AS1 Opportunity Analysis

Name and Student number

MKTM033 2019-2020
Overview
• There are no arguments for the statement of “freedom is the most important thing in this big
information era”. Based on that very true opinion, I am going to propose a new venture. That is a
restaurant with books named “EatBooks”. As we all know, when we are hungry, we go to a
restaurant for having something to eat and to full tummy. Like that, today people are in hunger
for seeking freedom in their minds. There is no something like a book that can take us anywhere
within a second in free mind. In the restaurant, I replace books with food. That is the concept of
the restaurant. Simply when a customer enters the restaurant, we offer a private space for him or
her with a book according to his or her preference and charge for the hours the customer spends
in the restaurant. This is can not clearly define as a product or service and the restaurant has
characteristics of both product and service.
• I chose Colombo city as the marketplace as initiation and the target market is the elder
community who are hardly busy with eight hours daily work as well as busy with complex family
problems. Even though this is a new concept for Sri Lanka, I think there is competition with
existing restaurants because people are more familiar with them in the area.
Introduction to entrepreneurship
• Some sources have described entrepreneurship as the new appearance of
the individual who formulated a wander idea, developed it, collect
resources, and created a new business venture. Some sources have
described it as the process by individuals of recognizing new opportunities
and adapting them into merchantable products or services. Most of the
sources have described entrepreneurship as bringing something new.
• Identifying Opportunities is one of the important things in
entrepreneurship. There are several sources to identifying opportunities as
follows. Observing trends of customers, their buying patterns, and
expectations. Try to solve problems in creative ways. Identifying gaps in the
market, Following competitors.
SWOT analysis as an entrepreneur
Strengths Creative motivated, flexible, future-
oriented
Weaknesses Resistant to change, lack of
communication skills, not initiating, lack
of resourcefulness
Opportunities Foreign markets, the social power of the
internet, potential investors
Threats Personal risk of not monthly earning,
family problems
 SWOT analysis and PESTEL analysis of the new idea
SWOT analysis PESTEL analysis
Strengths Creative idea, future- Political The government help to innovations
oriented, filling a niche Environmental Increasing trends noncommunicable diseases,
Weaknesses Lack of monetary support, health problems
lack of resources and space Social The interest of elders to try new experiences,
Opportunities The emerging trend of reading Increasing family problems, an increasing
soft copies of books, trend in lack of communication and people
increasing social problems of are getting to isolated, busy life
peoples, new discussions
about freedom Technological An emerging trend of reading soft copies of
Threats Lack of staff, competition from books, elder community’s lack of interest to
restaurants, updating use technology
technology Economical Emerging economic problems led to seek
freedom
Legal Rules and regulations imposed on traditional
restaurants
Market and Competitor Analysis
• Here, I have considered food selling restaurants as the competitors. Therefore, I have taken
McDonald's Company as the competitor the considering the equal nature of the businesses.
Then I have made a list of criteria for the comparison. After that, I have ranked both
businesses according to those criteria. In the rank allocation, 10 marks stand for “highest” 5
marks stand for “medium” and 0 marks stand for “lowest”. (See appendix 1)
• Unique Selling Proposition (USP) helps to analyse the special features of the company.
According to the analysis, the Unique Selling Proposition (USP) of the company is the quality
of the service, low cost of products and services as well as the health-friendly both physically
and mentally.
• The value proposition is the statement answer to why does a customer visits the marketplace.
The value proposition is “The place where you meet you”. The meaning or the detailed
analysis of that statement is as follows. “Visiting this place will meet you as real you with your
thoughts in your world. Come and enjoy the freedom you have lost and seeking for a long
time. You will have the help of books that are true and real friends a human can ever have”.
The Comparison with Competitors
• The concept - EatBooks Company comes up with a brand new concept for the market and the McDonald's
Company’s business concept is an existing concept and is a very traditional business concept. When attracting
customers this will be a strength for EatBooks Company.
• Cost - McDonald's Company purchases ingredients, make food, and sell food. They have bear a large amount of cost
even for one restaurant of restaurant network. But EatBooks Company’s business does not have that type of
process. Therefore, EatBooks Company relatively bears a low cost.
• Product or service differentiation - McDonald’s Company sells various types of products and they always introduce
new updates of their products. Also, EatBooks Company will be able to have come up with new updates for
businesses if the inventor and the team think in a new way.
• Easiness of access - McDonald’s Company has a strong network of restaurants in the Colombo city area. And
McDonald’s Company does home deliveries. That is a highlighted strength for that company. But as an initiating
company and because of the lack of financial strength, EatBooks Company can not build a strong restaurant network
in the short term. Also, according to their nature of the business, they can not do home delivery.
• Quality and health effects - There is a big conversation between health organizations, the government, and the
whole society about the bad effects of instant food consumption. Increase noncommunicable diseases and
reduction of the life expectancy of both female and male population help to that conversation. McDonald’s
Company has a huge impact from that conversation. The company uses many non-health-friendly ingredients for its
food products. That is a big threat for them. However, visiting EatBooks Company does not generate that type of
bad issue for customer health. And bringing peace of mind is EatBooks Company’s main objective and one of the
main values of its beliefs.
Considering the above detailed comparison, I can conclude that high quality and low cost are the basis of completion
in EatBooks Company.
The comparison with ideal businesses and
the future of the new venture
As the first step under this topic, I am going to compare the new venture with the ideal business locally and globally.
• Starbucks Company - Starbucks is one of the well-recognized brand names in the world which founded in nineteen
seventy-one, has a history of forty years. The company holds the world’s largest coffeehouse chain. Howard D. Schultz
is the founder of the Starbucks Company. The most interesting characteristic of him as an entrepreneur is the
initiating ability of him. Since Starbucks Company also is a restaurant, EatBooks Company and Starbucks Company
have the same business model. Creativity is the most important thing in Starbucks Company.
• Apple Company - Although the Apple Company is a different business model than EatBooks Company model, focusing
on Apple Company may be generating good effects for EatBooks Company. Bringing new updates with their products
within a shorter period is the main important thing about Apple Company. EatBooks company also can try this
characteristic.
As the second step under this topic, I am going to explain the way Eatbooks Company is going to have profit in the
future.
• The huge effect of social media - It is not a secret that social media can change the whole world within a minute. We
always see there rare posts sharing about new updates especially new concepts come up with good intention. With
social media marketing campaigns, EatBooks will be able to have huge attention in the market.
• Popularity as a new passion - As a result of the popularity of social media networks, we can see elder people are also
familiar with social media. The elder community also likes to try new things as an experience in their lives. Come
EatBooks Company and have freedom will be a new passion for the elder community in the future.
• Low-cost leadership - As the low cost is one of the basis completions of EatBooks Company will be able to have low-
cost leadership in its long run.
• Priority of basic needs - Although freedom is a basic need of human life, when conflicting need of foods and freedom,
The link between the selling and personal relationships with customers And the market
segmentation

• Continuing close connections with customers helps to remain

customers with the company, attracting new customers, as a
marketing tool likewise. But sometimes it may harmful because of
credit payables, lengthy-time period of repaying likewise.
• The market segment consists of customers who share similar needs,
ages, expectations, income levels, and lifestyles. The four types of
market segmentation are demographic market segment, p
psychographic market segment, geographic market segment,
and behavioral market segment. As initial, the market is segmented
by geographical location which is the Colombo District area.
The start up capital requirement and the funding sources

Annual building rent cost = 100,000

Annual electricity bill = 100,000
Cost for books = 100,000
Marketing campaign cost = 50,000
Tables and Chairs = 250,000
Other PPE = 60,000
Layout designing = 75,000
Total cost of stating = 735,000
There are several funding sources I can use as follows,
• Applying for a bank loan
• Use savings
• Finding potential investors
• Contact businesses and schools in my field of work
Appendix 1
Criteria EatBooks Company McDonald's
Company
Pricing 3 7
Quality (Here, quality is the customer 8 5
satisfaction after one visit to the place)
Not suffering from health issues after 10 0
purchasing products or receiving the
service
Restaurant network 2 9
Brand recognition 3 10
Easiness of reach the product without 0 9
visiting the place
Market share 1 7
Cost 3 8
References
• Hoque, N., Khan, M.A. & Mohammad, K.D. 2015, "Poverty alleviation
by Zakah in a transitional economy: a small business entrepreneurial
framework", Journal of Global Entrepreneurship Research, vol. 5, no.
1, pp. 1-20.
• https://www.apple.com/
• https://www.mcdonalds.com/us/en-us.html
• https://www.starbucks.com/