Opportunities will always be available, both for businesses and individuals. As an individual, let’s say you have the opportunity to become a professional athlete or become a director. The type of profession selected and the variables involved in decision making are called opportunity analysis.
Just as you see opportunities in your career and choose one of them, businesses also have a variety of opportunities waiting ahead. By analyzing these opportunities, businesses devise the right business strategies in order to make greater profits.
Benefits of doing opportunity analysis
One of the most obvious advantages of doing opportunity analysis is that the business will grow. The more opportunities explored and responded to, the more business will grow.
As the business grows as it takes advantage of new opportunities, it will start to have an increase in profits. Why is that so? Because new opportunities mean new market segments that will bring more profit.
In such situations, building an image or brand building is a business strategy that needs to be done. Increased profits and business growth make it easier for companies to invest in brand building activities. So, it’s a good time to build a reputation that consumers will never forget.
In the end, you’ll arrive at a time where the fixed cost never increases, only variable costs add up. That is, the reputation of the business and profits continue to increase.
Conduct opportunity analysis as part of a strategy
Finding feedback is the best way to analyze opportunities and see if an opportunity will be profitable. Get feedback from employees, distributors, various partners, and consumers. This way, you can make the right decision in response to any opportunities that arise.
In order to review opportunities carefully, there are several factors to consider, namely:
What if the opportunities you’re considering and looking profitable have been first run by competitors? If you want those opportunities to turn into profits, especially long-term one, you need to do a thorough analysis of the competition. Understand where your business can steal opportunities from the hands of competitors.
Estimated market demand
Next, the opportunities you see are only complete when you can already estimate market demand. You can’t invest resources for products that don’t yet know the return on investment.
When opportunities are analyzed, you need to create a clear and personalized marketing plan. Keep in mind, each market segment has a different character and you’re just about to enter a new segment.
Market research is an internal part of the opportunity analysis that will show whether a product or service will be accepted by consumers. Through research, you’ll also get a deeper idea of the features or values that can be added to a product or service.