Entrepreneurial Opportunities: A Market Analysis Report

Desklib provides solved assignments and past papers to help students succeed.

IDENTIFYING
ENTREPRENURIAL
OPPORTUNITIES

Table of Contents
Introduction.......................................................................................................................................3
LO1 Evaluate possible sources for a new and innovative business idea............................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation...................3
M1 Provide a detailed evaluation of Drucker’s 7 sources of systematic innovation providing
specific examples (D1).......................................................................................................................4
LO2 Explain the choice of a specific entrepreneurial idea for investigation and the market gap that
it addresses........................................................................................................................................5
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant tools
and techniques to support your choice.............................................................................................5
M2 Provide justification of how a specific entrepreneurial idea fills a market gap using different
techniques for gap and competitive analysis (D2).............................................................................7
LO3 Use primary and secondary data to identify market potential...................................................8
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea....................................................................................................................................................8
P4 Interpret data appropriately to provide evidence of market potential........................................9
M3 Justify specific sources and methods of data collection chosen and how data relates to
identifying market potential (D3)....................................................................................................11
LO4 Evaluate the entrepreneurial idea in the context of the market and competitors and make an
assessment of potential viability.....................................................................................................12
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea........................................................................................................................12
P6 Evaluate the competitive and market environments in which the idea will be launched to assess
potential viability (M4)....................................................................................................................12
D4 Formulate valid conclusions and justified recommendations on how a specific entrepreneurial
idea can be developed, managed and sustained within the competitive market place..................12
References.......................................................................................................................................13

Introduction
The study is focused on providing the information about the sources which has been inspiring
the idea and personal motivation in wishing for setting up a new business idea. It will be
focusing on introducing the new business idea and the analysis of the STP strategy for the
new business to be started up. It will be reflecting on the analysis of the competitors with the
help of the Porters Five Forces model. It is also discussing the gap analysis and what are the
strategies to be developed for closing on the gaps along with the evaluation of the business
idea and the objectives and how it should be fulfilled. It is also discussing the primary and the
secondary market research techniques for supporting the viability of the business idea and the
identification of the market potential. It is also discussing the strengths and the weakness of
the business idea to be developed by the entrepreneur and how the risks are overcome and the
potential opportunities for the growth and development in the future to be exploited.
LO1 Evaluate possible sources for a new and innovative business idea
P1 Determine and evaluate different sources of entrepreneurial ideas and
innovation.
The evaluation of the sources of entrepreneurial ideas which is making the entrepreneur to be
able to start up its new venture or business could be done with the help of the STEEP
analysis. STEEP is the marketing tool which is import at for the evaluation of the macro
environmental factors determining the current trends of the external market (Kuratko 2016).
So the STEEP analysis has been conducted below which has been inspiring the entrepreneur
to start up its own venture in the future and it is illustrated here
Social: The social factor which is including the lifestyles of the people residing in the
different communities in any country where the entrepreneur want to start its own business or
venture, the demographics of the people living in that specific country, consumer behaviour,
culture, religion and advertising.
Technological: After social it comes the technological factor which has been inspiring the
entrepreneur to start its new venture. The technological factor is including the innovation in
the technologies to be applied in the new business, the latest technological gadgets and apps
which are to be used n the new business, the product life cycle, R&D and innovation.

Economic: After that the economic factor also plays an inspiring role for the entrepreneur to
be able to start its new venture. The economic growth and stability of any country inspires the
entrepreneur to be opening up its new venture.
Environmental: The environmental conditions have also been the important factor which
inspires for making any entrepreneur to start up its own business. The entrepreneur should be
looking after that the basic needs like the water, land, air, food, soil and the environmental
regulations in the country is there or not.
Political: The political development is also influencing any entrepreneur to be able to get
inspired for starting up its new venture in any specific country they want it to be opened. The
political factors to be considered could be the political stability, tax policies, price
regulations, consumer protection and the state or national laws and legislations.
The personal motivation for setting up my own business would be the economic, political and
technological factors. In the context of the political factor, the political stability, the
government policies and legislations of the country and the tax structure influences me to
start up my own business. In the context of the economic factor it is seen that the economy is
the mainstay for any business to set up. The business will be remaining at the topmost and
sustainable position only if the economic condition of that area or region or country is stable
and consistent which led to the growth and expansion of the business in the future. In the
technological context it is seen that today is the era of modernisation and innovation. There is
huge innovation to be taking place with the rise of the new and future technologies which is
having huge prospects in the future. The development of the innovative apps and rise of
internet technology is slowly but steadily revolutionising the business structures and the
business models of any business organization right now. This is also personally motivated me
to start up my own business.
M1 Provide a detailed evaluation of Drucker’s 7 sources of systematic
innovation providing specific examples (D1)
The detailed description of the 7 sources of innovation for making any entrepreneur to start
up their own business is illustrated below with some of the specific examples
Unexpected: This is the first source of innovation which is indicating that any entrepreneur
need o expect that something unexpected might happen in the business which the
entrepreneur will start it.

Incongruities: This is basically thinking it in a different way. This will make an entrepreneur
to make something innovative with the business idea they are having. For example how Steve
Jobs has created Apple and made innovation in their products from time to time.
Process Need: The changes in the process and the need for the development of an innovative
process would likely to be the source of innovation. For example in Subway people do not
have to wait so long in the queue as they have been the serving the FIFO process for the
delivery of their big sandwiches.
Change in Industry and market Structure: The changes in the industry and the market
structures also be the sources of innovation to be made for any entrepreneur. For example
Manoj Bhargava created the 5 Hour energy and the entire caffeine market has undergone a
change as more and more people are tend to buy the small and less costly energy drinks
rather than the coffee. This made Starbucks to be able to change the industry structure due to
the changes in the market.
Demographics: The changes in the demographics have been the source of innovation to be
made for any entrepreneur who wants to start up a new business. For example, China is
having an ageing population now and the Chinese people are now consuming much more
green tea for their health consciousness.
Perception Change: The perception is the way that how people look about the change or
innovation to be bringing in. For example the impact of tobacco 30 years ago was not known
by them but now in this 21st century greater awareness and perception about tobacco
consumption has been there.
New Knowledge: The new entrepreneur who wants to start up its new venture would be
implement g new technologies to be able to introduce innovation in their business.
LO2 Explain the choice of a specific entrepreneurial idea for investigation
and the market gap that it addresses
P2 Explain the rationale and the market gap for a specific entrepreneurial
idea using relevant tools and techniques to support your choice.
The business idea for the entrepreneur for starting up its new business is to open up a new
coking website. This is done by making the entrepreneur to become a personal chef. This is
said to be a very innovative business idea which is useful for the entrepreneur to start
generating income from this new business idea or the new venture if it gets started soon with

effective planning and strategies to be developed. It seems that during this modern ear or 21st
century the life of the people of different genres have become much fast and highly
competitive. They do not get the time to get cooked their own food as most of the people in
this world are now very much busy with their professional life. The social life for the people
across the world is getting reduced day by day as they are facing the complexities in
balancing the professional and the personal life altogether. It is also seen that the people due
to their busy schedules are opted to have fast food consumption at the highest level and they
are not trying to cook meals of their own in their residences. They are primarily focusing on
the consumption of the ready to cook meals which is making their health to be deteriorated
now and it will increase in the future for them. So they are always in search of a personal chef
who will be cooking their meals for them and would like to share the recipes with them. The
sharing of the recipes is only done if there is a website to be developed where the personal
chef would be cooking the meals of them and provide important suggestions on home based
cooking items which are very much healthy and less expensive in nature.
STP
Segmentation: Segmentation is the strategy which is useful in segmenting the market in such
a way that the service or product could be sold to the customers. There are basically three
types so segmentation which is going to be explained here and it could be the behavioural,
demographic and geographic.
Geographic: This is the type of segmentation where the marketing managers could be able to
segment the market according o the geographic regions or the areas where they would be
targeting the customers and would like to sell their services or products (Kuratko 2016.). In
this study the entrepreneur should be finding out the personal chefs at different geographical
areas or regions.
Behavioural: The marketing managers in this type of segmentation have been segmenting the
market in accordance with the behaviour and the perception of the people towards the
particular service or product to be provided to them (Kuratko 2016).
Demographic: This is the type of segmentation where the marketing managers have been
segmenting the market according to the demographic variables which is including the age,
gender, income level, occupation, education, race, religion, language and marital status.

From the above type of segmentation illustrated the entrepreneur for this new business idea to
be developed and implemented should be undertaking the behavioural and demographic
segmentation as the segmentation is done on the basis of the demographic variables as well
the behaviour and the attitude of the target customers.
Targeting
The potential customers who are targeted by this new entrepreneur might be the servicemen
and the service women who are having the age range of 25-45 years. They are basically the
business executives and the employed individuals at the highest position.
Positioning
The new entrepreneur will be positioning its service by providing wide range of recipes and
distribute it in different online cooking websites. They will also position their services by
making the promotions of their website through the hiring of personal chefs who will be
preparing the recipes for the new entrepreneur.
M2 Provide justification of how a specific entrepreneurial idea fills a
market gap using different techniques for gap and competitive analysis
(D2)
The technique for the filling of the market gap and the competitive analysis could be done
with the help of the analysis of the porters Five Forces Model. The Porters Five forces model
has been explained below
Bargaining Power of Suppliers (High): It is seen that for a new entrepreneurial venture to
start the bargaining power of the suppliers should be always at the higher side. There is the
need of developing good relationship with the suppliers all the time by providing them the
good profit margins (Drucker 2014). This will make the entrepreneur to get the supply of the
raw materials as and when it is required by them.
Bargaining Power of Buyers (High): It is seen that with the entrepreneurial idea of having
personal chef for the preparation of meals need to have the bargaining power of the buyers to
be always at the higher side (Dees 2017). There is always a need of providing the best and
wide range of cooking recipes to be there on the cooking website any the entrepreneur so that
the needs and demands of the customers could be achieved.

Threat of Substitute Products (Low): It is seen that the entrepreneur with this innovative
business idea have the low threat of substitute as this is the innovative service which could
not be substituted.
Threat of Competitive Rivalry (Low): It is seen that this is the unique service or business idea
which is having low competition in the market. There are not so much of entrepreneurs who
are having this idea to be developed now.
Threat of New Entrants (Low): The threat of new entrants has been low as this innovative
service idea is not been articulated in the market where the entrepreneur will be starting its
new business (Kirzner 2015).
This is seen from the analysis of this model that this is a growth area with low risk robe
developed. This is a risk free business idea which is there to be incorporated by the
entrepreneur. This is important for the analysis of the gap to be there for filling up the idea of
the entrepreneur.
LO3 Use primary and secondary data to identify market potential
P3 Present data needed to support gap analysis in the evaluation of a
specific entrepreneurial idea.
It is seen that for the investigation of the new business idea it is important to have both the
primary and the secondary research technique to be applied by the entrepreneur. The primary
research is the type of research where there should be the gathering of the primary data to be
involved (Santos 2012). The primary data is the type of data which is developed on the spot.
The collection of primary data is done with the help of questionnaire. On the other hand the
secondary research is the type of research which is related on the secondary sources of data.
The secondary data is gathered from the different secondary sources like the articles, annual
reports, journals, press releases, internet forums, social media and databases (Baum Frese and
Baron 2014). The secondary data is the type of data which is present in the past and it could
be retrieved anytime by the researcher as and when it is required (Barringer 2015). The
primary research is to be done by the entrepreneur who wants to open its own business is by
the development of the questionnaires. The respondents who would be selected by the
entrepreneur are the personal chefs only who are from different cultural backgrounds. They
are asked 5 questionnaires and there would be 7 entrepreneurs on this same profession who
are randomly selected in accordance with the demographic profile of the respondents.

In the secondary research the entrepreneur who wants to start its own venture should be able
to use the Big Data as the technology for assessing the current market trends along with the
analysis of the consumer perception towards this new business idea to be developed by the
entrepreneur. The use of the social media responses and it is the evaluation and testing is to
be done by the entrepreneur and the internet forums where the responses are evaluated as the
surveys for this idea to be evaluated as a major opportunity or failure for the entrepreneur.
P4 Interpret data appropriately to provide evidence of market potential
The interpretation of the data for the 5 questionnaires arranged for responses coming from the
7 chefs are given below
Question 1: How do you motivated to get into this profession?
 Culinary skills.
 Food lover
 Education
 Job Profession
Culinary skills. Food lover Education Job Profession
0
0.5
1
1.5
2
2.5
3
3.5
Question 2: How do you get to know of this business?
 Social Media
 Websites
 Friends or Relatives
 Neighbours
 Print Media

Social Media Websites Friends or
Relatives Neighbours Print Media
0
0.5
1
1.5
2
2.5
3
3.5
Question 3: What is the most significant opportunity you will get it from this business?
 Improving culinary skills.
 Expansion in business
 Innovation
 Profit making
Improving culinary
skills. Expansion in business Innovation Profit making
0
0.5
1
1.5
2
2.5
3
3.5
Question 4: What is the most vital challenge you have to face during this business
development?
 Capital Requirements
 Arranging of personal chefs
 Impeccable service delivery
 High quality delivery of foods

29%
43%
14%
14%
Capital Requirements Arranging of personal chefs
Impeccable service delivery High quality delivery of foods
Question 5: What are the advantages you get from this business?
 Personal Achievement
 Helping Others
 Business Expansion
 Popularity
Personal Achievement Helping Others Business Expansion Popularity
0
0.5
1
1.5
2
2.5
M3 Justify specific sources and methods of data collection chosen and how
data relates to identifying market potential (D3)
The specific sources and the methods of the data collection to be chosen are the primary and
the secondary research method. The primary source is the use of questionnaire and the
secondary sources could be the social media, internet forums etc. From the analysis of the
data it is observed or indicated that the data which is gathered and interpreted do not have the
high market potential. The idea of this business for any entrepreneur to be applying it will be
loss making and the expansion of the business is also limited and the viability of this business
idea is not there for the entrepreneur.

LO4 Evaluate the entrepreneurial idea in the context of the market and
competitors and make an assessment of potential viability
P5 Apply a SWOT framework to collate evidence to support an objective
assessment of a specific entrepreneurial idea.
Strengths
 The business idea is innovative.
 This business idea will support and
help others.
 This business idea is also cost
effective.
Weaknesses
 This business idea is not viable.
 This business idea is not sustainable.
 This business idea has limited profit
making.
Opportunities
 This business idea will help in
achieving only personal achievement.
 This business idea is improving the
own interest.
 This business idea is dealt with online
or ecommerce business.
Threats
 This idea is not easy to grasp for the
investors.
 This idea of business for the
entrepreneur is highly ambiguous
 The generation of revenue is almost
zero.
P6 Evaluate the competitive and market environments in which the idea
will be launched to assess potential viability (M4)
The business idea which will be launched is not so much viable and it will not work as per
the belief of the entrepreneur. As per the competitive and the market environment it is studied
that the business idea of hiring a personal chef by the individuals who have their busy and
packed schedule life is not at all viable and workable for the long run sustainability of this
business.
D4 Formulate valid conclusions and justified recommendations on how a
specific entrepreneurial idea can be developed, managed and sustained
within the competitive market place.
It is recommended from the study that the risks which are o be faced by the entrepreneur
form this business idea which will be launched will be the capital requirements and the
finding out the right resources. It is recommended that the entrepreneurial idea which is to be
managed and sustained within the competitive marketplace should be able to provide good