Entrepreneurial Opportunities: A Case Study of the UK Bicycle Market

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Entrepreneurial Opportunity
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Table of Contents
Introduction.................................................................................................................................................3
Entrepreneurship Domains......................................................................................................................4
Market Attractiveness..........................................................................................................................4
Industry Attractiveness........................................................................................................................6
Target segment benefits and attractiveness..........................................................................................9
Competitive and Economic Sustainability.........................................................................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
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Introduction
Entrepreneurship is a concept which deals with the process of designing, starting and running a
new organisation that is usually a small company. It deals with the startup plans for getting
established in the competitive market (Suddaby, et. al., 2015). The owner of such enterprises is
called an entrepreneur. An entrepreneurial opportunity refers to the opportunities that are
available for any organisation that provides support for action smoothly and effectively
(Audretsch, et. al., 2017). With the help of this, the owner of the organisation can utilise the
available resources to maximise profit so that it can get settled in the competitive market.
This section is going to cover the various outlines of “Entrepreneurial opportunities” that are
available for any new set organisation to succeed in the competitive market. Their practical
impacts and the methods of accessing such opportunities are also discussed within the context.
The different domains are discussed that support the organisation nature and culture. Here the
focus is on the small scale industry which manufactures “different type bicycles” (Audretsch, et.
al., 2017).
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Entrepreneurship Domains
The entrepreneurship domain encircles all the activities and functions that support an individual
to enter into a business sector to start its own business. There is a total of 7 domains in the
Entrepreneurship that is leading to creating the path for Entrepreneurial opportunities in the
competitive market (Taylor and While, 2017). The domains are broadly categorised into 3 areas
which are listed below:
1. Market Domain
2. Industry Domain
3. Team Domain
The 7 domains for the entrepreneurship are mentioned as follows:
1. Market attractiveness
2. Target segment benefits and attractiveness
3. Industry attractiveness
4. Competitive and economic sustainability
5. Mission, aspiration and proficiency for risk.
6. Ability to execute on CSFs
7. Connectedness up and down the value chain
There are many different sectors of the UK in which an entrepreneur can pursue its career. Some
of them are tourism sector, small scale industries of any goods or items, HR, etc. Here the basic
focus is on the small scale industry which manufactures different type of bicycle.
Market Attractiveness
It is covering all the factors which affect the market performance rate of the organisation. It
consists of the surveying the market and knowing the present scenario and the need of their
product in the market, the recent trends related to their field and the growth rate of that
organisation (Bailey, 2018). It is important when an entrepreneur is entering into the single
market or building a new business portfolio. It includes the probability rate of success, the cost
invested and the time scale involved.
Market attractiveness includes the following factors which are needed to put into consideration.
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1. Short term and long term goals of the organisation: It is very much required to set the
short term as well as long term goals for the organisation development. It helps in the
completion of the targets of that organisation.
2. Size of market and growth rate: There is a need to estimate the size of the industry the
individual is going to start and also there is a need to check the growth rate of that
particular sector (Bailey, 2018).
3. Innovation and creativeness: It deals with the new thing that makes your product different
from others within the circle.
4. Competition and potential: Also there is a requirement of checking the competition level
and also where an individual stands in regards to the competition (Bhogal, et. al., 2017).
5. Adaptive and acclimatisation nature of that organisation: It helps in sustainable
development.
Example of market attractiveness in the UK market is mentioned below:
Figure 1: UK Bicycle Market
The Pie Chart shows information regarding the market attractiveness of the product in the UK
market. The survey is done on the bicycle manufacturing small scale industry which shows the
dependency of the customers on the different bicycles manufactured by the company (Bailey,
2018).
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Similarly, in starting the same type of organisation by any entrepreneur, it is the responsibility of
the organisation to avail the different facilities in the bicycles that lead to the market
attractiveness and make it different from the rest of the available product in the market of the
same class that seeks the customer’s attention. Some of the facilities that equipped in the bicycles
are mentioned below:
1. Comfortable seats for riders.
2. Effective gear arrangement that improves its speed & performance.
3. The long life of tyres.
4. The material of the body of the bicycle should sustain more.
5. Attractive look and appearance.
Industry Attractiveness
Industry attractiveness has defined the type of industry in which an entrepreneur is pursuing its
career and also defines the ease with which an individual can enter in the same field. The various
technologies which are going to use for the processing are also discussed here. With this, the
organisation got the real scenario about their competition level as well as their competitor
(Bailey, 2018). The Industry attractiveness is achieved by various planning and quality tools that
support the organisation in effective planning regarding the business process.
Planning Tools
Different planning tools for the implementation of Industry attractiveness are mentioned below:
1. Porter's 5 forces analysis: It is a planning tool which determines the competition level in
the business chosen. It is discovered by Mr Porter which illustrates the industry
organisation economy, and there is an analysis of the impact of different forces on the
system that ultimately affects the profitability ratio (E. Dobbs, 2014).
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Figure 2: Porter’s 5 force analysis model
The five forces acting on it are:
1) The threat of new entrants: It can be maintained by offering the customers timely as with
this the customers are always attracted towards the services.
2) The threat of substitutes: Sometimes the dealer needs to face loss when it is starting the
substitutes. So there is a need to cover it properly.
3) Bargaining power of customers: It is when the customer demands to cut down the price
of the product. There is a need to short down the prices till that level only which doesn't
create any effect on your business, and by this, the owner attracts more customers (E.
Dobbs, 2014).
4) Bargaining power of suppliers: It is the condition generated when the price of the product
increases when the demand for the product increases or when the quality of the product is
increased.
5) Competitive rivalry: It defines the advantages the competitive firm has in terms of
services. So there is a requirement of recovering this as to abort the growth of your
competitor. It includes offering the accessories along with the bicycles, the servicing
facilities, etc. (E. Dobbs, 2014).
These 5 above mentioned forces will help as the planning tools in the industry attractiveness.
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2. BCG Matrix Analysis: It is a framework which is used to develop the strategic position of
a business portfolio and its capabilities. It is used to examine the present scenario of the
industry developed by the entrepreneur and what is the planning required to manage the
flaws (Torquat, et.al., 2018).
Figure 3: BCG Matrix Model
It consists of 4 sections that support the BCG analysis.
1) Cash Cow: It consists of those products which are having a high market share but the low
growth. It includes the high cost of bicycles with highly equipped technology. Its sale
growth is low as of having high market share.
2) Dogs: This refers to those products which are having the low standard cost because of the
low-grade quality of the product. The old technologies which are still in the sale come in
this category(Torquat, et.al., 2018).
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3) Stars: These includes those products (bicycles) which are having mid-range cost and can
be purchased by everyone — normal cycles.
4) Question marks: This deal with those products which are on the experimental basis and
their profit are not defined. These are the newly launched products of the bicycles that are
launched in the market on an experimental basis.
Target segment benefits and attractiveness
Target segment benefit and attractiveness deals with the distribution of the target and the goals
into different segments and accordingly do the planning in the organisation as to attract more and
more customers. With this, the organisation focuses on its performance and accordingly leads to
its continuous development. The STP analysis of the organisation chosen is mentioned below:
STP stands for segmentation. Targeting and positioning. It deals with the distribution of work
into small segments and accordingly manages it to achieve the target. Achieving marketing
effectiveness and efficiency is important.
Segmentation: In segmentation, the larger work is divided into small parts or segments with
some specific goals and targets. With this, the workload is divided, and this leads to the
improvement in efficiency and performance (Dibb and Simkin, 2016).
In the organisation selected, the segmentation helps in attaining the short term goals, and it
indirectly leads to better performance. Suppose in the company; many cycles come for servicing
and maintenance at the same time, so it is directly leading to an increase in the workload of the
organisation. So the segmentation process helps in dividing the work into small parts and
accordingly need to do the action (Dibb and Simkin, 2016). The requirement classifies the work,
first, come first serve, etc. In this way, it can be achieved.
Targeting: On the segmentation, there is a generation of short term goals which are ultimate
leads to the main organisation goal. With the distribution of work, the bicycle company leads to
the setting of the small targets, and they set the deadline for that works to complete so that to
achieve that target. Similarly, they execute the target of the organisation (Taylor, and While,
2017).
Positioning: In the positioning process, with the segmentation and targeting achievement, the
path is directly opened for the positioning. It will lead to the achievement of the organisation to
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some position with increase market position. On the finishing the works on time the organisation
leads to the generation of its image in the market. Also, they fulfil the need and demand of the
customer, and this will ultimately lead to the setting the position of the company (Huxtable, and
Schaefer, 2016).
Competitive and Economic Sustainability
Figure 4: Model for competitive and economic growth
Competitive and economic sustainability deals with the development of the organisation by
taking care of competition and economic growth. It shows that how much share the organisation
has invested in the development of different products like the percentage of share for the
development of different bicycles, the product them offering (Camilleri, 2018). The regulating
body here is those who are responsible for the smooth functioning of the newly set organisation.
The product share percentage invested below:
S.No Product Share
1 Mountain Bikes 32
2 Road Bikes 15
3 Children 25
4 Folding bikes 8
5 Classic hybrid 20
Table 1: Share invested by the UK in establishing of bicycle manufacturing (small scale
industry)
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This is developed according to the survey and market analysis. It is planned according to the
customer demands and is planned to fulfil the need of the company. This will leads to sustainable
development and also further leads to economic growth (Camilleri, 2018).
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Conclusion
This section discussed the entrepreneurial opportunities an organisation should have in starting
the business. It shows the various approaches to attain entrepreneurship effectively. There is a
discussion on different entrepreneurial domains that will lead to an increase in the performance
rate of the organisation. The example considered here for the survey is of the UK Bicycle
manufacturing organisation. Its assessment and analysis are done, and then accordingly there is a
development of new small scale industry of the same class. The different planning strategies are
also discussed which leads to organisation development. The different entrepreneurial domains
are discussed like market attractiveness, industry attractiveness, target segment benefit and
attractiveness and competitive and economic sustainability which will play a major role in the
entrepreneurship development and its smooth functioning. There is a discussion on different
planning tools like porter 5 forces analysis, BCG Matrix, etc. that will help in the effective
planning for better performance. The factors that affect the overall growth are also discussed, and
their solutions are also mentioned within the context. Further, there is an STP analysis of the
organisation that supports the performance as well as efficiency.
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