Identifying Entrepreneurial Opportunities: Market Gap Analysis Report

This report delves into the identification and evaluation of entrepreneurial opportunities, focusing on the development of a fast-food venture in London. It begins by exploring various sources of entrepreneurial ideas, including those identified by Peter Drucker, and examines the role of entrepreneurs in capitalizing on market gaps and consumer needs. The report then presents a specific entrepreneurial idea for a fast-food outlet specializing in fries, followed by an analysis of customer identification and segmentation. A market gap analysis is conducted using survey data, interpreting factors influencing customer purchase decisions. The report also includes frequency tables and statistical analysis to support the findings. Furthermore, the report incorporates Porter's Five Forces model, McKinsey 7S framework, and a SWOT analysis to evaluate the competitive environment and provide a strategic framework for launching the venture. Finally, the report concludes with a summary of the key findings and recommendations for the proposed fast-food business.

IDENTIFYING
ENTREPRENUEIAL
OPPORTUNITIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1-Various sources of entrepreneurial ideas and innovations................................................1
LO 2.................................................................................................................................................3
P2- Choice of specific entrepreneurial idea:..........................................................................3
LO 3.................................................................................................................................................4
P3 Presentation of the data in order to support the gap analysis to evaluate specific
entrepreneurial idea................................................................................................................4
P4 Interpretation of the data in terms to provide the evidence of market potential.............13
LO 4...............................................................................................................................................14
P5 SWOT framework to support objective framework........................................................14
P6 Competitive and market environment in which idea can be launched............................16
CONCLUSION:.............................................................................................................................18
REFERENCES:.............................................................................................................................19
Book & Journal.....................................................................................................................19

INTRODUCTION
` Entrepreneurship is one of the essential tasks and it is need to performed well as it is
helpful in order to bring number of opportunities. The entrepreneurs are helpful in terms to cope
up with rivalries in market (Chaston and Sadler‐Smith, 2012). The present report will focus over
the activities as are differed source of entrepreneurial ideas with the help of which profitability of
firm can be generated. In addition to this, assignment will focus over the entrepreneurial ideas as
to determine the market gap for fast food ventures. In this way, this report will also discuss about
the SWOT analysis of framework, market environments and evaluation of business activities.
LO 1
P1-Various sources of entrepreneurial ideas and innovations
Sources of business ideas:
A business idea can come anywhere to name a few from personal skills, experience, mass
media, surveys, hobbies, talents and many more.
Various sources of opportunities
Peter Drucker is modern management investors who have effective knowledge of the innovation,
entrepreneurship and leadership (Audretsch, 2012). The following are seven sources of
innovative opportunity by Drucker:
 The unannounced-
The enterprise world is inundated of unexpected success and failures. It involves both
success and failure of the organization. In order to invent the success, organization have to bring
some innovation and invention.
2. Incongruities-
Understanding what actually consumer wants and what it has or the difference between what is
and what it is supposed to be can become a great source of inspiration of innovation.
3. Industry and market structure changes-
The leaders are required to keep an eye on the change within the industry and to treat such
changes not as threats but more like as opportunities.
4. Change in the perception-
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With the involvement of technology and power of social networks the perception of people about
certain industry, brand or product changes overnight. This change in perception opens a road to
innovation of development of new products and services.
5. New knowledge-
With help of new knowledge and idea, organization can bring innovation and invention along
with product and services. New knowledge helps to company in develop new product and
services
6. Demographics-
A change in the demographics affects the company in one way or another. These changes
affect the demand, buying habits and quantity of the commodity. The sociology change in
employment age, education, affect the business and open new doors of innovation.
7. Process need-
The innovation is much project focuses on the specific situation. The chance for invention
ejaculate after looking into the process of the organization and clearly distinguishing he fail
points.
Role of entrepreneur:
Entrepreneur seeks a spread between the requirement of customers and deliver services to
them accordingly. He/she has various skill, knowledge and quality of carry out various functions
and activities of business. They are flexible and willing to move forward by adapting the changes
and new information (Chaston and Sadler‐Smith, 2012). They grab every opportunity be it
change in technology or any demo-graphical change or a change in the perception of the
consumers. Convert such threat into a business opportunity.
Types of innovation:
Product innovation, process innovation, architectural innovation, radical innovation,
incremental innovation, disruptive innovation, big bang and Schumacher's 5 source of
innovation.
Difference between product and business idea-
A business idea revolves around a product for selling and making money while a product
idea means to develop and innovate a new product.
Exploring Creativity:
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To identify and innovate an idea is not enough its understanding and practice is necessary. It can
be done through by mind mapping, six thinking hats, lateral thinking and picture association.
LO 2
P2- Choice of specific entrepreneurial idea:
Here we are have decided to start a new business as fast food services to establish in
London. For implementing the fast food outlet in new market at new place it is essential to
identify the need and wants of customers. The one of the crucial decision is about to have
selection of the place, the entrepreneur needs to select the posh area of London where Large
volume of Tourist uses to visit. For attracting the buyers the entrepreneur has decided to offer
attractive discount facilities so they can able to earn long term profitability and productivity. The
food outlet will be named as frying out load, London, UK.. This will be famous for fries and that
would be available in different flavors.
Identification of customer-
To identify the target market is of key importance by which organization can focus on the
specific group of customers. By select some specific group of customers, organization can meet
needs and wants of the customers in effective manner. This is more effective, affordable and
efficient (Chell, 2013).
By focus on the specific customers, organization can easily deliver appropriate services and meet
their demands.
Interpretation: It can be done by interpreting following
 Quality- the quality and the dedication shown by firm to its customers.
 Identification- how much the firm is known in the market place and what position it
holds.
 Image- what is the image of the firm among the competitor’s weather it is positive or
negative.
 Issues- how the firm handles any bad scenario in the market place.
Investigation:
it can be done by following-
 Know how- how much the manager is enabled to probe into critical area of ambiguity.
 Experience- how much experience does the manager and other top-level employees
holds.
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 Competition- how the firm deals with the healthy and sometimes the unethical
competition.
Customer segmentation:
 Demographically:This segmentation can be done on the basis of age, culture, income,
education, culture etc.
 Behavioral: This segmentation can be done on the basis of personality, attitude, values,
interests, hobbies, lifestyles and behavior.
 Geographical: This segmentation can be done on the basis of product based on seasons,
size and type of region, food inclinations, launch product and service in new region
(Dimov, 2011).
Understanding the business environment-
A business operates in an industrial environment which is both macro and micro.Both the
environment affects the firm simultaneously. Thus, firm has to identify the major environmental
factors that affects it can than it to prepare a strategy and plan to respond to such factors.
Porter's five force model:
 Industrial rivalry: The competition and the rivals the same industry makes it tough for a
new firm's survival.
 Threats of new entrance: This always boost up the competition and makes it tough.
 Threats of substitutes: A similar product in market reduces the sales.
 Power of suppliers: Number of suppliers, availability and uniqueness of product with
them, more the number of suppliers more it is easy to switch.
 Bargaining power of buyer: More the bargain less you earn.
Mckinsey 7S frame- It is approach that id comprised of hard and soft elements. This, this defined
in following manner as are-
HARD ELEMENTS-
Strategy- This is framework that aids to define vission and mission of the new enterprise so that
proper action can be carried out.
Structure- Under this, structure of the enterprise represents in hierarchical layers.
Sysytem- It is process that is inckusive of formal and informal method of operations, procedures
and communication flows.
SOFT ELEMENTS-
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Style- To undertake enterprenuerial activities effectively, the differ style must have been used as
leadership and management style.
Shared values- At this stage, standards and values used to be framed so that vision, corporate
culture and identity can become key elements.
Skills- At this level, skills of organisation and employees both will be considered.
Staff- It is about the employees, competence and job description.
LO 3
P3 Presentation of the data in order to support the gap analysis to evaluate specific
entrepreneurial idea.
Questionnaire
1. What kind of factors can influence customer at time of making purchase decision?
 Quality
 Quantity
 price
 Services
2. 2. How can customer access to information about products launched by manufacturers?
 Social media
 Mobile marketing
 Television commercial
 With use of technical advancement
3. 3. Do customers buys innovative products?
 Yes
 No
4. 4. Do you prefer to buy at the time of discount facilities offered by enterprise?
 Yes
 No
5. Do you think gap analysis approach assist to improvise profitability and productivity?
 Yes
 No
6. Is McKinsey approach supports to formation of appropriate plans for gaining
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competitive advantage?
 Yes
 No
 May be
Statistics
Whatfactorsinflu
encecustomeratt
imeofpurchased
ecision
Howcancustome
rcanaccesstoinfo
rmationaboutpro
ductslaunched
Doyoulovetobuyin
novativeproducts
N Valid 20 20 20
Missing 0 0 0
Mean 2.1000 2.2500 1.2500
Median 2.0000 2.0000 1.0000
Mode 1.00 1.00 1.00
Std. Deviation 1.11921 1.16416 .44426
Variance 1.253 1.355 .197
Sum 42.00 45.00 25.00
Interpretation- This is on interpreting the above conducted analysis which is descriptive in
nature and involves the calculation of 4 vital findings named mean, median, mode and standard
deviation. On considering the foremost query of factors influencing customers while making
decisions, it has been found that its mean value is supporting the 2nd option, which is Quantity.
Similarly, the median value is also found to be 2. This means that more than 50% of participants
have somewhere favoured the factor of quantity. However, the mode value, i.e., 1 signifies the
fact based on acquired frequency that has mainly supported the 1st alternative, i.e., quality.
Although, the value of standard deviation has been found to be 1.11 which signifies no much
deviation of mean value.
Likewise, another query is in regard to identify the way by which, customers can easily
access the information about any newly launched product and services. Herein, both values of
mean as well as median have signified a major preference towards mobile marketing. However,
the value of mode being 1 has indicated a huge emphasis on the use of social media by the
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consumers to determine such type of information. Lastly, any change in the value of above
acquired mean does not seem to change much on referring to the attained value of standard
deviation, which is 1.64.
Finally, the urge to buy innovative products by the customers was tried to be
acknowledged. At this point, all values of mean, mode and median depicts the value 1 and hence,
supports the 1st alternative stating Yes by most of the consumers. Also, the value of standard
deviation represents negligible chances of changing the above calculated values.
Theme 1: Quality affects at time of making purchase decision.
What kind of factors can
influence customer at time of
making purchase decision? Frequency %
Quality 8 40.00%
Quantity 5 25.00%
price 4 20.00%
Services 3 15.00%
Total 20 100.00%
Frequency Table
Whatfactorsinfluencecustomerattimeofpurchasedecision
Frequency Percent Valid Percent Cumulative
Percent
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Valid 1.00 8 40.0 40.0 40.0
2.00 5 25.0 25.0 65.0
3.00 4 20.0 20.0 85.0
4.00 3 15.0 15.0 100.0
Total 20 100.0 100.0
Interpretation- As per above frequency table it has been interpreted that 8 respondents said that
they makes purchase decision as per quality of commodities. 5 said they prefers quantity, 3 said
they prefer product on basis of it price and 3 said that thy prefers services to buy commodities.
Theme 2: Social media helps to access information of products.
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2. How can customer can access
to information about products
launched by customers? Frequency %
Social media 7 35.00%
Mobile marketing 5 25.00%
Television commercial 4 20.00%
With use of technical
advancement 4 20.00%
Total 20 100.00%
Howcancustomercanaccesstoinformationaboutproductslaunched
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 7 35.0 35.0 35.0
2.00 5 25.0 25.0 60.0
3.00 4 20.0 20.0 80.0
4.00 4 20.0 20.0 100.0
Total 20 100.0 100.0
Interpretation- As per above stated frequency table it can be stated that there are total number fo
20 respondents. In which 7 said yes they relay on social media, 5 said they laid over mobile
marketing, 4 depends over television commercial and 4 said they related with technical
advancement.
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Theme 3: Most of respondent like to purchase innovative commodities.
3. Do you loves to buy
innovative products?
Yes 15 75.00%
No 5 25.00%
Total 20 100.00%
Doyoulovetobuyinnovativeproducts
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