Analysis of Entrepreneurial Opportunities for CIELLA Ltd. - Report

This report provides a comprehensive analysis of entrepreneurial opportunities, focusing on the case of CIELLA Ltd., a startup in the clothing and textile manufacturing industry. The report explores various sources of entrepreneurial ideas and innovation, including social, technological, economic, and environmental factors, as well as Drucker's seven sources of innovation. It delves into different types of innovation, such as product, place, and incremental vs. big bang innovation. The report also explains the rationale behind identifying market gaps using gap analysis, market segmentation (demographic, behavioral etc.), and SWOT analysis to assess the entrepreneurial idea. The report evaluates competitiveness and market environments, providing a detailed understanding of the challenges and opportunities faced by entrepreneurs, particularly in the context of a new venture like CIELLA Ltd. It emphasizes the importance of innovation, market analysis, and strategic planning for business success.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluation of different sources of entrepreneurial ideas and innovation.........................1
TASK 2............................................................................................................................................4
P2 Explain the rationale and the market gap for a specific entrepreneurial idea...................4
TASK 3............................................................................................................................................5
P3 Presenting data to support gap analysis and evaluation....................................................5
P4 Interpretation of data availed.............................................................................................7
TASK 4............................................................................................................................................7
P5. SWOT analysis to assess the entrepreneurial idea...........................................................7
P6 Evaluating competitiveness and market environments.....................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A business environment is consist of various opportunities to build a business and make
money but selection of those opportunities and implementation of the same is a difficult task. An
entrepreneur is a person who observes these external opportunities in the environment and tries
to capitalise on it. There are various characteristics as well as features of an entrepreneur, for a
normal person to become entrepreneur, He must carry these Characteristics. Some of the
characteristics of an entrepreneur would be to Innovate, to observe, Initiator, Risk Taker etc. An
economy cannot grow beyond a point if its land would not carry various entrepreneurs who
would turn problems into opportunities. Every country as well as economy would want such
entrepreneurs within themselves (Arregle and et. al., 2015 ). Entrepreneurship is not an easy
task, it requires to lot of Guts and Risk taking abilities, which usually a normal person would
lack. An entrepreneur can help society in various ways, like by opening of a new venture, he will
be able to give employment opportunities for various people, and will be contributing in the
development of economy through innovation etc. The current report will throw some light on the
factors which are crucial for becoming an entrepreneur and what are the difficulties and
opportunities that would come across in the path of becoming a successful entrepreneur.
CIELLA Ltd. Is a new start up company which deals in manufacturing of clothing and various
other textiles. The report will have a very detailed discussion on this organization and various
challenges that it may face going forward.
TASK 1
P1 Evaluation of different sources of entrepreneurial ideas and innovation.
An entrepreneur is a person who changes challenges and difficulties in an opportunities
and make a successful venture out of it. If there will be proper entrepreneurial opportunities
within any nation, then it can create a huge advantage to that nation going forward. There are
various factors that are being considered for opening a successful venture (Baptista., Karaöz and
Mendonça, 2014 ). If a person decides to become an entrepreneur, it will not only help him to
become a leader and be successful in life, but it will aid society in various ways like, higher
employment, more taxes to the government and fulfilment of demands of various consumers
within the society. There are various types of strategies that can be followed by an entrepreneur
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for the purpose of making and designing a right kind of structure for the upcoming venture. The
Seven sources of Innovation are as follows :
Social Factor: The entrepreneur has to analyse and observe the various opportunities that
are lying in the society. This observation helps an entrepreneur to innovate for a new venture and
it will benefit the new venture as well.
Technological Factor: The management of CIELLA Limited has to look for various
opportunities that might be available in technology sector. The use of technology can help the
company to innovate and serve its customers well in an effective as well as efficient manner. The
main element of an organization in which lot of innovation can be made is technology. If the
company will implement new kind of technology for the purpose of enhancing the production
facilities. The new production facilities and right kind of technology will help company in
getting more customers and increase the overall sales for the company (Burns, 2016). The
company will be able to attract large amount of customers for its clothes, because these are being
innovated by the company and has met their Demands.
Economic Factors: The economy in which the Entrepreneur is prevailing will play a
huge role in the overall success of the venture and the company. The ideology that is followed by
the country and mindset of people in terms of business and commerce etc. If the GDP of country
is showing High Growth rate, then it would be obvious that there will be high growth of
businesses as well as industries (Cardon and Kirk, 2015). Hence, Entrepreneur can choose to
invest heavily and contribute in the overall growth of economy in general.
Environmental Factor: The environment in which the entrepreneur is operating can have
a considerable impact on working of the venture. The management should consider all the
necessary measures that needs to be taken for the purpose of setting up the business operations. It
is the responsibility of Entrepreneur that, the environment is not harmed with any of his actions
and business is able to work by taking care of all the elements of environment like deforestation,
Pollution etc.
Peter F Drucker stated the 7 ideas which can be used to innovate. Such ideas can be used to
innovate in the field of Textiles by CIELLA Ltd.
Incongruity: It basically means production of specific products as per the needs as well
as demands of consumers. Under this, A customised product is also produced because it is
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demanded by the consumer. Hence CIELLA Ltd. Can produce certain Clothing based on the
specific demands of customers.
Process Needs: For the purpose of accomplishment of various operations of the business
it is necessary that an organization should continuously innovate in its process so that business
operations can be conducted in an effective and efficient manner, which will help in meeting the
overall demands of customers (Cruz, Hamilton and Jack, 2012 ).
Industry and Market Structure Needs : The organization may choose to amend the
various prices of its products for the purpose of increasing the market share and penetration. The
company can follow various innovation techniques to make changes in those prices.
Demographics: The demographic factors that prevails will also have a considerable
impact on the workings of company and the level of innovation within it. The language that
people speak, their culture and how changes in those are giving an opportunity to individual for
innovation.
Changes in perception, Meaning as well as Moods: The demands of customers are
dynamic in nature and are changing continuously, therefore it is important that an entrepreneur
should understand the different perception, meanings as well as models which will help them in
meeting the demands of consumers in a constructive way. Innovation is also necessary for
meeting the demands of consumers.
New Knowledge: If the company and the entrepreneur would be having the right kind of
knowledge of market and industry, then this would help the business to innovate as it already
knows what the consumers want and how they can full fill it.
Unexpected: The management of a organization should well prepared to Manage any
unexpected event.
Types Of Innovation
Innovation plays a very crucial role in overall development and health of business
especially a new venture. There are different types of innovation in a business, these can be
discussed as follows:
Product Innovation: This would mean innovation in products of the company. Necessary
changes are also made in the same for the purpose of attracting consumers.
Place Innovation: Under this the company would innovate in terms of the place in which it is
selling its products.
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Incremental vs. Big Bang Innovation: CIELLA Ltd. would have the option to make big bang
innovation in its business or to make small and incremental changes based on their situation in
the market and the business growth that the company is having right now.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea
It is the responsibility of the management to implement various innovation technique
within the organization, the main objective of the company is to grow by implementing those
ideas within the organization (Kraus and et.al., 2014 ). Hence it is important that CIELLA Ltd.
Takes care of the various aspects to innovation and implement those ideas into business some
different type’s of innovation ideas can be explained as below: Setting of example: under this the company would try to innovate in such a way that it
will be an example for other to follow and compel them to pursue the same path.
CIELLA Ltd. Can think of making a kind of product that will ensure that iyt is unique
among all of its rivals and will going to give the company an competitive edge over the
others.
 Benefits for all: The organization should also make sure that the product or services
which are being developed through innovation will generate benefits for all the
stakeholders in the longer term and hence will contribute to society in general. These
benefits can be either in monetary terms or Non Monetary Terms.
A Gap analysis of an entrepreneurial idea would mean that the company would have to
estimate the desired performance of the product that are innovating and then they will have to
measure the same with actual performance that the company has been able to achieve. If in the
process the company sees any gap, it shall be properly addressed by making necessary changes
in the policy as well as procedures within the company. This process is important for
organizations as it helps them to assess their real need and it also depicts the situation as to where
they stand in market. If the Gap between desired or actual performance of the concerned idea,
then company would have to make certain structural changes so that, It can be made successful.
These structural changes can be in the form of Investing Higher amount of money in technology
up gradation and process improvement, this way the company will be able to meet the demands
of consumer in an effective way and at the same time will match the performance target set by
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the management of company. The process of Gap analysis can be summed up in the following
points:
 Identification of the current processes as well as outcomes.
 Identification of the Existing Outcomes.
 Assess the desired outcome.
 Identification as well as proper documentation of the real gap that exist.
 Assessment of the right kind of process to achieve the desire outcome by way of effective
and efficient performance. Under this step basically CIELLA Ltd. has to find out the right
kind of processes that can be implemented for achieve the desired outcome.
 Development of means which will be needed for the purpose of achievement of Goal and
to fill the Gap.
Gap analysis is a very effective as well as a crucial tool for the purpose of management of
entrepreneurial ideas (Kuratko, 2016 ). If a company would not be able to know where it stands,
it will never be able to make necessary changes within its processes and that would result in a
wastage of resources like time and money, because company would be investing its precious
time and money into products which might not generate the desired return to it. It is therefore
quite important that management of a new Start up like CIELLA Ltd. Make a proper analysis of
various factors involved.
Market segmentation:
It is the process of dividing the population into different segments on the basis of
different variables such as demographic, behavioural etc. It is done by an organisation with an
objective of identifying the needs and requirements of each target segment. It is further
understood under the following:
Demographic: Under this segmentation, the population has divided into different
variables such as age, gender, income, religion, nationality etc. CIELLA Ltd. Deals in offering
clothing products in UK thus it is important to identify the needs and preferences of person of all
age groups. For this, CIELLA Ltd. need to produce kids wear, women-wear as well as men-wear
garments so as to attract all age groups. It helps company in achieving huge customer strength.
Behavioural: Under this segmentation, the market is divided into different variables such
as behaviour, usage and decision making pattern. For example, some people prefer to buy
branded clothes for prestige whereas some people prefer to buy the clothes from small clothing
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retailers due to having products low in price. In UK, people mainly prefer quality over price thus
CIELLA Ltd. Should offer quality material clothing products at an effective prices so as to
attract people having different buying behaviour.
Geographic: Under this segmentation, the market is divided on the basis of geographical
locations. For example, in India people prefer to buy traditional cloths whereas In UK modern
and fashionable cloths are more in demand. Therefore, to expand its business across worldwide,
CIELLA Ltd. need to sell both traditional as well along with fashionable clothing products so as
to attract people of different nations as well.
Tangible and Intangible features and benefits of product and service:
Intangible product: This is the product which is clearly seen and touched by an
individual. Clothing product is tangible products offered by CIELLA Ltd. It help an individual to
enhance their personality as well as help in increasing profitability of company.
Intangible product: It is the product which cannot be seen and visible but play an
important role in achieving growth and success of company in market. For example, Goodwill of
company cannot be seen but every company tried to achieve to strong their presence in market. It
can be made through offering quality products and promote in market so as to grab an attention
of people.
Porter's five market forces model: It is the model which is adopted in order to analyse
the market situations in order to sustain in competitive market for longer period of time. It
includes five analysis which are explained as under:
Rivalries among existing competitors: Due to high competition in clothing industry of
UK, CIELLA Ltd. May find difficulties in sustaining for longer period of time. Tesco, Asda,
Marks & Spencer are some known and well established clothing companies which has already
attained huge customer strength in UK. Along with this, Topshop, Next, john lewis etc. bare
some small retailers as well which offers quality products at an effective prices. Therefore,
CIELLA Ltd. Need to differentiate its clothing products through providing unique designs and
patterns which is never before comes into market. It increases their sustainability as well as
achieving strong position in market.
Bargaining power of customers: The bargaining power of buyers is high due to having
lots of options towards them in market for purchasing clothing products. Therefore, CIELLA
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Ltd. Need to charge an effective prices of their clothing products after analysing rivals pricing
strategies so that the customers can think of switching to their products.
Bargaining power of suppliers: The bargaining power of suppliers is rather high due to
newly entry into UK market. Due to having new identity and position in market, it may little
tough for CIELLA Ltd. To influence suppliers to supply raw material to the company in
exchange of providing good amount in return. Therefore, building trust towards them is
essentially required which can be possible through giving them in an advance.
Threats of New entrants: The threats of new entrants is high due to requirement of high
capital investment in starting up new clothing business. It becomes very difficult for CIELLA
Ltd. To find the customers and achieve their loyalty as there are many existing rivals company
such as M&S, Asda which has already gain trust and loyalty of customers. Thus, providing
quality products at an effective prices will increases the chances of CIELLA Ltd. To identify
themselves towards people in market.
Threats of substitutes products: There are overall no substitutes to clothing products
which makes the threat of substitutes low. As there are small clothing retailers in UK which
offers clothing products at cheaper rates but their quality of products are average. In UK, people
prefer quality over price due to this the substitutes of clothing products are very low.
Industry life cycle:
It includes the various stages where business operate, progress, prospect and slump
within an industry. It consists of five stages which are given as under:
Start up stage: Under this stage, At the start up stage, customer demand is limited due to
unfamiliarity with the new product’s features and performance. Distribution channels are still
underdeveloped, so there are very few product supply and promotional activities. Therefore, it
requires CIELLA Ltd. To invest in order to adopt different marketing strategies, selection of
suppliers, implementation of infrastructure in business operations.
Growth stage: As the product slowly attracts attention from a bigger market segment, the
industry moves on to the growth stage where profitability starts to rise. Improvement in product
features leads to easiness to use, thus increasing value to customers. At this phase, CIELLA Ltd.
Need to focus on increasing quality and bring new design of clothing products so as to grab an
attention of maximum people of UK.
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Maturity stage: The maturity phase begins with a shake out period, during which growth
slows, focus shifts toward expense reduction and consolidation occurs. Firms achieve economies
of scale, hampering the sustainability of smaller competitors. At this stage, CIELLA Ltd.
Focuses reducing cost of production through educating employees about how to utilise available
resources in an optimum manner. Increasing price of products also minimises the cost of
business.
Decline stage: The decline phase marks the end of an industry's ability to support growth.
Obsolescence and evolving end markets negatively impact demand, leading to declining
revenues. This creates margin pressure, forcing weaker competitors out of the industry. CIELLA
Ltd. Need to make modification ion their existing strategies on regular basis so as to achieve
high sustainability and profitability.
TASK 3
P3 Presenting data to support gap analysis and evaluation
In the modern era the major purpose of each small as well as large business enterprises is
to satisfying the needs and wants of people at market place through offering them variety of
products and services as per their choice and preference. Business organisation runs their
activities in market or society and entrepreneur have the responsibility to run these enterprises in
an effective as well as efficient manner at the same time innovating and contributing to the
society at large (Palo and Tähtinen, 2013 ). Gap analysis is an essential tool for an entrepreneur
to assess where he stands and what is the way forward. Thus it is essential that businesses should
generate a proper gap analysis report to make sure that they have the relevant data, which will
aid company in taking an appropriate decision about the business.
Basis CIELLA Ltd. CREW Clothing Company
Competition The competition of in the
market is quite high as it is a
sector which consist of high
demand and needs, therefore
company should make sure
that pricing of company
remain competitive and
It is a big name in textile and
clothing market in UK; the
company wants to expand its
business and therefore is
spending huge money on
R&D, which may lead to a
higher competition in the
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quality also remains the same. market.
New entrant CIELLA charges 3% discount
on the clothing products which
is provided to the users. They
should take care of the
competition that exists in the
market and there are various
opportunities for new entrants
(Parker, 2018). It should
continuously asses its Market
position and how it is
changing.
CREW is a already established
company in the market and
some other player like
CIELLA can put a direct
impact on the sales and
profitability of the company.
Reports have suggested that
the sales growth of the
company has declined by 12 %
because of entry of a new
player in the market.
Power of supplier The Supplier of CIELLA does
carry a bargaining power, but
as the company is a start up,
the supplier may give it some
initial discounts.
It is a already established
player and it won’t be able to
take benefits of discounts from
supplier.
Power of customer It centres around
accomplishing benefits as
opposed to recognizing client's
observation which limits the
enthusiasm of client to buy
their items.
Customers are more loyal
towards them as it is a already
established player with Brand
reputation.
Threat of substitute The company may less
subscription fees that is $800
approximately as compared to
rival firms.
The products of the company
can be substituted by the new
entrant, if the quality and
competitive prices are not
maintained by the company.
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