Entrepreneurial Opportunities and Market Gap Analysis Report

This report provides a comprehensive analysis of entrepreneurial opportunities, focusing on the establishment of an online business, "Dream Clothing." It begins by evaluating various sources of entrepreneurial ideas and innovation, highlighting factors such as social, economic, technological, and political influences. The report then delves into the rationale and market gap for Dream Clothing, utilizing tools like market segmentation and Porter's Five Forces model to assess the competitive landscape. It examines the data needed to support gap analysis, interpreting it to demonstrate market potential. Furthermore, the report includes a SWOT analysis to support the entrepreneurial idea and discusses the impact of the competitive and market environments on the business. The report emphasizes the importance of understanding customer needs, adapting to market trends, and leveraging technology to achieve business objectives. Overall, the report offers a detailed exploration of the entrepreneurial process, providing insights into the challenges and opportunities associated with launching and sustaining a business venture in the competitive online retail market.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluation of different sources of entrepreneurial ideas and innovation.............................1
TASK 2............................................................................................................................................3
P2 Rationale and market gap for a specific entrepreneurial idea using relevant tools and
techniques....................................................................................................................................3
TASK 3............................................................................................................................................6
P3 Data needed to support gap analysis in the evaluation of a specific entrepreneurial idea.....6
P4 Interpretation of data to provide evidence of market potential..............................................7
TASK 4............................................................................................................................................7
P5 SWOT analysis to support specific entrepreneurial idea.......................................................7
P6 Impact of Competitive and market environments .................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are different sources through which society can grow. Economic status of society
can be raised by improving financial condition of country. So these days government is
emphasising on opening new business venture. There is need of new and creative ideas which
aims at providing satisfaction to society (Devece, Peris-Ortiz and Rueda-Armengot, 2016). There
are different factors which affect business objectives and they must be considered for
successfully running business. These days time is very dynamic and hence there is requirement
to come with new and innovating ideas. Entrepreneur has to give emphasis on scope of business
and possibilities of growth prospects. There are various policies framed by government to
motivate entrepreneurial venture. This report is based on Dream Clothing online business. This
report tells about various sources of entrepreneurial ideas, gap between market and actual
standards, SWOT analysis to support objective of entrepreneurial ideas, factors to be considered
for starting new business.
TASK 1
P1 Evaluation of different sources of entrepreneurial ideas and innovation
There are different ideas in the mind of person who wants to establish new business in
market. There is requirement of many difficulties which may occur due to change in external or
internal factor business. It is essential to analyse market and in case of change in business
surroundings, then it is essential to take them in consideration. There are possibilities that
company has to perform activities as per requirement of society. There are various factors which
has to be considered by manager when they want to achieve business objectives. Some of the
factors are discussed under:
Social factor - Dream Clothing is running business in society so social factors will affect
them to set goals and objectives. There are possibilities of some aspect then they can come with
that concept. There are many changes which are taking place due to change customer demand
and their briefs (Gartner, Carter and Hills, 2016). There is difference in demand as per change in
geographical region or climatic factors. As there is trend of batch parties, hence entrepreneur get
idea to start business of customised t-shirts.
Economical factor - This is most essential factor which may affect business objectives.
There is requirement of funds to start a business, so it is essential that organisation has to select
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source of fund which is most appropriate and useful for satisfying society. As there are some
organisation which provide customised t-shirt but they are costly and delivery is not on time.
Technological factors - These days there are different technologies present which can be
used by managers to achieve business objectives. There are possibilities that due to change in
technology there is some new thing arises (George and et. al., 2016). There is use of different
designing machine which proves to be source of innovative ideas.
Political factors- This factor is also essential as due to change in political parties there are
possibilities that organisation has to change activities which impacts on their innovation. Dream
Clothing can innovate new things after analysing government parties.
There is difference in perception of every person so it is essential to frame policies
accordingly, there will less chances of failure. Dream Clothing is coming with idea to launch
services through which customer can order t-shirts of design they want. This service is cheap in
rate and aim of Dream Clothing is to deliver product in promised time.
Peter F. Drucker gave 7 innovative ideas are beneficial for every business, so it is
essential to consider them. They are discussed as under-
Incongruity: This principle says that there must be use techniques which are
extraordinary as compared to other. Objective of Dream Clothing is to deliver product at time.
Process needs: There are some process followed by firm to provide satisfaction to
employees. There are possibilities that due to change in process quality will improve or cost
reduces. Entrepreneur use innovative machines which is beneficial for setting business.
Industry and Market Structure Needs: As change in market and target customer, then
there is requirement of proper analysis of market so there are less chances of failure of product
and services (Hmieleski, Carr and Baron, 2015). Textile industry is increasing and in market
trend of customised t-shirt increases.
Demographics: As per change region demand also changes so it is essential to satisfy
need accordingly. IN UK countries there is need of t-shirt is increasing and as there people are
busy so they cannot go out to shop and choice design of t-shirt, hence there trend increases.
Changes in Perception, Meaning and Mood: These days customer are more aware about
fashion and current trends, so there is change in their needs and demands. This affects business
operations also. As compared to initial days there is difference in thought of people and trend of
online business increases.
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New Knowledge: Entrepreneurial venture can be satisfied with some innovation only. So
there is need of proper analysis of market this helps them to gain new ideas and then launch new
product and services. After analysing market, entrepreneur came to know about demand of
society and hence they come with idea to establish online business.
Unexpected: Future is uncertain and hence there is need to frame policies which are
beneficial for company and its growth. There are possibilities that company change in external
factors may lead to change business operations hence there is need of frame policies which are
dynamic and flexible (Johnson, 2016).
Types of Innovation
Product- This type of innovation is in product when there is change in product features. It
is essential that company has ton achieve business objectives through different sources. There are
possibilities that due to change in business objectives company has to make in their plans and
policies as well.
Place - This innovation is tells that company has to display their product in front of
correct audience. In case of Dream Clothings they have to communicate with youngsters. As
people are not free to go out and purchase things so they portrait t-shirt through online plateform.
Process - This innovation is done in process of manufacturing. This helps company to
achieve reduces wastage and production time. This also aims to improve quality of product and
services. Entrepreneur will use latest techniques through which company can satisfy need of
society.
Paradigm – This innovation helps company to achieve business objective and this helps
to framing idea about what to do through which company can achieve goals and objectives
(TYPES OF INNOVATION THE ‘4PS’, 2017).
TASK 2
P2 Rationale and market gap for a specific entrepreneurial idea using relevant tools and
techniques
Entrepreneur what is thinking is tough to achieve without complications. So it is essential
to know what can affect those factors on business. When person is thinking to start new business
then there are different policies which affect business either in positive or negative way. There
are policies which are framed to achieve business objectives (Kirzner, 2015). There are many
factors which has to be considered by person before starting business such as target market, cost
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of product, etc. This help business to achieve business objectives more effectively and
entrepreneur is aware about hardship he/ she can face. There are possibilities that due to change
in business related factors company has to change is process and this gives positive results.
There is requirement of proper analysis of resources so in near future there are
possibilities of some scope. There are different methods which can be used by person to achieve
business goals and objectives (Kohlbacher, Herstatt and Levsen, 2015). So when one options is
not working manager can switch to other sources. For e.g. there is requirement of cloth stuff for
manufacturing of t- shirts then they have to select supplier which is readily available and cheap
but at the same time there is requirement of some alternatives so working of company does not
hampers.
There are different sources which motivates person to establish new venture which is not
part of society. This
Examples for all- There are many product which can be innovated by person, but there is
requirement of some value addition in them. There are possibilities that company have to plan
new product which is good for everyone. This helps workers to achieve business objectives in
better way. Dream Clothing wants to achieve business objectives analysing market and launch
product which sets examples for all.
Creates benefits for all- There are some benefits which consumer expects to drive from
product which is existing or new in market. In market, there are some other sources too which
can be used but Dream Clothings helps to reducing cost and providing product appropriately.
Market Segmentation
There are different customers in society and hence there is difference in their demand too.
So to make business objectives achievable it is essential to bifurcate among consumers.
Behavioural segmentation- As per this segmentation, there are possibilities of change in
business environment and it is essential to take care behaviour and need of customer. As per
change in behaviour of there is change in demand also, so it is essential to make strategies which
are dynamic. For e.g. there is different reasons behind consumer's demand for t-shirt so it is
essential that manager has to know reason and then display product (Koryak and et. al., 2015).
Demographical segmentation- Demographical segmentation means difference on the
basis of income, gender, life style, etc. so there are possibilities that company has to plan
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business as per this factor. It is important to know who are target consumer. T-shirts are mainly
aimed at young generation, so it is important to plan business accordingly.
Geographical segmentation- Geographical difference is on the basis of important factor,
which implies that if there is change in area where person is living. In US there are many folk
festivals which are celebrated so entrepreneur must emphasise on demand and this helps
company to achieve profits timely.
Porter's 5 force model on Dream Clothing:
Porter five forces model helps company to know what can hamper company from
achieving goals. As per this model there is requirement that entrepreneur must use different
sources to analyse market (Lima and et. al., 2015). These models are different and essential to be
considered at the time of framing strategies, but there is difference in these factors actually. In
case of Dream Clothing 5 forces model is discussed under following way-
Industry Competitors: There are various competitors which is essential factor to be
considered at the time of planning business. There are many competitors in textile industry so it
is important to perform activities as per requirement of society. So this is important that
entrepreneur has to continuously know what can be done to make goods more innovative.
Pressure from Substitute Products: If demand of consumer is not satisfied or they does
not like product then there are bright chances that he/ she can switch to substitute. As in case of
customised t-shirt at cheap rate, then there are possibilities that consumer purchase t-shirts at
higher rates (Marvel, Davis and Sproul, 2016).
Bargaining Power of Suppliers: There are different supplier of company which supplies
raw material and they plays effective role in operating business. This situation arise when there is
one core supplier in industry, but overcome with this situation entrepreneur must have some
alternative.
Bargaining Power of Buyers: This situation arises when there is single customer who has
purchases good quantity of t-shirts. This helps company to enhance their profit and it is essential
to satisfy need of such product. There are possibilities that buyer may bargain, so this is essential
to set some fix prices.
Potential entrances: These days textile industry has good scope and it is essential to
consider that in future who can be enter in this sector. This is essential factor which has to be
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considered so there is requirement of proper planning to make good image in market (McCann
and Ortega-Argilés, 2015).
TASK 3
P3 Data needed to support gap analysis in the evaluation of a specific entrepreneurial idea
There is difference between what entrepreneur think and what will happen. This
deviation is due to some of the factors which are related to business. There are many changes
which are taking place between framing policies and coming business into existence. Data of
Dream Clothing are discussed below-
Basis Dream Clothing Competitive Firm
Competition in market They provide goods at lower
price as compared to other
firm. Their price is $600. They
enter into online platform for
customised t-shirt.
They have old design and price
of their product is $900. they
do not serve on online
platform.
New entrance in industry They are new on online market
hence they give 5% discount
and free shipping at their
opening ceremony.
As scope of online business is
increasing so there are few
firms entered in this sector and
they are giving 2% discount on
purchase of $1000.
Power of supplier They deal in product having
good quality, so they prefer to
take good quality raw material.
Cost charged by supplier is
$2100.
Supplier charged more cost as
compared to Dream Clothing's
distributor i.e. $2600.
Power of customer As they are new in market and
have new concept related to
customised t-shirts so they set
their price according to
customer.
These firms are not cost
friendly as they give
importance to profit
component.
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Threat of substitute There is no substitute of
customised t-shirts through
online portal. Minimum order
cost is also very nominal i.e.
$1200.
There are many dealer who
deal in customised t-shirts but
they have old designs and cost
is also higher as compared to
Dream Clothing.
P4 Interpretation of data to provide evidence of market potential
Above discussed provides following interpretation
 There is requirement of some interesting promotional events which helps to attract
young generation.
 They must come with new and innovative offers at the time of festival and wedding
seasons (Miles and et. al., 2015).
 To increase sales company has to give gift vouchers on purchase of product. They can
give special discount on first purchase so this helps to improve relation with customer.
 Feedback form places important role in increasing satisfaction of customer. Through this
company came to know about view of customer and then they can take corrective
measures.
TASK 4
P5 SWOT analysis to support specific entrepreneurial idea
SWOT analysis helps company to check external as well as internal factors of company.
SWOT of Dream Clothing is discussed as under:
Strength- They are dealing in business which is new and have wide scope in near future.
There are many new and innovating designs which provides utmost satisfaction to customer. The
price of product is low and cheap as compared to others.
Weakness- Less promotion programs which creates less awareness in society. They need
to update their applications in more innovative manner. They do not have facility of combo pack
for family, couples, etc.
Opportunities- They must try dresses for old age people also. They can collaborate with
big brands so they can offer customised branded t-shirt. They can expand their business in
different parts of UK (Renko and et. al., 2015).
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Threat- As there are new organisation entering in this sector so they have to regularly
check what is need of society and then modify its plans and policies.
P6 Impact of Competitive and market environments
There are many factors associated with business. When entrepreneur thinks to establish
business. There are ideas generated in mind by when they are associated with business and
competitive factors then these ideas get out of run. Business of clothing is very trending these
days but it is important to analyse them in best way. There are possibilities that organisation has
to approach which has to be considered by management of company. Business runs in market
and this affects business either in positive or negative manner. There are hurdles in starting
business, these can be removed through use of proper planning and analysis (Shepherd, 2015).
Competitive market- There are different possibilities that company has to achieve
business objectives in best way. There are many organisations working in textile business so it is
essential to analysis pol8icies of competitor and then take corrective actions. Following points
are considered in competitive analysis-
Substitute products: In general there is no substitute of customised t-shirts. But in society
there are some dealers which deal in this but at comparatively higher rate. If quality of product is
not good then there are possibilities of diversion of customer (Devece, Peris-Ortiz and Rueda-
Armengot, 2016).
Target audience- Dream Clothing come with idea of customised t-shirt through online
source so there is requirement of promoting product to young people. Trust is most important
factor in online business so it must be in mind of entrepreneur.
Market environment: This is also important factor associated with business. There are
possibilities that company has to modify their plans and policies. Market analysis contains two
factors i.e. macro and micro environment.
Micro environment- customer, supplier, employees, etc. are factors which is involved in
this. There are possibilities that due to change inn plans and policies of business they get
affected. It is essential that company has to frame policies after analysing these factors. For e.g.
Change in customer demand may affect business growth.
Macro environment- In this external factors of business are included such as Political,
legal, etc. factors are included (Gartner, Carter and Hills, 2016). These factors are not in control
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of entrepreneur but if change is happening outside business then this affects business in adverse
or positive manner.
CONCLUSION
Firstly there are many ideas in mind of person and it is essential to select the best idea
which is best. From the above discussion it is clear that it is essential to consider internal as well
external factors and this provides growth prospect to organisation. There are different
opportunities which organisation can grab and there are possibilities of difference in perception
of workers it is essential to give emphasis on policies which are effective and useful for long run.
There are different chances of grow as per environmental factors. SWOT analysis is effective
tool for company to give emphasis on launching of new idea as per requirement of society.
Entrepreneurial venture is not only beneficial for individual but also for society. There are
possibilities that organisation has to give take care of competition factor and it is essential to
timely modify plans and policies.
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REFERENCES
Books and Journals
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crisis: Success factors and paths to failure.Journal of Business Research.69(11).
pp.5366-5370.
Gartner, W. B., Carter, N. M. and Hills, G. E., 2016. 7. The language of
opportunity1.Entrepreneurship as Organizing: Selected Papers of William B.
Gartner.p.218.
George, N. M. and et. al., 2016. A systematic literature review of entrepreneurial opportunity
recognition: insights on influencing factors.International Entrepreneurship and
Management Journal.12(2). pp.309-350.
Hmieleski, K. M., Carr, J. C. and Baron, R. A., 2015. Integrating discovery and creation
perspectives of entrepreneurial action: The relative roles of founding CEO human
capital, social capital, and psychological capital in contexts of risk versus
uncertainty.Strategic Entrepreneurship Journal.9(4). pp.289-312.
Johnson, G., 2016.Exploring strategy: text and cases. Pearson Education.
Kirzner, I. M., 2015.Competition and entrepreneurship. University of Chicago press.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people.Technovation.39. pp.73-82.
Koryak, O. and et. al., 2015. Entrepreneurial leadership, capabilities and firm
growth.International Small Business Journal,33(1), pp.89-105.
Lima, E. and et. al., 2015. Opportunities to improve entrepreneurship education: Contributions
considering Brazilian challenges.Journal of Small Business Management.53(4).
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Marvel, M. R., Davis, J. L. and Sproul, C. R., 2016. Human capital and entrepreneurship
research: A critical review and future directions.Entrepreneurship Theory and
Practice.40(3). pp.599-626.
McCann, P. and Ortega-Argilés, R., 2015. Smart specialization, regional growth and applications
to European Union cohesion policy. Regional Studies.49(8). pp.1291-1302.
Miles, M. and et. al., 2015. Exploring entrepreneurial marketing.Journal of Strategic
Marketing23(2). pp.94-111.
Renko, M. and et. al., 2015. Understanding and measuring entrepreneurial leadership
style.Journal of Small Business Management,53(1), pp.54-74.
Shepherd, D. A., 2015. Party On! A call for entrepreneurship research that is more interactive,
activity based, cognitively hot, compassionate, and prosocial.
Wood, M. S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
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Online
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TYPES OF INNOVATION THE ‘4PS’. 2017. [Online]. Available
through:<http://www.elrha.org/hif/innovation-resource-hub/innovation-explained/types-
humanitarian-innovation/ >.
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