- Economic Trend
- I found this trend through Forbes magazine online https://www.forbes.com/sites/alexknapp/2020/02/06/an-ipo-of-spacexs-starlink-business-would-let-investors-bet-on-elon-musk-disrupting-another-industry/#22ca716b7b78
- I believe that there is an opportunity because as mentioned in the article, Elon Musk's Starlink internet satellite business is looking to go public in the stock market in the near future. The company - SpaceX - is growing rapidly, competing with the preexisting space industries at a cheaper cost.
- The prototypical customer will be investors hoping to own a piece of Musk's company to make a profit.
- The opportunity, once it presents itself, should not be difficult to exploit not accounting for the IPO price. Investors will be able to purchase shares through whatever investing platform they use after the company's gone public.
- I saw this opportunity because of my interest in the topic of space exploration, and the rapid growth of the industry and development of new technology has set major business potential in the near future.
- Economic Trend
- I found this trend through the New York Times online https://www.nytimes.com/2020/02/06/business/china-trade-tariffs-coronavirus.html
- I believe that an opportunity exists because the mutual agreement of China and the U.S. to reduce tariffs on each side would mean that U.S. companies are able to import more goods for resale here and also, the U.S. would be allowed to export more goods to China. Tariffs limit the number of imports allowed in a country, which ultimately makes those goods more expensive for the consumer.
- The prototypical customers, in this case, are both U.S. and Chinese corporations trading with one another, since they can take advantage of the lower costs of commerce.
- The opportunity, which kicks in Feb. 14, should not be difficult to exploit and would be more than encouraged due to the fall in prices for imports.
- I saw this opportunity because of my other class, principles of management. We recently covered imports and tariffs and other content of a similar nature.
- Regulation Trend
- I found this trend through the New York Times online https://www.nytimes.com/2020/01/31/health/vaping-flavors-disposable.html
- I believe that an opportunity exists given the nature of the ban, which states that flavored refillable vaping products are banned, not all flavored vaping products. Since not all flavors products are banned, companies can keep producing these one-use products and consumers can keep on buying them without any hassle.
- The prototypical customers are the wholesalers, retail stores, and consumers of vaping products.
- The opportunity is not difficult to exploit because as seen in the article, the only current regulation on flavored vaping products is that they must be one-use.
- I saw this opportunity because of the way these vape products rose to fame in what seems to be overnight not too long ago. A lot of people in my age group consume these products which just so happens to be the industry's target audience.
- Regulation trend
- I found this trend through the New York Times online https://www.nytimes.com/2020/01/30/business/economy/volcker-rule-banks-venture-capital.html?searchResultPosition=6
- I believe that an opportunity exists because the deregulation of banking institutions regarding venture capital would assist more businesses in those beginning stages.
- The prototypical customers would be entrepreneurs seeking investments in their ideas and their projects.
- The opportunity exists but those featured possess high risk, but even higher growth potential.
- I saw this opportunity because it tied into the content we've discussed in class.
Friday, February 7, 2020
6A - Identifying Opportunities in Economic & Regulatory Trends
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Hi Luis!
ReplyDeleteYour economic and regulatory trends are interesting especially the one on deregulation of banking so that new businesses can start up. Along with an interesting economic trend you have is Starlink and how essential and innovative this technology can be. I agree that tech is an incredibly fast growing industry that is full of innovations that can change the world. Yet some of this tech is a slippery slope because it has caused many businesses to fail and job loss. Overall, I think you did a good job with these opportunities.
Best,
Austin Felter
Hey Luis,
ReplyDeleteAlthough there might be a market for single-use vaping products, I do not see a very big financial opportunity there. To begin with, these products are terrible for the environment because they are single-use. Gainesville specifically has taken a stance against single-use products when it banned plastic straws. Also, new laws have made buying such products very difficult for many students because nicotine is now 21+. In the end, the market might just not be big enough to succeed.