Opportunities are circumstances that a business can exploit to its advantage. They can be found in a number of areas but the purpose of identifying them is to support development of business growth strategies. Opportunities can be found in new target markets and new service offerings. They can also be brought about by technological advances, government regulations or demographic changes in the market. The identification of opportunities is essential to business advancement. Following are areas in which business opportunities can be identified:
- Identify New Potential Markets – A business chooses a target market based on the ability to provide quality service. Competitive strengths may provide an opportunity for expansion into new markets. For example if an auto repair shop is doing a good job of providing service in the retail market it may be possible to exploit the strengths developed in retail to the business to business market.
- Speculate on New Service Offerings – Opportunities can be found in providing new services. For example an auto repair shop that doesn’t offer tire mounting and balancing may consider providing this service. Or a tire shop may consider expanding mechanical repair service offerings.
- Evaluate Technological Advances in Auto Repair – New capabilities in the areas of systems, diagnostic equipment and vehicle components can provide potential for advancement in vehicle repair service. Taking a proactive approach to technological advancement can result in building advantages over the competition.
- Assess the Impact of Governmental Regulations – Government regulations can sometimes provide opportunities for business. Anticipating changes brought about by changes in laws can allow an auto repair business to be prepared to offer necessary services ahead of the competition.
- Consider Demographic Changes in the Market – The demographics of a geographic market will evolve over time. The age, income level and other attributes of people in an area will change. Anticipating these changes can provide opportunities to offer the right services at the right time.
