Entrepreneurial Opportunities: Sources, Analysis, and SWOT

This report analyzes entrepreneurial opportunities within the context of launching a retail business, specifically "Trendy Style." It begins by evaluating various sources of entrepreneurial ideas and innovations, including social, technological, economic, environmental, and political factors (STEEP analysis), as well as Drucker's Opportunity Model. The report then delves into market gap analysis, utilizing Porter's Five Forces model and gap analysis techniques to identify opportunities and potential challenges. The report provides a rationale for the business idea, supporting the market gap analysis with relevant data and concludes with a SWOT framework to assess the competitiveness of the venture. The report discusses the importance of understanding customer needs, technological advancements, and market dynamics for business success. It emphasizes the value of innovation, strategic planning, and adaptability in the competitive retail landscape.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Evaluate various sources of entrepreneurial ideas and innovations..................................3
TASK 2............................................................................................................................................6
P2 Rationale and the market gap analysis.............................................................................6
TASK 3............................................................................................................................................9
P3 Present data needed to support gap analysis in evaluation of entrepreneurial idea..........9
P4.Interpretation of data.......................................................................................................10
TASK 4..........................................................................................................................................11
P5 SWOT framework to collect evidence to support an objective assessment of a specific
entrepreneurial idea..............................................................................................................11
P6 Evaluating competitiveness and market environments...................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurial opportunities can be defined as situations which consists immense
potentials for launching a new venture or creating improvement in existing one. These people
have abilities to bring innovation in product or services to meet requirement of customers. In this
regard, present assignment has made a discussion on opportunities that helps a person in turning
the same into business idea. For this process, a new opened store named by Trendy Style has
been taken which deals in retailing sector and offers a wide range of trendy clothes on affordable
rates (Mueller and Shepherd, 2016). This report has evaluated sources through which helps in
developing idea for launching business successfully. It includes rationale and market gap
analysis with relevant data. Moreover, SWOT framework also has described in further part of
report.

TASK 1
P1 Evaluate various sources of entrepreneurial ideas and innovations
Entrepreneurs are those persons who have potentials to grab opportunities present at
marketplace for opening a new business in a competitive world. Before launching a business,
they used to avail sources and various ideas through which innovation can be created. As per
present scenario, a graduate person wants to launch a new business as “Trendy Style” in retailing
marketplace. For this process, it is necessary to grab different ideas like in which field business
has to be launched to gain instant profit, what people look out while they purchase any product,
condition of marketplace, source from where finance can be generated etc. Thus, in this regard,
some sources are given below which present in marketplace of UK that an entrepreneur need to
be considered while developing business idea:-
Social Factor: It is one of the most important factor that helps a firm in targeting its
customers (Kohlbacher, Herstatt and Levsen, 2015). As Trendy Style deals in clothing sector so,
this factor reveals the taste of customers, their purchasing power and more. Thus, it helps this
store in offers products as per requirement of people.
Technological Factors: For marketing products or services, this factor also helps in
generating ideas through which owners of Trendy Style can promote its business. Since in UK
technological has developed so far, therefore, it can help this store in formulating unique
strategies related to price and promotions of business.
Economical Factor: Economical factors have potentials to either make or break a
company so it is necessary for owner of Trendy Style to consider this. It consists potentials for
access to credit and resources, demand for product and services and more. As for launching a
new store in competitive marketplace, a lot of finance is required. Therefore, this factor helps in
analysing sources from where a person can generate finance in required manner on easy terms
and conditions.
Environmental Factor: Before launching a business, entrepreneurs must scan
environment also. It helps in evaluating ideas which prevailing the environment. In this regard,
owners of Trendy Style can determine potentials and viability of ideas which do not harm
ecological system.
Political Factor: In opening an outlet, it is necessary for a person to evaluate political
factors first (Mathias and Williams, 2017). As it will help in framing business activities as per

laws and legislation. In context with retail sector, government policies like increase or decrease
in taxation helps in conducting operational activity accordingly. As any change in governmental
laws will directly impact on demand pattern of an organisation and people also. Therefore,
considering this factor help employer of Trendy Style in framing price strategies of products
accordingly.
Thus, from STEEP analysis, it has cleared that idea of opening business in retail market
is a feasible plan. Furthermore, other sources which are given in Drucker's Opportunity Model
are explained as below (7 Sources of Innovative Opportunities, 2018). It was developed by Peter
F. Drucker which helps in nurturing a business idea:-
Incongruity: In order to start testing whether a business plan will successfully executed;
this factor represent a gap or deviation among planned activities, final implementation and result
of outcomes (Kirzner, 2015). By this process, necessary modifications can be created under
business plan. Thus, it helps owner of Trendy Style store in using effective tools and techniques
for nurturing ideas into business successfully.
Process Need: It helps in determining in which area of business, modification is required
so that innovation can be done in products or services. In respect to Trendy Style, this factor
suggest that employers must concern on quality of products and marketing techniques. It will
help in grabbing more attention of customers by giving unique facilities to people. It includes
scanner system in stores where people can pick up and purchase any product of choice without
standing in queue as money will directly debit from their account when they exit from stores.
Industry & Market Structure Needs: Market structure includes various external factors
like regulatory laws, technological changes, interest rates and more. Thus, if owner of Trendy
Style wants to run business for longer period then it is required to keep system updated with the
same. As it will impact on demand pattern of companies and marketplace both (Karimi and et.
al., 2016).
Demographics: For launching a new venture, it is required to consider demographic
changes also. As it will help in analysing income level of people, behaviour of them and more. In
context with Trendy Style, this factor assist managers in creating innovation in products or
services by which demand of customers can be fulfilled. In UK, people used to change their style
of wearing as per trend of marketplace so, it has given opportunity to owners of present company
to earn more by serving them trendy clothes on reasonable rates.

Changes in Perception, Meaning and Mood: Changes in trends of marketplace, mostly
affect on life style and preferences of customers. In context with clothes, they always want to
wear unique and trendy. Therefore, opening business in retail market will be beneficial for
entrepreneurs to grab high attention of customers and earn high profitability.
New Knowledge: In order to figure out in industry, it is essential for entrepreneurs to be
proactive while launching business (Suddaby, Bruton and Si, 2015). They must adopt new
technologies in operational and marketing activity. Therefore, employer of Trendy Style has
given offer to customers to open their account so that they do not need to pay in stores by
standing in queue. For this process, a scanner has been installed in stores which track record of
customers as whatever they pick up, the amount will directly debit from their account.
Unexpected: In order to create product differentiation in business for grabbing high
attention of customers, entrepreneurs of Trendy Style are required to identified opportunities
through which desired outcomes can be achieved. For this process, they are required to give high
facilities to people by installing new technologies in stores like LoweBot. This technology has
introduced in 2016 which is known as NAVii autonomous retail service robot. It helps customers
in finding a product of their choice in multiple languages. Along with this, it also helps in
monitoring inventory in real-time by which patterns can be detect patterns which may guide in
future decision of business.
It has seen that today customers are demanding more to get fashionable clothes on
affordable rates. So, it gives ideas to entrepreneurs of Trendy Style to open business in retail
sector. For this purpose, it mainly target to college going students because these customers have
high potential to purchase such goods on any cost. The main objective of this company is “ To
create and develop services or products which meet specific needs of customers.” Along with
this, it also wants to enhance sales performance of business by 20% in upcoming two years. For
this purpose, it offer services or products on reasonable prices.
TASK 2
P2 Rationale and the market gap analysis
Variations are always occur between demand of customers and products of company
which are offer to them. Therefore; to reduce this variation, it is necessary for entrepreneur of
Trendy Style to analyse market gap first (Karimi and et. al., 2016). In present context, Trendy

Style which is a whole new brand that has kept its focus over teenagers and people who likes to
wear trendy clothes. With the help of market gap analysis, Trendy Style may easily grab
information which may aid them in meeting all the requirements of unmet customers. It will help
in creating modification in existing technologies and business operations by which requirements
of customers can be met. It also aid them in enhancing image of brand at marketplace which
helps in giving a tough fight to competitors. For this process, some techniques are explained
below for identifying rationale and market gap:-
 Gap Analysis Porter's Five force Model
Gap Analysis :
This process helps in analysing gap between actual performance of company with its
expected on some basis of pre-determined standards. It depicts probable deviations which can be
analysed as well as eliminated by taking corrective measures under consideration. In context
with Trendy Style, this process of gap analysis helps in overcoming from those issues which may
hamper its productivity. Some of issues in this context are: rapid change in policies made by
parliament of United Kingdom, updates in technology and many more. It also assist in enhancing
performance of business by attaining targeted goals and objectives within given period of time
(Hmieleski, Carr and Baron, 2015). In addition to this, Gap Analysis also helps in monitoring
business operations by which variations can be detected at earlier stage. Through this process,
gap can be rectified before chances of widening up. With the help of this analysis, actual needs
of people who are not customers of Trendy Styles can be found. Through this, leaders of this
company may easily develop products as per the requirements and may aid in changing people to
customers.
Porter's Five force Model : Competitive Rivalry: Presence of competitors impact much on profitability of a company
and in widening up the market-gap. In context with Trendy Style, which deals in clothing
sector so, there is high intensity of competition at marketplace. As competition in United
Kingdom's clothing sector is high where its rivals like H&M, ZARA and others have kept
their focus over all the segments in this industry. But, keeping focus over one segment
and making it perfect as per the requirements of customers will easily grab attention of
targeted customers.

 Threat of new entrants: In retail sectors, opening business in clothing sector is not an
easy task because of high competitive level. Thus, Trendy Style may go through heavy
rivalry. Being as a new entrance entrepreneur of Trendy Style may face emergence of
market gap because they might not have much proper knowledge of needs of citizens in
clothing sector. This may create issues while changing people to consumers. Bargaining power of Suppliers: In any organisation, suppliers play an important role in
running business successfully. They have high negotiating power which could impact on
profitability of business. Due to intense competition in retail sectors, they can charge high
amount of price from firms for supply goods and resources. Therefore, it is required by
managers of Trendy Style to develop good relationship with suppliers so that demand of
customers can be fulfilled on time. Here market gap can be seen as suppliers may not
support new entrance because of heavy influence of existing highly known brand. But,
making a unique and trendy product with quality may improve their customer base. Bargaining power of Buyers: It is considered as main factor which puts a large impact on
decision making activity of a company. In context with retail market, where products are
are of homogeneous in nature, therefore, it is difficult for entrepreneurs to create product
differentiation. Therefore, they used to offer their commodities on attractive discounts in
order to grab attention of customers. Thus, in respect to Trendy Style, its managers have
to develop strategies for assisting people to enter their feet into store.
 Threats of Substitutes: As people always look out to get trendy clothes on low rates but of
good quality so, it provides opportunity to retailers to earn profitability by offering them
products on different ranges (Hatak and et. al., 2015). Therefore, it generates high threat
of substitutes for owners of Trendy Style. Market gap can be seen here as well, because
there is a possibility of less substitutes and developing products with some unique
development of product may help in improving number of customers or changing people
to consumers through fulfilling requirements in much effective manner.
Process for reducing market-gap:-
 Owners of Trendy Style must identify the potential of competitors present at marketplace
before framing strategies and policies.
 They should compare their strategies with rivals for analysing effectiveness of products
and services.

 Conduct activities in regular manner for analysing marketing gap which represents
difference between current performance of business and expected one. Through this
process, effective measures can be applied for reducing gap.
Industry Life-Cycle:
(Source: Industry Life-Cycle Phase and M&A)
Life cycle of industries shows following phases:-
 Pioneering phase.
 Accelerate Growth Phase.
 Mature Growth Phase.
 Industry Maturity Phase.
 Decline Phase
TASK 3
P3 Present data needed to support gap analysis in evaluation of entrepreneurial idea
There are many areas through which company can identify gap analysis. For this, most of
the firms compare themselves with other so as to analyse on which field the entity is lacking
behind and how they can establish themselves for better growth and results. Below comparison is
mentioned which will clear the concept of gap analysis:
Basis Trendy Style Competitive firm
Competition in This company is a new player in retail Rival organisations of Trendy
Illustration 1: Industry Life-Cycle

market market of UK. Hence company is providing
trendy clothes that are according to current
market scenario which has concise their
targeted customers. Clothes that are
provided by the organisation purchased by
youth (Gielnik and et. al., 2015). Therefore,
rest other people are neglected.
Style are not only providing
clothes which are fashionable
but also focussing on different
age categories. Which is
gradually increasing their
sales and profitability.
Therefore, this is gap analysis
which Trendy Style has to
consider and they should think
of manufacturing clothes for
different age category as well.
New entrants in
industry
As Trendy Style is new to the market area
so their prime focus should be on attract a
large number of customers. For this,
company can thinks of different strategies
and action plans.
As AllSaints is already
established organisation and
they are using latest tools and
technologies for operating
their business activities. For
example: company is
providing clothes through
online sites as well. Therefore,
as compared to trendy Style
they have improved sales and
profitability.
Power of
supplier
Trendy Style is new to market area so for
instance they are not having much
suppliers. Thus, company have to focus on
interacting with large number of suppliers
who can provide firm with materials they
need for manufacturing goods and products.
As company is old in the
market area and they have
developed better relation with
which is assisting them in
getting raw materials right on
time (Suddaby, Bruton and Si,
2015). Therefore, in

comparison to Trendy Style it
is acting like a gap analysis.
P4.Interpretation of data
In order to analyse the potential of marketplace and viability of business idea,
entrepreneurs of Trendy Style has conducted a market research. For this process, many sources
are available like primary and secondary method through which reliability of marketplace can be
examined. Therefore, this company has used secondary source because it gives faster data for the
same. Through this process, it has evaluated that one of the leading retail firm named by
Rollinson Smith and Company operates business in much profitable manner. From last two
years, sales performance of this company is much enhanced which shows that opening business
in retail sector helps in earning high profitability. Moreover, this company mainly target to youth
and offer products accordingly. Therefore, launching business in clothing sector will provide
various opportunities to run business successfully by reducing risk of failure.
TASK 4
P5 SWOT framework to collect evidence to support an objective assessment of a specific
entrepreneurial idea
It is considered as an analytical tool which help employers of Trendy style in
achievement of targeted goals and objectives in set period of time in the following manner:-
SWOT Analysis of Trendy Style
Strengths:
The main objectives of this company are to offer products as per requirement of
customers and increase sales performance by 20% in next two years. In this regard, key
competency of this retail store is its adoption of latest technology like scanner installed in stores
which automatically track record of customers and debit bill from their e-wallet accounts. Along
with this, using LoweBot techniques help in resolving queries of customers in their language
help in getting retention of them for longer period of time. Furthermore, it has good relationship
with suppliers by which demand of people are fulfilled in short-interval. Therefore, it would help
in providing good services to customers by serving them products without waiting in queue.

Weaknesses:
As this company is new in retail sector, therefore, there are various aspects present which
shows ineffectiveness of business policies (Renko and et. al., 2015). It includes retention of
employees for longer period as this firm fails in giving high salary to them. Therefore, hiring
new workers at workplace and providing them training puts large impact on business. This
would lead to increase risk of failure in business also.
Opportunities:
Presence of competition also gives opportunities to employers of Trendy Style, as they
can identify strategies of them for building own policies in better and unique manner. Moreover,
changing trend in clothing sector, give chances to this company to offer its trendy products as per
purchasing power of people (Davidsson, 2015). It helps in earning more revenues by which set
target of business can be achieved. In addition to this, in UK there is high unemployment rate.
Therefore, it aids this firm in offering job employment to unemployed people who are ready to
work on low salaries.
Threats:
There are many factors present at market place which puts threats on established and new
firms. In this regard, major threat present for Trendy Style is strategies of established companies
who used to offer high good quality of products to customers on much low price. It impacts on
pricing strategy and profitability of this company because entrepreneurs have to develop strong
strategies by which they can grab attention of marketplace.
P6 Evaluating competitiveness and market environments
In order to build unique policies and strategies, it is necessary for employers of Trendy
Style to gather a proper information related to competitive factors and environment of market.
Thus, firms can conduct competitive analysis to recognise who are the major competitors and
what attributes are required to play up for attracting target audiences.
After conducting market research, it is overviewed that Trendy style has several
competitors as in UK market there is lots of retailing clothing companies. Thus, the main
competitors of the organisations can be – Alexon group, River Island, Mark and Spencer, H&M,
AllSaints etc. all these organisations carrying out strong market position in UK market as well as
having wide client base.