Enterprise Creation and Development

Question: Discuss about theEnterprise Creation and Development. Answer: Business Idea: Idea Generation: Humans always want an easy access for their hydration at any part of the world however, it is evident that individuals do not like to carry around a bulky water bottle that fits nowhere and unnecessary adds weight. Plastic bottle is easy to carry but causes huge harm to the planet as it endanger lives of other species as well. Fresh fit came up with the idea of creating a Que Bottle with awesome looks and ease of travel. The business idea is aimed towards designing a collapsible bottle which offers individuals to travel with the bottle (Barringer, 2012). The bottle is uniquely designed with spiral shrink on it which is half of the bottle size without compromising its stylish appeal. Feasibility of the Idea: The feasibility of the business idea is based on the unique design offered by Fresh fit as the bottles will be made of completely BPA-free food grade silicon and will be originally 100% plastic free. This ultimately makes it safer for the humankind and for the planet as well. The business is feasible, as currently plastic bottles have dominated the consumer market and making it environmentally hazardous for flora and fauna as well as the marine ecosystem (Bryman Bell, 2015). Apart from this, several researches revealed that a large number of used and discarded plastic bottles are thrown everywhere making the planet exposed to the perils of environmental hazard. It is understood that the main reason behind the purchase of highly marked up plastic water bottles is only for the sake of convenience. This is not considered as one of the best possible alternative for making travel bottle available. Presently, the existing lot of water bottle are either considered as bulky which makes them impossible to carry around, dull looking or cheap made up of foldable flask. Fresh Fit wanted to make something, which is highly functional with awesome design. The company believes it to be one of the most feasible business ideas as its initial design and hard work will yield the most desired business result. Protection of Business Idea: Ideas are considered as daydream or a great invention that enables a business to earn millions and quite often to turn into a viable business. Fresh Fit is currently looking forward to patent its business process as the concept of the current business idea is relatively new. The current business is unique with new product plan and patenting the designs would ultimately help in keeping the business ideas relatively secret until the application for patent is filed (Wall, 2014). On the other hand, the business is also planning to trademark is business name as this will offer an added level of protection since the name of the company is closely related with its business idea. Hence, by creating a trademark Fresh Fit can serve as written evidence that the business idea works at a particular time. Scanning of Business Environment: The current nature of the water bottle industry is extremely diversified in global market for reusable water bottles, which encompasses numerous products in terms of size, shape, designs and material. There are large numbers of water bottle manufacturers who are vying for the market share by introducing innovative products (Thomas et al., 2014). Currently there is a rising trend of increased usage of BPA-free materials and increasing adoption of the smart bottles are anticipated to have profound impact on the overall development of the market in the coming years. Several market researchers have estimated that the market will grow by 4.2% CAGR over the period of 2016 and 2024. Growing at the current speed, it is anticipated that the market valued at US$7.04 billion in 2015 will surpass US$ 10.19 billion by 2024. Identification of Current Market Trend: Based on the kind of material used to manufacture reusable bottle the current market has been segmented into polymer, glass, metal and silicon. Currently bottles made up of polymer are presently leading the market owing to its wide range of availability, differentiating features and low cost. According to the TMR consumer analysis, the current segment is ranked first in terms of the degree of penetration for reusable water bottles across the world and it is anticipated to remain a prominent choice for respondents to purchase in the near future as well (Hair, 2015). The segment of polymer based reusable water bottle is anticipated to be dominant contributor to the revenues generated of the global reusable water bottle market over the forecasted period. The increasing use of the BPA-free water bottle is the segment of the plastic bottle. Hence, features of Que bottle such as durability, ease of availability will keep the hot or cold water for longer period and its availability will mak e the bottle favoured by the consumer. Porters Five Forces: Porters five forces and SWOT analysis are conducted to understand the market viability of the Fresh Fit which is as follows; Bargaining power of suppliers: Low to moderate Fresh Fit are integrated to suppliers who purchase in bulk and with the continuation of restricted number of companies make this feature a low risk of suppliers There could be high switching cost due to the restricted number of bottle producers and other machine dealers Bargaining powers of buyers: High This could be viewed that buyers have large number of suppliers to choose from Threats of backward integration is measured to be low Competition: Very high The general character of the manufactured goods and present low price levels could lead to lower switching cost (Dobbs, 2014). The anticipated market growth is anticipated to grow over the next three to four years Threat of substitute: High There are threats from substitutes such as pipe born water bottle, polymer plastic bottles, blow mould bottles of lower cost possess the threat of substitution Switching costs could be considered as low since the cost of bottled water is considered as low. Threat of new entrant: Moderate to high Capital costs could be considered as moderate to high investment cost High industry rate of growth which can encourage new entrants The unit cost of production could be considered as low and it continues to decrease with use of latest technologies SWOT Analysis: Strength: Creative product idea Unique benefits which is not offered by competitors Environmentally friendly Weakness: Limited continual firm Start up company with no brand recognition Opportunities: Large number of market availability No identical products are available in the market Current trends towards environment protection Threats: Threat of low cost polymer products High cost of capital Reference List: Barringer, B. (2012).Entrepreneurship: Successfully Launching New Ventures, (2012). Best, R. (2012).Market-based management. Pearson Higher Ed. Bryman, A., Bell, E. (2015).Business research methods. Oxford University Press, USA. Collis, J., Hussey, R. (2013).Business research: A practical guide for undergraduate and postgraduate students. Palgrave macmillan. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), 32-45. Hair, J. F. (2015).Essentials of business research methods. ME Sharpe. Thomas, D. F., Gudmundson, D., Turner, K., Suhr, D. (2014). Business Plan Competitions and Their Impact on New Ventures' Business Models.Journal of Strategic Innovation and Sustainability,10(1), 34. Wall, L. (2014). Business plan: It's business time!.AJP: The Australian Journal of Pharmacy,95(1131), 50.