Assignment 6A: Identifying Opportunities in Economic & Regulatory Trends

Economic Trends:

1.     Economies Overseas Rebound

An article titled 5 Biggest Trends That Will Affect Your Money in 2018 on Money.com identifies current events that are affecting the way global economies interact. Some of these events provide opportunities for both small and large-scale investors and entrepreneurs. The record-breaking bull-market in the United States suggests this continuing trend, however the growth abroad has shown even greater numbers, with emerging markets rising more than 30%, and an expected global GDP growth of 3.2%. The prototypical customer is anyone willing to invest in mutual funds focused on investing in undervalued stocks in the European and Japanese markets. This can be achieved by almost anyone today who has access to trading platforms and/or personal brokers.

I believe I recognized this opportunity because of my experience and interest in global markets. When studying markets diligently and looking for specific trends, opportunities often arise, but capitalizing on these opportunities at the right time is very difficult.

2.     Trucking Wages and Safety

According to a response to an article in the New York Times, the booming U.S. economy is recreating the opportunities for truck drivers that were lost in recent recessions. With the productivity in domestic production growing the past few years, the need to transport goods within the United States has become increasingly more necessary. This provides an opportunity for those seeking to fulfill an increasingly important role in the U.S. delivery system for great pay, as well as those innovators seeking to improve the delivery system itself through the use of new technologies. Driverless vehicles are among these rising technologies, and although it may be difficult to exploit at the moment, it still provides opportunities to work towards the future.

I noticed this opportunity because I have heard in recent news that there has been a short supply of truck drivers, despite the pay being so great for a non-degree occupation. I found the article interesting in my search for an appropriate article to discuss in this assignment.

Regulatory Trends:

1.     Deregulation of Environmental Effects

In the past year, regulations that prevent damaging practices to the environment have gone out the door, and with that, raised awareness for this issue amongst hundreds of thousands (if not millions) of people around the world through many forms of social media. The raise in awareness provides opportunities for many different entrepreneurs and customers depending on how it’s exploited. The sale of products that donate a portion of each sales revenue to a charity or cause has provided customers with an opportunity to help certain causes simply by buying a product that attracts them. The owners of these companies are profiting off of these sales, while also donating money to their cause of choice. This has become increasingly popular with recycled plastics from the ocean, that are formed into products such as bracelets, and sold to the public.

I saw an opportunity in the environmental issues were seeing today because it is an issue that hits very close to home and has devastated my community and neighboring communities. The opportunity for people to clean the ocean, make a profit, and donate portions of their revenue all at the same time is a very attractive idea.

2.     Tariffs and Trade Policies

International trade policies have gained a lot of attention since Trump took office. According to Business News Daily, worsening relations with China means that companies should start preparing for higher prices from suppliers, whether it’s essential raw material or capital equipment, by purchasing these products now. This can provide a great opportunity for the suppliers to provide even larger than usual quantity sales, and for companies who need materials to acquire these materials at a low price due to such large quantities. Although it is a large investment, worsening trade relations may deem it promising.

I believe I noticed this opportunity because of the recent classes that I’ve been taking. These classes have put me in a certain mindset and made me more aware of supply and demand practices and the effects of certain regulations on the outcomes of these practices.

Assignment 5A: Identifying Local Opportunities

1.     ‘Ride-Hailing Could Cost You More Than Owning a Car, Analysis Finds’

https://www.nbcnewyork.com/news/local/Ride-Hailing-Could-Cost-You-More-Than-a-Car-Analysis-Finds-491367751.html

 A recent analysis of ride-hailing costs in 20 cities carried out by the AAA Foundation for Traffic Safety found that ride hailers often spend almost double the cost of owning a car by finding a ride to work every day, even when factoring in the expenses that come with owning a car.

The problem presented here is that many people who often believe that these are cheaper alternatives are misled and are spending twice the amount that they could be spending to get to work every day. This may stem from the idea that many people can’t afford to pay large sums at once but would rather pay $10 every single day instead of $300 a month.

The people who have the problem are those who often believe that they can’t afford a car, and that finding a ride is a cheaper alternative.

2.     Annual East Village Halloween Dog Parade Canceled Due to Lack of Funds

https://www.nbcnewyork.com/news/local/Annual-East-Village-Halloween-Dog-Parade-Canceled-Over-Lack-of-Funds-491554541.html

A lack of funding has caused a dog parade that’s been a part of the East Village community for the past 28 years is being discontinued this year due to a lack of funding to cover the insurance and liability policy. The strongest supporters of this parade have created a GoFundMe to try to raise money and hold the event.

The problem presented in this case is the loss of a parade that has been a part of the community for almost three decades.

The people experiencing this problem include the community of the East Village in NY, as well as those non-locals who gather in the East Village to experience this annual event.

3.     Connecticut Cops Exposed to White Powder During Drug Raid

https://www.nbcnewyork.com/news/local/Hartford-Officers-Being-Taken-to-Hospital-After-Exposure-to-White-Powder-During-Raid-491558981.html

Officers were exposed to a mixture of what is believed to be fentanyl and heroin during a drug raid in Connecticut. This occurred when someone inside the residence attempted to throw the package out of a closed window, where the impact caused the bag to explode and expose all officers inside to the powder. All officers were decontaminated, but some were sent to the hospital while others remained monitored.

The problem presented in this article is the exposure of what could be potentially very dangerous drugs to unsuspecting officers.

The people experiencing the problem are the officers who are now being monitored for any signs that the drugs had a negative effect on them, as such drugs have caused deaths in the past.

4.     Vornado Reissues Recall for Space Heaters Following Death, Reports of Fires

https://www.nbcnewyork.com/news/local/Vornado-Recalls-Space-Heaters-Following-Death-Reports-of-Fires-491544541.html

Vornado issues its second recall of its personal space heaters, the VH101, after the report of the death of a 90-year-old man in Minnesota, along with another 19 fires caused. This product was sold in many major retailers since 2009, and have seen similar issues in the past.

The problem presented here is the inability of Vornado to fix a problem that they’ve had with their product in the past. Although it may be a more affordable heater, it isn’t safe, and that is a dangerous trade off.

The person experiencing this problem is both the consumers who have to worry about their heater catching fire and potentially killing them, as well as Vornado, who now has to spend a large amount of money redesigning this product, as well as returning money to their original buyers.

5.     NYC Starts Work on Flood-Prone Queens Street, Then Ditc

https://www.nbcnewyork.com/news/local/Middle-Village-Queens-Flooding-Project-Left-Abandoned-491484731.html

A sewage issue in Middle Village has caused serious flooding during any given storm, as the water is unable to drain. Although the city had allocated $22M in the past to fix this issue, the construction has halted after workers discovered lead in the soil. Now that another $8M must be allocated, the city is acting slow and residents are fed-up. Construction is claimed to get started by the end of the year, however residents are pessimistic.

The problem presented in this article is the flooding that is causing damage to cars, appliances, and family heirlooms. This flooding is unavoidable and occurs after any given storm because of the storm drains that don’t actually drain the water, which is the root of the issue.

The people affected by this problem include all of the residents of Middle Village, who have to deal not only with the flooding itself but also the damage caused by this flooding.

Assignment 4A: Forming an Opportunity Belief

Every year, thousands of dollars in electronics, furniture and time can be plagued by a simple mistake; knocking over your cup. Whether it’s your dog’s tail or an uncoordinated attempt to pick up your cup, it’s something that can happen to anyone, and can be quite expensive in certain circumstances. This is where I see an opportunity. How can we keep our cups from falling over and ruining our belongings but also make them easy to pick up? Moving them to the center of the table only goes so far, and high coffee tables may just be downright uncomfortable. I believe there is a great opportunity to solve this problem, and the solution may be very simple.

Most people become aware of this problem when there’s either a close call or a complete mess-up that sometimes costs them a lot money. My prototypical customers, all of which were dog owners, admitted that this has happened to them before, and it wasn’t only from their dogs. They admitted that they often knock their own cup over more than their dog does, however their dogs were also the culprits. Two of which had great expenses, losing their computer, while the other had ruined their rug and phone. The solution I pitched immediately grabbed their attention, as they admitted that it probably would’ve saved them these expenses.

What I learned from these interviews is that this solution didn’t necessarily have to be for dog owners but can be used by anyone who sees this as an issue. A person knocks their cups over and ruins their belongings every day, even if it’s your morning coffee before work. It can be a day-ruiner, but it doesn’t have to be. Through research on any kind of similar product, and the feedback from prototypical customers (who could be anyone), the opportunity is very real, and I am even more confident that the opportunity is more accurate than when I started. Customer feedback is vital when taking advantage of an opportunity to create a solution to a problem. If customers don’t think it will work, or that it is a waste of money, then there’s no market for your idea. Adapting the needs of consumers is very important in manifesting your ideas in a way that consumers will see as applicable and valuable.