Evaluating Opportunities
Opportunities show the potential growth pattern a company may chart out. For some companies, spotting a prospect could be easier than others. Thus, as an investor, you need to be on the lookout for companies that have been able to spot the potential of an upcoming niche and are rapidly diversifying their offerings to be present there, ergo, possess an early mover advantage. Based on the strategy and aggression to tap the potential area, the company’s growth potential can be mapped. For instance, Maruti announced entering the electric vehicle segment when it was evident that India, there will be a high adoption to e-vehicles owing to their environmental feasibility. Similarly, a lot of start-ups are finding opportunities in different segments, such as artificial intelligence.
While evaluating on the opportunities front, here are a few things to look out for:-
●Expansion opportunities in terms of product offerings as well as geography.
●External opportunities such as mergers or acquisitions, a new segment, new industries, etc.
●Macroeconomic factors such as lack of resources or an abundance of the same, etc.
●Social trends and the ability to adapt to the same.