What Is Opportunity Recognition?
Opportunity recognition means proactively brainstorming a new business venture or expansion idea. A small-business owner typically engages in opportunity recognition at the point where he realizes he has an idea, strength or capability that matches well with a particular target market. Entrepreneurial business owners constantly seek new revenue streams. Those that seize ripe opportunities tend to perform best financially.
For long-term viability and success, a company needs some ability to recognize opportunities. Industries usually evolve based on societal changes, customer preference changes or technological advances. The most innovative company leaders who seize opportunities stay ahead of the competition in delivering progressive solutions to customers. Steve Jobs recognized the tremendous opportunity to make Apple a cutting-edge innovator in mobile technology. Amazon.com founder Jeff Bezos similarly recognized the power of online book sales long before traditional book sellers. He continued to seize opportunities for product diversification after making a big splash with books.