Entrepreneurs are those persons who have intellectual ideas with whom they used to open a business in a unique way. They grab these ideas from various sources which are available at marketplace and give them opportunity to establish their business. Generally, they launch companies in such marketplace where lot of competitors are present as well as with less capital. This report showcase from where business tycoons got ideas and they turn these into product concept (Kirzner, 2015). Along with this, they used to refine such ideas by using various tools like marketing gap, competition analysis, Porter's Five forces model, SWOT and PESTEL techniques etc. For this process, present assignment has been taken upon a new venture as Mobique Point, which deals in retail business of commodities like mobile and its accessories. Entrepreneur in this business makes various plans to attract customers mind and convince them to busy.
P1 Evaluate various types of entrepreneurial ideas and innovations
An entrepreneur used to grab several ideas by analysing market situation. After generating ideas, they refine the same and choose best to turn it into business concept. In case of opening an outlet in a retail sector which includes commodities like mobile phones and accessories, a person needs to determine demand of marketplace first (Hmieleski, Carr and Baron, 2015). Therefore, in context with present case, a person has launched business in same sector as Mobique Point, used various strategies to grab customers mind. In this firm, business tycoons offer several discounts like first customer in a day has got opportunity to get extra benefits while purchasing a new phone. It includes 1 year net free with 3 month net subscription. While last client of shop get benefits like one month EMI free. Through such type of marketing strategies, they have success in grabbing more attention of employees. In addition to this, with phone of high branded companies, they have provided loan on minimum rate of interest. It helps in increasing sales performance along with acquiring strong position at marketplace.
But for operating business in a profitable way, entrepreneurs need to check feasibility of their ideas and strategies before applying them in workplace. They are required to conduct a proper analysis like PEST factors and Peter F. Drucker's 7 factor of innovation which help in evaluating market situation in proper manner. These methods help in identifying opportunities as well as sources through which innovators can generate more appropriate ideas. As present scenario, an outlet named by Mobique Point has opened in a large populated marketplace. So, its owners has used following techniques to develop business idea:-
Political Factor: Under this factor, an entrepreneur needs to analyse political condition of country which includes taxation rates, legislations and amendable laws etc. All these things create a much impact on business (Mathias and Williams, 2017). It assists them to comply their organisation with all laws and legislations through which they can business in legal way. But due to fluctuation in taxation, it impact on purchasing powers of people also which demand entrepreneurs to offer products at affordable price rates.
Social Factor: This factor shows that if a company has do business in ethical ways then it will help in enhancing good image at marketplace. This would create a good impact on people and convince them to buy product of such companies. Along with this, as mobiles are becoming basic needs of people without which they cannot do their work in easy and quick manner, so whether a person oh high status or belongs from low category, he will definitely buy such products on any cost.
Economical Factor: Government of UK has provided much support to new business developers as growth of their organisation help in increasing economy of country. Along with this, stability of economy has shown good financial condition of organisations and citizens. It reflects high level of income of people. So, all such conditions help owners of Mobique Point to open this venture on easy terms and conditions.
Technological Factors: With rapid change in technologies gives high innovative products. It adds more features in mobile phones, therefore, it gives opportunity to retailers to grab attention of customers (Foo, Uy and Murnieks, 2015). When a product having new features come at marketplace then it will attract customers in vast manner. Getting high innovative phones is becoming first priority of customers which gives opportunity to new ventures to complete their demand in a more profitable way. It includes features like high resolution of camera, large screen of devices, long durability of batteries, high securities and more
Thus, by analysing such macro factors, an entrepreneur generates various ideas as well as can check effectiveness of the same also. It helps in choosing the best one for opening a new start-up business. In addition to this, business tycoons also use Peter F. Drucker's innovation which gives 7 sources of ideas as:-
Incongruity: This factor shows how business will deal in future by using such ideas. It reflects a gap between expected results to outcomes occurred after implementation of ideas they have generated.
Process Need: Under this sector, an entrepreneur needs to employ high talented workers in outlets who can help in providing effective services to customers. Along with this, can promote services or products of company in vast area of marketplace
Industry & Market Structure Needs: Due to presence of many competitors at marketplace, it gives various opportunities as well as threats to new ventures (Gielnik and et. al., 2015). Therefore, it is recommended to them before establishing business they must analyse structure of marketplace. It helps in understanding desires of customers and give ideas to fulfil the same in a unique way..
Demographics: This section shows culture of people, preferences, taste and their purchasing power through which an entrepreneur can segment them on the basis of similar characteristics. It helps in completing demand of them in a proper way.
Changes in Perception, Meaning and Mood: As in mobile products, technologies are rapidly changing therefore, it gives chance to new business developers to increase high sale performances.
New Knowledge: It is the most essential requirement for entrepreneurs. They should gain high knowledge as well as marketing and technical skills through which they can operate business in a proper way (Hatak and et. al., 2015). In addition to this, they can make innovation in products or services also.
Unexpected: For running a business in a successful manner, owners are needed to grab all opportunities of marketplace through which they can acquire high number of customers in their outlets and retain them for longer period of time.
P2 Explain the rationale and the market gap for a specific entrepreneurial idea
For opening a new venture, an entrepreneur needs to make various plans for identifying demand of customers, trends of marketplace, purchasing power of buyers and more. It helps in formulating strategies and policies accordingly. Today, in terms of mobile products every person is its basic needs. Without such commodities, no one can do their business easily. Mobile phones aid persons to connect with others who live at distant or nearby places in a quick manner. So, whether a person belongs from business world or studies and more need such devices. Therefore, it gives opportunities to new ventures to launch business in a profitable manner. As present scenario, an entrepreneur wants to open a business in retail sector and sells mobile and its accessories. So, such persons need to analyse market situations first (Hmieleski, Carr and Baron, 2015). They must employ workers who have possessed complete knowledge of products and its features so that they can give details of the same to customers and help them to buy as per wants. In addition to this, to evaluate marketing gap also which help in understanding in which field modification is necessary. Marketing gap can be taken as a tool to grab opportunities used for fulfilling future demand of business and run successfully. It also helps in generating more profits by turning business idea into product concept.
Requirement for identifying demand of customer on individual basis: Every person has own desires and preferences for getting mobile phones which suit their lifestyles. With this assistance, it is high essential for entrepreneurs to offer products of wide range and of different-different brands. In addition to this, they should know the complete features of such commodities so that queries of customers can be satisfied by giving proper solution (Karimi and et. al., 2016). For grabbing more attention of people, provide offer and various discounts to them is must necessary in case of earning more and more profit
Market Segmentation: Having a large customer base business, it is necessary for organisations to divide them as per their characteristics. By dividing people on similar taste and preference help in understanding needs as well as fulfil on time. Market segmentation generally segmented customers on the basis of following:-
- Behavioural Segmentation: Under this segment, market is divided as per behaviour of customers. For example: Usually Techno-friendly people wants to acquire mobile phones of high technologies. They used to buy products whenever new technologies have developed.
- Demographically Segmentation: This section divides market era as per taste and lifestyle of people along with purchasing power (Kirzner, 2015). For instance- Customers who belong to high status demand products of iPhone of Apple Company while persons who have low income purchase such commodities on low price.
Tangible & Intangible features and benefits of a product or service
Tangible features of phones are relates with sensation of touch. It gives first impression when a person buys to such products.
It refers to untouchable features which can be revealed once a product is used.
For instance: Large display, sensors, camera resolution, fingerprint scanner, mobile accessories are termed as tangible features.
For example: Software, battery durability and applications and more are intangible features.
Approaches to Competitor Analysis:
- Before formulating new strategies, business tycoons are needed to determine number of competitors present at marketplace as well as their techniques to acquire minds of customers.
- Entrepreneurs with the help of managers are required to make a proper plan which include place where new venture can be opened (Kohlbacher, Herstatt and Levsen, 2015). In addition to this, it includes way to conduct all activities of business start-up, marketing techniques and more.
- Marketing mix strategies including 4P’s of innovation.
- Analyse marketing gap which help in recognising the difference between actual outcomes to expected one.
- Use effective tools and techniques for implementing new strategies in business.
Life cycle of industries shows following phases:-
- Pioneering phase.
- Accelerate Growth Phase.
- Mature Growth Phase.
- Industry Maturity Phase.
- Decline Phase
P3 Present data needed to support gap analysis in evaluation of entrepreneurial idea
For evaluating effectiveness of ideas of entrepreneurs, business owners can take help of researchers who analyse who situation of marketplace and determine whether such thoughts can aid them in accomplishing demand of company (Mathias and Williams, 2017). Investigators can help them in analysing opportunities present at marketplace through which they can run businesses in profitable manner. Along with this, they can evaluate whether ideas of new business can run successfully in future. As per situation, an entrepreneur wants to open a retail business Mobique Point of mobile products therefore, for grabbing opportunities of marketplace and analysing demand of customers as per culture and demographical conducts, researchers conduct various activities. They use statistical methods for making proper data of present situation. Project makers have taken a sample of 50 respondents in order to know their desires and get feedback for what actually they seek in mobile phones. They have made some questions like what type of features people want to get in mobiles, price rates, brand of products and more.
By conducting survey, researchers have evaluated that out of 50 respondents, major proportion i.e. 30 want to get large display of phones with dash charge support up to 8 GB RAM processor and 32 GB internal memory but on affordable rates (Mueller and Shepherd, 2016). While 10 respondents desire to get smart phone with high technologies, long durability of batteries and on at least 1 year warranty. On other hand rest of people seek to get products of largest brand i.e. Apple or VIVO and more. Hence, business owners are needed to offer wide range of products of various companies and on reasonable rates so that expectation of each customer can be fulfilled on time.
P5 SWOT framework to collect evidence to support an objective assessment of a specific entrepreneurial idea
SWOT Analysis of Mobile Business Idea for Mobique Point
· Strong communication and distribution channel.
· Wide range of mobile and its accessories with all ranges as per need of customers.
· Lack of capital.
· Weak strategies and policies
· Trending change of marketplace.
· With advancement of technologies, an entrepreneur gets opportunity to sell commodities to large number of national and international clients in a vast manner (Davidsson, 2015).
· Stable economy of UK, gives benefits to business tycoons to open their venture on easy terms and conditions.
· Increasing number of competitors give rise to threats for existing company (Renko and et. al., 2015).
· In mobile business, every new feature in products impact sales performance of existing ones.
P6 Evaluate competitive and market environments in which the idea will be launched to assess potential viability
As per situation, it has recommended that new business tycoons are needed to gain high skills and knowledge as well as analyse market trends to develop ideas. Along with this, they are required to determine various factors like demand of customers, taxation and interest rate, political rules and regulations, number of competitors present in same market etc. All these things create much impact on business of new ventures and existing ones also (Suddaby, Bruton and Si, 2015). Understanding importance of all these factors help in generating ideas also as well as aid entrepreneurs to turn the same into product concept. In order to grab more ideas and analyse impact of these, they can use PEST technique and Peter F. Drucker's innovation factors. Both methods are used to identify need of customers through which they can formulate effective strategies and policies in a perfect manner. In addition to this, these techniques can evaluate strengths and weaknesses of rivals also which further helps in snatching their customers and acquiring good position from them.
PEST analysis is used to determine political rules, economical condition, social factors and technological advancement through business can run in a smooth manner (Baggen and et. al., 2015). While Peter’s innovation factors aid entrepreneurs to make creativity in products or services. Through this method, a person can use change of marketplace as opportunity in order to deliver service in more unique way.
According to Peter Drucker's Innovation model, there are seven sources of innovation which aids entrepreneurs to grab new idea for their business. It includes-
- The Unexpected: This factor assists managers of Mobique Point to conduct market research. It helps them in analysing whether demand of particular product is lesser or greater than anticipated.
- The Incongruity: There is always a discrepancy occur between what is going on and what should be done. Therefore, this process is considered as tricky but it is the best key to develop success in business. So, managers of Mobique Point have to nailed it by meeting unmet requirements of customers.
- Process Need: It involves determining process under which managers of Mobique Point have to find weak point area of business. Further, they should develop strategies to minimise weaknesses and build success to business.
- Industry and Market Structure Change: Rules and regulations of market area are continuously change which creates lines of some products expand and others shrink. Therefore, as per trend of marketplace, Mobique Point also requires to keep modification in business.
- Demographics: In mobile sector, every person has own desire to get such products as per age and purpose. Therefore, Mobique Point has to pay attention to this. It should combine demographic factor with market segmentation which will help in meeting requirement of every customers as per need.
- Change in Perceptions, Meaning and Mood: In mobile sector, with development of technology, product life-cycle has been shortened up. Therefore, Mobique Point has to develop strategies through which products can be offered as per preference of customers.
- New Knowledge: Due to advancement in technology, many opportunities are opened up for entrepreneurs to find better ways for improving their processes. Therefore, for driving success, R&D department of Mobique has to find new source of innovation on continual basis.
Political: This factor also assist entrepreneurs to create innovation in business. As laws and legislations established by government of a country helps them in evaluating in what manner they have to conduct business. It will help in expanding business in other sectors in legal manner.
Economical: Financial condition of marketplace, taxation law, spending power of public etc. are such factors which assist profitability of a firm. As introducing innovation in business require sufficient amount of funds, therefore, good economical conditions aid managers of Mobique Point also to arrange funds on easy rates.
Social: For innovation in business, one most concern factor is value of products as per perception of users. So, it is necessary for managers of Mobique Point to identify what customers are really want to get. It will help in developing innovation in business as per requirement of them.
Technological: This factor plays an important role in innovation as adopting latest techniques in business aid to add more features in products. Therefore, to grab attention of more customers, Mobique Point need to adopt new marketing techniques like social media. It will help in analysing need of consumers so that innovation can be done accordingly.
From this above assignment it has evaluated that today’s fast developing world gives various opportunities to new ventures for start up business at marketplace in an easier way. It has studied in this report that for such a process, a person needs to analyse all around situation of marketplace and desires of customers. It has helped in generating more ideas which further can turn into business concept. With this assistance, they can evaluate marketing gap using SWOT and PEST analysis.
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