Entrepreneurial Opportunity: Security Drone Business Analysis Report

This project analyzes a new business idea, "Security Drone" by HY Technology, designed for surveillance in Southwell Town, Nottingham, addressing increasing security needs, particularly for banks. It identifies entrepreneurial opportunities and innovations, evaluating different sources of ideas, including unexpected events, incongruities, and demographic changes. The project includes a detailed market gap analysis, supported by primary and secondary research, and utilizes SWOT analysis to assess the business idea's viability and feasibility. Furthermore, it evaluates the competitive environment using Porter's Five Forces model, analyzing the threat of new entrants, substitutes, and competitive rivalry, as well as the bargaining power of suppliers and customers. The analysis concludes with a discussion of potential opportunities for growth and development, considering the risks of competition in the market.

IDENTIFYING
ENTREPRENEURIA
L OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Determination and Evaluation of Different Sources of Entrepreneurial Ideas and
Innovations.............................................................................................................................3
2) Introduction of Business Idea, Potential and Target Audience for the Product.................6
3) Competitor Analysis...........................................................................................................6
4) Gap Analysis, Current and Future Situations and the Objectives of Business Ideas.........8
5) Use of Primary and Secondary Source to Support Viability of market Research.............9
6) Viability and Feasibility of Business Idea and SWOT Analysis.....................................14
7) Risk of Competition and Potential Opportunities for Growth and Development............17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Entrepreneurial Opportunities can be defined as the situations for entrepreneurs in which
the are able to sell their products and services at greater prices that what they are offering to their
customers currently (Business Opportunity, 2019). It is the situation under which entrepreneurs
take suitable actions to make profit for the company. In the following assignment, a new
business idea is developed names as “Security Drone” by HY Technology which has been
developed with the purpose of surveillance. The need to develop this product has been identified
because of increasing the security around banks to cover more area under surveillance. In this
assignment, the focus will be made in the identification of entrepreneurial ideas and innovations
and also their evaluation will be done. With the help of some tools and techniques, the
explanation of the rationale and the market gap for a specific entrepreneurial idea will be
provided. Further, the assignment will also provide with the data needed to support the gap
analysis for the evaluation of a specific entrepreneurial idea and the data will also be interpreted
further in the assignment. Moreover, the assignment will provide with the application of SWOT
Analysis in order to support the objective assessment of the specific entrepreneurial idea. At last,

the evaluation of competitive and market environment will be done in order to assess the
potential viability of the idea.
MAIN BODY
1) Determination and Evaluation of Different Sources of Entrepreneurial Ideas and Innovations
There are many ways and forms in which an entrepreneur could develop and get ideas
and innovations related to the business (Boling, Pieper and Covin, 2016). Coming up with some
new ideas and innovations in the business is itself a crucial step which decides about the success
and failure of that entrepreneur. As every business is inspired by some or the other inspiration, so
the following business will be situated in Southwell Town, Nottingham. The following business
concept has been developed with the help of Drucker's book “Innovation and Entrepreneurship”
that defines various sources of innovation described as under:
 The Unexpected: As the environment is dynamic so it totally depends upon the business
to take benefit out of it or have loss from it. Depending upon the strategies developed by
an organisation in order to deal with a specific issue makes the organisation to achieve
success or failure. The unexpected situations in the business can provide to be very
important for the leaders to inspire them in the right way which will provide them with
new experiences helping a lot them in order to deal with similar situations in the future.
This will help the company in Security Industry to formulate new strategies.
 Incongruities: The needs and requirements of the customers also helps in deciding about
the success and failure of the organisation whether the products and services of an
organisation are able to satisfy the needs and demands of the customers. It becomes
important for the organisation to firstly analyse the needs and demands if the customers
so that the products could be developed in accordance with their needs and demands. The
focus of the company should be made on what the company needs really. As due to the
increased criminal activities, the idea to develop this kind of product has come which will
provide customers with increased security.
 Process Needs: In this source, the innovations is more focused on the tasks instead of the
situation prevailing in the market. The innovation and opportunities to the company
should be properly assessed so that the weak and strong points could be identified
(Davidsson, 2015). As pre planning helps a lot in controlling the progress of the company

and its way to success. So the HY Technology will also be able to know about their
negatives and positives so that they may increase their positive and decrease their
negatives by taking out benefits from them and eradicating them as much as possible. For
example, planning about the needed resources will help the company in preventing them
from future shortage of resources to carry out the processes.
 Industry and Market Structure Change: Change refers here to the technological
advancements in the businesses day by day that has impacted upon the structures of the
company as well. It has made the structures of the company unstable and it is important
for the organisation to notice these changes so that it could prepare in order to deal with
these situations. HY Technology can also take benefit out of it by focusing more on these
changes which will provide the company with future improvements in their operations
and processes. For example earlier, the security services were provided by people, and
then replaced by cameras and now the addition will take place by drones, in this way the
changes are ongoing in this industry.
 Demographic: It shows the factors such as age, distribution, income, education,
employment and many other factors into consideration. The change in the demographics
can impact upon the working of the company in any manner, i.e., success and failure. The
change in the taste and preference of the customers of the company could be both in the
positive and negative way. So likewise, the HY Company should make proper analysis of
of customers requirements. For example, from the security cameras, the preference of
people will change to these security drones as they can provide the people with extra
security services and that can influence them to buy the product.
 Change in Perception: With the passing of time, the perception of people regarding any
company, product or service changes whether from positive to negative or from negative
to positive (George and et. al., 2016). It is because of certain positive or negative changes
in the products and services of company which makes changes in them from time to time.
And due to this, the perception of people also changes from time to time. Hence, it
becomes important for HY Technology to focus over the changing perception of the
people towards their products and services. To make positive perception of people
towards the products of HY Technology, customers will be provided with free
demonstration of the drone so that they could make their decisions and the changes in

these products according to the market situation will be made and this will help in
motivation.
 New Knowledge: Increase in the knowledge helps in developing and creating better
innovation in the most effective manner. Knowledge is required in order to know about
what the customers are expecting from the company so that the products and services
could be developed in that way (Swan and Morgan, 2016). For example, the need to
increased in the security services has been noticed from the ongoing criminal activities
and it helped in the development of this business idea.
The following above discussed are the source of inspiration in order to develop new ideas
and innovation of the business. New Knowledge, demographic and change in perception inspired
in the development of this idea. As the perception of people changes from time to time so these
sources helped a lot in the development of this idea. Knowledge was gained by analysing the
external environment in which criminal activities were occurred and this also helped in the
development of this idea.
2) Introduction of Business Idea, Potential and Target Audience for the Product
Business Idea can be defined as the thought or feeling about the development of any
particular product or service to be provided to the customers in order to satisfy their needs and
demands. But with the change in time, it is also needed to make certain improvement in the
products and services of the company so as to keep the customers satisfied. The following
product developed with an advanced technology which provides the customers with more
security. As with the help of CCTV Cameras, it will not be possible for the people to proper
security. The potential target for the products of the HY Technology is the banks, hotels,
buildings and some more. With the help of this device, it will be possible for their customers to
make the security more tight as compared to earlier. This device will move around the buildings
of the bank or hotel for all time and will cover all the activities of surrounding area, so that in
case of criminal activities or thefts or robberies, it will help the customers to get more
information about the suspects and activities occurring (Hang, Garnsey and Ruan, 2015). The
government is also providing proper support to the entrepreneurs by formulating suitable policies
for the businesses that help in their growth and development.

3) Competitor Analysis
The following analysis can be termed as the analysis which is used in order to know
about the current strengths and weaknesses of the competitors of the company. In addition to
this, the analysis also provides with the threats and opportunities to the business from the
environment in which the company is going to operate (Suddaby, Bruton and Si, 2015). In order
to plan better and critically, it is important for the business to analyse the competition faced by
the business critically.
Porter's Five Forces Model:
The following model was developed by Michael E. Porter, in 1898. In accordance with
this model, the use of this model is done in order to analyse the intensity of competition in the
market and the profitability level with the help of five forces discussed as under:
Threat of New Entrants: In this industry, there are less barriers to enter but two factors are
there which impacts upon the decision to enter or not. For example, high investment and
advanced technology are needed in order to survive in this business which restricts firm to enter
in this market to some extent. So on this basis the following power can be said as moderate for
the company (Hansen, Monllor and Shrader, 2016).
Threat of Substitutes: The following power focuses on the availability of substitutes of the
products offered by an organisation. The product which company has developed is having no
substitutes available in the market. So this power in context of the company can be treated as
low.
Competitive Rivalry: The product of HY Technology is not having any substitutes of the
products but in this industry the technical advancements plays an important role in deciding
about the success or failure of an organisation. There are different companies in this industry also
which provides security devices so this power can be treated a moderate for the company
because the perception of people differs from one another and it is possible that some people
may purchase our product and some may of the other (Santos and et. al., 2015). For example, the
companies such as ADT Smart Home, Axis Communications, IDIS Europe Limited are
providing security cameras, NVRs, Camera Housings, Integrated Security and many services to
their customers. The power has been defied as moderate because these businesses are existing
and have good brand image in the market and sells good as compared to new businesses.

Bargaining Power of Suppliers: The company is dealing in highly advanced products and they
also require good quality raw materials which are not available with all the suppliers. So this
power of the supplier is relatively as high as they can influence the prices and profitability of the
company.
Bargaining Power of Customers: In this power, the influence of customers on the prices of the
products of a company is considered. On the prices of this product, the customers have low
impact due to the uniqueness of the product. So this power for the company can be treated as
high as they do not have much power to influence the prices of company's products.
From the above analysis, it is clear that HY Technology will lack in acquiring raw
material from the supplier as the can influence the price of their products. So the company
should continue its focus on the technological improvements in their products so as to keep and
maintain the level of customers in the market. HY Technology can create good relation with
suppliers such as by making contracts with them for a long period of time and this could help the
company in getting raw material at more affordable prices. Overall, it can be said that the growth
area in this industry is moderate.
4) Gap Analysis, Current and Future Situations and the Objectives of Business Ideas
Gap Analysis can be defined as the comparison in between the actual performance and
the desired performance (Jaskiewicz, Combs and Rau, 2015). As the desired performance does
not meet the actual performance done by the employees. The competitors of the HY Technology
such as Axis Communications, IDIS Europe Limited and ADT Smart Home Company are
already well established and well reputed companies in UK and the HY Technology is merely
working on the assumptions now and it does not have any existence till. So the Gap is very far in
between these companies and HY Technology. So in order to remove this gap in between the
competitors and HY Technology, the security drones will prove to be helpful. The main
advantage HY Technology is having is about the advanced technology in the product. The
company with the help of marketing could get awareness in the market and by providing free
demonstrations of the product, it will become easy to capture the attention and grab the market
share. In this way, with the help of this analysis the company will be able to know about the
reason of the gap in between the actual and desired performance so that it could become easy for
the company to take corrective measures to reduce or eradicate the deviations found in the

performance (Park, Sung and Im, 2017). The following is the description of the objectives of HY
Technology Company:
 New Technology: The products produced by the company to their customers are filled
with advanced technology which increases the security and also lesser their burden to the
security of their property. In addition to this, it is also important for the company to focus
continuously on the ways of making improvement in their technology so as to maintain
the market share captured by the company (Mat, Maat and Mohd, 2015). This technology
will provide a competitive advantage over the competitors as banks and hotels are more
concerned about the security of money and the lives of people due to the criminal
activities so they will take the services easily and this technology will help in reducing
the gap in between the company and their competitors.
 Increase in Employment and Profitability: The establishment of new enterprises helps
in the increasing employment opportunities for the people residing in the local area in
which the company is established and also creates profitability for the company which
helps in its future growth and development. As profit is important for any business to
achieve success and is important for its survival and growth so profit earning is also the
objective of the business.
 Capturing Market: By providing new and innovated products to the customers it will
become easy for the company to capture the market share which is a part of revenue
generation for the company. So this is also one among the objectives of the company to
capture market share.
5) Use of Primary and Secondary Source to Support Viability of market Research
In order to collect data primary data, the use of Questionnaire is done which is presented
as under:
QUESTIONNAIRE
Name:
Business type:
Address:
Contact Number:
Q1. Do you have knowledge about “Security Drone”?

A. Yes
B. NO
Q2. Are you concerned about security measures of your organisation?
A. Yes
B. No
Q3. To what extent do you think “Security Drone” is effective for your association?
A. 20-30%
B. 30-60%
C. 60-90%
Q4. Is there any requirement of technical assistance frequently while using “Security Drone”?
A. Yes
B. No
C. Can't Say
Q5. Does there any impact on sales and profitability of HY with launch of “Security Drones”?
A. Yes
B. No
Q1. Do you have knowledge about “Security
Drone”?
Frequency
A. Yes 20
B. NO 10
Mean 15
Median 15
Mode 0

A. Yes B. NO
0
2
4
6
8
10
12
14
16
18
20
Frequency
20
10
Interpretation – from the above bar graph it has been identified from the above question that
most of the taken respondents and aware regarding the Security Drone. 20 out of 30 respondents
have provided views in favour of question. Whereas, remaining 10 are not in favour with
question. Mean and Median for the question is 15 and mode is zero.
Q2. Are you concerned about security
measures of your organisation?
Frequency
A. Yes 19
B. No 11
Mean 15

Median 15
Mode 8
A. Yes B. No
0
2
4
6
8
10
12
14
16
18
20
Frequency
19
11
Interpretation – In today's competitive world each organisation wants better security of their
employees and valuable assets due to which demands of security drones and drones are
increasing in market. For this, 19 out of 30 respondents have provided their views in favour of
question and remaining 11 have provided negative views for question. Mean and medium are
same for this information i.e. 15 and mode is 8.
Q3. To what extent do you think “Security
Drone” is effective for your association?
Frequency
A. 20-30% 9
B. 30-60% 10
C. 60-90% 11
Mean 10.5
Median 10.5