Identifying and Evaluating Entrepreneurial Opportunities: A Report

This report, titled "Identifying Entrepreneurial Opportunities," explores the process of transforming business ideas into viable ventures, specifically focusing on a start-up retail mobile phone business named "Let's Chat." The report begins by evaluating various entrepreneurial ideas and innovations, including offering bundled services like free talk time and internet data with phone purchases, and assesses their feasibility using PEST factors and Peter F. Drucker's 7 factors of innovation. It analyzes social, economic, technological, and political factors influencing the business environment. The report also delves into market gap analysis, identifying specific customer types, market segmentation strategies (behavioral, demographic, and geographic), and the tangible and intangible features of mobile phone products. Furthermore, it utilizes Porter's Five Forces model to assess the competitive landscape and identify potential threats and opportunities. The report concludes with an evaluation of the business's potential viability within the competitive market environment.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluate various types of entrepreneurial ideas and innovations.....................................1
TASK 2............................................................................................................................................4
P2 Explain the rationale and the market gap for a specific entrepreneurial idea...................4
TASK 3............................................................................................................................................7
P3 Present data needed to support gap analysis in evaluation of entrepreneurial idea..........7
P4 Interpret data appropriately to provide evidence of market potential.............................12
TASK 4..........................................................................................................................................14
P5 SWOT framework to collect evidence to support an objective assessment of a specific
entrepreneurial idea..............................................................................................................14
P6 Evaluate competitive and market environments in which the idea will be launched to
assess potential viability.......................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurs used to grab an idea through his virtue and talent which gives many
opportunities to open a new business. Before implementation of ideas they are required to firstly
identify such opportunities using tools like marketing gap and competition analysis which is a
most complex procedure (Kohlbacher, Herstatt and Levsen, 2015). Along with this, they use
Porter's Five forces model, SWOT and PESTEL techniques as prominent tool for analysing
competition at marketplace. With this assistance, following report is based upon a new start-up
business by turning a new idea into it and named by Let's Chat. This new enterprise is a start-up
of retail business of mobile phones which offers different plans for customers who are buying
electronic products. Therefore, this file reveals from where entrepreneurs gets idea and they turn
it into business.
TASK 1
P1 Evaluate various types of entrepreneurial ideas and innovations
A graduate person is going to start a new business outlet for which he has grabbed several
ideas like if a customer has bought new phone then he will get 6 months talk time free along with
3 months internet services. Along with this, if consumers want to purchase its products on EMIs
then they will get the same service but for 2 months validation only. These ideas can help in
acquiring customer's mind in a profitable way (Mathias and Williams, 2017). Along with this, for
getting success in such manner they are required to check feasibility of each idea. This can be
done by conducting macro analysis like PEST factors and Peter F. Drucker's 7 factor of
innovation. Furthermore, there are various sources which inspire entrepreneurs to develop
business idea. Therefore, to open an outlet named by Let's Chat, business planners need to
analyse sources and factors which impact on their ideas. It includes some external environmental
factors as stated below:
Social Factor: It reveals financial conditions of society like how uch they can pay for
particular commodities. In today's global world people become Eco-friendly also which shows
that feasibility of android application is much good. Reason behind this is that android makes
them aware about there changes in laws and legislations as well as provides various information.
Economical Factor: Economy of UK currently looks quite good and stable. This shows
that per capita income as well as GDP growth rate are also good (Mueller and Shepherd, 2016).
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Therefore, for turning an idea into business, entrepreneurs get finance easily and on easy terms
or conditions.
Technological Factors: Due to technological advancement, changes in mobile
applications are running at fast rate. This would provide several opportunities for technical
sectors to launch their business in a profitable manner. In mobile world of technology, daily new
applications and features are invented by various mobile companies through which they assist
customers to buy their products on any cost. This factor gives innovative ideas to open a new
retail business of mobile phones.
Political Factor: In telecom section, due to rapid changes in technologies people used to
switch their mobile phones by new ones in order to get something better. Life of people is
surrounded by Wi-Fi and internet, therefore, they always wish to acknowledge this feature as
their basic rights from government (Ramoglou and Tsang, 2016). These features are required on
day-to-day operations in all field like in education sector, career development, official work and
more. But due to political impact of regulatory bodies many changes are occurred in prices of
such services like tax policies and legal rules. This process impacts on prices of commodities of
telecom services, therefore, it is good for generating an idea into business of service provider.
Therefore, from this macro analysis, it is clear that idea of retailing mobile phones is a
feasible plan. Furthermore, another analysis which is based on Peter F. Drucker's innovation
factors are stated as below which consists 7 sources of ideas:-
Incongruity: Since every organisation wants to deal products in an ideal manner
therefore, incongruity shows gap between before turning an opportunity into business idea to
after its implementation. Thus, business planner can analyse effectiveness of idea in a proper
manner.
Process Need: It helps in identification of innovation's need in business model for
accomplishment of goals and objectives. Like in context of retailing mobile phones, if sales
performance is running down then it suggests company to hire more persons in marketing
department so that this process becomes faster (Suddaby, Bruton and Si, 2015).
Industry & Market Structure Needs: Market structure impact on every business in such
a manner like it creates many opportunities as well as threats to them. Therefore, before
launching business needs to analyse market structure which shows the interconnected
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characteristics. It includes strengths of buyers and sellers along with forms of competition,
product differentiation and the way of easy of entry as well as exit from market.
Demographics: In order to start-up a new business, a person needs to consider
demographic changes also which includes alteration in population, level of income, capital etc.
Like if economy of a nation is growing at fast rate then income level of citizens also grow which
impacts on purchasing power of them (Renko and et. al., 2015.). In context with mobile phones,
people having good income can avail such products easily.
Changes in Perception, Meaning and Mood: Due to changing in trends at marketplace,
life style and preferences of people also get change. They always awaited for new features and
android applications to fulfil their desires. Therefore, it is good for business planner to start-up
their outlets in technical sector.
New Knowledge: According to invention and innovation entrepreneurs are required to
generate ideas thoroughly. They should consider on each and every factor before turning their
ideas into business.
Unexpected: In order to start a start-up a business, persons are needed to identify all
opportunities of marketplace first which helps in acquiring more and more customers easily
(Ramoglou and Zyglidopoulos, 2015).
Type of Innovation:
There are different kinds of innovation present at marketplace according to type of business. In
context with small business, some types of innovation can be stated as:- Product: It shows product differentiation of one company's goods from others. It refers
features and qualities of commodities and services of telecom services. Process: Process reflects innovation in business operations where an innovator is start-up
an outlet having different concept to sell its commodities. Incremental vs. Big Bang Innovation: Incremental innovation involves a small updates in
products or processes of a company in order to improve their qualities. On the other hand,
Big Bang is a better product development process which generate enthusiasm and
innovation by identifying roots of problems.
 Schumpeter’s sources of innovation: It is a business cycle which states that due to
innovations a company can increased investment in business operations.
Difference between Invention and Innovation:
Invention Innovation
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It creates new products which is based on
innovative idea (Gielnik and et. al., 2015).
Thus, an inventor requires scientific skills to
create inventions which has never used before.
Innovations consist fresh ideas to create
modification in existing products so, it doesn't
requires invention. Along with this, it adds
value in commodities in order to introduce
more creativity as well as a person requires
skills like technical, marketing and formulating
strategies for introducing innovations.
Difference between product or business idea:
Product Idea Business Idea
It is a concept of creating modification in
existing one or manufacturing new products
according to demand of customers.
Business idea relates with earning more and
more money by turning opportunity into it.
Therefore, in order to turn opportunities into
business idea a person needs product idea.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea
In order to start-up a new business, an entrepreneur needs to identify needs of customer
related to mobile phones. It includes what people actually desire in mobile apps according to
their purchasing power (Ramoglou and Zyglidopoulos, 2015). This process would help business
planner to start outlets according to desires of customers. Along with, people associated with
new business should know features of all products so that they can make product differentiation
easily. Furthermore, analysing marketing gap also needs to evaluate which defines the difference
between current market conditions and desired circumstances. Market gap is taken as a tool by
entrepreneurs to evaluate future opportunities and how it will be helpful for generating profits
through business idea.
Need to identify specific customer types for target idea: Since preferences and
lifestyles of every individual is different. Therefore, to sell products of single brand is not so
beneficial to complete their demands in an effective manner. In context of business idea for start-
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up at marketplace, a retailer needs to offer commodities of wide range of many companies. They
should provide products on various discounts as well as on different range according to
purchasing power. A shop having wide range of products of various brands assist customers to
buy easily which is depend on features of mobile phones.
Market Segmentation: It is a process of distributing marketplace into potential
customers on the basis of characteristics. This procedure helps in catering services accordingly.
In context with start-up business of mobile phones market segmentation can be done as:- Behavioural Segmentation: In this era, marketplace is segmented according to
behavioural patterns of customers. Like if people of an area are Techno-friendly rather
than Eco-friendly then they can easily purchase mobile phones of new features. Demographically Segmentation: It this section, segmentation of an area is based upon
status, lifestyle and level of income of people. In context with mobile technologies, such
products cannot offer on easy or affordable cost, but to necessities of mobile phones
every individual purchase it.
 Geographic Segmentation: This area of distribution is depends upon geographical places.
Mobile technologies are much affected by geographical condition, therefore, new
business launcher needs to analyse this in order to sell their commodities in a profitable
manner (Kirzner, 2015).
Tangible & Intangible features and benefits of a product or service
Tangible Intangible
It relates with visible features of commodities
which customers seek before buy.
It shows invisible features which can feel after
using services of a product.
For instance: Features like camera quality,
touch screen, fingerprint scanner, battery,
RAM and ROM etc. comes in tangible.
For example: Applications, software and
automatic updates are intangible features.
Industry Environment:
It is a factor of macro environment which helps in analysing knowledge about benefits
and threats of new entrants. From analysis shown in above part, it has concluded that turning a
business idea into start-up is a feasible and economic idea (Kirzner, 2015). Therefore, an
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entrepreneur needs to evaluate opportunities and threats of marketplace before launch its
business.
Porter's Five Forces Model
Porter's five forces model is taken as a good tool in analysing the opportunities and
threats present at marketplace. It helps in assuming the future position of a new shops which an
entrepreneur going to be launched at marketplace. It includes:-
Supply Power: It reflects power of suppliers from whom an outlet purchase the products
for further selling. But in context with mobile phones, suppliers haven't much strong position as
companies are need to sell their products as much as possible (Karimi and et. al., 2016).
Buyer Power: In order to gain high return on investment, strengths of buyers is a strong
factor. An entrepreneur, therefore, needs to evaluate purchasing power of buyers. Likewise for
retailers of mobile phones, these products are offer on same MRP rates. Hence, outlets need to
develop marketing strategies in order to attract customers to buy their products.
Threat of New Entrants: It shows threats of new entrants for a business planner. Thus,
entrepreneurs are required to analyse marketplace like how many competitors are present there.
Apart from this, it reveals new business planner about how much it is easy to enter in a
competitive market.
Bargaining Power of Suppliers: This factor shows negotiation power of suppliers. As
telecom companies are used to provide new and unique features of mobiles phones. Through
which products of such companies are increasing at high rate (Hmieleski, Carr and Baron, 2015).
This would generate high bargaining power of suppliers. In order to gain competition advantage,
a new outlet of mobile phones need to provide demanded products at shop which helps in
acquiring large number of customers.
Threat of Substitutes: Telecom companies are used to produce innovative techniques in
their mobile phones having unique features. Another factor of substitute can be linked with a
particular firm is selling their products which consist of all the features at higher rates and the
rivalry firm is selling the similar products of another company with the similar features For
Example APPLE and VIVO smartphones are having the similar features but there is different in
the prices of their products due to their brand image.
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Using Porter's five force model entrepreneurs can analyse the profitability of competition
for analysing future performance of business (Hatak and et. al., 2015.). Further, they need to
consider on approaches to rivalry analyse which consists a six step model as stated beneath:-
Approaches to Competitor Analysis:
 An entrepreneur needs to identify current and potential competitors at marketplace.
 Business planners should determine the areas where they are more effective as compared
to rivals in terms of product quality, customer service, media and price.
 Marketing mix strategies.
 Competition matrix should be created according to demographic.
 Recognise which areas are much vulnerable for matrix.
 Consider marketing gap which shows difference between current area and expected one.
Industry Life-Cycle:
(Source: Industry Life-Cycle Phase and M&A)
Life cycle of industries shows following phases:-
 Pioneering phase.
 Accelerate Growth Phase.
 Mature Growth Phase.
 Industry Maturity Phase.
 Decline Phase
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Illustration 1: Industry Life-Cycle

TASK 3
P3 Present data needed to support gap analysis in evaluation of entrepreneurial idea
In order to analyse actual and future opportunities of marketplace, business planners are
required to hire a researcher who will investigate the same in a proper manner (Gielnik and et.
al., 2015). Since in present scenario, an entrepreneur start-up a new business therefore,
investigator should conduct many analysis like behaviour, demographic and geographical
segments of customers. They must carry out a survey on people of particular area in order to
know needs and demand of them. Therefore, for opening an outlet named by Let's Chat in UK
marketplace, researcher of this firm along with a group of expert members, carry out a survey on
100 persons by making a questionnaire format and take their feedbacks accordingly (Foo, Uy
and Murnieks, 2015). Therefore, as per analysis they have concluded that out of 40 respondents,
near about 15 wants mobile phones at low cost but having new and unique features. Along with
this, 18 respondents wants products of high qualities according to their status, while rest are
believe on items of high technologies available at any price. Therefore, entrepreneur needs to
offer products of high demanded mobile phones and wide range of prices.
Gap Analysis: It reflects gap between actual performance with expected ones. If an
outlet fails to fulfil demand of customers on time then it will impact negative on its image at
marketplace and people will start to move on new shops. Along with this, it shows key areas also
which reflects differences and how an entrepreneur can overcome from such a situation.
For this purpose, to evaluate between actual and expected performance of business, data
analysis has been given below:-
Questionnaire
Name
Age
Address
Contact No.
Q1. Do you think Let's Chat offers innovative services?
A. Yes
B. No
Q2. Are you satisfied with services of Let's Chat?
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A. Yes
B. No
Q3. Which service of Let's Chat attract minds of customers more?
A. Discount
B. Customer Service
C. Easy Payment Method
Q4. What are the major factors affect business of Let's Chat?
A. Number of competitors
B. Ineffective marketing strategies
C. Delay in customer services
Q5. Any Recommendation...
Theme1. Let's Chat offers innovative services
Q1. Do you think Let's Chat offers
innovative services?
Frequency
A. Yes 22
B. No 18
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A. Yes
B. No