Analysis of Aviation-Grade Drone: Entrepreneurship and Business Report

This report provides a comprehensive analysis of the aviation-grade drone concept, exploring various facets of entrepreneurship and business development. It begins with an introduction to the innovative idea, highlighting its potential for competitive advantage and market growth. The main body of the report delves into the reasons for innovation, vision, and mission of the drone, followed by a PESTEL analysis to evaluate the external environment. It includes a SWOT analysis, Porter's generic model for competitor analysis, and market segmentation strategies using STP. The report further examines marketing strategies using the 4Ps, market growth strategies, and financial sources. Finally, it assesses the risks associated with the new idea and concludes with a summary of the findings and references.

Entrepreneurship and
Business Development

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Provide various reasons for innovating new idea and its vision and mission.............................3
Explain the various variable of external environment including micro and macro factors which
influence new idea. .....................................................................................................................4
Analysis competitors and competitive advantage in market related to new product..................5
Describe the market segmentation for new product....................................................................6
Explain various marketing strategy by using 4P's for new product. ..........................................8
Explain market growth strategy with the help of appropriate theory. ........................................9
Explain various source of finance suitable for new idea...........................................................10
Analysis various risk attach with new idea. .............................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Main aim of this report is to analysis the concept of entrepreneurship and business
development. For success of any organisation its very important that they innovate new ideas
which provide competitive advantage to business. Entrepreneurship refers to an act which creates
businesses while building and scaling it to generating profit (Abuzjarova, 2018). Other than this
entrepreneurship includes the ability of a person in develop, organised and run a business
enterprise with various uncertainties and challenges for making higher profit. Entrepreneur
refers to a person who bear all the risk and enjoy all profit attach with its business plan.
Entrepreneur is mostly seen as a source of new idea, goods, services and so on. Entrepreneurship
is also contribute in development of an economy and in business development. For this report
Aviation-grade drone idea is taking into consideration. This idea is based on technology
innovation which provide better and reliable services to customers. Aviation-grade drone have a
capacity of heavy load and provide services to long distance. This innovative drone have a
capacity of take-off vertically, fly like a fixed-wing aircraft and able to land on a moving target.
This report includes reason of innovating new product and its vision and mission, PESTLE,
SOWT, theories for analysing competitors, STP, 4Ps and market growth strategies related to new
idea. Other than this it includes various source of finance and analysing risk related to new
product.
MAIN BODY
Provide various reasons for innovating new idea and its vision and mission.
Now a days with a increase in development of businesses competition in market is also
increase. So for achieving higher growth and competitive advantage in market its very important
to innovate new ideas. In context of Aviation-grade drone, it create a unique selling point in
market for its customers by providing new and innovative product. Another reason for
innovating new idea is that it helps company to achieve higher profit through new product. For
success of any organisation innovation play an essential role. Requirement and preferences of
people are regularly changes according to trends and culture. Innovation is require for satisfying
their needs and wants and achieve higher satisfaction so that higher revenue can achieve. Reason
behind developing Aviation-grade drone is for providing better and unique services to customers
and earn higher profit. In context of innovative idea, another important reason for developing it

is that with the help of this innovation company can create a good brand image in industry and
market.
 Vision- Aviation-grade drone vision is to become the largest company in world
providing innovative drones.
 Mission- In context of new idea, its mission is to expand their business worldwide by
providing effective and efficient drones.
Explain the various variable of external environment including micro and macro factors which
influence new idea.
PESTEL analysis is an important tool which is used to identify the macro forces faced by
an organisation. PESTEL analysis for new aviation drone is mentioned below:
Political factors: It includes all those factors that are related to rules, regulations, law,
government policies, etc. As there is stability in political conditions of UK it will provide an
opportunity for innovation but with this new innovation security issues will also arise which can
create a problem (Chernopyatov and et. al. 2018).
Economical factor: These factors involves deflation rates as well as inflation rates which
can impact the profitability and sales of the organisation. At present, the economic position of
UK is on the positive side which will encourage organisations to develop and try new product.
The increase in labour cost might affect the development of product in a negative manner.
Social factor: These includes factors related to society at large. An organisation in order
to survive must produce goods and services according to the wants and needs of the customer. It
can provide a competitive advantage to the business and will also help in creation of a good
brand image in the society (Coulibaly and et. al. 2018).
Technological factor: In present context, development of new technology can improve
the productivity and profitability of an organisation. New aviation drone can help the
organisation in gaining technological advancement and helps to be ahead in competition.
Environmental factor: Factors that influences ecological aspects of surroundings as well
as the corporate social responsibility element. As new aviation drone will provide benefit to the
environment by saving fuel and reducing traffic related to deliveries it is actually a good idea to
introduce such type of technology.
Legal factors: There are different legislation, rules and regulations that affect the day to
day operations of the business. The drone can cause security issues to some extend but the

making of the product can also help government in raising security with technology (Del and et.
al. 2018).
SWOT ANLYSIS:
STRENGTHS: The new aviation drone can provide long distance service and can easily
carry heavy load which will save the time as well as cost of delivery. It can easily take off
vertically which means it does not require much space for take off and also is able to land on
moving surfaces. It can fly like a fixed wing aircraft and is safe and reliable for deliveries.
WEAKNESSES: As weather is an unknown factor it can cause a serious problem for
drone when weather conditions are not good. The short battery life can interrupt in the smooth
functioning of drone. Although it can land of moving target but its a matter of uncertainty
(Drobyazko and et. al. 2019).
OPPORTUNITIES: This technology can be improved in many aspects as it can be
developed as a means of transportation for national as well as international deliveries.
Collaboration with developer as well as suppliers can be a beginning to enter the market.
THREATS: One of the greatest obstacle is that it can carry dangerous material which
can be threatening to the state and the society and can be banned or limited by the government
because of security reasons.
Analysis competitors and competitive advantage in market related to new product.
Competitors refers to a business, person, team, organisation which compete against
particular company (Hägg and Schölin, 2018). In other words competitors of company are other
competitors who are trying to sell same product and services to the same people. Competitors are
the biggest influencer of development of new idea. For success of an organisation its very
important that they achieve competitive advantage in market. Aviation-grade drone helps in
achieving competitive advantage in market by providing unique and innovative products to
customers. In context of new idea for better analysing the competitors and competitive advantage
porters generic model is discuss below:
Porter's generic model- Porter divide the generic strategies which help in achieving competitive
advantage in market into three important parts which are mention below:
 Cost leadership- In relevance of new idea, competitive advantage is achieved by
reducing cost of their product. New idea is developed in large market are by reducing its

price help in making reasonable profit on each sale. Innovative product at a low cost
attract more and more consumers and achieve competitive advantage in market.
 Differentiation- It refers to a strategic which state that for achieving competitive
advantage in market its important to produce different and unique products as compare to
competitors (Hsieh and Wu, 2019). The idea of developing Aviation-grade drone it is
new and unique in market which attract customers towards it and help in achieving
competitive advantage.
 Focus- This strategy of porters generic theory is helps in reset choice of a narrow
competitive scope within an industry. It divides into two important concepts that is cost
focus and differentiation focus.
Cost focus- it refers to a strategies which helps in achieving low-cost advantage in a small
market segment or in niche market.
Differentiation focus- It refers to a strategies in which company provide different product from
its competitors but only in a small market segment.
From above discussion it is evaluated that differentiation strategies is best for new
product. This is because Aviation-grade drone is a innovative product which is unique and
reliable. It provide different features such as it has a capacity of heavy load, long distance service
and delivery, able to land on a moving object and so on. Its unique design and capacity helps in
achieving competitive advantage in market.
Describe the market segmentation for new product.
In context of new idea, its very important to select a proper market segment for growth
and earning higher profit. STP helps in analysing the market segment, target customers and
positioning offerings to each segment. STP (Segmentation, targeting, positioning) related to
Aviation-grade drone is mention below:
 Segmentation- It refers to a market strategies in which the whole market is divided into a
homogeneous needs of customers (Johnson and Schaltegger, 2020). Market segment is
divided on the bases of geographic segmentation (Region, state), demographic
segmentation (Age, gender, occupation), behavioural segmentation ( based on customers
buying pattern), Psycho-graphic segmentation (Lifestyle, opinions). In context of
Aviation-grade drone its market segment is divided on the bases of demographic

segmentation. Its market segment is based on income level, status, work profile of
customers.
 Targeting- It refers to the end consumers to whom a company wants to sell its final
product. Target market include the activity of breaking down the whole market into
various segments and make effective strategies according to each segment for increasing
market share. Target customers are decided on the bases of three important factors which
are size of market segment and future growth potential, Profitability from market
segment and reachability of products in market segment. In context of Aviation-grade
drone its target customers are those who have high income level, transportation company,
government agencies.
 Positioning- It means creating a unique brand image in the mind of customers which
helps company in attracting more and more customers and gain higher profit. In other
words positioning refers to a place that a brand occupies in the mind of customers and
which helps them in differentiating company product form competitors product and it is
different form the concept of brand awareness. Positioning is divided into three important
factors, these are symbolic positioning, functional positioning, Experiential positioning.
Symbolic positioning include the concept of self-esteem and image of customers.
Functional positioning is based on the concept of solving customers problem and
providing genuine benefits. While experiential positioning is focus on the emotional
contact that customers have with product. In context of Aviation-grade drone functional
positioning is best because its unique design and heavy payload capacity provide genuine
benefits and create a different brand image in minds of customers (Kraus and et. al.
2018).
From above discussion it is clear that transport agencies, government agencies and high
income people are the real customers of this product. This is because Aviation-grade drone have
a capacity of heavy payload and distribute services to long distance. This will help transport
company in distributing products and services to people. Government agencies use this product
in providing services to different people available at a long distance. High income people are
easily attract towards this product and they can also afford this product at high price which will
increase revenue for company.

Explain various marketing strategy by using 4P's for new product.
For success of any organisation its very important that they can adopt a effective
marketing strategies which provide higher customers satisfaction and help company to achieve
higher revenue. Marketing refers to an activity and a process of creating, communication,
delivering of products and various exchanging offers which creates values for its final customers.
Marketing helps an organisation in understanding the needs and wants of customers and develop
a product which satisfying their needs and wants. Higher satisfaction of customers means higher
growth and revenue for company. In context of new product, 4Ps of marketing are discuss
below:
 Product- It refers to a item which is offered by the company or producer to final
customers for sale (Madzivhandila and Musara, 2020). For success of any product in
market its very important that it satisfying the needs and wants of customers. Now a days
with the increase in innovation and development in trends requirements and preferences
of customers are also change. So its very important for any organisation to make a good
quality product after analysing its target customers needs and requirement. In context of
Aviation-grade drone, this product is innovative and provide safety and reliability to its
customers. This product is innovate after conducting proper research and analysing
requirements of customers. This new idea helps in achieving higher customers
satisfaction which assist in generating higher revenue. In product provide various benefits
to customers and its users.
 Price- It refers to a quantity of payment and value of product which is given by one party
to another in return for good and services. Price play an important role in success of any
product or services in market. Its very important for company to make its pricing
strategies according to its target customers. A product with good quality and multiple
benefits doesn't succeed in market if its target customers are not satisfied with its price.
So its very important that an organisation can effectively select their pricing strategies. In
context of Aviation-grade drone, price skimming strategies is adopted for it. In this first
high price is charge from customers because it is a innovative product and provide
various features which add values for customers. This will helps in generating higher
profit and growth. After some time when other competitors are in market price of product

get reduce which will again help in help in attracting more and more competitors. This
pricing strategies helps in generating high profits for a long period of time.
 Place- It refers to the area where a product and service is sold to its final customers. For
success of any product its very important that it is easily reach to its customers (Mitra,
2019). If a company provide a good quality product at a reasonable pricer but it is not in
the reach of customers it will reduce the growth of product. So its very important for any
organisation to select a effective distribution strategy which effectively provide company
products to customers and also save cost for company. In context of selected idea,
indirect distribution strategy is best. This is because market segment of product is wider
and its difficult for company to directly provide its product to customers. It includes
various wholesalers and own store from where the product is easily transfer to customers.
 Promotion- promotion refers to an activity of marketing mix which help an organisation
in attracting, creating awareness, interest, and creating brand loyalty of customers. For
success of any product and company its important that they select a effective promotional
mix which creates awareness about product or brand and also save cost for company. In
context of new idea, advertising and publicity is used for creating its brand awareness.
Advertisement on TV and radio helps in creating awareness between large number of
customers and publicity helps in creating customers loyality.
Explain market growth strategy with the help of appropriate theory.
In context of innovative idea, various growth opportunities strategies are analysed with
the help of Ans-off matrix are mention below:
Ansoff growth matrix- It refers to a marketing strategy which is also known as product/market
expansion grid. It is tool of marketing which helps an organisation in analysing and plan various
strategies for growth and achieving higher profit. This matrix is divided into four important
strategies which are discuss below:
 Market Penetration- It refers to a strategy which helps in increasing sales of product by
introducing a existing product in a existing market.
 Product development- it refers to a strategy which focus on introducing new product in
the existing market.
 Market development- It refers to a market growth strategy which focus on entering into
new market with existing product (Parente and et. al. 2020).

 Diversification- It refer to an marketing growth strategy in which company introduce its
new product in new market.
After understanding various strategies of growth it is evaluated that Diversification
strategy of Ansoffs matrix is best for Aviation-grade drone development. This is because it is an
innovative idea which add value for customers and this innovation helps in easily entering into
new market. This will helps in achieving competitive advantage in market and earn higher
revenue (Qian and Liu, 2018).
Explain various source of finance suitable for new idea.
Source of finance refers to the are from where a business get finance for operating its
business activities. Their are various internal and external sources of finance which provide
funds to business. In context of new idea there are various sources which provide funds for
conducting business activities and developing innovative plan. In context of new idea bank loan
is best. Bank loan refers to a amount of money which is borrowed from bank for a specific
period of time at a fixed rate of interest. In context of new idea, bank loan make it easier to
forecast interest payment. Their are many banks which provide low interest rate loan which
reduce the burden of creditors and higher revenue earn from this idea helps in easily repayment
of loan (Shan and et. al. 2018).
Analysis various risk attach with new idea.
Risk analysis strategies help an organisation in identifying various risk which influence
the growth of new product and helps in managing risk. A risk management strategy helps in
analysing various risk related to Aviation-grade drone in a better way. This strategy is based on
three factors that is identification, assessing, and managing risk. First of all the risk related to
new idea is identify with the help of analysing weakness of product. After that second step is
assessing which helps in clearly understanding where uncertainty surrounding is related to new
product. After analysing the source of risk last step is to make effective strategies which helps in
managing risk attach with new product (Shinkafi and et. al. 2018).
CONCLUSION
From above discussion it is analysed that innovation helps in growth of an organisation.
Innovation of new product is influenced by various internal and external factors which can be
analysed with the help of PESTLE and SWOT. For success of any innovative idea its very

important that they effectively select its marketing strategy, growth strategies, competitive
strategies. In this report various theories are included such as Ansoff matrix, porter generic
theory which helps in analysing various growth opportunities and how to achieve competitive
advantage in market. Other than this risk management strategies helps in analysing various types
of risk related to new product development.

REFERENCES
Books and journals
Abuzjarova, M.I., 2018. Tendencies, law of development and economic content of innovative
entrepreneurship. Modern Economy Success. (1). pp.43-50.
Chernopyatov, A., and et. al. 2018. Entrepreneurship development and business activity in the
Russian Federation. Journal of Entrepreneurship Education. 21(4). pp.1-12.
Coulibaly, S.K., and et. al. 2018. Economic globalization, entrepreneurship, and
development. Technological Forecasting and Social Change, 127, pp.271-280.
Del Bosco, and et. al. 2019. Fostering entrepreneurship: an innovative business model to link
innovation and new venture creation. Review of Managerial Science. 13(3). pp.561-
574.
Drobyazko, S., and et. al. 2019. Innovative entrepreneurship models in the management system
of enterprise competitiveness. Journal of Entrepreneurship Education. 22(4). pp.1-6.
Hägg, G. and Schölin, T., 2018. The policy influence on the development of entrepreneurship in
higher education: A Swedish perspective. Education+ Training.
Hsieh, Y.J. and Wu, Y.J., 2019. Entrepreneurship through the platform strategy in the digital era:
Insights and research opportunities. Computers in Human Behavior. 95. pp.315-323.
Johnson, M.P. and Schaltegger, S., 2020. Entrepreneurship for sustainable development: A
review and multilevel causal mechanism framework. Entrepreneurship Theory and
Practice. 44(6). pp.1141-1173.
Kraus, S., and et. al. 2018. Digital entrepreneurship: a research agenda on new business models
for the twenty-first century. International Journal of Entrepreneurial Behavior &
Research.
Madzivhandila, T.S. and Musara, M., 2020. Taking responsibility for entrepreneurship
development in South Africa: The role of local municipalities. Local Economy. 35(3).
pp.257-268.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Parente, R., and et. al. 2020. Humane entrepreneurship: Some steps in the development of a
measurement scale. Journal of Small Business Management. pp.1-25.
Qian, H. and Liu, S., 2018. Cultural entrepreneurship in US cities. Journal of Urban
Affairs. 40(8). pp.1043-1065.
Shan, S., and et. al. 2018. Assessing relationship and contribution of China's technological
entrepreneurship to socio-economic development. Technological Forecasting and
Social Change. 135. pp.83-90.
Shinkafi, A.A., and et. al. 2018. Entrepreneurship Development in Islamic Economics. In New
Developments in Islamic Economics. Emerald Publishing Limited.