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Module Title: Venture 1: Idea Generation

Module Code: 2141
Assignment title: Identifying Business Opportunities
Due Date:23/05/2024
 Table of Contents
Page no.

1. Introduction--------------------------------------------------------------------------------------- 1

2. Idea Generation Technique available to entrepreneurs-------------------------------------- (1-2)

i. Brainstorming------------------------------------------------------------------------------------ 1

ii. Journey Mapping-------------------------------------------------------------------------------- 2

iii. Scamper Technique----------------------------------------------------------------------------- 2

3. Identification of Three Potential Business Opportunities, Challenges or Gaps------------ (2-4)

4. Analysis on One of The Business Opportunities------------------------------------------------(4-5)

5. Impact of Entrepreneur of Opportunity Identification----------------------------------------- 6

6. Conclusion-------------------------------------------------------------------------------------------- (6-7)

7.References---------------------------------------------------------------------------------------------- (7-8)
1. INTRODUCTION
Entering the business sector requires smart discovery of profitable prospects and astute study of
market trends. This project explores the competitive and evolving online grocery delivery
services sector in the UK to identify potential business opportunities by researching target
markets, competitors, and trends. Through a comprehensive analysis, this project aims to offer
practical insights that will direct strategic decision-making and clear the way for entrepreneurial
success in this quickly changing sector. Recent years have seen a notable expansion in the online
grocery delivery market, driven by changes in consumer behavior, technology improvements,
and the fallout from major world events like the COVID-19 epidemic. This study aims to provide
a comprehensive knowledge of the growth and direction of the UK's online grocery delivery
business by examining historical, contemporary, and emerging patterns (Kantar, 2021; IGD,
2021; Statista, 2021; Retail Economics, 2021). Furthermore, we will scrutinize the competitive
landscape of the online grocery delivery market, spotlighting key players ranging from
established supermarket chains to innovative startups. By comprehending the strategies,
strengths, and weaknesses of competitors, we can pinpoint opportunities for differentiation and
market positioning (Forbes, 2021; TechCrunch, 2021). Additionally, we will delineate target
market segments for online grocery delivery services, considering demographics, consumer
preferences, and lifestyle choices. This segmentation will enable us to tailor our solution to
effectively cater to the needs and preferences of our target audience (McKinsey & Company,
2021; Mintel, 2021).

2.IDEA GENERATION TECHNIQUES AVAILABLE TO

ENTREPRENEURS
Developing creative ideas is essential in the fast-paced world of entrepreneurship to spot and
seize business opportunities, get past obstacles, and close gaps in the market. To generate ideas,
encourage creativity, and develop original solutions to challenging issues, entrepreneurs utilize a
variety of strategies. The purpose of this section is to examine several of these methods and
provide information on how well they work in an entrepreneurial setting.

i. Brainstorming: This is a cooperative method that helps people come up with a lot of ideas
in an unstructured, judgment-free setting. Leveraging the convergence of multiple views, this
approach—popularized by Alex Osborn in the 1950s—promotes creativity and invention

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 (Osborn, 1953). Companies such as IDEO and Pixar, for instance, have effectively generated
creative story themes and novel product ideas through brainstorming sessions.

ii. Journey mapping: Journey mapping visualizes and analyses user interactions with a
product, service, or brand. Creating a visual picture of the customer journey allows
entrepreneurs to discover pain points, areas for progress, and moments of delight (Patnaik &
Becker, 2012). For example, Airbnb used journey mapping to improve its user experience by
knowing its guests' whole journey, from exploring listings to leaving reviews.

iii. SCAMPER Technique: The terms "Substitute, Combine, Adapt, Modify, Put to another
use, Eliminate, and Reverse" are acronyms for these steps. It is a methodical process for
investigating many facets of concepts or goods that are already in existence (Eberle, 2008).
For instance, Apple revolutionized the music market when it developed the iPod by utilizing
the SCAMPER technique to improve the conventional portable music player and combine it
with a stylish design and user-friendly interface.

3.IDENTIFICATION OF THREE POTENTIAL BUSINESS

OPPORTUNITIES, CHALLENGES OR GAPS

1. Opportunities:
a. Expansion into New Markets: Online grocery merchants can grow by entering new
demographic and geographic markets. This includes reaching out to underprivileged
communities where traditional grocery stores are hard to come by, as well as targeting
particular demographic groups like working urban professionals, the elderly, or
families with small children who might find online grocery shopping convenient. The
worldwide online grocery market is expected to reach $334 billion by 2025,
according to a Statista analysis, offering businesses hoping to increase their market
share a lot of room to grow. For instance, the UK-based online grocery retailer Ocado
has partnered with retailers abroad to offer its cutting-edge technology platform for
online grocery fulfillment as part of its global expansion.
b. Sustainability Initiatives and Eco-Friendly Practices: Online grocery retailers have
a big chance to make sustainability and environmental responsibility a priority in their
business operations as a result of consumers' increased awareness of environmental

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 issues and demand for sustainable products and practices. This entails obtaining
goods from environmentally conscious and sustainable vendors, cutting down on
packaging waste, and providing delivery choices that are carbon neutral. A Nielsen
study found that 66% of consumers are willing to pay more for environmentally
friendly products. For instance, to stand out in the market and draw in
environmentally concerned customers, Farm Drop, an online supermarket based in
the United Kingdom, sources sustainably produced food that is locally produced and
minimizes food waste across its supply chain.
2. Challenges:
a. Challenges with Last-Mile Delivery: Online grocery sellers face several difficulties
with last-mile delivery, which is the last leg of the delivery process from the
distribution center to the customer's doorstep. Inefficiencies and delays in delivering
orders on time can be caused by several factors, including traffic congestion, urban
density, and complicated delivery routes. A Capgemini analysis shows that last-mile
delivery accounts for 41% of supply chain expenses, emphasizing the substantial
influence it has on retailers' operational profitability and efficiency. For instance,
online grocery stores had previously unheard-of demand spikes during the COVID-19
epidemic, which made last-mile deliveries more difficult and resulted in delivery
delays and unhappy customers.
b. Customer Retention and Loyalty: One of the biggest challenges facing businesses
in the fiercely competitive online grocery market is cultivating client loyalty.
Customers have a lot of options, so to draw and keep them, businesses need to offer
competitive prices, a wide range of products, convenience, and customized shopping
experiences. Bain & Company research indicates that it can cost five to twenty-five
times as much to acquire a new online grocery client as it does to keep an existing
one. This highlights the significance of customer loyalty and retention for retailers.
For instance, to enhance customer satisfaction and encourage repeat business, online
grocery merchant Amazon Fresh invests in tailored recommendations and features
like "Frequently Bought Together."

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 3. GAPS
a. Limited Selection of Specialty or Niche Products: In contrast to traditional brick-
and-mortar stores, many online grocery retailers may provide a smaller selection of
specialty or niche products. For people who depend on particular items for their needs
due to dietary restrictions, allergies, or cultural norms, this gap may be troublesome.
A Nielsen study indicates that 22% of consumers are looking for organic items and
72% of consumers are looking for better food options. Availability, though, can be
restricted on internet grocery platforms. People on specific diets, like vegan, gluten-
free, or keto, for instance, can have trouble finding what they're looking for online,
which could leave them unsatisfied and force them to visit several stores or sources.
b. Absence of Touch and Feel Experience: Choosing products in
person, examining their quality, and assessing their freshness are
all tactile experiences that are absent from online grocery shopping.
Customers may become hesitant or doubtful as a result of this
disparity, especially when buying perishable goods like meats,
fruits, and vegetables. According to eMarketer research, 44% of
consumers are hesitant to buy fresh food online because they are
worried about its quality and freshness. Customers may be less
likely to trust online grocery shops if they cannot physically touch
and feel the products, which could result in poorer conversion rates
and a larger percentage of product returns.

4. ANALYSIS ON ONE OF THE BUSINESS OPPORTUNITIES

Market Trends

a. Past: Previously, internet-connected metropolitan regions were the only places where
grocery shopping was done online. According to the Journal of Marketing Research
([2018]), convenience and time-saving choices were the main priorities for consumers in
these sectors.
b. Present: There's a discernible tendency at the moment to bring online grocery services to
suburban and rural locations. Retailers are entering new markets to increase their

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 customer base as more people choose to shop online (Source: Nielsen Report on Online
Shopping Trends, [2021]).
c. Future: Technology and logistical developments will enable outreach to even more
remote places, which bodes well for the growth of the online grocery sector. According to
the McKinsey Report on the Future of Retail, [2024], this trend is consistent with
consumers' growing preference for online shopping and the convenience it provides.
Competitors
a. Amazon Fresh: Amazon Fresh is a major player in the online grocery sector, offering a
diverse selection of products for shoppers. As an Amazon subsidiary, it gains access to the
digital giant's massive resources and infrastructure. Amazon Fresh provides speedy
delivery to Prime members and integrates with other Amazon services such as Prime Now
and Amazon Prime Video. (Source retrieved in 2024). "Amazon Fresh: Online Grocery
Shopping"
b. Walmart Grocery: Serving consumers all across the country, Walmart Grocery is an
online grocery delivery and pickup service. With choices for pickup at nearby Walmart
shops or home delivery, it provides a large assortment of groceries at affordable pricing.
Among the many services offered by Walmart Grocery is Savings Catcher, which
automatically evaluates pricing to make sure customers are getting the greatest offers. The
source was accessed in 2024. "Walmart Grocery: Online & Delivery Grocery Shopping"
Target Market
Customers in the UK who are looking for convenience come in a variety of forms, such as
working parents, tech-savvy millennials, busy professionals, and city dwellers. These
shoppers search out convenient solutions that save them time and effort, placing a high
value on simplicity and efficiency during their grocery shopping experience. Online
grocery delivery services provide a practical substitute for conventional shopping
techniques, particularly in light of the fast-paced lifestyle that is common in cities like
Manchester and London. Moreover, a wide range of people find online grocery shopping
interesting and accessible due to the growing prevalence of digital technology and cell
phones among UK customers. Shops that cater to consumers in the UK who are looking
for convenience can efficiently address the needs of this target market by utilizing features
like same-day delivery, flexible delivery windows, and user-friendly mobile apps.

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 5.IMPACT OF ENTREPRENEUR OF OPPORTUNITY
IDENTIFICATION
Entrepreneurs have a particular attitude and set of traits that affect their capacity to spot
and seize possibilities when they set out to find problems, opportunities, or holes in the
market.
Entrepreneurial mindset
a. Visionary Thinking: Successful entrepreneurs possess visionary thinking, allowing
them to envision opportunities where others see obstacles. They possess the ability to
anticipate future trends and consumer demands, enabling them to identify emerging
opportunities before they become mainstream (Shane, 2003).
b. Creativity and Innovation: Entrepreneurs thrive on creativity and innovation,
constantly seeking novel solutions to existing problems. They are not bound by
conventional thinking and are willing to challenge the status quo, leading to the
development of disruptive products or services (Baron & Ensley, 2006).
Entrepreneurial Characteristics
a. Adaptability: The ability to adapt to the market environment calls for entrepreneurs to
be flexible and adaptive. Their agility allows them to promptly modify their
approaches, tweak their corporate structures, seize fresh chances, and tackle novel
obstacles. They can keep ahead of the competition and be relevant in fast-paced
businesses because of their capacity to adjust to changing conditions (Casson, 1982).
b. Persistence: To remain dedicated to their aims and objectives in the face of challenges
or disappointments, entrepreneurs need to possess this crucial quality. They know that
resilience in the face of difficulty and tenacity are frequently necessary for success.
According to Gartner (1989), entrepreneurs exhibit a willingness to put in the
necessary effort and hard work to attain their goals, and they are undeterred by
obstacles.

6. CONCLUSION
In summary, with a growing convenience demand and a tech-savvy populace, the UK's online
grocery business offers great opportunities for entrepreneurial endeavors. Entrepreneurs who

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embrace technology and put a priority on customer-centric methods can succeed despite
competition and logistical obstacles. They can influence the course of grocery retailing in the UK
by keeping an eye on market developments. This assurance is demonstrated by instances from
prominent players in the market, such as Tesco and Ocado. Businesses can be built sustainably
and consumers' requirements can be met by entrepreneurs through smart execution. Thus, taking
advantage of this chance enables business owners to guarantee the success and relevance of their
endeavors while also playing a crucial part in revolutionizing the food retailing scene.

References
Amazon Fresh (2024) 'Amazon Fresh: Online Grocery Shopping'.

Baron, R.A. and Ensley, M.D. (2006) Opportunity Recognition as the Detection of Meaningful
Patterns: Evidence from Comparisons of Novice and Experienced Entrepreneurs. Chicago, IL:
University of Illinois at Chicago.

Casson, M. (1982) The Entrepreneur: An Economic Theory. Oxford: Martin Robertson.

Eberle, B. (2008) SCAMPER: Creative Games and Activities for Imagination Development.
Waco, TX: Prufrock Press.

Forbes (2021) 'The future of online grocery shopping'.

Gartner, W.B. (1989) 'Some Suggestions for Research on Entrepreneurial Traits and
Characteristics', Entrepreneurship Theory and Practice, 13(1), pp. 27-37.

IGD (2021) 'Online grocery retailing in the UK', IGD, January

Journal of Marketing Research (2018) 'Consumer Priorities in Online Grocery Shopping',

Journal of Marketing Research, 55(4), pp. 567-590.

Kantar (2021) 'UK grocery market share'.

McKinsey & Company (2021) 'How COVID-19 has changed consumer behavior', McKinsey &
Company, 8 June.

McKinsey & Company (2024) 'The Future of Retail', McKinsey Report on the Future of Retail.

Mintel (2021) 'UK online grocery retailing'.

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Nielsen (2021) 'Online Shopping Trends', Nielsen Report on Online Shopping Trends.

Osborn, A.F. (1953) Applied Imagination: Principles and Procedures of Creative Problem
Solving. New York: Scribner's.

Patnaik, D. and Becker, R. (2012) Need finding: Design Research and Planning. Chicago:
Design Management Institute.

Retail Economics (2021) 'UK online grocery market analysis'.

Shane, S. (2003) A General Theory of Entrepreneurship: The Individual-Opportunity Nexus.

Cheltenham, UK: Edward Elgar Publishing.

Statista (2021) 'Online grocery market in the UK - statistics & facts'.

TechCrunch (2021) 'The rise of grocery delivery startups', TechCrunch ,30 July.

Walmart Grocery (2024) 'Walmart Grocery: Online & Delivery Grocery Shopping'.

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