Business Opportunity Identification - Essay Example

Innovation Proposal- Report Contents Contents Introduction 2 Discussion 3 Business opportunity identification 3 Justification for being a good business opportunity 4 Explain the market which would be addressed 4 Conduct secondary research to investigate the validity of the proposal and any competitors 5 Consider the problems which could arise in developing the concept 6 Creative process for developing the innovative idea 6 Conclusion 7 References 7 Appendices 9 Introduction Wrist watches are being used by the people for decades. In the past few years the people became more aware in spending more in watches. Different type of watches came into the market expanding and diversifying the range of the wrist watch. The market of United Kingdom is very competitive. The country has a large number of customers whose needs and demands influence the market operations. As per appendix 3 People of this market have a high income level. They prefer both high and low priced products. In this case study the wrist watch market of UK is being focused. The demands of the wrist watch highly depend on the disposable income of the consumer. Generally the high income people prefer the branded watches of high price. Whereas the low and the medium prices watch are also demanded by the UK people. Wrist watch market is very popular in UK. As per appendix 2 despite of the presence of smart phone the country markets have not lost the demand for the wrist watch. Discussion Business opportunity identification Innovation forms the basis of any business opportunity. There are various factors that need to be analyzed before implementing an innovative idea. UK market is the main focus in this study due to its economic stability. Any new business start up should encompass such product or services that can cater hidden customer demand. Affordability or purchasing power is another aspect that plays a vital role while designing a new business plan. The business opportunity which has been identified is in the wrist watch sector. Watches are highly in demand in consumer market and there is more inclination towards branded items. Branded watches are usually preferred by customers due to its unique designs that are inimitable. In this segment there lies high opportunity in context of offering unique design wrist watches to upper middle and lower middle segment. This particular segment has a fascination towards wrist watches but do not possess high purchasing power (Ulwick, 2005). The highly competitive UK market has different segments and middle income group shall initiate required profit margins for the retail company. Wrist watches are mostly preferred by adults and youth, and this is the business opportunity for the retail company to be launched. Justification for being a good business opportunity An entrepreneur starting a new business needs to take into consideration wide array of factors. These factors are related to financial and operational aspects of the new start up business. Financial factor is a major component during designing a new business. Wrist watch manufacturing unit would encompass comparatively less investment in relation to other forms of business. On the other hand, the retail outlet shall be located in some prime locations of UK without aiming towards wider business expansion. The major goal of this business is to acquire maximum market share of middle class segment (Wintzer, 2007). It can also be stated as a good opportunity for an entrepreneur since it does not require any vast experience unlike other retail or manufacturing firms. This shall be considered as a positive factor of this new business opportunity. Simultaneously customer demand in UK market is relatively high and this offers high growth rate for wrist watch retail chain. Establishing a new brand might prove to be difficult in initial stages but exploring on an unexplored market segment is advantageous for the firm. The entire business idea is framed on a single product and this result into less scope for financial loss in the chosen market segment. Explain the market which would be addressed UK is a developed country. Few years’ back the country has faces bas economic condition for global recession. But now it has developed it economic condition by implementing major changes in the economy of the state. As seen in appendix 1 its present GDP is $2.521 trillion. The strong economical background of the UK market has made the place as a most attractive centre for different types of business. The country has an open market business environment. The country experiences an overall stability in its financial system which contributes a lot in the development of various businesses. This development is also supported by the spending capacity of the UK people. The wrist watch market of this country experiences a positive growth. The economic environment of the country supports the business of different types of wrist watches. The German wrist watch market experiences a double digit growth in last one year. Jewellery and fashionable wrist watches are in high demand in the UK market. Unisex wrist watches of different colour are in high demand in this market. Different established brands in offers a wide rand of wrist watches. In UK market this product is perceived as a fashion accessory as a result young customers are more into buying different types of trendy watches. Conduct secondary research to investigate the validity of the proposal and any competitors The UK market is characterised by high income people having sufficient spending capacity. Therefore establishing a retail outlet of affordable trendy wrist watches will be beneficial for the business. Fashionable wrist watches are brought by the UK people for showcasing their fashion statement. This will become a positive factor in the contributing the growth of the retail shop. Moreover the medium price of the watches will attract many customers who are willing to buy trendy and fashionable watches but can afford it for its high price. Wrist watches has become a substitute to jewellery. But the retail wrists watch company will face a strong competition from the existing players of the UK market. The different Wrist watch companies of UK like British Watch making, omega, oris, Franck Muller etc have a strong presence in the UK market with a large customer base. Moreover the big brands like Rolex have captured a major market share of the wrist watch industry of UK (Terpstra and Maurice, 2001). All these companies produce trendy and sophisticated wrist watches which will increase the competition for our company. These companies are into this business for a long with a strong brand presence. This will make customer acquisition process difficult for our company. Consider the problems which could arise in developing the concept The major problem which will rise for developing this concept is of capital investment. As UK is a developed country therefore establish of new business requires a huge amount of money. It is a strong challenge for the company. As a new company it can be possible that the company lack in sufficient funds. Many big and small wrist watch company are present in the market. It makes the competition tough. Our retail company has to do strong branding and advertisements of this product for making the people aware of the company. But the existing company have created a strong bonding with the customers through various promotions which will create a major problem for popularizing our brand. Various offers and discounts are already been applied by the wrist watch companies. So our company has to develop very innovative plans for implementing its business plans. Creative process for developing the innovative idea Development of an innovative business idea is the most critical aspect for any entrepreneur. There are different research techniques adopted by an individual in order to deliver the best possible business idea. I have firstly conducted secondary research so as to analyze market segment that would be targeted. I opted for UK market because I feel that this particular region possesses stable external environmental conditions. This factor plays a vital role while conducting business in a significant country. I even gathered secondary data related to competitive business markets in this region. At the end I arrived at a conclusion that branded items are largely available in UK market but there exists middle income segment who cannot afford such luxurious items. I wanted to target this particular market segment by offering them unique products at best price possible. I personally feel that in current decade though smart phones has captured market share of wrist watches but there are individuals who are still inclined towards uniquely designed wrist watches. This thought made me decide on the fact that I want to set up a new retail chain of wrist watches. I even conducted an online survey in UK market to analyze demand in this market. The results clearly revealed the fact that there is a high demand for fashionable wrist watches that are offered at low prices. Conclusion This study highlighted a new business opportunity and wide set of factors that should be focused on while designing an idea. Market growth of UK market was analyzed in this study so as to outline viability of business opportunity. It has been identified that there are some competitors in UK market in wrist watch segment that might pose future challenges to the company. There are even some innovative strategies designed that would help to mitigate such challenges. In overall context this report is a framework for an innovative proposal which can be effectively implemented in real world scenario. There are opportunities available in selected market segment and validity of proposal is relatively high. However there still exists a need for extensive research that can help to eliminate identified loopholes in the proposal. References Terpstra, M. and Maurice, C. 2001. International Marketing, 8th ed. Chicago: Dryden Press. Ulwick, A. W., 2005. Business strategy formulation: theory, process and the intellectual revolution. USA: IAP. Wintzer, E., 2007. Global competition and strategic management. Germany: GRIN Verlag. Appendices Appendix 1 Appendix 2 Appendix 3 Read More