Forming an Innovative Business (Coursework Sample)

Forming an Innovative Business
Name:
Institution:
Introduction
A number of businesses have currently put much focus in the sale of Smartphone and other electronics due to their high demand. For instance, the trade in selling iPads dominates the current market structure. Therefore, to capture a wider market and customers effectively, it would be necessary for an organization to come up with an innovative idea that will be unique to the customers in the market. The paper provides a brief description of an innovative idea that would ensure that the sale of iPads is high despite stiff competition in the market. It also establishes a business structure that would be more suitable for this business venture. An outline of the steps in the entrepreneurial process is discussed comprehensively. The process is important during the initiation stage of a business venture. Action plan is also created to illustrate how to surmount the foreseen obstacles to the venture’s success.
Description of the innovative idea
The proposed business venture is mainly to focus on disruption innovation. This term majorly illustrate advancements that can develop a product in a manner that is not anticipated in the market. This business venture is bound to facilitate detailed re-assembling of iPads to produce lasting and high quality products. The innovation will first come up with a design for various customers in the market. After the creation of the design, the price of the iPad is to be reduced in the existing market. Through reducing price, the company will retain and acquire additional customers (Moye, 2004, p. 12). A number of customers always prefer products retailing at lower prices hence this will present a viable opportunity for this business to obtain more customers and dominate the highly competitive market. For instance, cheap iPads will be sold to low and middle class customers while highly priced iPads will be supplied to the high-class customers. The other innovative idea is the provision of long-term hire and leasing of iPads. A number of customers are not able to afford iPads hence it would be necessary to provide leasing services at cheaper costs. For instance, this business venture will offer the product at a leasing period of between three to ten months at a reduced cost. Poor people will have exemplary opportunity to possess iPads. Variably, other customers will have a suitable opportunity to hire and lease the iPads.
Business structure that would be the best choice for the venture
A business structure that would be the best choice for the venture is a sole proprietorship. The company does not have enough capital for the establishment of a joint venture business. However, the entrepreneur will have to employ few workers to assist in the re-assembling process. The business structure in this context is also preferred because it easy to start and operate. The other advantage of sole proprietorship is its improved flexibility of management and less legal regulations. Business owners will pay less tax compared to joint venture companies and other forms of business structures (Moye, 2004, p. 13). It means that the business venture is capable of obtaining high returns even if the product will be sold at reduced prices. Joint companies or partnerships incur extra costs in their operations hence reducing their profits. Therefore, this clearly explains why most of their products are expensive.
An outline of the stages in the entrepreneurial process
An entrepreneurial process has five main stages that include the generation of idea, opportunity evaluation, planning, business formation and launching, as well as, growth.
Generation of idea: Every fresh business venture starts with the creation of an idea. The business venture in this context has an idea of supplying iPads to customers using unique methods. For instance, this business venture of leasing and hiring of iPads is unique. Most companies or businesses prefer selling such products without providing other alternatives. This first stage also involves the identification of available opportunities and carrying out extensive market study. Requirements of customers will also be considered at this stage. Resources needed in this stage include relevant skills and enough capital.
Opportunity evaluation: This is the stage where an entrepreneur will have to establish whether his or her business venture is worth investing in. There are a number of questions that should be asked to establish the viability of the opportunity. For instance, questions on the availability of adequate attractive market opportunity, practicability of the suggested business venture and the availability of sustainable competitive advantage should be asked. The dangers and reward profile of the business venture should also be taken into consideration when carrying out opportunity evaluation. Consequently, this venture will only be considered viable after finding answers to the above questions. This step will be used to influence prospective customers, workers, and sponsors.
Business planning: This business planning would involve the establishment of the group of potential customers and business model. In addition, the other areas of strategy include position and objectives. It is always important for any business venture to have enough information and demographics concerning their target customers. An entrepreneur should establish the purchasing procedure and decision makers in the market (Kuratko, 2009, p. 426). It would be helpful in determining their preferences. It is necessary to characterize the target customers both quantitatively and qualitatively. Solutions to the requirements of the customers will have to be defined in the business model. The readiness of the customers to change their buying habits should also be expressed. “Position” is used to define how a business venture is differentiated from other competitors. It also refers to how a business venture associates with other organizations in the value chain. At this stage, an entrepreneur will have to define what the business will have to perform and what it will not.
Position will be the vision of this business venture. A persuasive vision is essential to encourage investors, inspire workers, and to incite customers. When carrying out business planning, the entrepreneur will clearly have to define the objectives of this business venture. Understanding the objectives assist in creating priorities for the venture, this is vital, as there are tough decisions encountered. The activities of the company and anticipated yield will be discussed in the operating plan. The activities will address all the sections of the business venture including marketing, selling, and engineering (Kuratko, 2009, p. 427). Moreover, the activities will be used to drive the financial performance of this business venture. Predictions on the outcome of the venture will also be stated in the operation planning stage. Prediction will be based on the revenue, costs of materials, and operational costs.
Launching: Once there is enough convincing opportunity and plan, the entrepreneur will have to select a suitable form of business entity and create a business enterprise as a legal entity.
Growth: After launch, the company will strive to create its product, generate returns, and improve its performance (Kuratko, 2009, p. 428). Therefore, the focus will change from planning to implementation. At this stage, the entrepreneur will not only go on with asking questions, but also focus on executing the plans.
Market for the above innovative idea
The market for the above innovative idea will mainly comprise of teenagers particularly college students. After extensive research, it has been established that more than 90 percent of college students have iPads. The selected market place has many colleges hence this is considered as a viable opportunity to sell the re-assembled iPads. The curren...