Entrepreneurial Opportunities: Sources, Analysis, and Strategies

This report delves into the identification of entrepreneurial opportunities, exploring various sources of innovation and idea generation, such as market analysis and understanding changing trends. It examines the concept of market gaps and utilizes tools like Porter's Five Forces analysis to assess the competitive landscape. The report proposes a business idea centered around an accommodation service (Cloud 9), analyzing its potential to fill market gaps and meet customer needs. Data interpretation from primary research, including questionnaires, provides insights into customer preferences and perceptions. Furthermore, the report employs SWOT and PESTLE analyses to evaluate the business idea's strengths, weaknesses, opportunities, threats, and external factors, culminating in a comprehensive assessment of its viability and strategic considerations.

IDENTIFYING
ENTREPRENEURIL
OPPORTUNITIES

Table of Contents
INTRODUCTION.......................................................................................................................3
LO 1.............................................................................................................................................4
P 1 Different sources of entrepreneurial ideas and innovation...........................................4
M 1 Evaluation of sources of innovation..........................................................................5
LO 2.............................................................................................................................................5
P 2 Entrepreneurial idea and the market gap by using relevant tools and technique.........5
M 2 Justification of entrepreneurial idea which helps to fill the gap of the market...........6
LO 3.............................................................................................................................................6
P3 Gap analysis in evaluation of particular entrepreneurial idea-......................................6
P 4 Data Interpretation for the potential of market.............................................................7
M3 Justifying method of data collection-.........................................................................11
LO 4...........................................................................................................................................11
P 5 SWOT Analysis..........................................................................................................11
P 6 PESTLE Analysis.......................................................................................................12
M4 Critical evaluation business idea as per the competition-..........................................14
CONCLUSION..........................................................................................................................14
REFERENCES..........................................................................................................................15

INTRODUCTION
Entrepreneurial opportunities are usually defined as situations where products and
services can be sold at a price greater than the cost of their production. An entrepreneurial
opportunity, thus, is a situation where entrepreneurs can take action to make a profit. This
report covers issues such as sources from where ideas and innovation can be obtained. Idea
and the gap of it in the market. Primary and secondary research. Interpreting the data and the
last section was covered by SWOT and Pestle analysis of the company.

LO 1
P 1 Different sources of entrepreneurial ideas and innovation
There are 7 sources of innovation which is described by the model of Drucker.
The Unexpected-
The place of market is the area where many of the entrepreneurs look for opportunities.
In order to generate the idea entrepreneur must study the market so that they can assess a
product or service and its needs with the level of demand. This way opportunity for bringing a
product or service is founded out and is attempted to convert into success.
The Incongruity-
Many of the entrepreneurs do not conduct a research and directly develop a product
which has high demand in the market. These types of assumptions lead an entrepreneur to
failure. But it is considered as one of the greatest source for entrepreneurs to get innovation so
that they can get inspiration from it (Karimi and et.al., 2016).
Process Need-
This aspect focuses more on task instead of situation. This aspect states that innovation
comes from closely observing the process of the company and take out the errors which can be
improved. This way entrepreneur will be able to get innovative idea.
Change in industry and market-
Structure of industry and market is not predictable as it rapidly which is why
entrepreneurs needs to observe these changes on a continuous basis to look out for an
opportunity.
Demographics-
Any change in the factors related to demographics will affect the market. These
changes affect the market as it assess the demand of the products and services. Age, education
and employment of people helps an entrepreneur to take action in the new prospects.
Changes in Perception-

Entrepreneurs need to understand the way people perceive things as it changes with
time and it can help the entrepreneur to come up with an idea which will fulfill their changing
needs and target new customers (Karimi and et.al., 2016).
New Knowledge-
There are various sources of innovation such as technical and scientific area.
Entrepreneur can not ignore change instead it needs to be adapted by them so that they can
discover something new which is improving the chain of supply and hiring talented
employees.
M 1 Evaluation of sources of innovation
Model by Drucker helps to assess all the factors which helps an entrepreneur to
generate idea. It states that proper research needs to be conducted of the market as if the
entrepreneur is just working on assumptions and demand of the product or service in the
market then they won't be able to get an innovative idea. Other than that they need to
understand the process of working of the company so that they get an proper insight to it
(Jarvis, 2016).
LO 2
P 2 Entrepreneurial idea and the market gap by using relevant tools and technique
Entrepreneur is coming up with the idea of getting into a business of accommodation
provider such as Airbnb. The name of the venture is going to be Cloud 9. The reasons for
choosing this business is because it deals in service industry and the flow of money and rate of
success is high if right amount of strategies are used to attract the consumers. USP of cloud 9
is that it will allow the owner of the property to earn money as rent by providing them a place
to stay for few days and be their hosts. There is a gap in the market because there are many
competitors which affect the growth of the company such as 5 star hotels, Airbnb etc.
Porter's five force analysis
Threat of new entrants-
Usually the threat from new companies entering into the same sector is low but it takes
just a website to enter into this industry. Still there are many barriers which affects the growth
of cloud 9 in the industry such as time when the company entered into the market, raising the
capital is not easy and barriers which are related to legal aspects.
Rivalry among existing firms-

This aspect exists in this industry at a high level there are many factors which the
entrepreneur of the company needs to keep in mind in order to survive the competition.
Growth rate of business needs to be assessed in the industry. Other than this strategies and
target audience of the competitors needs to be kept in mind so that new and effective strategy
can be taken. The most important factor is equity of the brand as it helps them to generate
more consumers and earn more revenues.
Bargaining power of buyers-
This aspect does not have a too much involvement which affects the business of the
industry. Less players in the industry which reduces the impact of direct substitution. Size of
buyers as compared to suppliers. Propensity of buyers to choose substitutes is less as people
don't get these type of facilities by other providers (George and et.al., 2016).
Bargaining power of suppliers-
The power of negotiation of suppliers is high as they deal with only one supplier which
gives them more power over the company.
Threat of alternatives-
There is a high risk of alternatives in this industry as there are many types of
accommodation provider such as hotels, hostels, couch surfing etc. which is a competition for
Cloud 9 as different people have different preferences and difference in budget which is why
they choose on their own.
M 2 Justification of entrepreneurial idea which helps to fill the gap of the market
The idea which is chosen by the entrepreneur will help to fill the gap in various ways as
people will be getting the facility of accommodation at cheap rates which will push them.
Other than that they will be getting these facilities at almost every locations. They can choose
according to their suitability. All the differences of culture and other demands of people will
be kept in mind. The most important aspect of this philosophy is it will help the people to get a
sense of privacy (Gaglio and Winter, 2017).
LO 3
P3 Gap analysis in evaluation of particular entrepreneurial idea-
How did you get up with idea for your business?
 Customer needs
 Change in hotel trends

 Growth in hospitality sector
What problems did hotels are facing today?
 High competition
 Change in customer needs
Do you think customer will like your business idea?
 Yes
 No
What gap is your business trying to fill?
 Fulfil customer needs
 Providing more facilities
The primary and secondary research have been conducted for analyzing the data which
are taken for research. Through primary research it can be analyzed that this business idea is
helpful in fulfilling the needs of consumer at providing them home feeling while they are
travelling at minimum cost. Whereas from secondary research it can be stated that business
could render great facilities to the traveller (Sheth, Karami and Murphy, 2019). This is helpful
for company to attract wide range of consumer successfully to the company. There is slight
gap among both of the research which can be overcome by company buy few efforts
significantly and render the business operation in such a way that they can gain huge success
further. The business idea must satisfy their consumer as well as great facilitates must
provided to the customer so that their revenue and profit of company can be enhanced and thus
they can sustain in market for long term. So business idea will like by consumer, and they will
be attracted toward company too greatly. The hotels are facing lot of competition due to the
high competition and changing preference of the consumer thus they can easily get through
with the consumer and fulfil their needs and demands (Xu, 2020). Further they can also update
their services as per the changing preference of consumer a company can thus gain huge
success further. So the gap among both of searches methods primary and secondary can easily
fulfilled by the company who is entering into the market with the new business idea.
P 4 Data Interpretation for the potential of market
Theme- Idea for business
How did you get up with idea for your
business?
Respondents

Customer needs 6
Change in hotel trends 15
Growth in hospitality sector 9
Total 30
Interpretation- According to the information presented above 15 people has stated that idea
for this type of business is because of change in the trends of hotel. Entrepreneur looked this
opportunities and the emerging needs of the market which made this idea a success. 6
respondents stated that it is because of the needs of the customer whereas 9 stated that it is
because of the growth in the sector of hospitality.
Theme- Problems in hotels
Customer needs
Change in hotel trends
Growth in hospitality sector
Total
0
2
4
6
8
10
12
14
16
Respondents

What problems did hotels are facing today? Respondents
High competition 16
Change in customer needs 14
Total 30
Interpretation- According to the information from the above table 16 out of 30 respondents
has agreed to the fact that the problem they are facing is related to high level of competition.
This is because there are many type of accommodation providers such as Cloud 9, hostels etc.
which is affecting the business of the company. 14 respondents has stated that it is because of
the changing needs of customer it is also possible because their preferences keeps on
changing.
Theme- Preference of customer
Do you think customer will like your business Respondents
High competition
Change in customer needs
Total
0 2 4 6 8 10 12 14 16
Respondents

idea?
Yes 22
No 8
Total 30
Interpretation- According to the information presented above 22 out of 30 respondents has
agreed to the fact that the idea of Cloud 9 will be preferred by people as it is new and updated
according to the current trends of the market.
Theme- Gap in the business
What gap is your business trying to fill? Respondents
Fulfil customer needs 23
Providing more facilities 7
Yes
No
Total

Total 30
Interpretation- On the basis of the above information it has been interpreted that 23 out of 30
respondents has agreed to the fact that the gap that the business is trying to fill is so that they
can fulfil the needs of the customers. This philosophy works on the basis that working
according to their needs will help them to reduce the level of gap in the industry.
M3 Justifying method of data collection-
The primary and secondary research method is being taken for conducting the
research. For conducting primary research the questionnaire has been taken for analyzing what
is the reaction of individual upon this (Reuber and et.al., 2018). In secondary research the data
from Journals, Newspapers and books have been taken for conducting the research. This will
be helpful to analyze that whether the business idea can gain huge interest of consumer
towards the company's services or not.
LO 4
P 5 SWOT Analysis
Strength-
Fulfil customer needs Providing more facilities Total
0
5
10
15
20
25
Respondents

Cloud 9 is providing the consumers an alternative to hotel which is a lot cheaper from
them. Prices set by Cloud 9 is on the basis of competition in a area which gives a variety to
consumers. Other than this company also has a presence on all the digital measures such as
social media so that they can reach to more people. Also they have the facility of customer
service which is open 24/7.
Weakness-
Laws and regulations has been the cause for Cloud 9 as there are many restrictions in
providing the house as a rent which needs to be followed. If the client has a bad host than the
client will leave unsatisfied from the place which will affect the image of the company and
they may have to suffer from negative reviews which can affect the business of the company.
The model that the company has formulated can be easily copied by many players in the
market.
Opportunities-
Cloud 9 has many opportunities as they can enter into those markets which are
emerging and they will have the benefit of first mover which will help them to earn more.
Company also has the opportunity to diversify their portfolio and deal in other areas such as
providing the facility of car rental, travel guides etc. as this way they will be able to earn more
profits. Company has started their own application as it is convenient for users who prefers
phone over computers. The low price offered by the company will help them to achieve more
growth in the market.
Threats-
Cloud 9 is looking for expansion which states that they will have to meet with the
requirements of every country and face the laws and regulations of every country. If these are
not followed then they will have to deal with lawsuits which will affect their image and they
will even loose the support from the government. Other than this there are a lot of competitors
of Cloud 9 such as tripping, VRBO and Airbnb which is the biggest of them all.
P 6 PESTLE Analysis
Political Factors-
The model which is designed by Cloud 9 is not used by many competitors as not many
of the entrepreneurs has thought of making a room available for people in apartments and