Opportunity Analysis for New Staycation Business in the UK's Hospitality Sector

Tasks

You are required to produce an Opportunity analysis for a new venture in the UK’s hospitality sector. Please use a template below and answer all the sections required.

Writing an Opportunity analysis (or feasibility study) can help finalise your business idea, and to check it against the initial perception of the market-place. Feasibility study is a first draft of ‘nature of the business’ proposal that can allow further investigations and calculations to be based.

Scenario:

Many UK nationals are expecting to holiday more in the UK in 2020, according to research by Cambridge and Counties Bank. The top reason for the UK’s staycation trend is a drop in the value of the pound caused by Brexit, which makes foreign holidays more expensive. Other reasons include: a rise in the underlying costs of overseas travel; barriers to international travel such as stricter visa requirements; tougher border controls because of Brexit.

Some ideas could include but not limited to: Spartan holidays; Yoga/mindfulness retreats; Forest micro hotels; Tiny holiday home rentals.

Write an Opportunity analysis (Feasibility study) for the new staycation business in the UK, answering all the section.

Business Overview

Include key information points regarding your venture (write a short summary of a proposed venture including some details regarding the market, customers and competition).

Personal Analysis

Carry out an analysis of your own strengths (S) and weaknesses (W) as an entrepreneur. What skills and experience will you bring to the new venture?

Market Research

SWOT – Carry out SWOT analysis of your idea

PESTEL – Carry out a detailed PESTEL analysis to assess opportunities arising from changes in the environment. Why have you chosen this area of the market? Include evidence of demand.

Competitors – Carry out the analysis of market and competition. What is your USP and value proposition? What is your key differentiating factor?

Compare your new venture to main competitors (consider competitors’ strengths and weaknesses; identify how you will position yourself; decide what is your basis of competition, i.e. cost/differentiation).

Growth Potential

Compare the new venture to the ideal business.

How do you see the company growing and becoming more profitable in the future?

Capital Requirements

Identify your Start-up capital and possible funding options.

On successful completion of this assessment, you will be able to:

1. Select and apply academic literature, industry sources and models to examine and analyse markets and industries to identify opportunities for the development of a new business venture.
2. Demonstrate the capacity for original thinking through the identification and evaluation of an unexploited market opportunity.