Drucker for generating innovative ideas-

 The Unexpected- An enterprise should always keep a close check on the market
environment to grab an opportunity of developing new and improved products and latest
skin treatments emerging all across world so as to get lead from market rivals.
 Incongruity- There is always a wide difference between what we thing and how it is
finally been applied Amaira needs to develop innovative techniques, tools and ways that
help in applying the idea as it was visualized into a concept.
 Process Needs- It is associated with finding out areas of lacking and rectifying them or
redesigning them. This acts a source of innovation for firm to come across current
capabilities of business process and ways to improve and enhance it to get higher profits
and success.
 Industry and Market structure change- Market scenario, laws and regulations,
technologies etc. keep on changing frequently. Thus Amaira for its successful long term
survival needs to evaluate recent market trends so that it can provide such machines,
treatments and products which helps in meeting latest problems and needs of its
customers (Arentz, Sautet and Storr, 2013).
 Demographics- Constant change appearing in population, income levels, human capital,
age group etc. which can serve a source to find out new requirements of changed
demographic conditions and can be cultivated into an idea.
 Changes in perception,meaning and model- With change in demographic situations,
the way in which people thinks, feels and requires also gets change. Company can
evaluate this behavioural and attitude change to cater needs of the customers by
introducing something new as per their requirements.
 New Knowledge- It is essential for firm to keep on introducing advance and innovative
technologies and tools to remain figurehead in the industry.
Apart from these sources there are some other prominent sources too-
 Customers:- For a entrepreneur to get an innovative idea customers serves as most
fruitful sources of idea generation. A leader should used various methods for gaining and
gathering information from them about their needs , wants, taste, preferences, lacking in
current products etc.
 Competitors:- Competitors are generally the neglected sources for innovation. If studied
thoroughly, they can be emerge as most important source of creative ideas. An

entrepreneur thus stay in connect with its competitors and market leaders through
industrial conferences, trade shows, exhibitions to get access to information related to
their marketing strategies, products specification, target audience etc. that can be further
analysed, append and modified by him to create and innovative and advance product or
service (Audretsch, 2012).
 Employees- Employees serves as largest pool of creative ideas as they are the ones who
are continuously been exposed within industry and its related employees, products and
market strategies. Hence firm can utilize capabilities of its employees for getting a wide
variety of information that can be utilized to anticipate and articulate requirements of
consumers and to convert them into usable ideas.
 Look into past and future:- Past can hold remarkable numbers of creative and
innovative ideas. It is so because it might be a case that a technically rejected idea in the
past can serves purpose in today's scenario of updated technology. In the same way future
holds a lot of opportunities too. Thus Amaira by working in collaboration with
universities and research institutions company can get the opportunity to get advantage
of out of the box thinking of young talent who are most valuable assets to solve problems
in most creative ways by coming up with relevant solutions.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques .
There are various differences between products which are manufactured and then the
requirements prevailing in the market. Different ways to identify gap are-
Porter five forces of model – This model identifies competition that a business is prone
to through five forces that effects the ability of a firm to serves its consumers and generate
profits. These five forces shape up any industry and help it to identify and analyse its strengths
and weakness so that firm can always be ahead with its business rivals by timely modifying its
strategies and policies according to business dynamics (Davidsson, 2015). These forces are-
 Threat of New Entrants- New entrants serves as the biggest threats to company's
profitability and product demand. Lesser the cost and efforts and time for a competitor to
join market more danger it posses for a business to get impact on its position. Thus, areas

where there are strong barriers and many restrictions in entrance a business can more
operate more freely and can earn higher profits as the competitors will be fewer.
(Source: Porter's Five Force Model, 2018)
 Competition in the Industry- It is major determinant in case of competitive market
environment and reveals existing number of competitors and their capability to become
threat to a business (Grégoire and Shepherd, 2012). Larger the competitors with
homogeneous products, more will be changes for a customer to be presented with
substitutes where he can easily switch. Thus lesser amount of business rivals greater are
changes for a firm to enjoy monopoly and achieve higher sales and profits.
 Bargaining Power of Suppliers- It defines how easy it is for a business to switch from
one supplier to other depending upon their availability, cost of switching, quality of raw
materials they are providing and so All these factors need to be considered as fewer
supplier more bargaining power they have over company.
 Bargaining power of customers- It is describe as an availability of consumers to
pressurize firm by affecting its price levels. Buyer are likely to acquire higher power in
case they have many substitute available with low cost for switching over them. The firm
Illustration 1: Porter's Five Force Model

in this case can reduce their bargaining power by implementing loyalty programs that
can bind, attract and prevent them to buy from other competitors.
 Threat of Substitutes- Availability of large number of substitutes with competitive
prices poses a major threat to a business. It is because if a customer feels that product or
services provided by a firm can be easily substituted at fair price, it will reduce the sales
and profits of an enterprise (Gruber, MacMillan and Thompson, 2013).
Gap Analysis - Its is the technique which involves comparison of current business
situation with the desired situation on the basis of pre determined standards. This reveals the gap
that could be measured and rectify by taking corrective actions so that objectives could be
achieved within specific time frame giving maximum output with higher profits. It also involves
closure of gap regularly monitoring business process so that gaps should not be widen up and
could be closed down then and there as they emerges.
TASK 3
P3 Data which supports gap analysis in evaluation of idea
Company have to analyse difference between actual and market gap. It can due to
difference in the company policies and the competitors (Jarvis, 2016). Data is described below-
Basis AMAIRA Competitive firm
Competition in market Being a new in market and
with the motive of building its
market share charges of
products and machines that
Amaira costs approximately
around $7000 which is way
lower than the present brands
in market
All leading competitors costs
approximately 8% more than
Amaira products. Hence
customers are more inclined
towards Amaira products
range as it is cost effective
with best quality
New entrants in industry To remain in market and
builds its position company
providing 3% discount on its
On other hand all new business
rivals are charging a fees of
approx $12000 for their

beauty services and fitness
center subscription which it
provides to its customers to
gain their satisfaction
services and machines which
will make their survival
difficult in long run.
Power of supplier Amaira has done a dedicated
research while making a
choice of its supplier. It
charges $4000 approximate
which is considerably lower
than other competitors. This
gives a way to develop new
technologies in near future.
The competitive firms charges
$ 3500 from suppliers which
adversely effects the business
operations of it.
Power of customer Amaira uses customer centric
approach to cater needs and
aspiration of all its clients. By
giving quality products that
fully serves their purpose of
enhancing their beauty and
providing various latest beauty
treatment, consultation, skin
care and fitness services.
Company also takes feedback
of its goods and services that
results in delighted audience.
Opened up with mere profit
motive they focus mainly
charging higher prices for their
services and products without
maintaining any customer
relationship. Hence customers
remain unhappy and
dissatisfied.
Threat of substitute Amaira to capture market
position is already charging
less fees on all its beauty
products and services as
compare to its rivals. Having a
loyal customer base already
Competing firms with aim of
generating higher profits in
their initial phase only are
charging higher prices giving
less concern to consumer
queries and feedbacks are

has makes it less prone to the
threat of been switched over
by consumers for other
substitutes .
likely to be get replaced sooner
or later.
P4.Interpretation of data
The above market and gap analysis data interprets and conclude following results for Amaira:-
 Being conducting business in a market environment which is new and are having a
number of competitors Amaira to initially build up its brand value and capture market
position is charging comparatively lower than its competitors (Ko, 2012). It is charging
around $7000 for all its machines and products so that it is reasonable for consumers to
avail and use its services and products. This gives it benefit of earning more returns and
to grow in market.
 Amaira with motive of capturing attention of maximum users in minimum time is giving
3 % discount on its various beauty services and fitness center subscription. This will
definitely induce health and beauty conscious customers to atleast try and avail it
services for once. This will provide Amaira to capture this opportunity and apply
consumer centric approach to convert these potential clients into loyal ones (Kohlbacher,
Herstatt and Levsen, 2015).
 Amaira being new in market has devoted considerable time in selecting its suppliers.
With a view to maintain strong relations with them it charges $4000 from its suppliers
which is comparatively less than as charged by its competitors. This will provide it with a
chance to develop its technology time to time which directly increase fitness of all its
clients leading to their satisfaction.
 Amaira with its customer focus approach tries to fulfils all needs and requirements of its
customers. It strives to provide customized quality products at comparatively affordable
prices that serves their purpose of enhancing their beauty. By providing various latest
beauty treatment, consultation, skin care and fitness services it also cater fitness needs of
customers too. One good initiate taken by company to build up customer relationship is to
take their feedbacks about its products and services quality and if any problem or skin

allergy they are experiencing after using them. All this contributes in making positive
brand image for Amaira.
 Amaira is already giving best deals comprising quality products and services at
reasonable prices which will serve as an edge over its business rivals. Thus it lessen its
chance to get substituted by its customers for some other brand as it already is enjoying a
customer base which is satisfied and loyal towards its products and services.
TASK 4
P5 SWOT analysis to support specific entrepreneurial idea
For determining its probable strength and weakness Amaira can perform SWOT analysis.
It will help the firm to overcome its weakness and take advantage of new opportunities. SWOT
analysis of Amaira is mentioned below:-
Strengths:
 Amaira can make use of latest technology for developing its product range and to
introduce latest machines for beauty treatment and in its fitness center. It is veg important
for firm to remain updated about latest market innovation coming in beauty and skin care
field as it is way to remain ahead from its business rivals and to attract new customers
and retain old ones.
 Company is putting significant emphasis on the promoting its brand through various
tools like advertising by using print media so that more and people can be attracted. This
will enable Amaira to reach large number of customers (Lans, Blok and Wesselink,
2014).
Weakness:
 Since to capture market share and build up its market image Amaira is charging
considerably lower price from all customers hence may not be able to attract high society
customers. People might alleged Amaira for providing cheap products with lower quality
and might switched to other brands charging higher prices with a perception of getting
quality products.
 Another weakness could be as latest and advance technologies are quiet expensive a firm
might not be able to afford it in its initial stage. In case it can then it will have to charge

higher prices to get the returns which middle class customers might not be able to pay.
Thus either it will either reduce its profitability or its customers.
 As company is spending a big portion of revenues on conducting research and
development so as to get updates of latest beauty and skin care technologies and
innovations coming in market. It thus reduces its revenues which in case could be
invested in business itself for its expansion and diversification (Siegel and Renko, 2012).
Opportunities:
 Company can explore different online options for promoting its products and services. As
most of its other rivals company Amaira can also create unique and attractive websites on
internet. It can also start an online portal for its customers from where they can place
order fro carious beauty products. This will attract more customers as it is easy, quick an
d cost effective way to get products and gather information about company and different
services which it offers.
Threats:
 As company is not able to earn higher returns and cannot widen and expands its business
operations unlike it competitors it may reduce its productivity and market performance.
Also the rivals might emerge as a threat by conducting business in other nations.
P6 Evaluating competitiveness and market environments
It is of crucial importance for Amaira to evaluate its competitive environment and other market
conditions so as to formulate various plans and policies in accordance to these factors.
Competitive analysis and market environment of Amaira are:-
Competitive market: It is of vital importance for firm to evaluate the market tools and
technologies so that it becomes easy for firm to adopt them. It is beneficial for company as it
will be able to develop its products according to changing needs and preferences of customers
leading to an increase in its market share. Some factors of competitive analysis are-
 Substitute products: Company should create such products that are unique, advance and
can be easily differentiated from other substitutes available in market. It give advantage
to company as customer can easily search out it products (Tang, Kacmar and Busenitz,
2012). Also a company should differentiate in its pricing and other strategies and policies
and develop plans and procedures that are way ahead from its competitors .

 Target audience- Another important aspect to get an edge is to select the best suitable
target audience which in this case are women. The objective of firm should be to cater all
the beauty and fitness related needs and wants of women by providing them with quality
products and services in prices which they can afford.
 Demand- With people been much aware about the side effects of synthetic and chemical
products the present era is of organic products. Thus company should emphasize on
creating products that are herbal, organic and skin friendly without having any harmful
effects. This will surely help in gaining a lead over other brands.
Market environment: There are various marketing environment conditions that a company
needs to analyse and evaluate so that it can survive in the market for long run. Factors monitored
by Amaira are-
 Macro Factors – In this company do its PESTEL analysis for evaluating various \
political,social,technological,economic,environmental and legal factors that can impact
its business and its operations. As Amaira main target is women, hence it has to develop
technologies,tools and machines which are in accordance to the requirements of them.
 Micro Factors - It involves all the internal factors presented within an organization. A
firm have to observe and evaluate its employees perception, behaviour, attitude and
organizational culture. It is important factor as it helps in formulating plans and policies
in align with it.
CONCLUSION
The project undertaken concludes that it is of vital importance for an entrepreneur to
identify business opportunities prevailing in market. A firm has to evaluate different sources for
generating an idea which is most feasible and profitable to be pursue. Moreover there are
various techniques and methods which can be utilized for finding rational and market gap.
Primary and secondary data both are been utilized by firm for identifying market potential. By
performing SWOT analysis and market environment analysis a firm evaluates its market
scenario and competitors so that potential and probability of success of an idea can be assessed.