Entrepreneurial Opportunities: Market Gap and Analysis Report

This report delves into the identification and evaluation of entrepreneurial opportunities, focusing on the establishment of a cosmetic product business, "Nature Essence," which specializes in organic and natural ingredients. The report explores various sources of entrepreneurial ideas and innovation, including unexpected events, incongruities, process needs, demographics, and changes in perception, while also discussing process, product, and incremental innovation. It then explains the rationale for the business idea, highlighting the market gap and the use of market segmentation, including behavioral, demographic, psychographic, and geographic segmentation. The report presents data to support gap analysis, interprets data to provide evidence of market potential, and employs a SWOT framework to assess the entrepreneurial idea. Furthermore, it evaluates the competitive and market environments, incorporating STEEP factors (Social, Technological, Economic, Environmental, Political) to assess the business's potential viability. The report concludes with a comprehensive analysis of the business idea, market analysis, and strategic recommendations.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.............3
TASK 2............................................................................................................................................5
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice...............................................................................5
TASK 3............................................................................................................................................8
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea..............................................................................................................................................8
P4 Interpret data appropriately to provide evidence of market potential...................................9
TASK 4..........................................................................................................................................10
P5 SWOT framework to collate evidence to support an objective assessment of
entrepreneurial idea...................................................................................................................10
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential..........................................................................................................................11
viability....................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13
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INTRODUCTION
Entrepreneur is an individual who has desire and willingness to have risk in the
expectation of attaining profit and capability to grab all the available opportunities in the market
locations in the best possible manner other side their core objective and goal is to expand and
flourish their business across the globe area in order to capture higher level of profit or revenue
through satisfying the demands and needs to their costumers (Guerrero and et. al., 2014). this
project report is formally based on a entrepreneurial opportunities which aid in showing
innovative idea and thought for a establishing a business along with it sources of new idea is also
shown. The gap of market for a certain venture is lights that denotes actual performance of that
business idea with the helps of relevant tool and techniques.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
Entrepreneurs are those personalities who are capable to think out of the box and have
ability to bear risk or losses. Hence all of them are bit different form other their believes in
providing employment rather them begin employee under someone. When a person desired to
begin their own business or start up then they must to gob through the hard work and harder
thinking process and with the help of sources they can be have best possible idea of the business.
Hence, there are larger number of elements that are known as the source which are able
to generate entrepreneurial thought and ideas. Opportunities of business are the starting point for
the each and every business. All the ideas of venture can be generated from the environment
itself. Some of business based form the analysis of market and needs to buyers.
New business idea
Here, as an entrepreneur for launching an innovative business I am going to introducing
the prominent and effective venture that playing a signifying role in beauty of female which is
“Cosmetic products” manufacturing with the utilization of “organic and natural” raw
resources. Therefore effective and inspiring name of this organization is “nature essence” .
Basically: One of core reason behind launching a business is to boost up the entire
personality of the persons who are residing in the UK in respect to increase their level of
standard. Prominently, all of products are made of with natural resources and ingredients also
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firm are not using any of chemical in the formation of the product also trying to maintain beauty
with the help of natural material.
In addition of this, there are some sources of innovation opportunity in which firm can
easily improve their overall performance at market place. All these are as follows:
 The unexpected: It is important source of innovative opportunity in which the market
area is one in which company can easily expand their business activities with the
purpose of attaining growth (Spigel, 2017). In this context, it is important for manager
of the firm to effectively analysis the market nature and trends. In this context, Nature
Essence needs to analysis and evaluate the market trends and changes before producing
their products and services. This will help in proving opportunities to attain success at
market place. One of the main advantage of this source is to inspire the leader to
evaluate the another prospective with positive and negative impact. On the other hand,
due to unexpected situation manager get demotivated while introducing the innovation
within the business activities.
 The incongruity: Under this source of innovation, company develop their products with
the purpose of attaining profitability. For attaining the same Nature Essence undertake
and appropriate research to determine customers taste and wants towards the products.
With the help of this, they easily serve quality products as per customers needs and
wants and at the same time also take feedback from customers to know about their
issues and complaints. This is the best way to improve the overall performance of the
company and products as well. The main benefit of this source is that company easily
understand the customers taste and preferences. Other hand, drawback of this source is
that due to incongruities, some time company fail in evaluating actual demand of
customers.
 The process need: This source of innovation is task focused in which company can
determine the weak spots to improve their services. With the help of this, Nature
Essence easily create more innovative and effective solution to enhance their
productivity level. With the assistance of this, company easily identify the anaemic
points along with appropriate ways to improved. On the other side, this source take
more time to find out the actual point that are required to be improved to create
innovative solution.
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 Demographics: In this, the Nature Essence directly affected by the change of
demographic. In addition of this, these changes are age, education, employment, and
many more. Thus, it is important for company to analysis all the changes before offering
their products and service. This will contribute in providing opportunities top the
company to attain better response of the customers towards the products and services.
The main advantage of this sources is to determine the demand for the products by the
customers. Furthermore, the main drawback of this frequent change of demographic
may negatively impact on the overall production of the company.
 Change in perception, meaning and mood: It is one of the important source of
opportunities which is relate with significant change customers taste and preferences
towards the company products and services. Along with this, perception and mood of
the customers are change over time (Teece, 2012). So that it is important for Nature
Essence to analysis the customers taste and preferences to provide them accordingly. By
this, they easily enhance their productivity level in market place.
 New knowledge: Revolution is technology also provide opportunities to the company to
enhance the chances of attaining success at market. Thus, company should update and
gather knowledge about new technologies so that they easily improve their process and
at the same time also make their brand image popular. This source is beneficial in
exploring new and innovative ways to improve the performance of the company. On the
other side, some time new knowledge is create issue while introducing new products at
market place.
Types of innovation:
 Process innovation: It is relate with the implementation of new and innovative delivery
method within the company to serve quality products and services to its customers as per
their needs and wants. In this context, Nature Essence use new an innovative
technologies like, IT technologies for applications and many more. It help in saving cost
and time of the company at the time of production products and also deliver quality
products (Austin, Stevenson and Wei-Skillern, 2012).
 Product innovation: It is also relate with the material products and intangible services
which meet customers needs and wants. By producing innovative products, Nature
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Essence easily attain profitability level and also gable competitive advantage form its
rivals at market place.
 Incremental innovation: This type of innovation is help in improving the system that
already exist in the business organization. With the help of this company can easily make
them better and faster as well. This will help in improving the existing products and
services which contribute in improving productivity level of the company at market
place.
STEEP Factors:
 Social: This factor refer to the customers behaviour, demographic, lifestyles, religion of
the customers. It directly impact on the overall performance of the company. Thus, it is
important for the Nature Essence to analysis customers needs and wants before providing
them quality products and services.
 Technological: This factors relate with technological advancement. It also includes
various factors such as innovation, communication research and development and many
more. All these are important for the Nature Essence to effectively implement within
their activities so that they can easily produce quality products and services to its target
customers.
 Economic: It is strongly affect the consumers buying behaviour. Mainly, it includes
interest rates, taxes, inflation and many more. All these are directly affect the entire
process of the firm. In addition of this, UK economy condition is very good as it
positively affect the entire performance of the company at market place.
 Environmental: It is also important for Nature Essence to improve their brand image.
Along with this, company also use eco-friendly technologies that does not put harm on
the environment. Mainly, environmental development includes ecosystems factors like,
wind, water and pollution and environmental regulations (Wright and Marlow, 2012).
This will help in making environment healthy.
 Political: This factor also influence entire business activities in both positive and negative
manner. Thus, it is important for Nature Essence to aware about political condition in
order to improve their performance level. Along with this, political factors includes
monopolies, tax policies, price regulations, customers protection and many more. All
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these vital for implementing within their business activities to enhance their performance
level at market place.
The main advantage of using this factors is to reduce the business threats in market place.
With the assistance of this, Nature Essence easily generating ideas, product development,
product launching and many more to enhance the overall success at market. Advantage of
STEEP factor includes being cost effective, provide better understanding about the business,
exploit business opportunities which may directly contribute in enhancing the chances of
capturing larger market share from its rivals. On the other side, the main drawback of this factor
is that it is dynamic in nature as changes are occur at very fact pace that may create the issue
while introducing new products in market.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
Every entrepreneurial ideas or innovative has much more importance which are helpful
for both, the society and the owner too. Hence, skin products that are offers by the sited
organisation are completely organic and produce or design with the utilization of the natural
ingredients (Beynon, Jones and Pickernell, 2016). Cause of it, all of their product are free form
various sort of chemicals. Apart form it, one of the major things that creates this idea of business
unique is that it is finely suitable and effective for each and every skin type either they are dry,
oil, rough or much more.
Along with it, personalities of different various age group can use their product with out
having fear of damage of skin and reaction because all of products are connected with the nature
essence. more of it, whole of cosmetic items are produced and manufactured by the experts or
any of experience persons who are having a sound knowledge for all these production process in
order to reduce any condition or chance of damaging of skin. In this context, it is important for
Nature Essence to identify the customers with the aim of attaining their positive experience in
order to improve their performance at market place (Hatak, Harms and Fink, 2015). For
analysing the gap, market segmentation is also a effective way which consist:
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 Behavioural: It includes behaviour of the customers and decision making pattern. In this,
Nature Essence target young people because they always prefer to use cosmetic products.
In this company serve products as per customers behaviour.
 Demographic: It is widest type of market segment which is base on the age, gender,
occupation, family size, nationality, income of the customers. In this context, Nature
Essence serve their products to their customers on the basis of age. Through which they
easily enhance their profitability level.
 Geographic:Under this, company segment customers on the basis of geography which
they help of this Nature Essence easily serve in new areas and also expand their business.
Tangible and intangible features: Tangibles sources are those which is visible in nature. Along
with this it is a physical object which can be touchable and visible as well. On the other side,
intangible features are relate with the ideas and products that cannot be seen and touched like
cosmetic fragrance and quality are intangible.
Porter's five forces model:
This type of model is also important for business organization to evaluate the market
competition, through which company can easily analysis their position at market place. As it
includes various forces such as:
 Suppliers Power: This refers to pressure that suppliers can put on company by increasing
the price of commodities or minimising availability of products. Bargaining power of
suppliers for Nature Essence is low because there are ample number of suppliers
available in the market (Woldesenbet, Ram and Jones, 2012).
 Buyer power: Bargaining power of buyer is high for Nature essence as there are many
companies which offer similar products. So buyer may get influenced by other brands
which offers quality products in less price.
 Competitive rivalry: In market place, number of competitors are offering quality products
which reduce the the market attractiveness of the firm. Thus, company should implement
quality services as compare to its competitors in order to enhance their profitability level.
 Threat of substitution: It is also high in nature because substitute products are existing in
market place which switch the customers to another company. Thus it is important for
Nature Essence to make their quality products at affordable cost to enhance their
productivity.
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 Threat of new entry: Under this, market invite new entrants that give high competition to
Nature Essence at market place. Competitors are offer quality products and services as
per cheapest rate which reduce the profitability level of the Nature Essence.
Industry Life Cycle: Industry life cycle emphasize on various stages in which business
operates all business activities. It mainly elaborates how organisation introduces new product at
market place, grows it and eventually declines according to the market situation. Stages of
Nature essence are described below:
 Introduction: In this stage, manager of Nature essence emphasize on introducing new
products at market place.
 Growth: Under this stage, customers understands the value of product and buys it rapidly
which increases it sales.
 Maturity: Here, sales of products slows down as customer are no longer interested in
purchasing Nature Essence products
 Decline: In this stage, demand is negatively impacted. Thus, operation of business is
declined and they are not able to survive at market place.
In addition of this, entrepreneurial idea is played a significant role in filling the market
gap because it help in evaluating as well as assessing strength of the company at market place.
Along with this, it also consider Niche markets before starting a new business. With the
assistance of this, entrepreneur can easily identify the unsolved issues. This is the reason that
entrepreneurial idea help in reducing the market gap. As it provide opportunities to cater
customers attention towards the innovative services offered by the Nature essence. In this
context, all the above mentioned techniques are may help in analysing the opportunities to
present their business ideas. This may aid in improving the chances of attaining success. Thus, by
focusing on the market gap, company easily attain their targets at market place.
TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.
The assessment of innovative idea is also known as evaluation of a specific
entrepreneurial idea. Owner always have some accountability for their new innovative business
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hence they creates evaluation for their introduced venture. The process of assessment has some
steps such as:
 Clarity- innovator selects an organic cosmetic product. They chose an idea which creates
the fewest expectation. By selecting an idea that are having fewer known that are
safeguard against the defects (Quan, 2012).
 Usability- it is about utilizing and benefits of the product that are offered by the nature
essence. Usability is prominent and crucial for a any of product cause until determining
the reason for using organic product why customers would purchase the sited product.
Along with it a team “marketability” is denoted that refers to the capability of the product
of placing into the market. It mean finding the answer for a question that is “does organic
cosmetic has ability to place into market or not?”
 Stability- How does prescribe product is providing the satisfaction to the demand of the
customers? This point refers to stability which means proficiency of a product. Nature
essence will recheck before product have launched into the market (Arentz, Sautet and
Storr, 2013).
 Scalability- it is about consistency of the attribute that mean every product should be
same and made off by same ingredient that are not allowed to be differ form one to
others. It is a stranded of scale.
 Profitability- A product should be profitable as they are concentrated on each and every
segment of the society. Competing thoughts are generally ranked by their attaining
earning. Prescribe product needs to be efficient that are able to make profit in the target
location (Woldesenbet, Ram and Jones2012).
 Integration- Owner should know the integration of their product idea and imposing
strategy. Firms strategy are not receive the company support which is important to stable
the viability of the effort.
P4 Interpret data appropriately to provide evidence of market potential.
Whenever a entrepreneur launches any business, they have fear whether it will has
enough market capacity or not. It is important for the them to calculate market potential before
introducing a product. There are five basic elements that can provide an idea on whether or not
product has effective market potential. It is generally based on the demand of the product.
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 Market size- this is prominent factor to undertakes in at time of determine the market
capacity. It is refers to total market sales capacity of all firms conduct together. In general
here, companies differs form other one whether they are selling same of the product
(Beynon, Jones and Pickernell, 2016). In addition of this, the UK comes under the world
sixth largest market for beauty products which includes worth approx £ 10.2bn in year of
2017 (What is the current state of the UK beauty market?, 2018). Furthermore, the beauty
industry is divided into four market categories like Beauty Products and personal care
products and many more. The UK has over 50,000 location offerings beauty products.
 Market growth rate- the market of organic cosmetic product is growing hence if nature
essence are promotion and leading towards this division only then they needs to
concentrate on the market growth cause all of organic product is costly.
(Source: Market value of Cosmetics, 2017)
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Illustration 1: Market value of Cosmetics

From the above mentioned graph it can be evaluated about the market value of cosmetics
in Great Britain from 2009 to 2017. As it includes the spending on fragrances, skincare, color
cosmetics, hair care and many more. In this context, in December, 2017 the total sales value of
the cosmetics was estimated at 9.77 billion British pounds (GBP). As many cosmetics products
are imported from different countries from over the world.
 Profitability- This is important to check the benefits and profitability of the product
before launching into target market. Like if business is going through lower profitability
then the volume of the product requi8red to be higher (Hatak, Harms and Fink, 2015).
 Competition- before launching company needs to check the competition for the prescribe
product. In this the main competitors of this Nature Essence is Maybelline, LotusL'Oreal,
ColourBar. All these are operate their business in same industry and give strong
competition to the Nature Essence at marker place.
 Customers type- this point state that organic products are generally comes in higher cost
hence their user are particular and higher class. Owner of nature essence needs to target
those customers who are able to afford their product.
TASK 4
P5 SWOT framework to collate evidence to support an objective assessment of entrepreneurial
idea.
Idea of Nature Essence is very effective which has planned to invest in long term
investment in business market. The company has its own strength, weakness, opportunity , and
threat in business market. So their start-ups must have best approaches and planning to sustain in
business market. SWOT analysis of new market venture:
Strength
1. Better idea to invest in cosmetic
product as it is a fast growing business
in market
2. It majorly focus on organic products so
do not have harmful effect on body
3. Since they are herbal products they can
Weakness
 The products are new in in market so
sale not be more after launching of
products.
 Many people prefer brands instead of
herbal products.
 Since cost is low it will be difficult for
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