Identifying Entrepreneurial Opportunities: A Detailed Analysis Report

This report provides a comprehensive analysis of entrepreneurial opportunities, focusing on the identification of potential business ideas and the evaluation of their viability. It begins by exploring various sources of entrepreneurial ideas and innovation, including social, economic, technological, political, and environmental factors, as well as Peter F. Drucker's seven sources of innovation. The report then delves into the development of a specific entrepreneurial idea: the UK Law App, a mobile application designed to inform users about legal changes, particularly those arising from Brexit. It includes a market gap analysis to identify customer needs and target markets, along with a SWOT analysis to assess the strengths, weaknesses, opportunities, and threats associated with the app. The report also evaluates the competitive and market environments to assess the potential for success. The report examines different types of innovation (product, process, place, incremental, and big bang) and the difference between innovation and invention. The report emphasizes the feasibility of the mobile application idea over selling travel plans on EMI and concludes by analyzing the importance of identifying customer types, market segmentation, and the role of behavioral and demographic factors in the success of the app.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2............................................................................................................................................5
P2 Explain the rationale and the market gap for a specific entrepreneurial idea........................5
TASK 3............................................................................................................................................9
P3 Present data needed to support gap analysis in evaluation of entrepreneurial idea...............9
P4 Interpret data appropriately to provide evidence of market potential....................................9
TASK 4..........................................................................................................................................10
P5 SWOT framework to collect evidence to support an objective assessment of a specific
entrepreneurial idea...................................................................................................................10
P6 Evaluate competitive and market environments in which the idea will be launched to
assess potential viability............................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurial opportunities are those chances which are an entrepreneur grabs with his
virtue and talents. Identification of these opportunities are a complex procedure that want help of
some analytical tools like gap, competition analysis. Porter's Five forces model is a prominent
tool of analysing competition and schumpeter’s sources of innovation are helpful in studying
sources of innovation (Davidsson, 2015). This report is based upon a new start-up which is
named as UK Law App. This start-up is a new enterprise of mobile application that contains all
new, information and knowledge about all legal changes that are occurring in political place of
country and are affecting business operations in negative manner. These legal obligations were
started after Brexit.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
A person a going to start his own business enterprise and for this consent, he has several
ideas like selling of a travel plan on EMI basis and android application related to legal
formalities. For checking feasibility of every idea, individuals conduct macro analysis that
include STEEP factors and Peter F. Drucker's 7 factor of innovation. There are some sources that
inspire a person to develop business idea. These sources basically include some external
environmental factors which are stated as below: Social Factor: In this section, it has been analysed that people are very techno friendly in
today’s era and their financial condition is also good. As a result, it is found that
feasibility of android application is good because after Brexit, there are many changes in
laws and legislations by them population are not aware and persons need to be aware
about these alterations in legislations. Economical Factor: Conditions of country's economy are good and stable. It means per
capita income and GDP growth rate are good that represent overall idea about financial
position of an individual. As per analysis of this factor, it is clear that position of person
is good and they are capable in purchasing any travel and tourism plan but they want
some legal information (Kohlbacher, Herstatt and Levsen, 2015). Technological Factors: Today's world is a technological place. There are several
opportunities in technical sector. While buying a travel plan on EMI, visitor can pay his
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EMI through bank's mobile application or by online payment. Payment that can be made
on online is a wide innovation in sector or technology. It has been been noticed that there
are several changes in legal formalities in the United Kingdom after Brexit. For spreading
knowledge and information about changes in laws, an android application is created for
spreading know-how about all legal formalities. So it is an innovative idea of making ios
and android apps that is related to legal information (Mueller and Shepherd, 2016). Political Factor: On the basis of idea, this segment is analysed and got result which is
that there are various alterations founded in political ground of country. For instance,
when new political party started their ruling, they made some changes in tax policies,
legal rules, some formalities been easy and other became complex. These are some
revulsions that has been noticed.
 Environmental Factor: It has been evaluated that environmental factor is put on least
priority and many corporations do not care about nature. On the other hand, there are
some organisations which hired some experts for taking care of environment and this
kind of action is a reason of increasing opportunities in travel and tourism sector because
if people are coming then the cause behind there arrival is beautiful atmosphere of that
particular place.
From above macro analysis, it is clear that idea of making android application is more
feasible than travel plan on EMI. There are around 7 sources of ideas that are suggested by Peter
F. Drucker. Further, analysis is based on Peter F. Drucker's innovation factors and these are
stated as beneath:
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(Source: Porter's Five Force, 2013)
Incongruity: It is a gap between what this is and what it should be. Every enterprise
wants to make ideal products that should have some specific attributes but when product
manufacturing is done then finished product is to be little or quite different from desired product.
It is a tricky situation for every business concern (Porter's Five Force. 2013).
Process Need: It is a finding of need of innovation in business model or process of
accomplishment of operations. This is a solution of innovation problems. For example, if
application is running down and there is only one developer who can fix these kinds of problems
then entrepreneur can hire another person for making the process faster.
Industry & Market Structure Needs: These two are always show that changes are only
certain part of technological sector and it impacts business operations on very wide manner. As
everyone could not purchase a travel plan as per their financial conditions is low so by
considering this situation it is clear that travel could be sale on EMI basis so that everyone could
make purchase of these packages. This stated example has been shown that EMI pattern is a
current market need (Karimi and et. al., 2016).
Demographics: There are lots of changes in population, income level, capital and age
ranges, etc. By considering these points, an enterprise can launch innovation in their enterprise.
For example, if nation's economy is growing then it will represent growth in per person's income
and this action will further enhance the standard of living of individuals.
Changes in Perception, Meaning and Mood: As the time passes, people and processes
get change. These changes are found in lifestyle, moods, etc. For example, a person usually goes
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Illustration 1: Porter's Five Force

for a holiday at a determined place but in this time, he changed his mind and planned a vacation
on other place and cost of that holiday package is very high in comparison to previous plan. So,
for making that plan real, individual can buy travel plan on EMI basis (Kirzner, 2015)
New Knowledge: It has been noticed that technologies are inventing and innovating
rapidly. It is required from the entrepreneurs that they always consider all factors and analyse
that where they can apply these revulsions in their business operations. For example, how
internet can be used in whole business model.
Unexpected: Sometimes, marketplace is a location which is having number of
opportunities that can be avail by entrepreneurs in order to start a start-up. EMI on travel plan
and mobile application on legal formalities are example of some market opportunities.
As, it is an entrepreneur who have different sort of ideas and good analytical powers to
study all easy and complex situations. Out of all available opportunities, person with
entrepreneurial qualities he founded two ideas one is selling of tourism plan on instalment basis
and other is mobile application for android and is related to legal formalities and knowledge.
Type of Innovation:
There are various kinds of innovation which include the following: Product: It includes some add ons which make an item different from other similar kinds
of products. Process: It is a situation, When innovation is launched in business model and in process
of accomplishing business operations. In short, innovation in business method is called as
process innovation. Place Innovation: It comprises, how a person can place his product or services in
customer's mind. When individual choose some distinct methods for this action then it is
called as place innovation. Incremental vs. Big Bang Innovation: Incremental innovation is a small series of updates
in existing products, services or processes to improve the ultimate quality of product in
marketplace. Big Bang is a better and cheaper product development and this
enhancement is continued since creation of original product (Karimi and et. al., 2016).
Schumpeter’s sources of innovation
This theory states that innovations are major cause of increased investment in business
operations and if financial condition of enterprise is good then it can introduce innovation in its
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operations. In other words. Innovation in business cycle is called as Schumpeter’s source of
innovation.
Difference between Innovation and Invention:
Innovation Invention
This is a concept of adding some points in
existing products in order to make them future
and competition ready. Entrepreneurs are
suppose to start new business with unique
ideas.
It is a brand new idea of manufacturing
something antique product which is not been
launched yet. For example sale of a travel plan
on instalment basis is a unique idea.
Process of innovation involves adequacy of
funds and adequate knowledge related to
innovations along with info about market
trends.
For conducting an invention program them
person must be intelligent and skilled. This
term requires high funds.
Difference between product or business idea:
Product Idea Business Idea
It is a new concept of manufacturing a unique
item that can cater need of customers whom
are present in marketplace.
This is a concept that is relates with money
making. Product idea is a part of this section. It
means, an item can be developed into business
thought as this can be use to make money.
As per above analysis, it is clear that idea of developing an android app related to laws
and legislations are more feasible than selling a holiday package on monthly instalment basis. So
entrepreneur is going to develop mobile application idea into business opportunity (Ramoglou
and Zyglidopoulos, 2015).
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea
This section includes identification of needs of customer related to phone app. It is clear
that after Brexit, there are many changes has been found in legislation processes and people are
not aware about them and because of this action business activities are being hampered. It is a
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main reason of developing a mobile app which will make population aware about all legal
changes and how these modifications can impact business idea or operational activities.
Comparison between actual market conditions and desired marketplace circumstances can be
evaluated through market gap analysis. This is a tool which is helpful in analysing and providing
knowledge about future opportunities and how it can be grabbed for making profits through
business idea (Hmieleski, Carr and Baron, 2015).
Need to identify specific customer types for target idea:
Each product is not for every person as demand of product depends upon an individual's
personality. As in this context business idea for start-up is developing new mobile application
that should aware people about all legal formalities which are changing due to Brexit. So in this
context, not every person is in need of knowing all legal obligations. Identification of target
market is necessary for knowing who will be potential buyer of customer whom have buying
power to purchase the application. This kind of behaviour is helpful in making judgement upon
idea should be processed or not.
Market Segmentation: This is a distribution of marketplace into desired customers. For
example, mobile application is most useful in UK so that geographically United Kingdom is a
segmented market where entrepreneur can launch his unique idea into action. Below are some
type of market segmentation: Behavioural Segmentation: In this section market is segmented on the basis of
behavioural patterns that customers possess in their personality. For instance, if
consumers are techno-friendly then they could be comprise in target market in context of
mobile application. Demographically Segmentation: It includes that segmentation depends upon lifestyle,
income level, gender etc. According to this segmentation, it is clear that mobile
application does not rely upon income level and lifestyle of customers because it not very
costly which can not keep by middle class person.
 Geographic Segmentation: This kind of distribution of market depends upon geographic
places. For example. Business idea for new start-up is developing an application which
contains all information about laws and legislations. A person can run this app on internet
but if individual is living on that area where network is a major problem then he could
not be a target customer (Foo, Uy and Murnieks, 2015).
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Tangible & Intangible features and benefits of a product or service
Tangible Intangible
It is some visible features that a customer can
see in product or service.
There are invisible features that can be feel but
can not bee seen in good or service.
For example: Some features are added in app
to make its use easy like information update in
the basis of automatic location selection. This
a wide benefit that a person can check legal
rules according to his location because
sometimes these regulations varies upon
location to location.
For instance, automatic updates in application
is intangible feature and it is a benefit also
because users do not need to anywhere for new
laws as these are automatically added in app.
Industry Environment:
This kind of industry analysis is a study of macro environmental factors which is helpful
in gaining knowledge about favourableness and disadvantageousness of new entrant. From above
analysis it is clear that according to external market factors, developing a mobile software is a
feasible and economic idea which could be developed (Ramoglou and Tsang, 2016). Like, there
are several changes that are occurring in political background and which must be considered by
software developer etc.
Porter's Five Forces Model
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(Source: Porter's Five Forces, 2013)
Analysis of Porter's five forces model is a good tool in context of competition analysis.
This study reflects future position of a new product which is going to be launched in
marketplace. As it includes following points:
Supply Power: It includes strengths of suppliers who are providers of raw material and owner of
product distribution system. In context of mobile application, suppliers are not in strong position
as they do not have enough scope for their services (Baggen and et. al., 2015).
Buyer Power: A product is said to be successful in marketplace if people have sufficient
potential to purchase the item. In respect to technologies, people is facing several problems
related to laws and regulations and to sort out these issues they want a permanent solution and
developing a software which contains all knowledge about required area then it is a good
resolution of problem. As per this statement, it is been studied that buyers power are strong and
they can ensure launch of new product or service.
Threat of New Entrants: It includes that is easy to enter in a market or not. This is a analysis of
barriers and supporters of entry of service.
Bargaining Power of Suppliers: If negotiation power of suppliers are high then it will enable
suppliers to sell higher price and on the other hand bargaining power is low then it disable
suppliers to sell low prices in industry of their raw materials.
Threat of Substitute: When entrepreneur knows that there are various other options available in
market which can easily replace his product then entrepreneurs could not go through their idea
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Illustration 2: Porter's Five Forces Model

and analyses other profitable options. In case of UK Law App. it has been analysed that there no
strong competitors available in industry that is why it is a profitable alternate for business owner.
Rivalry among Existing Customers: This is factor that shows profitability of competition. In
context of UK Law App., it is examined that there is no strong rivalry present in market (Hatak,
And et. al., 2015).
Approaches to Competitor Analysis:
In this model a six step model is defined which is elaborated as beneath:
 Identification of current and potential competition.
 Determination of five areas in which you are competitive than rivals. These key areas are
product quality, media, customer service and price.
 Creation of competition matrix.
 Separate matrix should be created for selective areas.
 Matrix review to recognise which areas are most vulnerable.
 Determine which area are not as much strong as they should be.
Above steps are showing that competition could be analysed in best way by following
above stages in best possible manner (Mathias, and Williams, 2017).
Industry Life-Cycle:
(Source: Industry Life-Cycle Phase and M&A)
This life cycle includes some phases which are described below:
 First phase is Pioneering phase.
 Accelerate Growth Phase.
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Illustration 3: Industry Life-Cycle