Entrepreneurial Opportunity Analysis for Food Hunt Mobile Business

This report analyzes the entrepreneurial opportunity of Food Hunt, a mobile food business concept in the UK. It begins by defining entrepreneurial opportunities and exploring sources of innovative ideas, including Drucker's Seven Sources. The report then discusses the rationale and market gap for Food Hunt, emphasizing the use of a mobile application for ordering and delivery. Data supporting gap analysis, including UK food market forecasts and consumer spending, is presented and interpreted to demonstrate market potential. A SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats of the Food Hunt concept. Finally, the report assesses the competitive and market environment, considering factors like new entrants, substitute products, and the bargaining power of suppliers and buyers. The analysis concludes by evaluating the potential viability of the Food Hunt mobile food business.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
P 1 Sources of entrepreneurial ideas and innovation...................................................................1
P2 Discuss about the rationale and market gap for the Food Hunt entrepreneurial idea by using
the mobile application..................................................................................................................2
P3 Present data that needed to support gap analysis in evaluation of the specific
entrepreneurial data.....................................................................................................................3
P4 Interpretation on data appropriately to provide evidence of market potential.......................4
P5: SWOT ANALYSIS..............................................................................................................5
P6 Evaluation of competitive and market environment..............................................................7
Threat of New Potential Entrants................................................................................................7
Threat of Substitute Products.......................................................................................................7
Bargaining Power of Suppliers....................................................................................................8
Bargaining Power of Buyers........................................................................................................8
Rivalry Among Competitors........................................................................................................8
REFERENCES..............................................................................................................................10
Fast Food Market Overview. 2019. [Online] Available through:<
https://www.alliedmarketresearch.com/images/fast-food-market2%20(2).jpg>.......................10

INTRODUCTION
Entrepreneurial opportunities defined as situation in which commodities can be sold at
the greater price than the cost of production. It is situation where entrepreneur can take actions
towards to make profit by bringing up innovative facilities. Hence, entrepreneur opportunity
mainly depends on entrepreneurship, opportunity and human cognition. This is crucial function
that aids to develop understanding about the marketing functions.
Thus, the present report will be based on new set up food and beverage business In UK.
Thus, this entity will bring up with innovation as to provide 24 Hours food service and mobile
app booking facility to customers. Therefore, the name of enterprise will be as “Food Hunt”.
Hence, report will cover the following activities as to determine and evaluate the different
sources of entrepreneur ideas, market gap for the entrepreneur idea, and interpretation of the data
appropriately, to determine the SWOT framework to determine the entrepreneur ideas. Lastly,
evaluation will be conducted in which idea will be launched to access the potential viability of
the market.
MAIN BODY
P 1 Sources of entrepreneurial ideas and innovation
One of the most important and crucial step to start a new business is to bring new and
innovative ideas. There are various sources through which an entrepreneur can think of
innovative ideas due to which one can gradually develop and thrive their business. The the
source of idea is accurate then opportunities for an entrepreneur in the entrepreneurship world
increases. There are various theories that describe sources of ideas and innovations out of which
Drucker's Seven Sources of Systematic Innovation is one of the most famous theory where he
talks about necessity and power of systematic innovation that are mostly inspired by seven
sources of innovative opportunity (Cavaco and Machado, 2018). He has described these seven
sources out of which seven sources lie within an enterprise and three lies outside the industry or
enterprise.
The Unexpected: Any unexpected success, failure or any other outside event involvement
sometimes becomes one of the great source of inspiration for any innovation or entrepreneurial
idea.
The incongruity: Reality of assumption and reality of actuality is always different and many
entrepreneurs fall for this trap and try to build their own business without doing any market
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research of what their target audience actually wants. So, sometimes this assumption and
downfall of the company becomes a great source of entrepreneurial ideas and innovations.
Innovation based on process needs: as per Drucker innovation of entrepreneurial ideas should
always be task focused and as per the process needs rather than being focussed on the situation
needs as opportunities of innovations are closely related to process where weak spots can easily
be identified.
Industry and market structure change: Sometimes changes within the industry such as
development in technology become one of the main source of innovation and start up idea.
Leaders or entrepreneurs need to treat such ideas as opportunities rather than as a threat.
All of these sources lie within the organization or industry which can helps an individual
and can give them an innovative idea (Drucker, 2018). Here to start “Food hunt” a mobile food
truck industry and market structure change has been a great source for entrepreneurial ideal and
innovation as today many people loves to order food online and want it to be delivered and id the
food truck themselves deliver freshly cooked food then it is an innovative idea which will be
liked by consumers a lot.
Demographics: Change in demographics affect companies a lot especially demand of food
products affects the market a lot (Park and et.al. 2019). So, this demographic change such as age,
employment, education affects business ideas, innovation and the area where it is lead to.
Change in perception: Change in people's perception over time due to technology involvement,
social media or social network also becomes one of the greatest source of entrepreneurial idea or
innovation.
New Knowledge: As it is already known that new knowledge whether it is significant or non-
significant are always a good source of entrepreneurial innovation or idea.
P2 Discuss about the rationale and market gap for the Food Hunt entrepreneurial idea by using
the mobile application.
A business idea is basically concept that can use for gain more financial profit through
product and services. It is also offered for the purpose of money. Food Hunt is based on the start-
up firm that providing many types of food dishes to the consumer. They are trying to implement
new idea and concept in business process to give online mobile booking facility where consumer
can book the food by mobile phones and placed their order (Tidd and Bessant, 2018). It has used
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the new trends and technologies which are quickly increase more opportunities on regular basis.
Nowadays, many people want to keep eye on new trends so that it becomes easy for Food Hunt
Firm to increase number of visitors and take services. It useful for Food Hunt business to fill the
gap in global marketplace.
Food Hunt firm is targeting the local market through creativity and give many type of
discounts options. It is the most famous start up plan in the business process that helps to
increase the demand in market. Food Mobile application can increase the consumer base as well
as revenue of organization. Many people are preferred home delivery due to busy schedule so
that they are placed the order by mobile phones. In this way, Food Hunt Firm provides the
facility and service to give the food item on their location. It is very easy for consumer to choose
the product according to their requirement because there are many options available to check all
details in proper manner (Lerner, Hunt and Dimov, 2018). This idea is also performing the social
media integration where consumer can give their review on particular dishes and experiences. It
is better innovative idea that can applicable on different type of consumer and also give the
option of multiple age group. It depends
on the consumer need which is important for enterprise to maintain the coordination with
consumers.
Food Hunt Firm is target the potential consumer those who always purchase the food item
through mobile booking. It helps to give the order from Food Hunt firm and they are providing
the food by food truck at consumer location. This idea is increasing more popularity and demand
in marketplace. Business has required the new conceptual idea because it quickly attracts the
people in marketplace.
P3 Present data that needed to support gap analysis in evaluation of the specific entrepreneurial
data.
The present entrepreneur idea is based on innovation to provide Food hunt services to
customers for 24 Hours. Therefore, this entity will also book the orders of customer with mobile
application app and offer home delivery services. Hence, UK food grocery market forecast by
14.8%. Furthermore, Fast food market in the UK is enhancing at the growth rate. Profits
expected by this industry are expected to enhance and it is estimated to grow at a 5.44% by 2022.
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Figure 1UK fast food market
(Source: Fast Food Market Overview. 2019)
Therefore, In UK there is number of the individuals who are working and this new innovative
strategy would help them to enhance the market share within market of UK. However, increase
in health consciousness among the customer has highly fuelled with fast food industry growth.
With the help of identifying the gap analysis the need of the innovation of this entity can be
identified effectively. Therefore, market player of this entity will try to strengthen their reach to
customer with the help of acquisition or to capture the large market share.
P4 Interpretation on data appropriately to provide evidence of market potential.
Food service industry is nearly equal to the size to the food retailing. Henceforth, Food
marketing system that inclusive food service and food retailing supplied is continually
increasing. Furthermore, market share within the UK market for food and beverage sector is as
73.2% within the UK. Henceforth, it can be stated that statistic displays total consumer spending
on food and beverage in the UK from 2005 to 2018.
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Figure 2: Food and beverage growth within UK
(Source: Consumer spending on food and non-alcoholic drinks in the United Kingdom from
2005 to 2018. 2019)
Online distribution in Food and beverage market is increasing at the higher rate. Therefore,
consumers take the advantage of market within the United Kingdom. Hence, online shopping
growth is 68% in 2016 and that will be enhanced till 2021.
P5: SWOT ANALYSIS
Strength:
The biggest strength of Food hunt is its mobility. This allows the start up to improve their
accessibility to their customers. Besides this, Food truck will help in improving the facility of
delivering the food around the clock. This will help the buyers to order the food and receive it at
any place, on anytime and anywhere. Other than this, the potential market and the good
purchasing power is contributing factors this will improve the sales and enhancing the sales of
the products and services which are offered (Kuratko, 2016). Maintaining the quality and
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delivering the dishes on time is a major advantage enjoyed by the organisation. Apart from this,
offering the food items as per the preferences and taste of the customers on a reasonable cost
assist Food hunt to attract the food lovers and improve its sales to have higher level of
profitability. Also, developing innovative and variety of dishes including English, Continental,
Chinese and Indian food is an important growth factor. Thus, these entities need to produce the
higher quality commodities to attract the customers. This aids to enhance the growth of the
market and also leads to have maximum amount of the market share.
Weakness:
The weakness or drawback of the system is that the mobility is for a restrictive period. As
the trucks of Food Hunt will be constantly in motion, having a standing or fixed market place
will be difficult. Also, the constantly moving trucks will be a costly affair due to high fuel cost.
The existing food firms and restaurants which are followed by the organisation will also
influence the operations and establishing of the start up with a good efficiency (Kirzner, 2015).
The inclusion of many dishes will require highly skilled chefs willing to work 24 hours can be a
cost constraining factor. Also, preparing the dishes in a limited time frame can impact the quality
and taste. All these measures which are followed by the start-up will impact their sales and
profitability in UK market. One of the greater disadvantage is that it is typical to find out the skill
chefs that aid to promote better taste and quality in food.
Opportunity:
The entrepreneurial idea of Food Hunt will create huge opportunities. With the rapid
success the venture can become a well known name among broad market segments. On the
successful accomplishment the idea of mobile food van can also be explored and expanded to
national level and in multiple cities. In order to expand the services in the near future several
other innovations can also be linked with the ideas (Zahra and George, 2017). For instance the
Food Hunt can also initiate to deliver beverages or wide range of global food so that it not only
becomes the preference of local customers but can also gain the attention of foreign customers
who visits United Kingdom. With the globalisation there are also several opportunities to expand
the services to international level. As per the present scenario, the most of the individuals in the
UK market is professionally working so that this kind of facilities would help them. This aids to
enhance the market share of the food and beverage sector within the UK.
Threat:
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The idea can also suffer from variety of threats. For instance with the mobile food van it
will be challenging ensuring the quality and on time delivery of the food. Thus, it is very vital
that there must be clear strategies regarding supply chain and system. The delay in the product
delivery can influence the buyer's satisfaction. Another threat which can influence the
performance and success of the innovative idea is competitive. Since there has been significant
increase in the use of technology and mobile application based food delivery system. Thus, the
competitive can replace and give great challenge to the execution of idea (Cooper and Float,
2017). With food services product quality is one of the highly essential and integral element.
Thus, the failure to maintain the suitable quality can lead to legislative issues related to health
care as well can also affect the brand value of the organisation. It is very essential to meet the
quality related challenges so that venture can be protected from competitive threats.
P6 Evaluation of competitive and market environment
In a market environment, competitive analysis is an important part of the overall small
business strategy and must include a thorough assessment of the strengths, weaknesses,
opportunities and risks of current and future competitors, as well as political, economic and
technological influences that affect the way species and how companies compete (Baker and
Sinkula, 2015). One of the most effective ways to assess the business competition environment is
the five competitive force model developed by Michael E. Porter of Harvard Business School.
Before making strategic decisions, small businesses must use these five strengths as a basis for
developing strong competitive analysis.
Threat of New Potential Entrants
To enter a new market the company need high capital for the different processes. To set feet
in any market the company need to perform a lot research work to launch a new product. The other
thing in this is there are many other companies which are selling same product. It is difficult foir a
newcomer to attract new customer. To attract consumer towards the company product the company
need to invest high capital in promotion and marketing to own share in market. The company which
are performing business with same product are big threat to company. In this case the advantage can
be gained by offering good product at low cost.
Threat of Substitute Products
When a company offer same food of food hunt mobile restaurant. It can reduce the market
share of restaurant and can affect the revenue of business. In this case the authority needs to take
decision to offer food at convenient price. There are number of the food and beverage sectors that
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continually work towards to provide food facilities to the customers. Hence, the innovation of 24
Hour service of Food hunt will be benefited to attract the customers.
Bargaining Power of Suppliers
If the supplier of raw material is limited then they can threat restaurant to switch the
customer. This threat can be reduced by increasing the number of suppliers of raw material. Hence,
entity needs to make better relation with the suppliers so that could help to have better suppliers. This
aids to have the facilities of raw material at time.
Bargaining Power of Buyers
In a business the highest power id located to the customer and restaurant. To reduce the
power of customer Food Hunt Company need to provide better quality product with limited supply.
Also the innovation in product and service can attract more customer. The rarity of food product and
services can handover the power to the company. By providing quality and health conscious
commodities helps to attract the customer within the market of the UK.
Rivalry Among Competitors
The entrepreneur must decide whether the business idea considered is feasible or not. When
assessing the profitability of a business opportunity, the following factors must be considered:
Market for goods and services - The developer must have access to potential and real markets
for the goods and services he wants to sell (Bai and Chang, 2015). There must be a clear market
to test that possibility.
Financial benefits - Financial feasibility assessment is very important to assess business
feasibility. It is important to analyse capital investment requirements, outage analysis, cash flow
estimates, and business profitability. This is because they determine business maintenance in the
market mix.
CONCLUSION
From the above report it had been summarized that opportunities for entrepreneurs can be
identified through different sources of entrepreneurial ideas and innovation. This report covered
the market potential by carrying out swot analysis and also conducted the competitive and
market environments like market for goods and services and financial benefits which helped the
entrepreneurs to create opportunities all over the world with their entrepreneurial ideas. This
report conducted the evaluation of drawbacks and benefits which helped in the identification
entrepreneurial idea.
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REFERENCES
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship, pp.348-367.
Zahra, S.A. and George, G., 2017. International entrepreneurship: the current status of the field
and future research agenda. Strategic entrepreneurship: Creating a new mindset,
pp.253-288.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Baker, W.E. and Sinkula, J.M., 2015. Maintaining Competitive Advantage Through
Organizational Unlearning. In Proceedings of the 1999 Academy of Marketing Science
(AMS) Annual Conference (pp. 206-209). Springer, Cham.
Bai, X. and Chang, J., 2015. Corporate social responsibility and firm performance: The
mediating role of marketing competence and the moderating role of market
environment. Asia Pacific Journal of Management. 32(2).; pp.505-530.
Online
Consumer spending on food and non-alcoholic drinks in the United Kingdom from 2005 to 2018.
2019. (in million GBP). 2017. [Online] Available through:<
https://www.statista.com/statistics/281938/expenditure-on-food-and-drinks-in-the-united-
kingdom-uk-since-2005/>.
Fast Food Market Overview. 2019. [Online] Available through:<
https://www.alliedmarketresearch.com/images/fast-food-market2%20(2).jpg>.
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