Sources of Identifying Entrepreneurial Opportunities

LO 1

P1: Different Sources of Entrepreneurial Ideas and Innovation

There are many sources of innovate ideas which help to increase potential of products. This source help to leverage the potential of ideas and maintain the quality of products and services effectively (Lavoie and Addis, 2018).

Interest and Hobbies

Hobbies are the same activities which provide enjoyment to and relaxation from work. Hobbies can also be effective in new product idea generation as at the time of enjoyment the mind of entrepreneurs are relaxed and this also helps them to think more effectively and out of the box.

Surveys

Survey helps business owners to understand the issues which customer face. Market analysis helps to generate new ideas and innovation which are matched according to market opportunities which helps to increase sales of products and satisfy customer effectively.

Personal Experience

Personal experience plays very important role in making innovations and generation of new product ideas. Due to high knowledge and skills in a particular field helps to identify all the resources required and generate effective market opportunity which can increase sales and profit margins of business firm (El-Awad, Gabrielsson and Politis, 2017). This also helps person to identify the nature of venture to invest to get maximum returns.

Drucker’s 7 sources of systematic innovation

This model provides effective resources which help to understand the ideas and innovation to develop products and services which increases the efficiency of entrepreneur ventures to receive better returns. This model helps to understand market opportunities which helps to understand better products and satisfy customers.

Unexpected Success and Failures

Innovations can take place without any planning which helps to gain better opportunities of products and services to grow business effectively. Example of unexpected innovations are fire which was innovated while rubbing of two stones in ancient times (Gielnik, Zacher and Wang, 2018). There are many examples in history which helps t understand the successful innovation which are done unexpectedly.

Incongruities

Incongruity is the source of innovation which arise from the issue in the market and opportunities to increase the sales. Due to shortage of petrol duel in the world innovation of electric cars were done.

Process Needs

Needs and wants give birth to invention and new ideas to innovate the exiting products and services which helps to increase sales. Increase in demand helped business to develop online stores which help to increase customer satisfaction.

Changes in Industry

Industrial changes can lead to innovation and effective ideas to improve products and services. For example, use of digital payment is an innovation which is done in the existing banking industry due to shortage of cash in market.

Changes in demographics

Lifestyle can also be the sources of innovation and creation of new ideas which can lead to increase productivity of products and services (García, Deserti and Teixeira, 2017). Every person has different demographic needs which gives birth to new innovations to increase satisfaction of customers. Due to lack of spaces in metropolitan cities Virtual reality games were innovated which helps to fulfil the needs of doing physical activities.

Changes in Perception

Perception is the way a person understand and react to some particular situations according to their experiences and knowledge. It gives rise to innovation as people thinking changes the utility of products and services.

New knowledge

New knowledge helps to understand every situation better and give a broader vision to make effective decisions (Nijssen, 2017). New knowledge also helps to increase innovation and generation of new ideas. Like discovery of cancer helps to innovate machines to cure the cancer virus effectively. Want to get help with your assignments ? Get our Online Assignment Help !

LO 2

P2: Market Gap for New Entrepreneurial Ideas

Market Gap is the difference in the product and service of entrepreneur venture and their competitors. Power On company is launching new product which has near field communication (NFC) features which enable smartphones to transfer data very easily tom other smartphones who are in the range in very high speed (Nieto and González-Álvarez, 2016). This innovation is developed as many existing smartphones companies are not having proper high speed transfer technology. This created high dissatisfaction in the market and with the launch of new smartphone by Power on and provide better features like NFC helps to fill the gap and increase customer base more effectively.

Porter Five Force Model

This model helps to analyse the competitions which helps to fulfil the gaps and increase the efficiency of new products of Power On company.

Threat of New Entrants

Threat of new competition is very low for Power On as smartphone manufacturing need high capital to enter in market with the latest technology.

Bargaining power of Buyers

The buyers power to decrease to provide is very low due to innovation which gave Power On company short term monopoly.

Bargaining Power of Suppliers

Supplier has the moderate bargaining power as Power On has high market share and better profitability.

Threat of Substitutes

There is no threat of substitute for the innovation of smartphone in current market which increase profitability and market share of company effectively.

Threat of Rivalry

Due to high competition there are threat of innovation which can impact the sales of Power On company and reduce the efficiency of NFC features innovation of smartphones.

LO 3

P3: Data needed to support gap analysis in the evaluation of a specific entrepreneurial idea

There are hardly new companies which are providing this wireless data sharing but even if they are there are a lot of complex methods of doing it but Power on would be giving the customers the benefit of simpler methods to achieve this. Companies like Samsung, Nokia, Sony, etc companies are providing this facility in mobiles for the customers so that they can transfer data from one mobile to another but Power on would be providing that at a very low cost which will make middle class population also purchase it.

Here are a lot of bigger companies which are not even having a blue booth connectivity so sharing data in those phones are even more complex in nature. Company like Apple will make the customers not be able to share data because of security purpose. This is a very important feature which is required in the world of business class because there is a lot of data which needs to be shared.

NFC technology stands for near- field communication which allows devices to get connect to one another so that there are more customers who want this product. From the above data it can be analysed that customers demand will increase with time and by the end of 2024 the value of NFC will be in billions. There is a high potential in market for this devise because there are a lot of customers who are sharing data from one devise to another and it is very essential for them to have a better quality and easer method to make this take place.

It is said that there will be a growth of near field communication over the next year by 17.9% which will make this feature reach $50 billion by 2025 (Sutija, 2018). There are a lot of companies which have come up with NFC feature and by 2020 85% of all smartphones will be shipped worldwide are going to have this feature. iPhone's will have to start this feature because there are a lot of customers who are using iPhone and if this feature has to reach the customers then there has to be a changes in iPhone's. There are more than 80% of North America who are using NFC for sharing data from one device to another because they find it simpler and better. Take Examples of Assignments Now!

P4: Interpret data appropriately to provide evidence of market potential

This feature of NFC in Power On is going to have a great capture of market because they are giving this feature to even those customers who can not afford these devices. Prices are going to be set really low and the company will be able to profit from it very quickly. This feature is going to be in high demand in the future because in the present time also there are so many customers who are looking for better and faster wireless communication and data sharing in devices which are easy to access.

This is the simplest way or method that Power On is coming up with so that the customers can share their data. In this process there has to be a connection between the chips of mobile so that the data can be shared. This is present in Android devices but IOS will have a lot of factors which are going to harm the security aspect of the device therefore measures have to be taken if IOS wants this feature in their device as well. The purpose of this feature is to share photos, contacts, videos, etc. The devices which have to share data have to be in range for this to take place so that the simplest process can take place. There are not many settings which have to be changed and this can be done easily.

The competition in market is low because the bigger companies are not focused on this factor and the largest company, Apple is not being able to get this feature because they are very concern with the customer's security. The security level of using NFC is not high which Power On is working on so that they can attract more customers and provide them with the best feature at low cost. In United States this feature has already picked up a market for themselves because there are a lot of customers who want easier and faster transfer of data so that they can communicate faster (Samo and Hashim, 2016). The growth in future of near field communication is going to increase by more than 17% therefore the demand of this factor is going to be huge. All the companies will be shifting to this feature very quickly because there are high scope of this feature is going to increase the customers demand for it.

LO 4

P5: SWOT Framework

There is SWOT framework is very important tool to analysis Strengths, Weaknesses, Opportunities and Threats of the entrepreneurial idea. This framework is helpful in analysis of market competition as well.

Strengths: Demand of product which the entrepreneur want to launch in the market is very high. Currently people addict for using smart phones in their daily life. Smart phone is one of the most popular technical gadget nowadays, in which the entrepreneur will able to gain high profit in the market.

Weaknesses: Entrepreneur have only few sources of funding. High funding is too necessary for the entrepreneur to successfully implement this idea (Israelsen, Mitchell and Lim, 2018). Entrepreneur still believe in use traditional marketing strategies, it is a big weakness for this idea. The main reason behind last statement is, with traditional marketing strategies this idea can't achieve success in decided time period.

Opportunities: There are many opportunities to the entrepreneur. For example; it able to use digital marketing tools to highly promote their product in initial stage. It able to take specific growth suggestions by consulting their idea with business consultants. By launching new generation NFC smart phone, the entrepreneur will able to gain large market share in the smart phone industry.

Threats: Continuously increasing market competition in the smart phone industry, it is the biggest threat for this idea. There are Samsung, Apple, Nokia, Vivo and Motorola some major competitors to this idea (Teach, Tipton and Sidhu, 2019). These companies are also currently focus on launch new generation smart phones to attract lots of customers all around the world.

These are some major Strengths, Weaknesses, opportunities and Threats of this entrepreneurial idea. It wants to launch new generation NFC smart phone which is really productive idea. It able to take advantages from high demand in smart phone industry. There are various new technologies will require to the entrepreneur to develop this type of smart phones. In this case, it needs high fund for implementing these technologies in their manufacturing plant. So, it firstly needs to find some sources of funding which will provide them needed fund. Currently entrepreneur is able to consult their idea with highly professional business consultants to effectively implement them.

Recommendations

The entrepreneur specially need to remove their weaknesses to achieve effective results from their idea. There is it able to take huge advantages from existing opportunities. For example; It'll able to effectively run their marketing campaign by using various digital marketing tools. It needs to focus on improve their current entrepreneurial skills to systematically develop, manage and sustain their productive idea (Neill, Metcalf and York, 2017). At the end, it responsible to provide quality product to customers for gaining huge competitive advantage in the market. Get open book exam from our experts.

P6: Competitive and Market Environments

There are 'Porter's Five Forces' and 'PEST analysis' mentioned below which helpful in systematically evaluating competitive and market environments respectively.

Porter's Five Forces

It is an important analysis tool which businesses use for analysing competitive environments. Porter's Five Forces tool first introduced by Michael Porter in his popular book “Competitive Strategies”. This tool includes five forces of market which described below;

• Power of Customers: There is bargaining power of customer is very high for this idea, because currently buyers has many other smart phone options in the market. The entrepreneur will need to put great efforts in its initial stage to attract many buyers towards own product.
• Power of Suppliers: Bargaining power of supplier is not much high, because there are many raw-material suppliers currently available for the entrepreneur. So, it able to choose that supplier for fulfilling their raw-material needs who will provide this on cheap rates.
• Threat of New Entrants: This force is also not much high, because already there are huge competition in the smart phone industry (CHAPPELOW, 2019). So, no other business can easily decide to enter this industry.
• Competitive Rivalry: Competitive rivalry force is also high.There are Samsung, Apple, Nokia and Motorola companies will give tough competitive challenge to this entrepreneurial idea. These companies also working on developing new generation smart phones. So, it'll not easily for entrepreneur to face these big competitors in the future.
• Threat of Substitutes: This force high to this entrepreneurial idea, because people have many choices in the market to buy, like; PC, laptops, Tabs etc. In this case, the entrepreneur need to provide such specifications in their smart phone which no other product can provide. Then it'll able to deal with impact of this competitive force.

PEST Analysis

PEST Analysis is the most useful tool for the companies to analyse major factors of market environment. The entrepreneur is able to use this tool for analysing impact of market factors on their idea. PEST includes four major factors which impact business in both terms positively or negatively.

Political Factors: Political factors really impact any business or entrepreneurial idea, because entrepreneur will need to fulfil those all formalities which the government imposes on the smart phone industry. For example; Tax.

Economic Factors: These factors will support to this idea to gain profit, because the UK is one of the richest countries in the world, so here is people easily able to afford smart phones (KENTON, 2020). In this case, the entrepreneur still need to offer favourable prices to customers to attract them in initial stage. The entrepreneur is easily able to fulfil its financial needs with the support of economic factors.

Social Factors: Social Factors are very favourable to this entrepreneurial idea in the United Kingdom. The reason behind last statement is, most people are literate in this country, and they always like to buy quality products in the market. In this situation, the entrepreneur will need to provide quality product in the market to gain high people attention.

Technological Factors: Currently the entrepreneur is able to take huge advantages from technological factors of the UK, because there are all technologies available which the entrepreneur requires for developing new generation smart phone. Hi-Fi technology is the most needed resource which the entrepreneur will use in their manufacturing plant. With the support of these factors it able to add some more additional features also in their new smart phone.

The entrepreneur need to prepare a specific plan for properly dealing with each impact of these factors. There are most factors will positively impact this entrepreneurial plan.

CONCLUSION

It can be concluded that there are many sources of entrepreneurial innovation and idea currently available to an entrepreneur. Specific techniques also mentioned above which helpful in knowing market gap for present entrepreneurial idea. This idea is completely able to fills current gap within smart phone market. There are various market data needed for supporting gap analysis in the evaluation of an entrepreneurial idea. There are many sources available to the entrepreneur which helpful in collection of these market data. According to SWOT framework, the entrepreneur specially need to focus on remove their current weaknesses. On this basis of this framework, it has many opportunities to gain huge profit through this idea. Current competition in the smart phone industry is the biggest challenge for this idea. So, the entrepreneur is responsible to present that product to customers which will impress them in initial stage. Then it'll able to gain huge competitive advantage in the smart phone industry.

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