Innovation and Entrepreneurial Opportunities Case Study

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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
Table of Contents
Introduction......................................................................................................................................3
LO1: Evaluate possible sources for a new and innovative business idea (P1)................................3
LO2: Explain the choice of a specific entrepreneurial idea for investigation and the market gap
that it addresses................................................................................................................................7
LO3: Use of primary and secondary data......................................................................................11
LO4: Evaluation of the Idea in context of market and identification of potential viability..........13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
Introduction
As the modern business market has become increasingly competitive, the entrepreneurial ideas
are becoming increasingly profitable and sustainable business models (Campbell, 2019). This
report will highlight the various aspects of entrepreneurial innovative ideas, and will evaluate the
feasibilities and profitability of an entrepreneurial idea of organic fruit juice in Tetra Pak without
preservatives in the UK market.
LO1: Evaluate possible sources for a new and innovative business idea (P1)
Entrepreneurial ideas and innovation
An entrepreneurial idea is usually a new and innovative business venture that is taken up by an
entrepreneur, along with all the related market risks and possibilities of business failure.An
entrepreneurial idea is thus the planning of a unique and innovative business model that an
entrepreneur thinks up while bearing all the potential market risks such as high market
competition, low customer demand and many more (Cheng, Cheng and Zhuang, 2019). As
entrepreneurial ideas are innovative in nature, they have the opportunity to arise out of different
situations encountered in personal and professional life of the entrepreneur. This allows the
entrepreneur to evaluate the viability of the entrepreneurial idea from different perspectives and
come up with an optimized business model.
Peter Drucker’s 7 Sources of innovation
As opined by Peter Drucker (2014), the innovative ideas and opportunities can arise out of
different situations, which can be a part of the business market, or simply an event in personal
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
life. However, all the sources of opportunities for innovative and entrepreneurial ideas to emerge
can be categorized within 7 different fields, which have been analyzed below:
The Unexpected: In the business market, the unexpected success of failure of an existing
product or services can open up the path for an entrepreneurial opportunity. For instance,
Liudmila (2019) opined that if a food retail organization brings in a new brand of fruit juice, then
there will be a number of different factors that may be responsible for its unexpected success or
failure, such as the existing fruit juice products of its competitors, the customer preferences
regarding health-consciousness and taste, the contemporary social trends and many more. An
entrepreneur can learn from these unexpected success of failures, and create an innovation.
The Incongruity: The difference between the existing products or services, and the demands or
complaints of customers can give birth to innovative business ideas. The understanding of the
demand of customers can drastically enhance the business success of an entrepreneur (Wolfe,
2019). For instance, before developing their social media platform, Facebook carefully analyzed
the discrepancies between the existing services of Myspace, and what its users demanded from it.
This heavily contributed to the success of Facebook as the leading social media platform.
Process Need: The process need isan internal innovation or incremental innovation, which
comes from the identification of inefficient points in the entire business process of an
organization, and its modification or enhancements in order to raise the overall efficiency of the
organization. For instance, Ibata-Arens (2019) opined that the usage of excess electrical power or
raw materials can be reduced in the production process of a pharmaceutical drug, which can
minimize the operational cost and in turn, reduce the price of the product. This is practically an
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
innovative optimization of the entire business process to eliminate the inefficiencies or wastages,
and enhance the business profitability.
Change in Industry and Market Structure: A sudden change or modification in the
legislations and regulations in an industry or business market can create an opportunity for
entrepreneurial innovations to emerge. The laws are usually governed by the government, and
they may decide to relax the industry regulating policies in order to attract companies, and this
can give opportunity for sudden and unprecedented expansion of a few particular companies
(Alexander and Joe, 2019). For instance, when a strictly state-controlled industry becomes open
for private entries, the company who enters early gets a huge advantage over its future
competitors.
Demographics: The demographic characteristics of the target customer segment can change
frequently, and monitoring it constantly can allow an organization to make innovative products
or services to meet their exact demands within their price affordability, allowing the sales figure
of that organization to increase drastically. For instance,Matsunaga (2019) opined that as
children get older, their needs and demands also changes rapidly. Thus, if a children’s book
production company maintains follow-up connectivity with their children customers by
providing them a wide choice of teenager books as they grow up, the company will be able to
gain an immense sales figure and a strong brand image.
Changes in Perception, Meaning and Mood: This is related to the demographics to some
extent, as it states that as people grow older, their perceptions about themselves and their
surroundings changes, and so does their moods and habits. Keeping tables on the perception
changes of the target customers can allow a company to come up with innovative opportunities
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
to enhance their business (Korobov et al., 2019). For instance, as a customer of a cosmetics
company gets older, the company starts to recommend anti-aging products to that customer,
since people usually wishes to look younger than they really are.
New Knowledge: The discovery and development of new knowledge and theories regarding the
products and service technologies can be a prime source of new knowledge and entrepreneurial
opportunities. For instance,Qin et al. (2019) argued that the development of the digital
technologies has given birth to many web-based services such as cloud computing, online video
sharing such as YouTube and social media like Facebook. Moreover, new and innovative
production processes for various chemical products are also being developed using advanced
knowledge of engineering and technologies.
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
Figure 1: Peter Drucker’s 7 Sources of Innovative Opportunity
(Source:Qin et al., 2019)
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
LO2: Explain the choice of a specific entrepreneurial idea for investigation and the market
gap that it addresses
P2: Explain the rationale and the market gap for a specific entrepreneurial idea using
relevant tools and techniques to support your choice.
Customer types
It should be noted that it is essential to identify the customers for the new idea that has been
generated. This is mainly because of the fact that customers will play an important role in the
success nature of the innovative idea. The various segments of customers are described below:
Price
Price is one of the factors that the food industry segments their products. The price category for
the production of Organic mixed fruit juice without preservatives and additives using tetra pack
will range from $3 to $5. The products will be sold through the stores where the stores will have
one single product line only (Tremarin, Brandão and Silva, 2017).
Location
Location will allow the sellers of the tetra packs to target smaller local audiences and serve the
regional audiences in an effective manner. This is mainly because of the fact that the product can
be adjusted in accordance with the need and preference of the customers and distribute
accordingly (Karnopp et al., 2017).
Product lines
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
The product line of the tetra packs are single and hence they are segmenting customers who are
more of health conscious and use tetra packs for consuming liquid products. However, the
service and availability of the juice tetra pack will be categorized as per the need of the local
customers and demands raised by them (Priyadarshini and Priyadarshini, 2018).
Demographic
Demographic segmentation will be done in accordance to the family size and income nature of
the population who tends to prefer liquid food items through using tetra packs and are very much
health conscious. This will help in targeting consumers in a more accurate manner. Further, this
will also help in understanding the psychographic nature of the consumers i.e. their likes and
dislikes about consumption of organic fruit juice.
Features of the tetra pack containing non-preservative organic juice
Tetra packs carries immense importance for preserving fruit juices. The juice packs will not be
using any kind of preservative or additives so the tetra packs will work as a preservative to
preserve the organic juice. The benefits of the tetra packs are being discussed below:
Handles aseptic and non-aseptic products
The piston cartridge design helps in maintaining a highest level of hygiene for the products when
aseptic or non-aseptic applications are being used to make tetra packs. It helps to keep the juice
in a condensate temperature where the product quality is not hampered (Miranda-Ackerman et
al., 2017).
Automatic process and recipe control
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
The automation process helps in adjusting with the changeovers that the production process may
offer for not including preservatives. The system of tetra packs helps in adjusting the parameters
of production used during producing the organic juice.
Keeps the product healthy
The tetra pack helps to keep the product healthy by detecting any leakage through which foreign
substances can enter into the product and may cause several damages (Tremarin, Brandão and
Silva, 2017). Thus, it seals the product and ensures a good high quality of the product.
Present condition
The juice mareket is growing at a rapid pace and is becoming popular among the juice lovers
who are mounting towards a healthier consumption of healthier fruit and vegetable juices. This is
mainly because of the fact that the nutritional values are very much high and there is a significant
rise of robust fillip of consuming packaged fruit juices around the world.
According to Priyadarshini and Priyadarshini, (2018) changes in the lifestyle has increased
demand of package foods where tetra packs plays an important role. The new idea i.e. production
of Organic mixed fruit juice without preservatives and additives and packaged in Tetra Pak will
be welcomed by the customers. However, success of the idea will completely depend upon the
availability and geographical distribution of the products among the various segments of the
markets. The distributors might need to adjust some features of the product in accordance with
the taste and preference of the consumers. It can be noted that in beverage industry juices
constitutes the most competitive segment and dynamics of the business depends upon it only.
However, substitute products will dictate the success nature of the product.
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
Porters’ analysis model
The porters hold an important aspect which will have an important consequence on the entrant of
the new idea i.e. Production of Organic mixed fruit juice without preservatives and additives and
packaged in Tetra Pak on the market.
Power of suppliers:
Suppliers hold a strong power in to the success for the new business idea. This is mainly because
of the raw materials that are being supplied by them to make the juice product (Demirkol et al.,
2017). The shift of high to low cost of production depends on the power of suppliers and the
availability of resources effectively. Thus, supply and demand of raw materials dictates the
power of suppliers.
Power of buyers
Revenue that can be generated through the help of this new idea is more or less dictated by the
customers. There are various types of customer who will add value to the idea that has been
generated. Therefore, the buyers carry lot of power who will accept the idea and will contribute
to the success of the business idea. Easy convenience to the product is the key to success.
Substitute
There are lots of substitute goods present in the market which might limit the success of the new
business idea i.e. Production of Organic mixed fruit juice without preservatives and additives and
packaged in Tetra Pak (Priyadarshini and Priyadarshini, 2018). These products may be similar to
monitory value or may be healthier in nature.
Rivalry
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INNOVATION AND ENTREPRENEURIAL OPPORTUNITIES: A CASE STUDY
The competition level in the industry is huge which is increasing the intensity of the rivalry.
Hence, eradicate this competition level, it is essential for capture various segments of the markets
and design the product in accordance with the need of the market. Further, the grade competition
can be minimized trough the help of this and it will increase the acquiring of the market through
the help of this product (Tremarin, Brandão and Silva, 2017).
LO3: Use of primary and secondary data
P3: Data Needed for GAP Analysis and data collection techniques
The data that will be needed to make sure that idea of producing mixed fruit juice will be
successful is consisting in both primary and secondary sources. The data collection process is
very necessary in this context due to the fact that every business needs a guideline on which the
resources will be applied accordingly. If any business is able to make sure that data is collected
effectively, then, the business entrepreneurs will be able to understand how exactly the resources
should be allocated. In the case of reducing mixed fruit juice, both primary and secondary data
will be needed.
The primary data will be collected by conducting surveys. In this case it is mentionable that the
survey will be conducted will be taking into account the opinion of regular buyers of fruit juice
and energy drinks. Leading supermarkets and retail stores will be asked for permission as far as
conducting the survey is concerned. It is also mentionable that questionnaires will be used to
interview store managers of different leading retail organisations. The objective in this activity is
to make sure that perspective of both sellers and buyers are incorporated in the product. The
sellers will be keener to know about the expiry period, features and packaging techniques. On the
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