Report: Identifying Entrepreneurial Opportunities for Quality Clothing

This report analyzes entrepreneurial opportunities for Quality Clothing, a startup specializing in T-shirt designs and printing. It explores various sources of business ideas, including Peter Drucker's 7 sources, STEEP factors, and Schumpeter's theory of innovation, alongside different types of innovation such as product and process. The report identifies market gaps through customer analysis, segmentation (demographic and behavioral), and tangible/intangible features. It utilizes tools like SWOT and McKinsey's 7S framework for gap analysis, supported by secondary data on competition, supplier power, customer power, and threat of substitutes, along with questionnaire results. The analysis evaluates the company's competitiveness, market environment, and potential for expansion, providing a comprehensive overview of the startup's entrepreneurial prospects and strategic considerations.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P.1 Evaluating various sources of business ideas...................................................................1
P.2 Rational and market gap in entrepreneurial idea..............................................................3
P.3 Data which supports gap analysis in monitoring of idea.................................................4
P.4 Interpretation of data........................................................................................................9
P.5 SWOT analysis to monitor entrepreneurial idea............................................................11
P.6 Evaluating competitiveness and market environment....................................................12
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15

INTRODUCTION
Identifying entrepreneur opportunities are crucial for every company. It helps the
company to launch distinct and innovative products in market. It helps the organization to
increase their revenues and can satisfy users (Alvarez and Barney, 2010). Through this it can
maintain good and positive image in minds of customers Hence they can also maintain
competitive edge on other firms. Report describes about Quality clothing firm which is start up
company. Organization develop various designs and do printing on T-shirts. Thus it can satisfy
customers and can earn more revenues. Through this it can also give strong competition to other
companies. Assignment explains about monitoring of possible sources for new and innovative
business ideas. Project discusses about choices of entrepreneurial idea for investigation and
market gap and application of primary and secondary data to determine market potential and
monitoring this idea in market and assessment of market potential.
LO1
P.1 Evaluating various sources of business ideas
Various sources of business ideas are developed so that firm can develop innovative
ideas. External factors considered by Quality clothing are-
Peter Ducker's 7 sources of innovation: 7 sources of entrepreneurial opportunity are-
Unexpected: In this entrepreneur can develop such as ideas which are unique and distinct
and which are unexpected by people. They can be treated through evaluating requirements of all
users.
Incongruity: In this firm creates unique styles and determine different methods of printing
so that it can different experience to all users. It can use various methods such as unique
machines which can create different designs of Block printing.
Process need: Quality clothing can find new and innovative methods and techniques so
that quality clothing can create different designs of Block printing. Through this they can create
attractive designs in less time.
Industry and market structure: Firm have to monitor changes in market and industry.
Thus it can create unique and innovative designs of printing on t-shirts. It helps them in
expanding business (Davidsson, 2015).
Demographics: In this firm can evaluate requirements and needs of people. Thus create
different and appropriate designs in t-shirts according to preferences of users. It is targeted to
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young boys and girls so hence they create deigns according to their choice and preferences
(Dimov, 2011).
Change in perception: It can use various promotional strategies such as sales promotion
and online advertisements in which it can create posters, attractive slogans and pictures of block
printing so that it can capture many users.
New knowledge: Firm can enhance its knowledge through searching of innovative
technologies such as those machines which can create distinct and attractive designs in less time.
Through this it can increase the knowledge.
STEEP factors:
External factors which influence Quality clothing are-
Social: Quality clothing can create and develop designs according to preferences of
young boys and girls.
Technological: Quality clothing can use innovative technologies in developing printing
designs. They can use such tools and techniques which can create many different designs on T-
shirts in less time which can set apart from other rivals.
Economic: In case of deflation company is charging lower price from users so it benefits
them a lot. Thus they can create distinct designs so that more young boys and girls are attracted.
For example Quality clothing can create different ways so that it can create unique ways hence
Environmental: Quality clothing do not waste items it can reuse and recycle many
materials which can cause less harm to environment. For example, Quality clothing do not waste
any items and protects the environment. So hence it causes less harm to environment and society.
Political: Quality clothing has to follow all rules and regulation and fix prices according
to government. Then only it can survive in market. For example, it can set prices such as 50000
prices which is set by government. Hence it can attract many users if it follows all rules.
Schumpeter's theory of innovation:
In this quality clothing can create unique and different technologies and tools so that they
can bring innovation in firm. It includes 2 stages. First is firm evaluate impact of innovative and
creative ideas. Second is monitoring answers given in applications are noticed (Ellis, 2011).
Through this firm can create different and innovative ideas of printing designs on t-shirts.
Types of innovation-
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Product: In this Quality clothing can create different and distinct designs of printing on T-
shirts so that it can capture many users.
Process: It can use innovative methods through which it can create attractive designs in
minimum time (Grégoire and Shepherd, 2012).
Company can use many creative technologies and tools so that it can create many
attractive and distinct designs which can printed on t-shirts. It uses quick process and tools so
that it can print many designs on different t shirts.
P.2 Rational and market gap in entrepreneurial idea
Differences in actual and market product can be due to many reasons. They are-
Identifying customers: In this firm identify choice and preferences of all users and then
create and develop different printing designs. It can create block printing on t-shirts which many
users generally want. Through this it can reduce the market and actual gap. It helps Quality
clothing to earn more revenues.
Segmentation: It is divided into 2 parts:
Demographic: In this firm has to identify attitude and perception of all users. Then it
creates designs according to preferences of all users.
Behavioural segmentation: Quality clothing can evaluate needs of people on basis of age,
sex income level etc. Thus it creates printing designs according to choice of users which is based
on this criterion. It is very different so hence it cannot fulfil acquirements of all customers.
Tangible and intangible features:
Quality clothing helps in giving tangible features in t-shirts such as block printing. But it
cannot fulfil needs and choice of all users. It can give different and unique experience to people
but it cannot meet expectation to other people as requirements of all users differ in country.
Hence gap is there between market and actual product.
Various tools are there that can be utilise by firm to carry out gap analysis such as SWOT
analysis and Mckinsey's 7S frame work. These tools can be better understood by the following
points:
 SWOT analysis
Strengths:
 Company offer wide range of clothes
including womenswear, children wear
Weakness
 Due to slow economic growth company
fails to generate large number of profit.
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and menswear that’s why company
generate more number of profits.
 Skilled workforce.
 Low business cost.
 Decreasing quality of products.
Opportunities
 Company can expand its operations in
other different areas of UK.
 Company can enter in footwear to
generate more revenues.
Threats
 No effective presence in so many areas
of UK.
 High competition in clothing sector.
Mckinsey's 7S frame work: This is another model that can be use by frim to carry out gap
analysis. Seven S of this model can be understood by following given table:
Strategy This component define the plan formulate by company to perform its various
functions and to attain its set objective.
Structure This factor reflect the structure utilise by organisation. This define who is
responsible to whom and what are the roles and responsibilities of various
employees working in enterprise.
System This component indicate the routine activities perform by workers to perform
their job roles.
Shared Values This component mainly defines the core values shard by the individuals
working in enterprise. It helps in form organisational culture which reflect the
working style of employees.
Skills This element indicates the skills, knowledge and capabilities of workers who
perform various job roles at workplace.
Style This is another component and this reflect the leadership style adopted by
enterprise to encourage and guide workers.
Staff Present skills and style of working of workforce come under this factor.
With help of this model, company can identify the areas of improvement and can attain its set
objectives.
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P.3 Data which supports gap analysis in monitoring of idea
Data is there which can support the gap between actual and market data. Quality clothing
has to take relevant data so that it can find the gap between actual and market data. It is
important so that company can make improvement in their process and technologies. This helps
company to increases their earnings and can maintain unique position in market (Hitt, Sirmon
and Trahms, 2011). Firm is using secondary research and data of Quality clothing are-
Basis Company Rival firms
Competition in industry Quality clothing is charging
lower prices from users that is
30000 £ for all printed t-shirts
and other clothes. It is done so
that all users can purchase
products from Quality clothing
and not from their rivals.
Competitive companies ate
charging 50000 pounds from
users in market. It is done so
that it can beat competitor. It is
higher than quality clothing.
Potential of new entrants in
market
Quality clothing has decided to
fix 40000 pounds from all
customers. It is done so that it
can compete with competitors
and can maintain good and
favourable position in market
as well as in front of all users.
New firms are charging 60000
pounds from all users for their
different products. This is done
so that it can give stringer
competition to other
companies including Quality
clothing.
Power of supplier Quality clothing charges
35000 pounds from all their
suppliers. It charges higher
from suppliers so that they can
charge goof materials which
are used for printing and they
can easily do printing on t-
shirts. It is a disadvantage for
Competitive firms are charging
25000 pounds from all their
supplier which is lower than
quality clothing. It is done so
that it can beat other firms and
thus they can easily get
materials for their clothes.
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the firm
Power of customers Firm charges 50000 pounds
from all users. It is lower than
competitors. Lower prices is
charged so that it can attract
many users.
Firm is charging 65000 pounds
from users so that it can give
unique experience to people. It
is higher than quality clothing.
Threat of substitutes Quality clothing is charging
50000 pounds from users. It is
done so that it can increase the
level of satisfaction of all
customers. This results in
earning of more revenues.
Substitute is charging 60000
pounds from all customers. It
is higher than competitors. It is
done so that it can also attract
many users.
Questionnaire
Name:
Occupation:
Gender:
Contact no.:
Email id:
Q1) Do you purchase clothes from “Quality Clothing”?
Yes: 15
No: 5
Q2) Are you satisfy with the quality of clothes offer by company?
Yes: 10
No: 10
Q3) What is the main feature which you like about the product of Quality clothing?
Quality of clothes: 10
Price: 5
Different designs: 5
Q4) Does company require to do some modifications in its pricing strategy?
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Yes: 5
No: 15
Q5) Any recommendation for Quality clothing related to quality and pricing strategy of firm.
Interpretation 1: From the above given graph, it can be summarised that 15 out of 20
respondents said that they purchase clothes from Quality Clothing while rest 5 said that they do
not purchase clothes form the company.
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Interpretation 2: From the above given picture, it can be summarised that 50% respondents are
satisfy with the quality of clothes offer by company while other 50% are not satisfy with the
quality of products offered by company.
Interpretation 3: From the above given picture, it has been analysed that 10 out of 20
respondents are satisfy with the quality of products offer by company. Further 5 respondents are
satisfy with price and other 5 are satisfy with company different designs.
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Interpretation 4: From the above given image, it can be summarised that 5 out of 20 respondents
given their point of view in the favour that company require to do modification in its pricing
strategy while 15 said that company does not require to do modifications in its pricing strategy.
P.4 Interpretation of data
From above question P.2 various findings which are interpreted. It is important to
interpretation done by Quality clothing so that it can found the weak pints and can improve the
conditions (Neck and Greene, 2011). Thus it can earn more revenues and can enhance its market
share. It can also give tough competition to other rivals. So interpretation of data is described
below:
 Quality clothing is charging 30000 pounds from customers. It is important so that it can
attract many users. It price is lower than competitive firms. This gives competitive edge
on other firms. Through this it can easily expand and diversify business. This is also
important so that it can increase their earning level. Hence as a result firm can easily
increase their revenues. It also results in increasing customer satisfaction.
 Quality clothing had fixed 40000 pounds from all users which is less than other rivals
firms in market. Competitive have charged 60000 as their selling price. Through this firm
can attract many users as they are charging less price from all users. It helps in
maintaining favourable and unique position in minds of all customers. This helps them in
running their activities and tasks in effectively and efficiently. It leads to growth and
development of firm. Thus it can easily expand their operations in various countries.
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 Quality clothing is charging 35000 pounds from all supplier which is higher than
competitor. So it is a disadvantage for firm. They can charge lower prices so that they can
easily get materials which are required for printing at reasonable rate. This helps the
company to produce different and unique designs of printing. Hence they can easily
increase their sales and their revenues. This also helps the company to easily survive in
market. Hence they can give competition to other firms.
 It charges 50000 pounds from customers. This price is lower than competitors as they are
charging 60000 pounds from all users (Patzelt and Shepherd, 2011). Hence they can gain
more consumers as compared to other rival firms. It also helps Quality clothing to expand
their activities and other operations in various countries. Thus they can easily expand
their business. Lower prices is a beneficial situation for firm as they can gain customers
who are not taking products earlier from this company.
 As compared to other substitutes in market it is charging 50000 pounds from all
customers. It is lower than other rival firms as they are charging 60000 pounds from all
customers (Perrini, Vurro and Costanzo, 2010). Thus they do not have any threats from
any substitutes. This also helps firm to gain attention of more users as their prices are
lower than their substitutes. This helps firm to enhance their revenues and increase share
in market. Thus Quality clothing can maintain good position in market.
Quality clothing can use differential sites and other latest technologies so that it can test the
attitude and behaviour of many targeted consumers. It can evaluate responses of customers
through internet and other applications such as Facebook etc. Through this it can know the users
behaviour and attitude. Thus it can easily find the gap between actual and targeted user.
Findings
1.
Yes 15
No 5
Total 20
mean 10
Mode 0
Median 10
2.
Yes 10
10

No 10
Total 20
mean 10
Mode 0
Median 10
3.)
Quality
of
clothes 10
Price 5
Different
designs 5
Total 20
mean 6.666667
Mode 0
Median 5
4.)
Yes 5
No 15
Total 20
mean 10
Mode 5
Median 10
P.5 SWOT analysis to monitor entrepreneurial idea
SWOT analysis is done so that company's strengths, weakness,opportunities and threats
are to be determined. SWOT analysis of Quality clothing are-
Strength: Company is using recent and latest technologies and tools so that they can
easily expand their operations. For example Quality clothing biggest strength is use of relevant
and advanced technique through which it can create attractive and superior designs of printing on
t-shirts than their rival firms. So due to this it can capture many uses and leads to increase in
earnings. This helps it to expand their activities worldwide. So it can become popular in various
countries. Thus they can gain customers from other foreign countries also. Due to they can
maintain unique position in market. Hence due to this strength they can easily promote their idea.
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Weakness: Quality clothing is charging higher prices from all their users thus they cannot
capture many users. It results in decreasing sales. Company is having different designs of
attractive and unique designs which are to be printed on t-shirts so hence it leads to create
condition among all users. They cannot understand that which t-shirt they have to purchase. Thus
users can also purchase clothes from their rival firms. Hence it leads to reduction in earning
level of firm. It can be a disadvantage for firm (Shane, 2012).
Opportunity: There are different factors in the environment. For example, there is a
technological factor. So company has adopted this latest technology and then create unique
machines and procedures so that it can create distinct and unique printing designs which can
attract more users. This also includes a different advantage for firm which is that these machines
can create various attractive designs in very less time period. Hence it can create various types of
designs in less time as compared to competitors. This helps them in earning more revenues than
their rivals (Siegel and Renko, 2012).
Threats: Quality clothing do have much educated employees than their competitors. Sop
other rivals have competent and trained employees through which they can give unique and
innovative ideas related to designs. So for surviving in market and to give high competition to
other rivals they have to give training to all their employees. This helps them in increasing their
knowledge through which more innovative designs can be created. Due to this threat company
cannot support this idea to much higher level in future. This can reduce the sales and earning
level if they have not given higher training to staff members.
P.6 Evaluating competitiveness and market environment
Quality clothing can evaluate choice and preferences of all users so that they can survive
in market. They can create strategies and policies to survive in market. Market environment and
competitive analysis of Quality clothing are-
 Competitive market: Quality clothing can evaluate the pricing and other process and
procedures so that it can modify their tools and technologies of printing which is very
important to survive in market. Competitive analysis factors are-
Substitute products: Substitutes have unique and attractive schemes and promoting designs. So
hence it can beat competitor. Quality clothing have to create unique machines and processes
which can create unique and attractive designs in less time. This helps them to earn more
revenues as compared to competitors.
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Target audience: Main focus is generally younger boys and girls. So hence they have to create
attractive and unique designs according to targeted audience. Then only it can survive in market
and can increase their earnings. Through this it can hold a distinct and good position in minds of
all users (Vaghely and Julien, 2010).
Demand: In present scenario block printing is preferred by young girls and boys both. So hence
Quality clothing can produce attractive and unique printing designs according to requirements of
all users. This helps firm to increase their revenues and to expand their operations.
 Market environment: Quality clothing has to evaluate different factors which are present
in environment. Factors considered by Quality clothing are-
Macro factors: PESTEL analysis helps in impacting company a lot. Company can use advanced
and latest tools and techniques so that they can capture more users. It has to follow government
rules and regulations so that it can easily carry their operations. It has to create designs according
to target audience which is young boys and girls (Wood and McKinley, 2010). Through this it
can easily earn more profits and these factors can be taken as advantage for company.
 Micro factors: It includes evaluating attitude and behaviour of employees as well as
customers. This also has to take care of supplier so that they get materials at time. It has
to fulfil needs and requirement if all customers, employees and other shareholders. It has
to create policies so that they can beat competitor and hence can maintain unique position
in market as well in front of all stakeholders.
By evaluating competitive analysis of market environment. Quality clothing can change their
plans and policies and can earn more revenues.
Porter's 5 forces model:
Industry competitors: It is high. There are many obstacles that quality clothing are facing
such as uniqueness, differentiation etc. Company is applying distinct technologies of printing but
due to many rivals it cannot satisfy customers a lot. Due to this there is variation between actual
and market (Hansen, Shrader and Monllor, 2011).
Potential for new entrants: It is also high. Due to new company’s company cannot
survive in market. It is due to differences in recent technologies and differentiation in products.
For increasing satisfaction of all user’s quality method has to create different tools so that it can
give competition to other companies.
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Threat from substitutes: Power is high. Many substitutes are there is market. So firm has
to create unique strategies of promotion and creating designs so that customers do not move to
rivals to purchase products. Due to this reason also there is gap between actual and market
(Haynie, Shepherd and Earley, 2010).
Bargaining power of suppliers: Power of suppliers are high. In company supplier is
taking higher charges from all their material. But in market less prices is charged by them. So
due to this there is variations in prices between actual and market.
Power of customers: All customers want that company can charge lower prices for their
products. But firm is charging higher prices. Thus gap is there between actual and market
demand. Power of customers are high as they are charging lower prices.
Industry life cycle is there through which company can make changes in each stage. First
is introduction in which Quality clothing develops different and unique designs so that it can
capture many users. Second is growth stage in which it evaluates latest trends in market and
make modifications in various printing designs which are to be printed on T-shirts. So hence it
can earn more revenues. Third is maturity stage in which firm has to modify process, techniques
and tools so that it can survive in market. Fourthly is decline stage in which company cannot
make much modification in processes according to latest market trends. This leads to reduction
in revenues and sales.
CONCLUSION
It can be concluded from above report that identification of opportunities are very
important for entrepreneur. This helps them in earning more profits and can capture many users.
Evaluation of different sources of business ideas. Determining choice of entrepreneurial ideas
and find differences between market and actual idea. Use of primary and secondary data to
identify market potential. Monitoring idea in relation to competitive and market analysis.
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REFRENCES
Books and Journal
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