Showing posts with label spotting. Show all posts
Showing posts with label spotting. Show all posts

Saturday, June 18, 2016

Every business strategist/owner should be entrepreneurial, ie spot the opportunity

Every generation needs a revolution - entrepreneurial revolution

Ateneo Professional School
Makati City
June 18, 2016

In the strama defense, there is a portion there that uses Porter;s five forces of competition.   If the competition is high for all the 4 sectors, that means to say, there is an opportunity in the industry where the enterprise is to make money.  If the competition is high, the more money is to be made. If there is more money and there is growth, there is a possibility for the enterprise to grow its sales, cash flow, and profit.

Thus the student for strama must have a keen eye on the opportunity and must balance the risk aversion vs the benefit the money to be made.

Thus:

1.  In the yarn factory that shifts to cotton toll manufacturing.  It makes a cotton bud each for 4 cents, which the the brand owner sells for 20 cents.  The l6 cents is the opportunity window. The brand owner makes a lot more money that the producer.  It is worth looking into the business of making and selling cotton buds.