BUS3002 Identifying Entrepreneurial Opportunities Level 3

TASK 1

Evaluate various types of entrepreneurial ideas and innovations

An entrepreneur used to grab several ideas by analyzing the market situation. After generating ideas, they refine the same and choose best to turn it into a business concept. In the case of opening an outlet in a retail sector which includes commodities like mobile phones and accessories, a person needs to determine the demand of the marketplace first (Hmieleski, Carr, and Baron, 2015). Therefore, in context with the present case, a person has launched business in the same sector as Mobique Point and used various strategies to grab customers' minds. In this firm, business tycoons offer several discounts like the first customer in a day has got opportunity to get extra benefits while purchasing a new phone. It includes 1 year net free with a 3-month net subscription. While last client of the shop gets 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, phone of high branded companies, have provided loans at minimum rates of interest. It helps in increasing sales performance along with acquiring a strong position in the marketplace.

But for profitably operating a business, entrepreneurs need to check the feasibility of their ideas and strategies before applying them in the workplace. They are required to conduct a proper analysis like PEST factors and Peter F. Drucker's 7 factors of innovation which help in properly evaluating the market situation. These methods help in identifying opportunities as well as sources through which innovators can generate more appropriate ideas. In the present scenario, an outlet named Mobique Point has opened in a largely populated marketplace. So, its owners have used the following techniques to develop the business idea:-

Political Factor: Under this factor, an entrepreneur needs to analyze the political condition of a country which includes taxation rates, legislations and amendable laws, etc. All these things create a great impact on business (Mathias and Williams, 2017). It assists them in complying their organization with all laws and legislations through which they can legally do business. But due fluctuations in taxation, impact on purchasing power 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 enhance good image at the marketplace. This would create a good impact on people and convince them to buy products of such companies. Along with this, as mobiles are becoming basic needs of people without which they cannot do their work easily and quickly, so whether a person oh high status or belongs from low category, he will definitely buy such products on any cost.

Economical Factor: The government of UK has provided much support to new business developers as growth of their organisation help in increasing economy of the country. Along with this, the stability of the economy has shown good financial condition of organizations 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: Rapid change in technologies gives highly innovative products. It adds more features in mobile phones, therefore, it allows retailers to grab the attention of customers (Foo, Uy, and Murnieks, 2015). When a product having new features come at the marketplace then it will broadly attract customers. Getting high innovative phones is becoming priority of customers which allows new ventures to complete their demand more profitably. It includes features like high resolution of camera, large screen of devices, long durability of batteries, high security and more

Thus, by analyzing such macro factors, an entrepreneur generates various ideas as well as can check the 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 businesses will deal in future by using such ideas. It reflects a gap between expected results to outcomes that occurred after the 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 the company in vast area of marketplace

Industry & Market Structure Needs: Due to the presence of many competitors at the 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 uniquely..

Demographics: This section shows culture of people, preferences, taste and their purchasing power through which an entrepreneur can segment them based on similar characteristics. It helps in properly completing demand of them.

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 properly operate business (Hatak and et. al., 2015). In addition to this, they can make innovation in products or services also.

Unexpected: For successfully running a business, owners need to grab all opportunities of the marketplace through which they can acquire high number of customers in their outlets and retain them for longer period.

TASK 2

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 the demand of customers, trends of the 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 quickly. So, whether a person belongs from the business world or studies and more need such devices. Therefore, it gives opportunities to new ventures to launch business profitably. As present scenario, an entrepreneur wants to open a business in retail sector and sells mobile and its accessories. So, such persons need to analyze 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 of marketing gaps also helps in understanding in which field modification is necessary. Marketing gap can be taken as a tool to grab opportunities used for fulfilling future demands of business and run successfully. It also helps in generating more profits by turning business idea into product concepts.

Requirement for identifying the demand of customers on an individual basis: Every person has their 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 a wide range and of different brands. In addition to this, they should know the complete features of such commodities so that the queries of customers can be satisfied by giving proper solution (Karimi and et. al., 2016). To grab more attention of people, providing 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, organizations must divide them as per their characteristics. By dividing people on similar tastes and preferences helps in understanding needs as well as fulfilling on time. Market segmentation generally segmented customers based on the following:-

• Behavioral Segmentation: Under this segment, the market is divided as per the behaviour of customers. For example: Usually Techno-friendly people want to acquire mobile phones of high technology. They used to buy products whenever new technologies have developed.
• Demographically Segmentation: This section divides market era as per the 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 prices.

Read Also: Types of Entrepreneurship Ventures

Tangible & Intangible features and benefits of a product or service

Approaches to Competitor Analysis:

• Before formulating new strategies, business tycoons are needed to determine the number of competitors present at the marketplace as well as their techniques to acquire the minds of customers.
• Entrepreneurs with the help of managers are required to make a proper plan which includes a place where new venture can be opened (Kohlbacher, Herstatt and Levsen, 2015). In addition to this, it includes ways to conduct all activities of business start-ups, marketing techniques, and more.
• Marketing mix strategies including 4P's of innovation.
• Analyse marketing gaps which help in recognizing the difference between actual outcomes to expected ones.
• Use effective tools and techniques for implementing new strategies in business.

Industry Life-Cycle:

The life cycle of industries shows the following phases:-

• Pioneering phase.
• Accelerate Growth Phase.
• Mature Growth Phase.
• Industry Maturity Phase.
• Decline Phase

TASK 3

P3 Present data needed to support gap analysis in the evaluation of the entrepreneurial idea

For evaluating the effectiveness of ideas of entrepreneurs, business owners can take the help of researchers who analyze who situation of the marketplace and determine whether such thoughts can aid them in accomplishing the demands of the company (Mathias and Williams, 2017). Investigators can help them in analyzing opportunities present at the marketplace through which they can profitably run businesses. Along with this, they can evaluate whether ideas of new business can run successfully in the future. As per the situation, an entrepreneur wants to open a retail business Mobique Point of mobile products therefore, for grabbing opportunities of the marketplace and analyzing the demand of customers as per culture and demographical conducts, researchers conduct various activities. They use statistical methods for making proper data of the present situation. Project makers have taken a sample of 50 respondents to know their desires and get feedback on what 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 a survey, researchers have evaluated that out of 50 respondents, a major proportion i.e. 30 want to get the large display of phones with dash charge support up to 8 GB RAM processor and 32 GB internal memory but at affordable rates (Mueller and Shepherd, 2016). While 10 respondents desire to get smartphones with high technologies, long durability of batteries, and on at least 1-year warranty. On the other hand rest of the people seek to get products of the largest brand i.e. Apple or VIVO and more. Hence, business owners need to offer a wide range of products of various companies and on reasonable rates so that the expectations of each customer can be fulfilled on time.

TASK 4

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

P6 Evaluate competitive and market environments in which the idea will be launched to assess potential viability

As per the situation, it has been 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 the same market etc. All these things create much impact on the 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 a product concept. 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 needs of customers through which they can perfectly formulate effective strategies and policies. In addition to this, these techniques can evaluate the 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, economic 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 an 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.

PEST

Political: This factor also assists entrepreneurs to create innovation in business. As laws and legislations established by the government of a country help them in evaluating in what manner they have to conduct business. It will help in legally expanding business in other sectors.  best online biometry assignment help the college students who wish to score top grades in their academic career

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.

CONCLUSION

From this above assignment, it has been evaluated that today's fast-developing world gives various opportunities to new ventures for start-up businesses at a marketplace in an easier way. It has been studied in this report that for such a process, a person needs to analyze the around situation of the marketplace and the desires of customers. It has helped in generate more ideas which further can turn into business concept. With this assistance, they can evaluate the marketing gap using SWOT and PEST analysis.

REFERENCES

• Baggen, Y. and et. al., 2015. Linking complex problem solving to opportunity identification competence within the context of entrepreneurship. International Journal of Lifelong Education. 34(4). pp.412-429.
• Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
• Foo, M. D., Uy, M. A. and Murnieks, C., 2015. Beyond affective valence: Untangling valence and activation influences on opportunity identification. Entrepreneurship Theory and Practice. 39(2). pp.407-431.
• Gielnik, M. M. and et. al., 2015. Action and action-regulation in entrepreneurship: Evaluating a student training for promoting entrepreneurship. Academy of Management Learning & Education. 14(1). pp.69-94.
• Hatak, I. And et. al., 2015. Age, job identification, and entrepreneurial intention. Journal of Managerial Psychology. 30(1). pp.38-53.
• Hmieleski, K. M., Carr, J. C. and Baron, R. A., 2015. Integrating discovery and creation perspectives of entrepreneurial action: The relative roles of founding CEO human capital, social capital, and psychological capital in contexts of risk versus uncertainty. Strategic Entrepreneurship Journal. 9(4). pp.289-312.
• Karimi, S. and et. al., 2016. Fostering students' competence in identifying business opportunities in entrepreneurship education. Innovations in education and teaching international. 53(2). pp.215-229.
• Karimi, S. and et. al., 2016. The Impact of entrepreneurship education: A study of Iranian students' entrepreneurial intentions and opportunity identification. Journal of Small Business Management. 54(1). pp.187-209.
• Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
• Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation: how demographic changes give rise to entrepreneurial opportunities to meet the needs of older people. Technovation. 39. pp.73-82.
• Mathias, B. D. and Williams, D. W., 2017. The impact of role identities on entrepreneurs' evaluation and selection of opportunities. Journal of Management. 43(3). pp.892-918.
• Mueller, B. A. and Shepherd, D. A., 2016. Making the most of failure experiences: Exploring the relationship between business failure and the identification of business opportunities. Entrepreneurship Theory and Practice. 40(3). pp.457-487.

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