Entrepreneurial Opportunity: Idea Sources and Market Analysis

This report, focused on identifying entrepreneurial opportunities, delves into various aspects of business development and market analysis. It begins by exploring different sources of entrepreneurial ideas and innovation, emphasizing the importance of adapting to market changes and leveraging new technologies. The report then explains the rationale behind a specific entrepreneurial idea, highlighting market gaps and segmentation strategies. Data is presented to support gap analysis, followed by an interpretation of the findings. A SWOT analysis is conducted to assess the entrepreneurial idea's strengths, weaknesses, opportunities, and threats, alongside an evaluation of competitiveness and market environments. The report utilizes frameworks like Peter Drucker's sources of innovation, Porter's Five Forces, and market segmentation strategies to provide a comprehensive analysis of the entrepreneurial landscape. The focus is on the development of new cosmetic products and the importance of adaptation and innovation in the face of market dynamics.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITY

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.............1
TASK 2............................................................................................................................................4
P2 Explain the rationale and the market gap for a specific entrepreneurial idea........................4
TASK 3...........................................................................................................................................6
P3: Presenting data to support gap analysis and evaluation........................................................6
P4: Interpretation of data availed..............................................................................................11
TASK 4..........................................................................................................................................12
P5: SWOT analysis to asses the entrepreneurial idea...............................................................12
P6 Evaluating competitiveness and market environments........................................................12
CONCLUSION ............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneur plays an important role to implement various new and innovative idea in
order to create employment opportunity for the people living in the society (Chaston and Sadler‐
Smith, 2012). It also plays a significant role to generate large number of revenue for
organisation. Entrepreneur are individuals which always in search of opportunity to invest for
modernisation of its organisation. Entrepreneurship is the process which plays an important role
in order to implement different ideas and tactics in the external market. This helps to maximise
the level of profit. Natural beauty and care limited is deals to provide beauty and skin care
limited it also manufacturer of massage cream. Due to dynamic change in market needs to
implement new and innovative technology in order to sustain strong position of organisation.
This company has start new company in the marketplace. In this venture it explain the
implementation of new and innovative ideas in order to attract large number of revenues in the
marketplace.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
Entrepreneur is the individuals which always takes an opportunity to implement new
and innovative ideas in order to generate large number of revenues for company (Wright and
Stigliani, 2013 ). They always in search to implement new and innovative ideas which leads to
growth of new venture and also helps to expand its business. Various implementation of STEEP
factor in order to enhance the number of employment opportunities for the living in the society.
These are the person which implement different strategies from the books of various writer in
order to implement different types of new and innovative ideas in the organisation. These
strategies helps to accomplish different types of functions of organisation. These strategies aids
to frame the proper structure of organisation. It leads to maintain effectiveness in performing
different types of operation of company. By implementation of Peter 7p's source of innovation
plays an essential approach in order to accomplish various activities of organisation. The seven
source of innovation is describe below: Social factor: This factor is deals to determine the values of new and innovative
technology which is understand by people in effective manner. Before starting of new
venture the management needs to determine the economical condition of entrepreneur is
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in better position. Due to Brexit there are different types of changes occurs in the nation.
There are various rules and legislation have been changed (Zahra and Wright, 2011.).
There are many rules and regulation which were newly imposed they are not in the notice
of different people. Economical factor: In order to start new venture, the management of the organisation
should determine the fix amount of capital which is used to start the venture. It is also
concerned with the GDP values which define the stability of economic condition of the
particular country. By determining right time the employer of cosmetics organisation
invest capitals in order to start new venture. This factor is related to the allocation of
different resource in order to generate funds tom accomplish different types of activities
of organisation. Before execution of new venture company needs to recognise different
economic factor in order to invest capital to start venture (Jennings and Brush, 2013). Technological factor: In order to inculcate with various condition of marketplace. The
management of the Natural Beauty and health care Ltd implement new and advance
technology which helps to accomplish various function of the organisation in stipulated
time period. So entrepreneur needs to recruit those employee who are capable to work
with helps of new and innovative technology. By implementation of new and innovative
technology there are different of functions of the organisation which is being accomplish
by theses technology in stipulated time period which are related to production of new and
innovative cosmetic products. For example when android comes into existence then
people innovate different types of application as per their needs. Here entrepreneur invest
huge amount of capital in order to invent different types of products (Johnson, 2016).
 Environmental factor: Entrepreneur have to determine the various condition of
environment which are consider during starting of new plant. The management need to
take all corrective measures while implementing different types of operation of the
company. The manager of company consider all economical factors which do not harm
the natural element of environment and the people living besides the organisation.
Peter F. Drucker state 7 ideas of innovation which are describe below to produce cosmetic
product like Natural beauty and care Ltd.
Incongruity: It is related about the disparity to produce specific products according to the desire
of customer. It is related to produce various types of various cosmetic products.
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 Process needs: in order to accomplish various operations of the business the
management needs to implement new and innovative techniques to produce new
cosmetic products (Lumpkin, and et. al., 2013). Industry and market structure needs: the management needs to implement various
modification in the price of different cosmetic products. So organisation needs to
implement different innovative price of different products. Demographics: In present condition the management needs to implement new change in
order to attain level of income. Changes in perception, Meaning and Moods: the management of the Natural and
health care determine the various views of customer which helps to produce new
cosmetic products as per the desire of various customer. This aids to increase
profitability of organisation. New Knowledge: New and innovative technology helps organisation to stand before
the different rivals present in the market (Frishammar, Lichtenthaler and Rundquist,
2012). Unexpected: Entrepreneur should implement new and innovative technology in order to
create employment opportunities for people living in the society.
Types of innovation
Innovation plays a significant role for growth and development of the organisation, the
management needs to implement various types of innovative techniques and tools in order to
enhance the performance of company. There are various types of innovation which are
describe below:
Products: It plays a significant role in order to launch new products and services in the
marketplace.
Place innovation: this is concerned with launching of new products at right place in
order to attract large number of customer at marketplace.
Incremental Vs. Big Bang innovation: It can be explain as the small changes in the
different products and services to the organisation.
Schumacher's source of innovation: this is the innovative theory which helps to enhance the
performance of the organisation.
Comparison between Innovation and Invention:
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Innovation: this is related with the implementation of new and innovative ideas which helps to
launch new products in the marketplace.
Invention. It is related with the execution of new new idea in order to invent new products.
Difference between business idea and products
Product idea Business idea
It is essential process which helps to launch
new and innovative products. In order to
satisfy demand and desire of customer
It is an effective collection of different steps
in order to execute the different processes of
new business in the marketplace.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea
It is very obvious for the management in order to adopt various types of changes by
considering different external factor of the organisation the main objective of the organisation is
to implement various new and innovative idea in the company. There are some big incident
takes place like Exit of Britain from European union this leads to make different types of
changes in the legislation of the country. There are different types of entrepreneurial ideas which
are mentioned below:
 Example for all: Launching of new products always large number of customer in
the marketplace. It also affect the different rivals present in the marketplace.
Implementation of new ideas leads to create unique products in the marketplace.
Therefore new and innovative idea contain some new feature in order to increase
large number of shares in the marketplace.
 Create benefits for all: the new product launch in the market leads to create an
opportunity for the different customer in order to use that products . This helps to
generate large number of revenues for the organisation. It also aids to increase
the GDP of the nation (Farmer, Yao, and Kung‐Mcintyre, 2011).
Market Segmentation: this is the proper way to bifurcate different products as per the choice of
the customer. Management needs to implement different types of changes in the products and
services provided by the company. There are various types of segmentation which are describe
below:
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 Behavioural Segmentation: This segmentation is based on the buying behaviour of
different customer. The company needs to provide various product according to the
buying behaviour of the products.
 Demographic Segmentation: this segmentation is based on the income, gender, life
style and many others. The Skin care product is the innovative products which is launch
in the different types of products. In present time customer are very conscious about
their health. So organisation needs to produce which do not any side effect.
 Geographic Segmentation: this segmentation is based on the different geographic
region where the number of people reside taking example a different policy which is
frame for the people living in the US and there are different policy which is implemented
to the people living in Europe (Bojica and Fuentes, 2012).
Tangible and intangible features and benefits of a products and services
Tangible Intangible
It is concerned with some visible
characteristic which are determine by the
different purchaser and consumer in their
selection of different products and services.
People can easily recognise different products
according to their choice.
This invisible factors which are not seen in
different products and services which provided
by the organisation.
Porter's five force model on Natural Beauty and care Ltd.
Industry Competitors: There are various types of rivalries which ascertain by the
organisation for the development of the same products and services. In order to compete
organisation different rivals implement different types of promotion tools, special products,
effective service given to customer, various pricing strategies and many others. Natural beauty
and care Ltd inculcate with different types of products differentiation, overcapacity, high stakes
investment and different types of risk which are exist in the marketplace the major competitor
of the organisation is Natural Essence.
Pressure from Substitute Products: As there are different cooperation, substitute
products and alternative products which are easily available in the marketplace. Customer do
not try to purchase costly products as they have low purchasing power.
5

Bargaining Power of Supplier: the impact of supplier at large extent on the
manufacturing of company. These individuals provide different type of raw materials which are
used in manufacturing and other processes of organisation.
Bargaining power of Buyers: they give pressure to the organisation to reduce the price
of different types of products, demand made by the organisation which result in loss of profit for
the organisation.
Potential entrants: there are various barriers or threats of entrants for an organisation:
 variability in the products, loyalty given to customer.
 Capital require to start the venture.
TASK 3
P3: Presenting data to support gap analysis and evaluation
` It is ethically responsibility of every business to consider the health of every customers
through providing quality which maximises their health and standard of living of people. There
are different factors which affects the thinking and views of customers related to the products
and services. So, the management is liable to evaluate such factors and put maximum efforts in
minimising the negative impacts. As there are many competitors who provides similar beauty
and skin care products which directs Natural Beauty and Care Ltd. To formulate an effective
decision and plans in order to survive in market for longer duration ( Cardon, and et. al., 2013).
As the scope of cosmetic industry is very wide in which there are lots of new companies who
entered into market. In order to identify whether starting new business in cosmetic skin care
market will bring beneficial to company or not, the management of Natural Beauty and Care Ltd.
Need to analyse the data of their rivals who engaged in same market. The data of Natural essence
who who attains strong position in cosmetic skin care market is taken to identify the
effectiveness of decision taken regarding starting business in such industry.
Basis Natural essence Natural Beauty and Care Ltd
Competition in market The competitors such as
Natural Essence who charges
5% more prices higher than
other companies which brings
disinterest of customers.
Due to high competition, the
management need to focus on
improving quality, features etc.
6

New entrances in industry Such company fix their prices
on their product with no
discount which attracts less
customers.
The company require to adopt
price skimming strategy in
order to attract customers
within minimum time.
Power of supplier Suppliers of Natural Essence
charges more commission i.e.
$2500 which affects their
profitability.
The company need to select an
effective supplier among
various who charges less and
supply products on time.
Power of customer It focuses on achieving profits
instead of identifying
customer's perception which
minimises the interest of
customer to purchase their
products.
Therefore, the company should
give priority ton customer's
preferences and accordingly
offered products which helps
them in making customers
more loyal towards company.
Threat of substitute The company offered other
substituted products as well
through which the company's
product are low in demand.
The company should required
to focus on quality and price
which shifts customers to
consume company's product
rather than substitute products.
From all analysing all above, the management of Natural Beauty and Care Ltd need to
make an effective policies and strategies regarding improvement of products as compared to
their competitors (Qian and Acs, 2013).
Primary research: This is types of research which is collect information by the manager about
the different products which is made by organisation. This includes about the interviews,
surveys, observations, and analysis which is related to know the effectiveness of different
products. As to conducting marketing survey the sample size of 20 respondents are taken into
appropriate action.
7

Secondary research: Secondary research is the types of research which is conducts by the
researcher by help of compiled, gathered, organized and published by others. It includes about
the reports and studies which is published by the government different trade association.
Questionnaire
Q1) Does the implementation of digital technologies are valuable for attaining
growth of firm?
Frequency
 Agree 15
 Disagree 5
Q2) Which Social media tools are used by Natural Beauty and Care Ltd as to
gaining attention of customers towards the firm?
Frequency
 Facebook 10
 You-tube 5
 Twitter 5
Q3) What are the major benefits of applying technologies at work place? Frequency
 Increasing Performance 8
 Developing Productivity 5
 Business Expansion 3
 Enhancing Revenue 4
Q4) In which sector digital technologies are effective? Frequency
 Marketing 6
 Communication 4
 Production 5
 Financing 2
Q5) Recommend ways by which Natural Beauty and Care Ltd can attain a
sustainable position at market place
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9

Theme 1 : The implementation of digital technologies are valuable for attaining growth of firm.
Interpretation:
As per the given graph it has been conclude that digital technology are very effective in
growth of business in the business. There are 15 respondent out of 20 respondents are agree with
the statement that digital technology aids to growth of firm and in other hand 5 respondents are
disagree with the statement.
Theme 2 Social media tools are used by Natural Beauty and Care Ltd as to gaining attention of
customers towards the firm.
Interpretation:
From the given graph it has been analysed that media tools plays a significant roles in
order to gain attention of large number of customer. There are 10 respondents are agree with the
statement that Facebook is the best media to attract large number of customers in other hand 5
10
Agree Disagree
0
2
4
6
8
10
12
14
16
15
5 Column B
Facebook You-tube Twitter
0
2
4
6
8
10
10
5 5
Column B

respondents are agree about the you tube is better media to attract various number of customer
and rest are depend upon twitter.
Theme 3: There are various benefits of applying technologies at work place.
Interpretation:
From the above given graph it has been determined that implementation of technology
plays an important role in order to develop the organisation. There are 8 respondents out of 20
respondents agree with the statement that increase the performance of company rest of the
respondents are agree in expansion of business and it also aids to increase the number of
revenues.
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Increasing Performance
Developing Productivity
Business Expansion
Enhancing Revenue
0
1
2
3
4
5
6
7
8
8
5
3
4
Column B

Theme 4: The sector in which digital technologies are effective.
Interpretation
From the given graph it has been analysed that 6 respondents are agree with the
statement that marketing plays an important role in order to expand business 4 respondents are
agree with effective communication, 5respondents are agree to increase the production and 2
respondents are agree with finance these are ascertain by total of 20 respondents.
P4: Interpretation of data availed
The interpretation of above data are as follows:
 Due to large number of customers such as Natural Essence who charges high prices on
their beauty products which increase their profitability. Therefore, the management of
Natural Beauty and Care Ltd need to adopt price skimming strategy through which they
can charge less prices in beginning in order to attract large number of customers.
 Natural essence offers fixed prices on their product due to attaining strong position in
market. Thus, company should required to offer discount more than their rivals in order
to maximise the interest and buying behaviour of customers.
 Nature essence has attained good reputation in market and following marketing strategies
in order to make healthy relation with their targeted customers. Therefore, the
management of Natural Beauty and Care Ltd also required to interest in suitable
marketing tools through which they can inform the customers about their quality
products.
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Marketing Communication Production Financing
0
1
2
3
4
5
6
6
4
5
2 Column B

 Nature Essence charged $700 as subscription fees from their customers. Therefore,
charging less from the customers in order to attract customers.
TASK 4
P5: SWOT analysis to asses the entrepreneurial idea
In order to determine the growth and success of starting new business in cosmetic beauty
market, the management need to first identify the strengths, weaknesses, opportunities and
threats which affects their business operations in future. For this, the managers need to conduct
SWOT analysis which are briefly described as below:
Strengths: Starting business in cosmetic industry help in attaining strong position in
market within limited period of time through providing skin care products after ensuring the
protection of skin and body. The cosmetic has grown since last so may decades which motivate
new business to enter into skin care industry (Bergh, Thorgren and Wincent, 2011).
Weakness: The income of an individual affects the sales of cosmetic products. An
individual having income can only prefer to buy cosmetic products thus it is important for the
management to start new business in developed countries whose economy are high. Companies
are also required to decrease their prices so that each customers can afford to buy their products.
Opportunities: The people of UK are more concern about maintaining their skin and
body in healthy way which drives them to purchase more beauty products. It attracts lots of
customers. It is is also important for company to focus on market in a segment wise manner. The
company also required to focus on attracting men who want to look and feel good.
Threats: Due to large number of competitors in makret such as Nature Essence, Lo'real
etc. which may brings difficulties of Natural Beauty and Care Ltd to survive in market. Theer are
abiout 700 growing companis exsit in the cosmetic industry which raise high comeoptiton.
Therefore, Natural Beauty and Care Ltd can only sustain in market for longer period only when
they can make deciosn more effective than their rivals.
P6 Evaluating competitiveness and market environments
Entrepreneurship need different trends of market analyses which give impact on the
performance of different types of activities of the organisation. There are various factor such as
environment, rivals and different trends. Before starting of the new business venture it is very
essential for organisation in order to determine different types of rivals present in the
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marketplace. This aids to ascertain effective strategies in order to stand before these rivals there
are various barrier which is faced by the organisation while introducing the new products.
There are various methods which are used which are used to perform environmental analyses
which helps to analyses the success of business venture of new cosmetic product in the market. Competitive Market: it give full knowledge about the organisation which are dealing
with the same sector. This helps to introduce new and innovative products in the
marketplace. Theses are some factors on which the competitive analyses is done:
 Substitute products: there are various types of substitute products present in the
marketplace which effect the purchasing power of customer.
 Target audiences: company concentrate over the different choice made by the women
living in the society. So product are produce in soft nature.
 Demand: in present age there is high demand of organic products as these products have
no side effect. Market environment : the analyses of market environment is based on the two factors
like micro factor and macro factor Micro factor: it is external factors like social, political, legal, economic, geographical
and many others. Natural beauty and care Ltd provide products to the women which do
not cause any harm to skin.
 Micro environment : it is consists of different types of internal factors which influence
the various activities of the business like culture, behaviour of employee and attitude.
Organisation needs to determine the working capability of employee (Zhao, Ritchie and
Echtner, 2011).
CONCLUSION
As per mentioned report it has been assumed that entrepreneur always in search of
opportunity to implement different types of ideas which are beneficial for smooth running of
business. It also helps to launch new products in the marketplace. There various tools which are
implemented in order to fill the gap in the organisation. This aids to accomplish goals and
objectives of the organisation
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