This sample will let you know about:
- Define SWOT Analysis.
- What is PESTLE Analysis?
Sources of entrepreneurial ideas and innovation with some examples.
There are various sources or ways through which entrepreneurial ideas generate so that the convenience of customers can be increased, and maximum benefits can be given to them which will add value for customers (Kohlbacher, Herstatt and Levsen, 2015). Peter F Drucker gives 7 systematic sources of innovation so that new entrepreneurial ideas can generate are as follows:
- The unexpected: This means when innovation occurs by chance without formally thinking about it which can help in the success of business. For example, the innovation of fire was unexpected by humans. This can help in unexpectedly expanding the business and can lead to its tremendous growth.
- Incongruities: It means when innovation takes place when the need is in congruent with supply and entrepreneurs have to think of different ways so that the growing needs can be dealt with limited supply.
- Market structure: It is related to an innovation due the kind of market structure that exists. For example, Google brought innovation and completely changed the market structure of search engines by bringing all the scattered information on world wide web to just a click away on Google.
- Necessity: It means that innovations can also take place due to its needs so that the changing customer needs can be efficiently met. This is generally the most common type of innovation which help in giving rise to new entrepreneurial idea.
- Demographics: It is related with the changing lifestyle of people which give rise to many innovative ideas so that the living standard can be made better. For example, with the increasing awareness of pollution there is a need for more environment friendly vehicles which led to the development of biogas vehicles by Coronus Motors Ltd.
- Changing perception: This relates to the development of innovation with changing perception of society which gives rise to new entrepreneurial ideas. These changing perceptions affects the needs and wants of customers and also affect their market demand.
- New knowledge: With the development of new and advanced technology there is an increased use of technology in business so that customers’ needs can be successfully met. This new knowledge can be used to innovate better services and products so that customer needs and wants can be successfully met.
All the above sources of innovation can help in innovating new products and services so that the changing needs and wants of customers can be met in an efficient manner (Guerrero, Urbano and Fayolle, 2016). With the changing demographics the company Coronus Motors decided to innovate a kind of car that can run on the energy produced by biofuels. This can help in protecting the environment from pollution and the other harmful gases produced during ignition which can help in making the lifestyle of people better thereby creating strong brand image of company. This innovative gave rise to new entrepreneurial idea and the company can produce cars so that commercial benefits can be gained.
Rationale and market gap for specific entrepreneurial idea by using tool and techniques.
Entrepreneurial idea: As a budding entrepreneur, an individual have an idea related to launch new automotive company in which vehicles of Coronus Motors are running by the use of biogas as an alternate use of fuel. It is a well-known as well as established facts that the biogas can be produced by the anaerobic digestion of organic materials (Jarvis, 2016). This type of material is considered as a low-cost procedure that can be carried in rural areas as economically where the organic wastages are present in plenty. An entrepreneur considers the use of biogas as an innovative idea because it helps in many things such as solving waste management issue, contribute socio economic development as well as creates hygienic surrounding environment. The biogas technology is carbon neutral which has positive influence thereby minimise the environmental health deterioration in future. It is necessary that all entrepreneurs consider market as well as customer behaviour in order to get competitive advantages in UK. Get Assignment Examples.Talk to our Experts!
USP's: A unique selling proposition is defined as a marketing concept that states campaigns which made unique proposition to their customers that convinced them to switch their existing brand. The USP'S of Coronus Motors is their environment friendly concept and low prices that attracts large number of customers (Karimi, 2016).
Gap analysis: The market gap analysis defined as a process of facilitating goods and services that are not yet available in the market. The idea of using biofuel in running cars with the Biofuel is unique and most suit the requirements and demand of UK's population. Mainly, gap analysis is done by identifying the market opportunities so as company get a benefit of these in order to enhance their entire level of profitability. These opportunities help entrepreneurs in examining and filling market gap so that they stay ahead of their rivals. Along with this, it helps in formulating business ideas of introducing Coronus Motors in London in a successful manner with an option of using biofuel. Within the modern era, technological advancements and changes occur continuously which is imperative that all entrepreneurs are up to date regarding latest techniques being in used by the competitors. This will aid them to establish new business in the market feasible (Wood and McKelvie, 2015). Through the technological advancement, market gap can be appropriately filled up so as the needs of customers also satisfy.
Competitive market: It is essential or businesses to conduct a systematic investigation about the current market trends. As entrepreneur require to analyse all the external environmental aspects of businesses which provides an advantage then to get a competitive edge in the open marketplace as well as provides strengthen to their sustainability of innovative ideas. As organisation can measures competitors’ strategies and advanced technologies and tools. This will assist them to make suitable changes in their existing goods and services. For this Coronus Motors can use Porter five force analysis such as:
Porter five force
Bargaining power of customers: The power of customers is moderate because external factor contributes moderate impact on bargaining power of buyers. In order to deal with this, an entrepreneur will formulate low cost strategy so as to attract huge number of customers (Hansen, Monllor and Shrader, 2016).
Bargaining power of suppliers: In the automotive industry, this factor is quite low. However, only an individual enjoys their power who is highly skilled and labour staff. So, an entrepreneur has to considered low power into their account so as to make sure Coronus motors sustainability for loge time period.
Threat of substitution: Within the auto mobile sector, the threat of substitution is high but in regards of new cars the switching cost is also high, so the threats of substitution is low. An entrepreneur is needed to keep up-to-date technologies and knowledge of vehicles that being offered by the rivals in the same industry in order to develop their strategies according to them.
Threat of new entrants: Initially as an entrepreneur needed huge funds to enter into automotive industry that creates some carriers for the new entrants. So, the threat of new entrants is low in this market and competition is also low so Coronus Motors can get competitive position within the marketplace by facilitating customer centric vehicles such as environment friendly, low cost cars etc. Order assignment help from our experts!
Competition among rivals: Rivalry among the existing competitors is high within automotive industry as there are various number of companies in the UK which facilitates innovative features in their vehicles but the innovation of using biogas as an alternate use of fuel is low. Thus, an entrepreneur has to be cautious of their competitors and formulate appropriate strategies accordingly (Davidsson, 2015).
SWOT analysis to support objective assessment of entrepreneurial idea
It is necessary for all the entrepreneurs to ascertain whether the new entrepreneurial idea planned by them in order to start a venture is viable or not (Park, Sung and Im, 2017). For this, they need to conduct SWOT analysis that can be appropriately used by an entrepreneur as a most effective tool. As SWOT is a strategic technique which helps businessman in analyse and examine the strengths and opportunities in order to feasibly launch a new idea while considering weaknesses as well as threats in a better way that will required to tackle challenges and ensures feasibility and success of entrepreneurial idea. For Coronus Motors in London, UK that facilitates the use of biogas for running cars instead of fuel which is a unique and innovative idea that customers provided at low prices and it is also environment friendly. This kind of framework helps entrepreneurs to gain a clear view about the positive and adverse elements of businesses. This can be discussed a