Entrepreneurial Opportunity Analysis for Selfie Drone Startup

This report presents a comprehensive business plan for a selfie drone startup, named Picture Perfect, focusing on identifying and capitalizing on an entrepreneurial opportunity within the UK market. The introduction highlights the changing business environment and the need for innovative ideas, emphasizing the potential of selfie drones. The report details the sources of inspiration for the business idea, drawing on Drucker's sources of innovation, and identifies the target audience as tech-savvy young consumers. It includes a competitor analysis using Porter's Five Forces model, evaluating supplier power, consumer power, the threat of new entries and substitutes, and competitive rivalry. A gap analysis compares current and future situations, outlining the objectives of introducing the new product, which include introducing innovative technology, generating profitability, and creating employment opportunities. The report further explores market research to support the viability of the business, discussing both primary and secondary sources. Finally, it examines the viability and feasibility of the business idea, assessing its strengths, weaknesses, and potential for growth and development, concluding with a summary of the key findings and recommendations.

Identifying Entrepreneurial
Opportunity

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Sources that inspire the new business idea and motivated for set up a new business.............1
2. Introduction of business idea, finding potential and targeted audience for the product ........2
3. Competitor analysis that looks at competitive marketplace....................................................3
4. Gap analysis, current and future situations and objects of business ideas..............................5
5. Market research to support viability of business using range of sources such as primary and
secondary.....................................................................................................................................6
6. Viability and feasibility of business idea, strength and weakness of business and potential
opportunities for growth and development...............................................................................12
CONCLUSION..............................................................................................................................13
REFERECNES..............................................................................................................................15

INTRODUCTION
Entrepreneur can be defined as a person who evaluate the business opportunity and
agrees to take risk in regard to develop and to implement the business venture in the market. The
innovative idea and the ability to carry that idea leads the business activities in a successful way
in the market(Arend, 2016). The entrepreneurial opportunities are described as the process of
implementing the new business idea in the market. The business environment is changing rapidly
and there are many innovative ideas already present in the market. So, to face the competition
effectively the new start up should consist of some unique aspect to attract the market towards it.
The following report consist of establishing a new business venture with innovative idea to
attract the policies of the government and to take the financial benefits provided by the UK
government for the innovative start ups. The report will follow the launching of a unique product
Selfie Drone and the start up company is Picture Perfect. The report will describe the sources of
the innovation, targeted market, competitors.
1. Sources that inspire the new business idea and motivated for set up a new business
The business idea is influenced by the current trends in the market and on the basis of
examining the needs and requirements of the customers. The sources by which the entrepreneur
can derive the business idea can be online sources or any future perspective. The start up is based
in UK to cover the market with Selfie Drone. The company is focusing on the technique to
introduce specific designed drones for the selfies. The concept of this start up is derived from the
Drucker's 7 innovative ideas(Sources of innovation. 2019). The defined sources are described as
follows-
 The Unpredicted: the business market consist of a lot of surprises according to the
changing time in the market and with these surprises the success and the failures of the
business is related. These unexpected situations has lead the new entrepreneurs to
innovate the unique product and are set to introduce it to implement in the market. The
picture perfect has planned their new product accordingly to grab the opportunities of the
changes in technology.
 Incongruities: the success and failure of the product depends on the quality and the
needs of the customers in the market. To develop a new product a proper research is
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considered to be formulated before introducing the product in the market because it helps
in determining the business environment and need of the product in the market. The
market analysis will help the picture perfect to understand the market aspect regarding
the selfie drone they are planning to introduce.
 Process needs: start up company picture perfect is required to apply new and advanced
methods to attract the government policies.
 Industry and Market Structure Needs: picture perfect should plan different types of
modification in range of the products they are planning to introduce. So establishment is
in need to initiate new pricing strategies according to capturing the market.
 Demographics: by examining the current scenario of the market Picture Perfect is
suggested to formulate the plans to face these changes. The changes involved in
demographic help the start up company to introduce the products to attract the customers
of the new generation with high technology gadgets.
 Change in perception: In these recent time the market aspect is changing and it is
leading to change the perception of the customers as well. As the world has become
technology friendly the changes are taking place in rapid pace because of the social
networks. This will help the picture perfect to introduce their new product which is
specially designed for the targeted audience.
 New Knowledge: Knowledge assist to innovate in most effectual manner. Changes are
required to address properly to fulfil the new demands and needs of the costumers.
Exercise of new technology will help the new start up picture perfect to increase benefits
through new business opportunities in the market.
These are the sources which inspires the start ups to generate new business ideas to create new
products for the customers.
2. Introduction of business idea, finding potential and targeted audience for the product
technology is considered as the channel which performs the business activities in a
smooth and efficient manner. The demand for the products which is advanced in technology as
compared to the other products sets the trend in the market and are extremely demanded. By
considering the value of technology and examining the craze for selfies among the customers
will lead the business to the great opportunity to capture the market with selfies drone. Picture
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perfect will surely grab the market opportunity by introducing the selfies drone. Before
introducing the product to the market the company is require to submit the presentation to the
UK government to avail the financial benefits(Mueller and Shepherd, 2016). The UK
government is encouraging the entrepreneurs to enter the market with the innovative ideas and
mainly they are encouraging the newly graduates for the start ups. The UK government will
examine the idea and if they considered it practical enough to work in the market then they will
provide the financial assistance of £100,000 to the entrepreneur. £70,000 will be provided in the
form of loan at the interest rate of 0.8% and the rest amount will be provided in the form of grant
from the government.
The targeted sector which this product will attract is the lot of young generation as they
are more friendly with the technologies as compared to the others and are of nature to adapt the
changes in fast manner. Young customers are in wait for the products which have advance
technology in it. Selfies Drone will be costly as per the other substitutes like selfie stick and
stands. This product will target the selected audience who will be interested in buying the
product. Customers who like the high tech products and are keen to be technology updated will
be attracted towards the product. The aspected customers base that the company picture perfect
will target in the future will consist of all the age groups and the company will offer products
with different ranges for the different income groups customers.
3. Competitor analysis that looks at competitive marketplace
This analysis is defined as the examination of the market and the strengths and
weaknesses of the competitors. The competitors analysis is considered to be important for te
planing of the new product. Picture perfect can use porter's five force model to analyse the
competitive market.
Porter's five force model: this model consist of various tools which are used to analyse the
competition for the business in the market. The business organisation will be considered as the
unattractive if the competition in the market will reduce the profitability of the company. The
five forces are as follows:
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Source: Porter's five force model,2018
 Supplier Power: This force describes the level of supplier that how easily they can
increase the price of the product. The number of availability of suppliers for the product
decides the bargaining power of the suppliers. Small number of suppliers are capable of
conducting more bargain in comparison to the large numbers or a particular product.
Picture perfect being the new company in the market and selfie drone suppliers will be
less so it will enjoy the high bargaining power in the market.
 Consumers power: Bargaining powers of costumers is directly related to their power in
affecting the price and quality of the product offered in the market. When there is less
number of users for a particular product then they dominate more power in pressing
impact on the pricing and quality of the product(Lazányi, 2014). Large number of
consumers lead the price of the product to be inelastic. Product introduced by picture
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perfect in the market do not possess large users so, the price is elastic to the numbers of
costumers for selfie drones.
 Threat of new entry: the business organisation that requires a great amount of
investment there are less chances to make a new threat entry in the market. The industries
which rely on technology product has to make changes as per the time. Picture perfect
will face the competition form the new entries as the advancement in technology keeps
on changing.
 Threat of Substitutes: When rate of accessibility of secondary products is high then the
consumers in business regulate the price of the product in the market. Availableness of
substitute products leads in giving alternates to the customers to purchase in the
market(Nijssen, 2017). Product planned by the picture perfect is specific and secondary
products are not available in the market and the customers have no multiple options to
purchase the products.
 Competitive rivalry: In extremely combative industry a single organisation can not
control prices of the products in the market. On other hand the industry which is ruling
the market dominate all power to control price of the product(Chaston, 2015). By this the
new start up will feature nominal competition in the market.
The innovative idea of the selfie drone will set the market trend for the picture perfect
and it will lead the company to be successful in acquiring the market share. There are drones
already present in the market but introducing the drones which are specially designed for the
selfies will attract the market for sure(Maine, Soh and Dos Santos, 2015).
4. Gap analysis, current and future situations and objects of business ideas
Gap analysis is defined as the comparison between actual and expected performance.
Picture perfect is required to use their resources in optimum manner so that the desired result can
be achieved by the new start up in the given time period. It also helps the managers in
determining that the desired targets are achieved or not. It also helps the firm in identifying the
gap between present performance and reason. For filling this differences the managers have to
make effective decisions so that this gap can be filled. In present situation, it seems that
technology is rapidly growing because the taste and preferences of the customers are changing
on regular basis. For this, the managers of picture perfect have planned to introduce selfie drone
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in the UK market through which the market will be captured and profitability will increase and a
large number of customers will be attracted towards the offerings(Lee and Jones, 2015). By
doing this, the company will identify new opportunities which will increases the competition
level in the market.
Objectives for introducing new product are as follows:
Introducing innovative technology- In the modern era, technology is always
appreciated by the customers whether it is introduced for short term or long term. Launching a
new technology for the customers is determined as the main objective of the firm.
Profitability and employment generation: Long term goals of all business organisation
is to earn profit and to sustain in the market for long. For endurance and success of business it is
essential to earn profit in the market(McKelvey, Zaring and Ljungberg, 2015). A new start up
will create employment in the market. The company will introduce their product at a small pace
in the starting to gather the response of the customers and after gaining the interest of the people
they will target the large costumer base which will lead to increase in the profits and more
employment possibility in the market.
Capturing market share: Pioneering the business that will have low competition in the
market is considered as the golden chance for the company. It directly increases the chance of
success of the company with its product and leads to acquire a large share of the market. When
market share of picture perfect is more then it will result in facing the competition in future very
easily.
5. Market research to support viability of business using range of sources such as primary and
secondary
Whenever a new start up is being introduced in the market a proper research is required
to be constructed that will help the company to analyse the market and the issues related to the
business. To proceed a research two ways are opted by any organisation which are primary and
secondary sources(Ramoglou and Tsang, 2016). The primary sources helps in collecting the
information or data for the first time itself. The information is gathered form the individuals and
it includes steps like preparing a questionnaire, conducting surveys, etc.
Whereas, the secondary research consists the information which is already existed in the
market. The required information is generated with the help of past records or researches. The
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new start up picture perfect will consider the primary method to conduct the research. The
information will be gathered with the help of questionnaire and it will address 50 respondents,
describes as follows:
QUESTIONNAIRE
Name:
Age:
Contact Number:
Address:
Q1. Do you have any knowledge regarding Selfie Drone ?
A. Yes
B. NO
Q2. Do you like taking selfies?
A. Yes
B. No
Q3. Does future will be dominated with technology ?
A. Agree
B. Disagree
C. Don't Know
Q4. Can Selfie Drone be a successful product in the market?
A. Agree
B. Disagree
C. Can't Say
Q5. Can Picture Perfect gain competitive advantage in the market?
A. Yes
B. No
Q1. Do you have any knowledge regarding
Selfie Drone ? Frequency
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A. Yes 33
B. No 17
Total 50
Mean 25
Median 25
Mode 16
Interpretation: The above presented graph it can be analysed that from the group of 50
individuals 33 have knowledge about the selfie drones and 17 are unaware about it.
Q2. Do you like taking selfies? Frequency
A. Yes 40
B. No 10
Total 50
Mean 28.5
Median 28.5
Mode 6
8
A. Yes B. No
0
5
10
15
20
25
30
35 33
17

Interpretation: From the above chart it is analysed that 40 persons out of 50 take selfies. Mean
of this data is 28.5, median is also 28.5 and mode is 6.
Q3. Does future will be dominated with
technology ? Frequency
A. Agree 32
B. Disagree 8
C. Don't Know 10
Total 50
Mean 16.66
Median 10
Mode 2
9
A. Yes B. No
0
5
10
15
20
25
30
35
40

Interpretation: The information provided above it is concluded that 32 individuals out of 50
consider that future depends on technology on the other hand 8 disagree to this statement and 10
are not in favour nor against. Mean of this data is 16.66, median is 10 and mode is 2.
Q4. Can Selfie Drone be a successful product
in the market? Frequency
A. Agree 30
B. Disagree 15
C. Can't Say 5
Total 50
Mean 18.33
Median 15
Mode 0
10
A. Agree B. Disagree C. Don't Know
0
5
10
15
20
25
30
35