Assessing Entrepreneurial Opportunities in Beauty Cosmetics - Report

This report provides a comprehensive analysis of entrepreneurial opportunities within the beauty cosmetics industry. It begins with an introduction to entrepreneurship and the specific context of a Beauty Cosmetics business, outlining the report's objectives. Task 1 evaluates sources of entrepreneurial ideas and innovation, including macro-environmental factors, Drucker's sources of innovation, and demographic influences. It then explains rationale and market gaps, utilizing tools like customer identification, market segmentation (behavioral, demographic, geographic), and an overview of product and service considerations. Task 2 delves into gap analysis specific to the entrepreneurial idea, emphasizing market research methodologies (primary and secondary) and data interpretation to assess market potential. It also examines the industry environment through Porter's Five Forces model, analyzing competitive rivalry, threats of new entrants and substitutes, and the bargaining power of buyers and suppliers. Task 3 applies a SWOT framework to support an objective assessment of the entrepreneurial idea and evaluates the competitive and market environments, culminating in a conclusion that summarizes the findings and provides recommendations for further exploration. References are included to support the research and analysis.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Evaluate sources of entrepreneurial ideas and innovation................................................3
P2 Explain rationale and market gap by using relevant tools and techniques........................5
TASK 2............................................................................................................................................8
P3 Evaluate gap analysis with specific entrepreneurial idea..................................................8
P4 Interpret data appropriately to provide evidence of market potentials............................11
TASK 3..........................................................................................................................................13
P5 Apply a SWOT framework to support an objective assessment of entrepreneurial idea13
P6 Evaluate the competitive and market environments ......................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneur is an individual who run its own business in a manner of bearing risks. It is
an initiative exercise which takes benefit by an opportunity and design its start-up business with
actual process. Opportunities are identified by involving especially in own business (Alvarez,
2013). An entrepreneur is leading with situations by making involvement in new goods, services,
materials and organising methods. This report is based on Beauty Cosmetics which is providing
cosmetics products like highlighters, Moisturiser, eye brow enhancer, make-up remover etc. The
main purpose of this report is to evaluate ideas and innovation by rationale market gap with
relevant tools and techniques. Apart from that, data is collected in support of making gap
analysis with potential evidences from market. Lastly, an organisation is collating evidence of
framework by SWOT analysis and evaluating market environment with assessing potential
viabilities.
TASK 1
P1 Evaluate sources of entrepreneurial ideas and innovation
Sources of ideas and innovation is understood by customer wants and proper research of
market. Ideas are implemented by thoughts which is came into generalisation in order to examine
skills, knowledge, talent and passion. Changes incurred in an external environment which are
creating opportunities and these sources are define below.
Macro environment: Beauty Cosmetics is based on conditions which are existing in an economy
and particular sector or region. Innovation of this product is made in regarding with facing
changes in an economy are describe here.
Social factors: Customers are attracting towards product in order to societal habits and
tastes which changes constantly. People are aware about green consumers who are preferring
goods and services which are environmentally-friendly and reduces impact on an environment. It
is helpful for an entrepreneur which motivate them to innovate demanding product in market.
Technological factors: This source is based on developing new technologies which is
helpful for an innovator which provide best solution for market(Audretsch,2012). Beauty
Cosmetics are leading with appropriate technology that is heavily meeting government targets.
This source is creating opportunity for an entrepreneur with personal capacity which involved in
business idea.

Drucker’s sources of innovation:
This source of innovation is helpful for an entrepreneur who are leading with
opportunities and making improvement with existing product and service. Beauty Cosmetics
entrepreneur is making improvement with respond to market demand. They are emerging
innovation which is based on business idea with several sources of innovation which is describe
by Peter F Drucker are describe below.
Unexpected: This innovation takes place unexpectedly which is happened by chance and
stumble with new idea and innovation. Beauty Cosmetics company is consider an expected
innovation which is happened by chance. In this their collected new idea generation which is
implemented and happened by chance.
Incongruities: An entrepreneur resolve incongruities which came in an organisation with
a source of innovation. It is basically an human nature which is filled by solving incongruities.
This source is helpful and motivated to an entrepreneur in building opportunities in product
Beauty Cosmetics. Business idea is generated by resolving incongruities and make an
identification that cosmetic product has to produce.
Market Structure: This structure is rises by giving chance of innovation. Beauty
Cosmetics entrepreneur setted use of world wide web for searching information from google.
This is flourish for raising market structure and helpful for Beauty Cosmetics that motivated
them towards enhancing opportunities.
Necessity: This source is innovated by microscope which is deeply set by thinking. It is
based on innovating opportunities which is made by entrepreneur by having bright ideas. Beauty
Cosmetics is new product in market which is processed by thinking of an entrepreneur in
according to fulfil requirement of customers in new ways. Idea is generated by entrepreneur in
order to make research for knowing that there is necessity of cosmetic product in market.
Demographics: This source of innovation is look after of customers lifestyle needs.
Beauty Cosmetics are leading with the same by satisfying major opportunities with fulfilment. It
is best source that motivated an entrepreneur for fulfilling needs according to lifestyle and
sometimes leading with best opportunities.
Changing perception: It is based in regarding with birth to innovation by undergoing
healthy change in an organisation which lead success in Beauty Cosmetics(Cruz, 2012). This

changing perception is define by motivating an entrepreneur which make healthy obsession from
unhealthy change.
New knowledge: This is required by an organisation which is building innovation by
keeping progression. It is an existing human knowledge which discover new areas by existing
base. Entrepreneur of Beauty Cosmetics is paving new knowledge which motivates them for
leading with opportunities in field of biotechnology or nanotechnology. Their required necessary
knowledge in an entrepreneur who is able to lead with this business idea of cosmetic product.
P2 Explain rationale and market gap by using relevant tools and techniques
Entrepreneurial ideas are defined by targeting customers and identifying marketing gap
which is used by relevant tools and techniques. In context with Beauty Cosmetics, entrepreneur
identified needs, wants which are meeting with customer demand.
Identifying customers
Entrepreneur is leading with ideas in order to identify needs and wants of customers by
meeting solution with respect to their right product and services. Entrepreneurial innovating
ideas which are convinced by potential and targetted customers. Customers demand is identified
by existing data which is viewed by surveys and collected through extensive and expensive
research. Beauty Cosmetic product is made for attracting large number of customers which is
unified by fragmenting efforts and improving opportunities. Customers target is identified
specifically by understanding needs which are based on their detailed picture. It is highlighted by
customer gender, age, occupation, disposable income, residential location etc.
Market segmentation
This segment is divided among potential customers which is define by different
characteristics. Customers are broadly involved in business market which is consist by sub-
groups and implemented by strategies. It is helpful in context with generating new ideas and
innovation that respond to similar interest, needs and locations. They are of types which are
defined below.
Behavioural Segmentation: It is defined as a process which is divided into smaller
groups that is based on buying behaviour of customers. An organisation is using patterns like
frequency, brand loyalty etc. which is useful for Beauty Cosmetics that interacts customers in
making purchasing decision. Cosmetic products are targetting customers by leading with similar

buying behaviour which are based on needs. This behavioural aspects is define according to
occasion, usage, loyalty, benefits etc.
Demographic segmentation: This market segment is determine in according to age, race,
religion, gender, family, education etc. Beauty Cosmetics are leading with several markets which
are accurately targetted by consumers(Davis, 2012). It is most commonly used in four forms
which is segmented with specific customer groups such as age, life cycle stage, gender, income
and religion. Beauty Cosmetics business idea is made by an entrepreneur who is using segments
which is most probably dividing specific customer groups.
Geographic segmentation: This segmentation is concern with broad target audiences
which are located in particular area. It is a marketing approach which is leading with small
businesses who is serving wide demographic in regional territory. Beauty Cosmetic entrepreneur
wants to make product which emphasize other goals and lead with higher profits. An
organisation used to opt product in according to community size, seasons, customer preferences
etc.
Product and services
Tangible products: It is a physical object which is perceived by touch. Company is
leading with product and service that is tangible and can directly perceived by customers which
is presented. Their having core benefits that is provided on products of Beauty Cosmetics which
is evaluated by consumers before making purchase.
Intangible products: It is define as those who are perceiving indirectly with a
transformational work. Here include factors like price, brand promise, advertising and marketing
activities, accessibility in brand reputation etc. Beauty Cosmetics are benefits that are made by
expansion of new features.
Industry Environment:
It is an readily influenced by market economic, regulatory, social and political conditions.
Beauty Cosmetics product is based on entrepreneur own ideas and views which is included by
economic cycles.
Porter's five forces model: This model is analysed by planning toolkit for attracting and
increasing profit potentials of an industry sector. It is useful for an entrepreneur to look after on
competition which takes place in entire market. Here new entrants are increasing potential which

explore social phenomenon. Model is useful in context, by identifying rationale gap occur while
setting new product in market.
Competitive Rivalry: This force is describe as rivalry that exists in market which
resulting with competition. Customers are attracting towards competitive pressure that is driven
by prices, profits and strategy (Eesley and Roberts, 2012). In this Beauty Cosmetics products are
leading similar features and benefits which lead in market competition easily. Their having range
of responses which are made from defensive to offensive measures which is successful for
competitor. In this. Market having entry and exit barriers which is going down in lower cost of
model. Risks are undertaken in this approach their having various constituents which reacted
usually with the framework.
Threats of new entrants: Industry is leading with long term profits which having level of
difficulty in accessing specialised technology and infrastructure. Beauty Cosmetics are attracted
by potential market who is facing difficulty in assessing raw material and distribution channel. In
this their define success and failure which is equipped by business model. Their having new
entrants which is thinking for large competition and perpetual with start-ups. Their failure and
higher risks is made while joining in newly in market operations.
Threats of substitutes: New entrance product is existing in large substitutes which is
fulfilled by need. This impact is came on Beauty Cosmetics which is in lower price and attract
consumers towards reducing sales. They are affected by brand loyalty, switching costs, relative
prices etc. They are leading with failure which is made by switching lower cost and having
higher substitutes. Risks incurred is made by long term revenues and automation in
technologies.
Bargaining power of buyers: This power is affected by prices which is consider by
company. An organisation is easily switching other supplier by exerting significant control.
Beauty Cosmetics company is leading supplier in dictating terms in order to avoid losing
customer. Bargaining power is leading with access in substitutes which is increasing industry
competitiveness that makes higher risk for entrepreneur. They are reviewing feedback use which
is in-sighting and assessing information. It makes competitor success by leading with buyer need
and expectation.
Bargaining power of Supplier: In this entrepreneur is providing products which is
usually maintaining steady relationship with suppliers. New entrance in market is setting prices

which are depending in order to competitive market and affected on their sales volume. They are
slow down in adopting business model which is useful for an entrepreneur that impact came on
situation. It is leading success of competitors by determining new role in market of competitors.
They are stream line with new partnership and managing by establishing rules, regulations,
privacy, security and safety in cosmetic product.
TASK 2
P3 Evaluate gap analysis with specific entrepreneurial idea
Marketing research is systematically formed with better understanding in group of
peoples. Entrepreneur is leading with market research which is based on primary and secondary
that identify target customers and competitors. Beauty Cosmetics product is assessing viability in
according to new goods and services which is directly conducted by consumer. Market research
is defined below.
Primary research: This research is define by involving in questionnaires, surveys or
interviews. It is primarily depend on data which is collected for addressing problems in depth.
Their involved prospective customers in target market (Elenurm, 2012). It is helpful for new
business idea and investigating in terms of assessing potentials.
Secondary research: This research is based on purpose which is publicly available and
including reports like library, surveys or internet. Their involved data analysis which is varied by
sources and prevailing research with available data. New business idea is generated by this
research.
Questionnaire
Name:
Age:
Address:
Q1 Is Beauty Cosmetic product is known about you or not?
Yes
No
Q2 Is you are familiar about product of Beauty Cosmetics?
Yes

No
Q3 Did you are providing satisfaction?
Yes
No
Q4 Is their having issues related with Beauty Cosmetics?
Yes
No
Q5 Do you want product from online marketing sources?
Yes
No
Q1 Is Beauty Cosmetic product is known about you or not?
Yes
No
6
4
yes no
0
1
2
3
4
5
6
7
6
4
Column C
Q2 Is you are familiar about product of Beauty Cosmetics?

Yes
No
8
2
yes no
0
1
2
3
4
5
6
7
8
9
8
2
Column C
Q3 Did you are providing satisfaction?
Yes
No
9
1

Yes No
0
2
4
6
8
10 9
1
Column L
Q4 Is their having issues related with Beauty Cosmetics?
Yes
No
8
2
Yes
No
0 1 2 3 4 5 6 7 8
3
7
Column L
Q5 Do you want product from online marketing sources?
Yes
No
8
2

8
2
Yes
No
P4 Interpret data appropriately to provide evidence of market potentials
Q1 Is Beauty Cosmetic product is known about you or not?
Yes
No
6
4
Mean: 5
Mode: 5
Mode: 2
Interpretation: From this observation 6 respondent are in favour out of 10 customers who is
known about Beauty Cosmetic product.
Q2 Is you are familiar about product of Beauty Cosmetics?
Yes
No
8
2
Mean: 6
Mode: 6
Mode: 0
Interpretation: In this 8 respondents are in favour and 2 are not familiar with cosmetic products.