investment opportunity
The business will invest in the opportunities which will see it increase its operations in the market. Firstly it needs to acquire a competing firm which is gaining a significant share in the market. The firm has come up with unique branding and its targeting the youth demographic part of the population. The firm is marketing directly to young people, thus attracting a large market. Acquiring this competitor will be an added advantage in gaining a larger market share, which will be vital in attaining market leadership. In this investment opportunity, the competitor will not be entirely taken over by the business. It will operate independently, but it will be answerable to the new owner. This will allow the company to gain more and more market share. The acquisition will be vital in increasing the revenue for the company. The partial acquisition will be important as the company will not incur operational costs.
Another investment opportunity will be venturing into e-commerce. The company will develop a website whereby it will be targeting online shoppers and sell directly to them. With online selling and commerce increasing at a very high rate, the business will be looking to succeed in online selling too. The investment will involve creating a website that is responsive to both the phone and desktop. The website and will be operated together with retail/offline selling. The company will partner with a delivery company for easy delivery of the goods purchased online. The cost of delivery will be shared between the company and the customer. Through the shared cost of delivery, goods purchased online will be cheaper compared to the ones purchased through retail distribution. The company will also be in a position to deal directly with customers, thus managing to know their demands and preferences. Through an online selling platform, the company will be in a position to give feedback to the customers directly. The relationship with the customers will be important in retaining and attracting new customers. Carrying out the promotion of products on the online platform will be easy and less costly as compared to the mainstream media. Thus, this investment will be important for the business to establish its footprints and success in e-commerce.
Lastly, another investment which the business will invest in is expanding to various countries in the world. That is, the company will become a global player in the industry. The global strategy will be based on franchising, whereby the oversea branches will operate independently. The business will give them an operational license and supply of the trademarked goods. Through franchising, the business will reduce the operational and administration costs involved in managing big businesses. The business will only incur the promotional costs, and the marketing costs, which will be the obligation of the company. The oversea operations will be under global office management. On the other hand, the local operations will be under the management of the top management from the company’s headquarters. The revenue will be divided into two categories. That is, revenue from global operations and revenue from local operations.
These opportunities can be availed to my business due to multiple reasons. Firstly, the business has not undergone any loss in the last four financial years. Cash flows from operating activities have been positive, thus indicating the growth of the business. Secondly, the customer base has been increasing, thus making the company gain significant market share. Thirdly, the company has not been operating on debt, thus making it possible to finance its operations without borrowed capital. Therefore, the business will be in a position to invest in those opportunities as it already past break-even.