Opportunity Analysis
the underestimated component of your business plan
Every company and individual has opportunities lying in front of them. That means, individuals have opportunities like becoming finance analyst or sales manager. The process of choosing a profession and the variables that weigh for making that decision is the so called „opportunity analysis“. Companies use the same concept just like individuals looking for career opportunities. They use opportunity analysis to make the right decision aiming at making more profits.
The industrialized part of the world has highly developed individual needs. One example is the health awareness. Politicians, media and scientists implement the idea of staying fit, eating healthy, exercising frequently. Hence, more and more people shift from health awareness to individuals that convert the idea actively. By focusing on life enhancing methods, people may improve health which results in a more enjoyable life. As consequence, companies like McDonald’s, Subway, Starbucks use „healthy food“ as strategy to attract the rising number of individuals‘ demand for organic products that improve their health. In this context, politicians, media and scientists make people aware of life enhancing opportunities, individuals then weigh variables that might improve their quality of living. Corporates use the same concept. They see the opportunity of a healthier life as well and hence aim at the new target group in order to make more profit. That is why McDonald’s, Subway, Starbucks promote actively organic products. That is the so called opportunity analysis.
Corporates use opportunity analysis to grow because the more opportunities are explored and established, the more marketshare they will get. Margins improve as well, as companies that enter new markets or establish new segments have less competition. The more a company grows and makes more profits due to higher margins of the new established segment, the more it can invest in brand building that results in better brand reputation.
On the other hand, individuals that make a decision might be wrong like investing in a new product line that won’t sell. Another down side of opportunity analysis is that a failed opportunity may affect the company’s reputation. When you invest in a new product line that won’t sell you just got dead investments which affects the return of investment (ROI).
Nevertheless, in order to move forward a company should analyse its opportunities. Every decision has to be made by an individual like a manager or an entire team. The best way to analyse opportunities is the 360° feedback. You simply gather all information from employees, distributors, partners, customers, and internal departments so that the right variable are chosen to make a decision and approaching your company’s goals.