Innovation & Entrepreneurship Report

This report provides a comprehensive analysis of "The Real Trial Business," a hypothetical e-commerce venture. It utilizes Porter's Five Forces framework to assess the competitive landscape, identifying high threats from new entrants, substitutes, and buyer power, but low supplier power and high existing rivalry. A resource analysis examines the business's financial, human, physical, and intangible resources. The report concludes that while securing funding might be challenging due to the innovative nature of the business, its technological foundation minimizes reliance on human capital and leverages readily available physical and intangible resources like existing online reputations. The analysis suggests that the success of "The Real Trial Business" hinges on effectively navigating the highly competitive market and securing sufficient funding to implement its innovative approach.

Running head: INNOVATION AND ENTREPRENEURSHIP- THE REAL TRIAL BUSINESS 1
Innovation and Entrepreneurship- The Real Trial Business
Name
Institution Affiliation

INNOVATION AND ENTREPRENEURSHIP- THE REAL TRIAL BUSINESS 2
Porters Five Forces
Threats of the New
Entrants
(High)
The threat of
Substitutes
(High)
The threat of
Buyer Power
(High)
The threat of the
Supplier Power
(Weak)
Existing Rivalry
(High)
 Based on the
nature and type
of The Real
Trial business it
very easy for
other
companies to
enter this
industry.
 This is highly
supported by
the weak
barriers such as
low investment
capital and lack
monopoly
power.
 Besides, this is
a lucrative
business
provided that it
has high
returns,
depends on the
latest
technology and
 The close
services
offered by
the other
companies
will limit the
revenue
realized by
The Real
Trial
Business.
 This is
because
customers
may find it
cheaper to
consume
other close
related
products
offered by
the other
businesses in
the industry.
 Putting into
consideration
 Ideally,
customers
offer
threats to
the
company
products if
there other
companies
in the
industry
providing
similar
products or
services
(Jaradat,
Almomani,
&
Bataineh,
2013).
 This
because a
buyer can
easily
switch to
other
 In the event
where there
is a high
concentration
of the
suppliers
their power
becomes less
impactful
(Martin,
2015).
 However,
where there
is a low
supplier
concentration
their power
tend to be
high. For
The Real
Trial
Business
there are
many
suppliers of
the
 No business
that operates in
the vacuum
place but in the
environment
that is full of
competition.
 Likewise, The
Real Trial
Business faces
competition
from other
companies in
the market
offering e-
commerce
activities.

INNOVATION AND ENTREPRENEURSHIP- THE REAL TRIAL BUSINESS 3
it is
characterized
by high and
steady growth.
 These aspects
make the
business
attractive for
the potential
competitors.
that this
business will
focus on
charging
higher prices
than other
companies
offering a
similar
product in
the market,
there is a
likelihood
that the
threat of the
substitutes
will be high.
cheap or
high
quality
products in
the market.
 Many
companies
are
offering
related
services as
The Real
Trial
Business.
 Therefore,
the threat
of the
buyer
power is
high for
The Real
Trial
Business
technological
products, and
therefore the
power of the
suppliers is
limited.
Resource Analysis

INNOVATION AND ENTREPRENEURSHIP- THE REAL TRIAL BUSINESS 4
Financial Resources
 The Real Trail Business may face the difficulties in securing funds to finance its
activities. This is because the company idea is built on the already current business
innovation.
 However, it will be easy to convince the companies that want to improve customer
satisfaction and reduce the clients' complaints to finance the idea.
 Therefore, the idea of reviewing of the product picture or image by the customers before
purchasing it will woo online product sellers to support the business financially.
Human Resources
 Many of the businesses are based on the human capital.
 However, in the modern business world organizations are largely relying on technology
to run business operations (Alter, 2016).
 This is a purely technology based business, and therefore the dependency on the human
capital is very low.
 Instead, the business will focus on acquiring more and current IT systems.
Physical
 There are many suppliers of the technological products in the market (Trebilcock, 2016).
 Bearing in mind that The Real Trial Business is based on technology it will largely
benefit from many IT systems in the market.
 Therefore, it would be easy to acquire physical resources needed to run the business.
Intangible
 The major intangible attributes surrounding The Real Trial Business are strong reputation
and brand image.
 Strong online reputation and brand image can be ascribed to the online businesses that
have been undertaking e-commerce business activities before.
 The idea of The Real Trial Business is aimed at improving the online business for the
benefit of the customer and therefore, it will be easy to use the existing intangible
resources.

INNOVATION AND ENTREPRENEURSHIP- THE REAL TRIAL BUSINESS 5
References
Alter, S. L. (2016, November 2). How Effective Managers Use Information Systems. Retrieved
from Harvard Business Review: https://hbr.org/1976/11/how-effective-managers-use-
information-systems
Jaradat, S., Almomani, S., & Bataineh, M. (2013). The Impact of Porter Model`s Five
Competence Powers on Selecting Business Strategy. Interdisciplinary Journal of
Contemporary Research in Busines, 5(3), 457-470.
Martin, F. M. (2015). "Porter’s five competitive forces framework and other factors that
influence the choice of response strategies. International Journal of Educational
Management, 29(3), 859-873.
Trebilcock, B. (2016, July 1). Top 20 supply chain software suppliers, 2016. Retrieved from
Peerless Media LLC: http://www.mmh.com/article/top_20_software_suppliers