Doing an environmental scanning for opportunities and threats is something that most business owners do not give a lot of thought to. Yet, how often have you found that you were so busy working your business that a blatant opportunity that could have catapulted your company was totally missed? Seizing opportunities puts you leap years ahead of your competition because most business owners do not do this.
Equally as important are the threats that you miss which can force you to shut your doors forever. Tell me, if you knew that a particular trend had the potential of slaughtering your business would you be more alert? There are trends that have that potential.
Awareness of what market trends affect your industry gives you the advantage of making the changes necessary to seize an opportunity or guard against threats. You never want to be caught off guard or operate in reactionary mode.
Imagine if you had the ability to manipulate your business’ success. Well, you can just by performing an environmental scanning for trends that have the potential to impact your business. By searching and studying trends you will soon find that you will reposition yourself favorably.
Three things that you want to stay abreast of are:
- Monitoring the direction your industry is taking
- Observing possibilities for reshaping your industry
- Gathering information for competent and strategic purposes
In a case study done by Kim, Mauborgne, Hunter and Mortensen they stated that Australia’s Casella Winery introduced Yellow Tail to the world in 2001. Casella Winery a small business set their stake in an industry that was overcrowded, extremely competitive and maxed out at the distribution and retail stages of the supply chain. But what they identified was an opportunity that would grow their business.
Prior to Yellow Tail, the wine industry was focused on prestige, quality centered on fine taste, shows and judging systems. Drinking wine was for an elite group intimidating, pretentious and challenging to the average person. Casella Wines redirected their attention to the general public offering them fun and nontraditional wine that was affordable and easy to drink by everyone. This is a clear example of seizing an opportunity that became is all the craze.
You can find these opportunities and potential threats in your business by regularly performing environmental scanning and discovering trends in your industry. If you want to learn more about how to stay astute and carve out a niche opportunity for your business join us at our next FREE training.
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