Entrepreneurship And Innovation Analysis – Cocofina Case Study

Micro-environment analysis

Entrepreneurship and innovation are two different terms with different meanings as well; however, both the terms when they get combined produce some rare happenings on this earth. Entrepreneurs require some innovative thoughts when they think of starting a business. Only those businesses that have been produced by the collective efforts of entrepreneurship and innovation succeed only (Onetti et al. 2012). This particular assignment is aimed at highlighting one of such entrepreneurs Cocofina that came into existence in the year 2005. The concept was unique and innovative as well. The start of the business is itself very uncommon and interesting. The paper provides an analysis of the business with the help of suitable business concepts. The aim of Cocofina is “To provide yummy and healthy coconut goodies to the global people”. Their objectives are “To select the supreme coconuts for their customers, to provide an utter taste to them and to contribute to the communities that they belong to”.

Competitors	· There are ample number of competitors; however, Vita Coco is probably the potential competitor (Vitacoco.com 2017) · Cocofina offers varied kinds of products made from coconut water, a feat that has remained unchallenged by others (Experts 2017)
Organization itself Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	· Cocofina is one of the very few companies on this earth that has shown resilience to any challenges (Sower and rarr 2017) · It just started with an incident that took place while the founder of the company Jacob Thundil was on a beach in Brazil (Sower and rarr 2017) · Jacob’s love for coconut was the decisive factor behind the concept (Sower and rarr 2017) · At every stage after the startup Jacob did produce the role of an entrepreneur. Such as when the first response to the product was negative mainly because of the salty taste of Kerala based coconut. Jacob did change the resource and selected to go with Thailand & Philippines. The result was a success as the product then received a positive response from the customers (Sower and rarr 2017)
Suppliers	· Initially, the suppliers were from the Kerala · Later on, Jacob decided to go with the suppliers in Philippines and Thailand
Market	· The company started its operation in the UK with an innovative product that has never been thought before by many (Experts 2017) · After very few times, the company was able to reach to 28 countries across the globe (Experts 2017) · It is now sold in 3,000 healthy and specialty outlets in the UK (Experts 2017) · There are two giants in the coconut business, the one is Vita Coco and the other is Cocofina (Sower and rarr 2017) · Vita Coco has captured a mass market; on the other hand, Cocofina has targeted those who need healthy coconut drink and various other products (Sower and rarr 2017)
Intermediaries	· The intermediaries of Cocofina put the sellers and buyers together; however, they are not the owners (Experts 2017) · Cocofina had capably handled its intermediaries, which is why the company was able to retain its all suppliers without losing a single (Experts 2017)
Customers	· Cocofina is for those who are health conscious, which is also evident in a fact that the company was adjudged the winner for providing the best quality Food & Drink in the year 2005 (Experts 2017)

Table 1: Micro Environment Analysis

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The company has faced challenges ever since its inception in the year 2005. However, Jacob was able to dislodge the entire challenges through its entrepreneurship skills and innovative ideas. The very first of its kinds did happen when Jacob introduced its first offer through a taste festival in Regent Park. 50 percent of the audiences did dislike the product because of increased saltiness in the products. In spite of going down with the reaction, Jacob tried to find the answer for the failure. Consequently, Jacob was able to identify the potential resource for its products. Philippines and Thailand had been identified as a potential resource for an improved taste of the product. The move was judged an appropriate decision as the company got its first acknowledgment for best quality food & drink in 2006 (Sower and rarr 2017).

Political	· Both Philippines and Thailand are potential markets in the South East Asia (Gov.uk 2017) · Different startup and established companies prefer to have traded with Philippines and Thailand (Gov.uk 2017) · Startup companies can prefer to work with these countries by importing and exporting directly (Gov.uk 2017) · The trade is facilitated by an appointed agent or distributor (Gov.uk 2017) · The trade can also be done through other means such as franchising, joint venturing and setting up a local office (Gov.uk 2017) · There are some challenges as well such as corruption, foreign ownership restrictions and less availability of skilled employees (Gov.uk 2017)
Economic	· Economy is not a very big challenge for the products as maximum products are within the buying capability of middle-class family (Varley 2014) · The product is available to the people in UK, Holland and many other countries (Sower and rarr 2017) · The products are healthier, which is why this will not be a high constraint for those who need healthy drinks (Sower and rarr 2017)
Social	· The social behavior is one of the most driving factors behind the business · The world is running for healthy foods and drinks, which is a very good sign for Cocofina (Willett 2017) · Additionally, the buying capability will not be a constraint either as products are affordable to masses (Varley 2014)
Technology	· Technology is very important to drive the business of coconut water-related products · Cocofina faces an utter challenge from Vita Coco. Therefore, the better the use of technology the more will be the progress of business (Garcia Martinez et al. 2014) · Cocofina needs to use the utter technology to respond to the rising demand for coconut related products · New technologies such as analyzing the available data, using the cloud system & the social media platform have been the potential choices of technologies (Garcia Martinez et al. 2014)
Environmental	· This has a very direct impact on the business of Cocofina · Climatic conditions are very important for a proper growth of coconut trees. An approximate rainfall of 2000 mm per year is ideally required to have a proper growth (Beginners 2017)
Legal	· Adhering to the legislation is very mandatory in the exporting and importing practices as corruption and forgery cases might occur (Pomeranz 2012)

Table 2: PESTLE Analysis

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According to the Amabile’s componential theory of creativity, entrepreneurs can be categorized in three core characteristics such as domain-relevant skills, intrinsic motivation and cognitive processes relevant to creativity (Amabile 2012). These are the three few characteristics that can be used to analyze the entrepreneurship in a leader. Additionally, there are various traits of entrepreneurs, which will also be used to evaluate the entrepreneurship in Jacob Thundil. Additionally, the analysis will be done on the two chosen segments such as the products/service and growth strategies.

Evaluation based on the Amabile’s componential theory of creativity-

Macro-environment analysis

This signifies that the entrepreneur has ample of skills relevant to the domain that the entrepreneur has selected. Jacob indeed selected the coconut water to initiate a business. The selection was indeed a very strange move because very few people were aware of the benefits of coconut water. The selling point behind the business was thought to be its health benefits; however, at that time very few people had an idea of the benefits of coconut water. The risk was proved to be right at the time when the first product was launched in a taste festival in Regent Park. Approximately around 50% of the people had disliked the product because of the saltiness of it. Initially, the source of coconut was India. Jacob was capable enough to understand the need to have a less salt containing coconut. Consequently, Jacob moved to Thailand and Philippines (Sower and rarr 2017). This is a very clear example of domain related superiority in Jacob.

This is indeed very necessary for an entrepreneur. An entrepreneur is required to be rock solid in his strategy making. There is no place for fear. Every barrier is required to be crossed (Cerasoli, Nicklin and Ford 2014). Jacob had all such essence in his business skills. When Jacob was only 17, his father passed away. This was a sheer reflection of intrinsic motivation that never let Jacob down instead it strengthened him further. Moreover, Jacob presented the dual works such as Jacob maintained his study as well as his father’s business. It was the intrinsic motivation when Jacob at the age of 30 had thought whether the life will remain the same as if now. Jacob was motivated enough to think of coconut water business while Jacob was sitting at the beach in Brazil. Additionally, the first product launch had received mixed reactions. Jacob did not lose his nerve Jacob rather moved to Thailand and Philippines to get the required coconut. The rest is history (Sower and rarr 2017).   

Cognitive processes relevant to creativity

The creativity in Jacob is evident in his intention to move with the coconut water-related business while people were less aware of the benefits of it (Anderson, Poto?nik and Zhou 2014). The first product launch was a failure in fact. More than half of the people had then disliked the product complaining the excessive saltiness of the product. Jacob was creative enough to find a better resource of coconut that could supply the demands of customers (Anderson, Poto?nik and Zhou 2014). Consequently, Jacob selected Philippines and Thailand as the destination for getting the required materials. Jacob teamed up with Sarah and Nick to attain the superiority in food-related knowledge and the online marketing. This was a creative move. The launch of coconut snack bar was itself a creative move (Sower and rarr 2017).

There are different traits of entrepreneurship. Following are some examples of different traits that will help to analyze the entrepreneurship traits in Jacob:

Tenacity

The trait teaches the art of living with the uncertainties (Warner and April 2012). Jacob had also faced few uncertainties but Jacob responded to the challenge with its utter creative thinking. One of the first examples of tenacity can be found in the incident when Jacob was sitting on a beach in Brazil. Jacob suddenly started thinking that life should not move as it is at the present. The thought had produced one of the major finds of the decade. Jacob started the business with the coconut water at the time when people had less awareness on the benefits of coconut water and also the concept had never been introduced to the United Kingdom before (Sower and rarr 2017).  

 This is also very important for the entrepreneurs. Passion is one of the very common traits that all entrepreneurs possess. Nevertheless, a small concept can never flourish if the business person lacks in passion (Ayala and Manzano 2014). Jacob had passions for something that could give him the luxury of living. As a result, Jacob started a business that has no connection with his qualification. Being an engineer from the profession, Jacob took the other way and started the business of coconut water-related products. It was Jacob’s passion that after the failure in the taste festival in Regent Park, Jacob continued his business without letting him down. Consequently, Jacob found another suitable location as a resource for his required materials. It was Jacob’s sheer passion that encouraged him to team up Nick and Sarah. The move was to support the business with a different set of experiences in food and online marketing (Sower and rarr 2017).

This is one of the classic examples of entrepreneurship that encourages the entrepreneurs for a risk-taking approach (Merrotsy 2013). Jacob from the age of 17 when he lost his father had shown utmost resilience to the oddest of situations. Jacob did take the responsibility of his father’s business. At the same time, Jacob also continued his study. At the age of 30, when Jacob was on a beach in Brazil, Jacob was hit by a thought that life should not be the same through his entire life. Jacob rather felt the necessity of doing some innovative works that satisfy its soul. Moreover, the coconut business came into existence. Jacob introduced the business at the time when the benefits of coconut water were not known to a mass people. The risk did not pay off initially as the first launch of the product had received mixed reactions. Customers complained the excessive saltiness in the product. However, Jacob did not lose his nerve and was able to find a different source of coconut in the form of Thailand and Philippines. Jacob did not approach the supermarkets to showcase its products. This was again a gutsy move; however, Jacob was very clear in his approach. Jacob wanted to be with his thought process in course of providing the fresh coconut related products to the customers (Sower and rarr 2017).

Vision

This is one of the core characteristics of the entrepreneurs. Jacob was destined, which is evident in his life process. At the age of 17 when Jacob had lost his father, Jacob did take the responsibility of his father’s business and along with that Jacob also carried on his study. At the age of 30 when Jacob was sitting on a beach in Brazil, Jacob was hit by a thought to start up a business of coconut water. The concept was strange for others; however, Jacob had continued his work. It was the sheer vision of Jacob that helped him to launch the first product in a taste festival (Ucbasaran et al. 2013). It fetched him the negative responses; however, Jacob remained solid. Henceforth, Jacob found a new destination for his required raw materials. Thailand and Philippines had been identified as the nesting place to have the coconut that has less salt in it. Since then Jacob has never looked back (Sower and rarr 2017).

The entrepreneurship quality in Jacob requires some improvements to help Jacob reach a different level. Following are some recommendations that will help Jacob in uplifting his business standard:

Communication

This is very vital especially to an entrepreneur of Jacob’s stature. An improved communication will help in preventing the employee’s dissatisfaction with the management. Moreover, this will infuse them with the requisite elements that are needed to be a successful entrepreneur (Guffey and Loewy 2012). Jacob could follow the footsteps of some of the most admired entrepreneurs. This will help Jacob understand how to improve the communication with the employees and the customers. Jacob indeed does not have any ideal person in his life. Jacob rather respects his brother-in-law who had helped Jacob in his challenging times. However, following the communication skills of some well-known entrepreneurs will teach the best ways to improve the communication with the employees and the customers.

Online presence is necessary to brand the product. This will help to reach a larger audience across the globe. Jacob has already hired Nick to know the ways to have an online presence. However, this is needed to reach a next level. Online presence has become a very good source of reaching to a million of customers (Vinerean et al. 2013). The business concept has already stormed the United Kingdom market; however, they are not as big as Vita Coco is. Vita Coco has a mass market. On the other hand, Cocofina is popular in mass for his quality. There is a number of internet users who consider the platform as a good source to find the remedies of basic ailments. Expanding the online presence will help Cocofina to reach a wider customer base. Moreover, they will get to know the health benefits of products, which will be beneficial for both the customers and the company itself.

There is a need to think of enhancing the market sales. The fact can well be understood from the examples of different entrepreneurs who have set no limits to them. They rather carried on moving (Kryvtsov and Vincent 2014). One of such examples is of Mark Zuckerberg who is also the youth icon. Mark is a very rare example of youngest billionaires. Jacob should also think of increasing its sales. This can be done by improving the sealing capability of the team. This will require some highly experienced marketing professionals who can do wonder to Jacob.

Strategy-

This is another very important suggestion to Jacob. Jacob has so far not considered being a part of the supermarkets. According to Jacob, a lot of people do not know him that is why there is no point of being the part of the supermarkets. However, customers are now more aware of health-related benefits. They are aware of the polluting environment and the causes behind it as well. They are also more or less aware of the benefits of healthy foods. The trend is not the same now. Hence, this will be indeed a smarter move to enter the various supermarkets. This will help to catch a larger audience (Ottenbacher and Harrington 2013).

Conclusion

To conclude, Cocofina is a potential concept led b a potential entrepreneur in the form of Jacob. Everything has been good so far for the company. However, they need some repairing works to attain an elevated space in the market. Such repairing could be done on the basis of recommended strategies. Jacob needs to focus more on online expansion and the sales strategies. Additionally, Jacob would also require some experienced sales professionals who could help him to further its sales graph. The expansion of business should never happen on sacrificing the core features of Cocofina, which is to offer a quality product to the customers.

References

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