Identify a business idea for a new venture start-up, and to explain why you think your idea would be a valuable and feasible one to pursue in the marketplace?
The term entrepreneurship refers to a process of opening a new business or other company that have feasibility in the market. The entrepreneur initially develops a business model that is followed by availability of human and other resources for giving shape to the innovative idea of the entrepreneur (Barringer and Ireland, 2012). The entrepreneur is totally responsible for the success as well failure of the idea or service. For successful implementation of the idea or service, the entrepreneur need to undergo the feasibility issues such as target market, organizational feasibility, industry feasibility and financial feasibility for understanding to what extent the idea will be feasible in the modern market trend (Boulton and Turner, 2005).
This assignment will be discussing about the techniques of generating ideas, introduction of new entrepreneurship ideas, recognizing the opportunities, target market feasibility analysis, organizational feasibility analysis as well as environmental trends along with Porter’s 5 Force Model.
Techniques for generating Ideas
It is a common believe that entrepreneurs are born and cannot be created. The entrepreneur initially has a lot of ideas for the business but also need to understand the feasibility and opportunity for generating that idea. A most common way of generating new ideas of the business is through brainstorming (Durvasula and Lysonski, 2010). Here, the group leader or entrepreneur shares the idea among a group of people and collects feedbacks and opinions regarding the idea. Again, the entrepreneur can discuss about the ideas through focus group where the people involved are quiet familiar to the topic. Another way the entrepreneur can think of new ideas is through internet and library research. The internet provides a lot of information regarding the market trends and requirements of the users (Mandel and Virgil, 2011). So, based on the research, the entrepreneur can generate the new idea.
Introduction of new idea and recognizing opportunities
In today’s busy world, people are becoming more inclined towards the internet and are focused on the uses of different applications in the Smart phones and I phones. So, for this assignment, the idea of an app will be generated and discussed to show its market feasibility and value in the existing and trendy market place (Silva et al. 2012). This app will be so designed that it will help the users in finding the restaurants, grocery shops and hospitals of the locality where the users are currently standing. This application will be working on real time environment and will only require GPS system and internet in the mobile phones. This application will be easily available in the basic phones running on Android and Windows. It can be easily used on Smartphone and iPhones and gives the addresses of the restaurants, hospitals and grocery shops within 10 km of the user’s standing place. Moreover, the operation of this app is easy and is available in several languages. This idea according to the entrepreneur is essential since the user’s when visit a new place then any of the three places becomes an urgent need to them. Abdin (2012) commented on the fact that to avoid asking other people regarding the addressees and preventing the chances to get misguided by the other people or in order to solve the linguistic problem, this application will prove helpful to the users. This application according to the entrepreneur is trendy and having so many advantages will certainly be successful in the technological driven market.
This is essential for the entrepreneur to understand the product and service that the app will be giving to the users and the level of practicability it will be having (Cook, 2012). For that, the feasibility analysis of the product and service, target market, organization and industry are done for better understanding of the market and the products.
Product and Service Feasibility Analysis
The entrepreneur has thought of the idea of launching an app that will help in searching the nearly hospitals, grocery shops and restaurants. According to Hayton and Cholakova (2011) the practical application of the product needs to be understood by the entrepreneur that to what extent the app will prove helpful to the users. 1st of all the app will be available nearly in all the languages so it will be helpful for people all around the world. Secondly, the phones having internet connection as well as GPS system, can easily access this app without hassle. Thirdly, the app is of 25 MB and will occupy a very small space in the storage. Fourthly, it automatically stores the data of the places once visited and can be accessed without internet during revisit making less consumption of internet. Moreover, the app is available in Google Play Store and Iphone Play store and can be accessed and downloaded by all without any hassle (Hampden-Turner, 2010).
Target Market Feasibility Analysis
Baumol (2011) had a view that the entrepreneur on understanding the relevance of the app and its uses, need to understand the target market. The usages of tablets and mobile phones have now become inseparable with the life of the people. Now days, nearly every individual is either having a Smartphone or an Iphone, so easily they can get it in the play stores. It is a trend in today’s market to get trendy with the modern apps and so obviously this app can find a prestigious position in the market. So, the product will be finding its application in the market targeting huge number of mobile phone users (IšoraitÄ—, 2014). The information that the app is promising its users will turn out to be friendly to the users.
Organizational Feasibility Analysis
This is necessary to understand the proposed business idea will be having sufficient organizational resources, management expertise and competence for successful launching of the app and running its business.
The resources are the essential component of any entrepreneurship business. This is because, from the view point of Levine (2012) for the launch of the app, sufficient resources such as human expertise in technical fields, lawyer, partner skills and goals, working place etc need to be analyzed precisely for the successful running of the business.
For successful running of the business, another feasibility that needs to be analyzed is the organizational feasibility. According to Oncioiu (2012) the proposed business plan need to have employees those are honest as well as hard working along with good technical knowledge. The co founders of the business have to be adjusting, cooperative and focused towards their business. The management policies need to be fair and legally approved by the international laws of employment (Mutara, 2012). The manages and the co- founders of the business need to have huge social network connections for generating the ideas as well as publishing the apps in the market. Since, social media is a powerful tool of marketing and publishing the ideas of new business.
Another analysis of feasibility that the entrepreneur needs to understand is the financial support and condition of the business. Yong and Ho (2006) commented on the fact that financial assessment is a crucial part within the organization since it helps to assess the position and strength of the firm. Based on the financial condition, the new employees, modern technologies and equipments are hired and bought to the organization for the successful making of the app and running it successfully. It has to be remembered that not only the cost of making of the app is essential but marketing and campaigning cost of this product and service is also equally important (Ng, 2012). This financial assessment is also essential for the organization. Through financial assessment, the revenues, sales and profits of the company are also analyzed.
Industry Feasibility Analysis
The entrepreneur needs to analyze the industrial feasibility factor that includes the environmental trends and business trends of the product and service. Abrams (2012) had an opinion that it is essential since the analysis helps in understanding the position of the competitors as well as the Government rules and laws for the better business development.
It is essential for the entrepreneur to know and have knowledge regarding the environmental trends since it helps in understanding the strength, weakness, opportunities and threats of the organization and its competitors. According to the opinion of Gao (2010) the entrepreneur needs to understand the surrounding environment for coping up with the existing environment and can be well explained through Porter’s 5 Force model. This model helps in understanding the threat of substitutes, threat of new entrants, rivalries among the existing firms, bargaining power of suppliers and bargaining power of buyers. The entrepreneur always have to keep in mind the threat of substitute products by the existing company at a low price and with new and more helpful features. Barringer and Ireland, (2012) had a view that for this app, if the other company has a better substitute app with modern features and characteristics then certainly it will be a threat to the company. Moreover, the threat of the new entrants may also be a rising problem to the organization. This is because; if the other entrepreneur with a better idea and better technology will be introducing a new app in the market that will be having more advanced and added features, then certainly the company and the entrepreneur idea will be in a stake.
Since, the entrepreneur will be new to the market; it should have a strong bargaining power with its suppliers. Hampden-Turner (2010) commented on the fact that initially for the raw materials, high price will be given in exchange of superior quality raw materials for the production of the app. This is because, the entrepreneur in order to make the app, need good quality raw materials that need to be updated and modern. This is done for attracting the customers to a good extent and makes the app successful among the users. In addition to this, according to Cook (2012) the bargaining power of the buyers is also essential to be considered. This is because; the buyers will need the best quality products at a reasonable low price. So for keeping in pace with the buyer’s requirements and by market analysis, the pricing of the app should be done. Another essential part that the entrepreneur needs to remember is the rivalry among the existing firms. Moreover Gao (2010) had a view that it is obvious that when a new firm with a new idea will be introduced in the market, the firm will be facing some rivalries from the already existing firms regarding the diversification of the existing customers. The rivalry firms can take the new firm as their competitor in the market. Keeping all these things in mind and analyzing each of these factors vividly, the new entrepreneur needs to introduce the product and service into the market.
The entrepreneur need to understand the business trends of the market since it is essential to understand the market and its ongoing trends for the successful business implementation. The entrepreneur needs to understand the current trends of the business as well as the market for the successful implementation of the app among the users. The entrepreneur initially have to get through the proper understanding of the app to see its level of feasibility and help hat it can provide to the users. The present business trend is all about modern technology and high dependence on it for the daily help.
This is discussed in this paper regarding the entrepreneurship and methods of generating ideas along with generation of the new idea. The entrepreneur will be introducing a new app that will be supported in all the smart phones and Iphone. It will be providing help to users in finding out the restaurants, hospitals and grocery shops within 10 km of the user’s current position. This will be helpful to the users from getting well guided by the app and will prevent the users from getting mislead. Moreover, the feasibility of the app such as financial condition, organization analysis, environmental and business trends is well discussed for the better understanding of the assignment.
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