Secondary Research: this is by collecting published information.
A new entrepreneur needs to carry out market research to check and find out how many customers they well likely attract. This gives them an idea of their likely demand and possible sales.
A business needs to have a USP to be successful. USP stands for unique selling point this means something about the product or service that the competitor does not have and is attractive to customers.
I can find out about what kind of service the customers would want by asking them what timing would be good to open and close the tuition centre, type of customer (the age group like GCSE or A levels students).
I will also need to find out about the competitors, how many they are, who they are, I will find this out through secondary research.
A new entrepreneur can find out about the market it is entering by these two researches which I have explained above. It is important for them to know about the market it is entering otherwise the business will not survive; everything in a business needs to be taken into consideration.
TASK 2 (M1)
Explain how a potential new entrepreneur might plan for entry into that particular market.
In order to complete this assignment I will need to explain what the business does, then I will explain if there is a demand for my service, who my target market and my competitors are, I will carry out a SWOT analysis on my competitors. I will also explain where the business will be located and where my competitors will be located. I will talk about the premises and other things connected to the location. I will describe the legal structure and decide when I will start the business, what resources I will need to start the business, how I will get the funds, how I will promote my business and lastly I will explain other staff that I can talk about to open the business.
I will open a tuition centre, where I will provide every age students with private education, I will name this tuition centre “SA Tuition Centre”.
I believe accordingly to my research that there is a high demand for the service the tuition centre. My target market is students of any age. In tuition centre based in Hayes will be my competitor. I will also need to find out how many competitors there are and who they are I will do this by secondary research through internet, yellow pages and primary research through questionnaires, trying out the competitors service.
The strengths of competitors:
- Good customer relationship
- Already have a good image
- good communicational skills
The weakness of competitors:
- not always competitive
- not always meeting customers needs
- lack of qualified teachers
Every business needs to create a SWOT analysis for their business. SWOT stands for strengths, weakness, opportunities, and threats. This technique is used for the development of marketing plans. The role of the SWOT analysis is to get information from the community/ environment and divide the issues into internal and external issues.
Strength and weakness are internal factors that can affect the value by increasing or decreasing it. This relates to product or the business.
Opportunities and threats are external factors that the business can not control. This relates to market or competitors actions.
Factors of the SWOT analysis of SA Tuition Centre:-
For strengths:-
- Financial support from father
- Location of business
- good communicational skills
- work experience in the same field
For weakness:-
- Lack of business knowledge
- What if the owner is away
- lack of market knowledge
- not easy to expand
- Competition
For opportunities:-
- developing market
- attractive market segment
- Centre based on main street
For threats:-
- a competitor in the same market
- competitor has a better service
- new rules
change in customers taste
