Entrepreneurial Opportunity Analysis: Electric Bike Business Report

This report provides a detailed analysis of an entrepreneurial opportunity centered around electric bikes and scooters. It begins with an introduction defining entrepreneurial opportunity and then delves into the product's features, concept statements, and proposed business model. The report segmen...Read More

Entrepreneurial
Opportunity

Table of Contents
INTRODUCTION ...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Product.............................................................................................................................................3
Product/service features...................................................................................................................3
Concept Statement...........................................................................................................................3
Business Model................................................................................................................................3
Segment...........................................................................................................................................3
Market domain/ Micro-Market test..................................................................................................4
Market..............................................................................................................................................4
Market domain/ Macro market test..................................................................................................4
RESEARCH.....................................................................................................................................4
Industry............................................................................................................................................4
Macro industry test..........................................................................................................................5
RESEARCH.....................................................................................................................................5
Industry – micro...............................................................................................................................5
Industry domain – Micro level.........................................................................................................5
Mission Statement............................................................................................................................6
Team – Mission, aspiration, risk propensity....................................................................................6
CSFs.................................................................................................................................................6
Team – Can you and your team execute?........................................................................................6
Connectedness test, Team – your connections matter....................................................................6
Conclusion............................................................................................................................................7
REFERENCES.....................................................................................................................................8
Books & Journal:.............................................................................................................................8

INTRODUCTION
Entrepreneurial opportunity is to be defined as process of developing profits & sales by
selling of products/ services with higher prices than the actual cost of production (Amuda-Yusuf,
2018). By adapting of situation, entrepreneurs are able to generate profit out of action. Further,
main aim of this essay is to understand the importance of entrepreneurial opportunity in business.
So, in this case electric bike/scooter has been taken as business product and gear (Retail).
MAIN BODY
Product
In this new business, products and services which will be provided are electric bikes as well
as scooters for employees and individual to move from one place to another in faster way in city of
London (Djankov, 2019).
Product/service features
Features of electric bikes & scooters-
 Environmental friendly
 Easy to use
 Less expensive
 Inbuilt 6 amp socket
Concept Statement
Fast and energy saving electric bikes made for humans
Business Model
The business will create value by fulfilling needs of customers through providing with
quality of product. The activities which will be undertaken are offering products at discounted rates
& coupons to new customers etc.
Both physical and non physical resources will be used for promotion, advertising,
manufacturing of electrical equipment etc. (Douglas, 2017).
Segment
The segmentation will be done on basis of demographic factor. Customers who are being
targetted are employees, income based people & adults.

Market domain/ Micro-Market test
Customer pain which will be removed by introducing of this electric products are removal of
time covered to travel to short as well as long distance. This will be done through using
differentiation marking theory in which new products with new features are to be provided to
customers such as 6 amp inbuilt socket. Evidence for purchase of this product is that customers
find it difficult to find charge station & it is time consuming process (Fehrer, 2018). So, to remove
this fault, electric bikes & scooters will be able to deliver inbuilt socket for charging. In this digital
era, everyone are getting attracted towards technology especially adults & professionals. For
example- KIA, MG Hector, Tesla has grown in auto mobile industry due to providing of electrical
products. Thus, income based people and adults are potential one who will purchase product.
Market
U.K. Auto mobile & manufacturing industry-
In this market, U.K has been growing & changing at rapid scale. The market has developed
with change period of time. In recent years, European vehicle market, country has invested 60
billion in 2019 & 2020 (Kakouris, 2017).This shows that demand for EV is increasing at wider
scale.
Market domain/ Macro market test
RESEARCH
The demographic market is large as because targetted audience has been increasing such as
in U.K. Income based people are present at larger scale due to presence of larger employment
opportunity. This market has grown from last three years and large amount of investment has made
by many MNC'S like Tesla, BMW, etc. Thus it reflects that it has positive growth in future period
of time. There are also many factors which affects the market which will be done by using PEST
Analysis. Political affects the business as because due to changing labour law negatively affects to
product because engineers are needed to solve problems in EV (Opata, 2020). So, due to changing
labour policies it is not possible to hire right employees. Then, economic factor too impact on
product & business because it includes tariff & non-tariff, foreign trade policies etc. So, as electric
bikes & scooter will be manufactured and distributed at larger scale, business will have to pay huge
taxes to government. In social factor, it too gets affected such as because of changing needs of
behaviour, attitude of customers etc. Then, in technological factor, due to frequent changes of
technology such as batteries, advanced gears etc. have negative impact on product.
Industry
Auto mobile industry-

It is type of industry which is involved in design, manufacturing, development, marketing &
selling of motor vehicles. This industry to be considered ass world's largest industry by revenue. In
this, competition which will be faced by this new business will be oligopoly. It is because there are
many large companies which rule over the industry (Sánchez-Cambronero, 2020)
Macro industry test
RESEARCH
Porter Five Forces Model-
It is model which shape the business and its functions as well as operations. It is essential to
use this model as it help in achieving of organisational goals & objectives in appropriate manner.
Bargaining power of supplier- Suppliers are important in business. Bargaining power of
supplier is high when there are many buyers and few suppliers. In case of this business & product,
bargaining power of supplier is low (Tanaka, 2020).
Bargaining power of buyers- In this, buyers have moderate bargaining power because they
are receiving good quality of products with affordable prices.
Industry rivalry- In this auto mobile industry the degree of industry rivalry is high. This
is because due to changing needs and advancement of technology in market.
Threat of new entrants- Threat of new entrants is low because it took time to get
established in market. So, new product of chosen business can gain positive output easily.
Threat of substitutes- In this, threat of substitute is moderate as in U.K there are many
few brands which provide 6 amp in socket charge inbuilt.
Industry – micro
In this element of industry at micro level, segment which will benefit from venture is
demographic segmentation.
Differentiation of product-
The product which has offered is different from others as it provides inbuilt charging socket
for electric bikes & scooters.
The segment is showing use of digital & technology in for common use.
Geographic market segment could be targeted if demographic get successful.
Industry domain – Micro level
USP analysis-
It is known as Unique Selling Price in which a product or brand has different from their
competitors to gain competitive advantage. For example- in case of electric bike & scooters

business, USP of business is that they are being focusing on customer centric value & providing
with affordable & quality of products with wide range of features (Trabucchi, 2019).
VRIOS ANALYSIS
Resources Valuable Rare Imitable Organised Impact
Employees
Financial
resources
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Larger level
Larger level
Supply
chain
Yes Yes Yes No Moderate
scale
Mission Statement
To enhance use of sustainable energy.
Team – Mission, aspiration, risk propensity
In case of this chosen business, they have commitment towards their work & role. As
entrepreneur my personal goal is to deliver innovation in auto mobile sector.
The venture will align with goals & commitment by focusing on their core operations &
value (Xiao, 2020).
Also, I am ready to face risk which will be occurred in this business.
CSFs
CSF'S, which are also known as critical success factor. In case of this business several
factors are given below-
 Increase of market share & demand of customers.
 Focused on service oriented and customer centric
Team – Can you and your team execute?
Yes , me and my team will execute in this business as we are self motivated & problem
solving people. Through this, it will be easy to achieve success.
Connectedness test, Team – your connections matter
Connections at workplace matters a lot as with it drives collaborative practices. My team has
positive connection with each other & with external sources.

Conclusion
After a brief analysis of above report, it has been examined that it is crucial to focus on new
opportunities and gain market information so that goals are accomplished successfully. Thus, a
business overview has been proposed in this report with detailed description about Muller's Model,
PEST, Porter Five Forces Model and evaluation. So, it is important to focus on innovation &
invention so that competitive benefits are achieved.

REFERENCES
Books & Journal:
Amuda-Yusuf, 2018. Critical success factors for building information modelling implementation.
Construction Economics and Building, 18(3), pp.55-73.
Djankov, 2019. Business regulations and poverty. The World Bank.
Douglas, 2017, December. An exploratory study of critical success factors for SMEs in Kenya. In
Toulon-Verona Conference" Excellence in Services".
Fehrer, 2018. A systemic logic for platform business models. Journal of Service Management.
Kakouris, 2017, September. Entrepreneurial Opportunity and the Cognitive Style: More Innovative
or More Adaptive?. In 12th European Conference on Innovation and Entrepreneurship
ECIE 2017 (p. 356).
Opata, 2020. Customer Value Co-Creation in the Automobile Industry: Antecedents, Satisfaction,
and Moderation. SAGE Open, 10(3), p.2158244020948527.
Sánchez-Cambronero, 2020. Analysis of port sustainability using the PPSC methodology
(PESTEL, Porter, SWOT, CAME).World Scientific News,146, pp.121-138.
Tanaka, 2020. When tax incentives drive illicit behavior: The manipulation of fuel economy in the
automobile industry.Journal of Environmental Economics and Management, 104, p.102367.
Trabucchi, 2019. How do big bang disruptors look like? A business model perspective.
Technological forecasting and social change,141, pp.330-340.
Xiao, 2020. Did high-speed rail affect the entry of auto-mobile industry start-ups? Empirical
evidence from Guangdong Province, China. Travel Behaviour and Society, 19, pp.45-53.
Zheng, 2020. Entrepreneurial networking during early stages of opportunity exploitation: Agency
of novice and experienced new venture leaders. Entrepreneurship Theory and Practice,
44(4), pp.671-699.