Opportunity #1 (Regulation): National Primary Drinking
Water Regulations: Lead and Copper Rule Revisions
Why this information leads me to believe an opportunity
exists: The EPA is proposing revisions to water quality standards, particularly
with lead and copper, in order to require water systems to “take a progressive
set of actions to reduce lead levels at the tap.” This also extends to drinking
water and schools / child care facilities. This poses a serious opportunity due
to the fact that many such buildings/institutions/infrastructures use copper
and or lead piping in their systems. This puts them at risk for increased
lead/copper exposure and leakage into the water, potentially requiring them to
refit or reevaluate their systems. This provides quite an opportunity for
anyone, especially those who happen to be in the water purification / infrastructure
/ piping industry.
Who is the prototypical customer?: The prototypical customer
is an organization / institution / company that possesses or has old, copper/lead
water piping / water systems. This could include old schools, health care facilities,
businesses, restaurants, public facilities, gyms, or anything of this nature
that provides water to its patrons. Such customers may need to refit or fix their
systems- making them a potential customer.
Relative Difficulty of the Opportunity: This opportunity
is relatively difficult to pursue unless one is already involved in one of the
aforementioned industries. Barrier costs to entry in such a service industry is
typically high. However, one might be able to employ some creative thinking to
perhaps do work on the side for another company or do consulting in the area.
Why I saw the opportunity: I have very fond memories of
being a kid and the water in my schools always having that funky copper taste
to it. This was extremely common growing up in Chicago, where many facilities
are old and outdated with copper/lead piping. Having this firsthand personal
experience allowed me to recognize just how widespread and large scale of an
effect the passing of these revisions could have.
Opportunity #2 (Regulation): Traveling by Air with
Service Animals Notice of Proposed Rulemaking (NPRM)
Why this information leads me to believe an opportunity
exists: The United States DOT (Department of Transportation) is proposing amendments
to the Department’s Air Carrier Access Act (ACAA) that regulates the
transportation of service animals by airplane. The proposed amendments are
seeking to set a definition for a service animal, to allow airlines the ability
to recognize emotional support animals as pets instead of service animals, and
for all passengers traveling with a service animal to complete and submit a DOT
developed form about the good nature of the service animal to the airline. It also
seeks to clarify current rules and specify situations surrounding damages. This
leads me to believe that an opportunity may be on our hands due to the fact that
new standards for service animal verification and air travel may be in the works.
Although this is a fairly niche market, there are still a great deal of people
nationwide who require a service animal in order to travel. New opportunities
may exist in the training of service animals, certification of service animals,
and breeding of service animals that are fit and pre-certified for air travel.
Who is the prototypical customer?: The prototypical
customer is an individual requiring a service animal (for any of the lawful
reasons with which one may attain one) who desires to travel by air.
Relative Difficulty of the Opportunity: This opportunity
may be fairly difficult to pursue unless one already has affiliation with the
service dog / air travel industry. However, if one had contacts in one of these
domains (and the amendments are passed), one could potentially seize this
opportunity and make revenue in the area by the aforementioned methods of
training, certification, breeding, etc.
Why I saw the opportunity: I typically take about 10
flights a year, and my father may take anywhere upwards of 35. Through our
combined experience, we have seen a lot of the atmosphere at airports and how
disputes can occur between passengers, airlines, and airport attendees over
service animals or emotional support animals. Thus, I see that there is still an
unmet need in defining rules and regulations to prevent such altercations and disruptions,
especially with something as critical as air travel. Thus, this led me to see
this opportunity due to my unique perspective and experience.
Opportunity #3 (Economic Trend): Effect of Coronavirus on
Chinese and World Economy
Found at: https://www.fool.com/investing/2020/02/02/investor-beware-these-4-economic-trends-could-caus.aspx
Why this information leads me to believe an opportunity
exists: Last year (2019), China posted its lowest economic growth in 29 years
with a 6.1% GDP growth. In addition, many industries and sectors saw steep
declines, indicating that China’s economic growth is slowing. This is also evident in their decrease in
consumer spending. China, already in a weakened state, was hit hard by the
coronavirus (and still is being as it develops). Wuhan, the center of the
outbreak, is nearby to many businesses, schools, and transportation centers. This
could cause the Chinese economy to crumble and slow, especially if the virus continues
to spread and deadlock more and more of China. Not only would this have a
profound effect upon the Chinese economy, but also upon American industry and
consumers. America is a large importer of many Chinese goods, and such supply
lines could be weakened by the outbreak. This could potentially provide American
industries with an opportunity to seize more market share, or it could cause
American consumers to be left unsatisfied. In addition, it provides investors,
financial firms, hedge funds, and customers with an interesting opportunity
pending the continued effect of the virus. Many American industries have
already taken a hit to their shares, and this could continue.
Who is the prototypical customer?:
Two Options:
Consumers: The prototypical customer would be a consumer
who frequently buys goods imported from China that may now be at a shortage for
some time. American industries that produce competing goods could potentially
seize market share in such a domain- This applies to any industry sector from
electronics and home goods to clothing and food.
Investors: The prototypical customer would be an investor
with a surplus of capital and a desire to catch a potential market dip/crash on
the rise back up. Hedge Funds/ investment firms/ third parties could utilize
this in order to attract new customers or to showcase their expertise and the
gains they were able to make for their customers if the market were to dip or crash
(and then rise/normalize).
Relative Difficulty of the Opportunity: Regarding appealing
to consumers as the customer, this opportunity would be very hard to seize. One
would need to have control of some American manufacturing or business that
competed with Chinese competitors- something that would be hard to start up on
such short notice. Regarding appealing to investors, this opportunity would be
much more feasible to seize. One would need a prior track record in order to
get clients, but if one wanted to invest and take advantage of the trend on his
or her own by waiting and watching the market and external conditions, he or
she could very well do it.
Why I saw the opportunity: I’ve always been very aware of
societal trends and how they have an impact on the stock market and the economy.
That was one of the first things that my dad, a successful investor, taught me
at a young age. In addition, there always tends to be recurring trends of
events and reactions that are reflected in the market and economy. For example,
the market crash of 2008 due to the preceding housing market disaster is a fine
example of something like this. On a global or nationwide scale, effects are
never contained. They always spread into other areas.
Opportunity #4: Impact the Labor-market with AI and Automation.
Why this information leads me to believe an opportunity
exists: More than ever, the United States is becoming a technologically driven
powerhouse, especially during a time when minimum wage continues to rise and
the costs of implementing automation become more and more appealing. In order
to continue the rapid growth of the last 10 or so years, the US will need to
continue to adapt and revolutionize to keep up with other countries. AI and Automation
are at the forefront of this, as their implementation allows for higher
production rates and more innovation. In this process, unskilled workers or
workers with outdated skills will need to retrain in order to be able to find
jobs in this ever-changing market. This provides an opportunity both for those
at the forefront of the change as well as for those with the ability to retrain
and provide skills to the workers of yesterday.
Who is the prototypical customer?:
Two cases:
If we are considering the opportunity as a consultant or engineer,
than the prototypical customer is going to be businesses that still use labor
and could potentially benefit from continually increasing to an automated,
artificially intelligent workplace (warehousing, logistics, etc.).
If we are considering the opportunity as a teacher or
trainer, than the prototypical customer would be someone who is at risk for
being put out of work by automation (warehouse floor staff, typical desk workers
or business employees, cashiers, line cooks, etc.). Teachers could market teaching
tech skills to such target audiences.
Relative Difficulty of the Opportunity: Regardless of the
target customer, this opportunity has a very high barrier to entry unless one has
technological knowledge already in the subject areas. However, if one is a
computer scientist, engineer, or something of the sort, the opportunity is very
fresh and at hand. One could very well put their skills to use.
Why I saw the opportunity: I have the very unique opportunity
to not only be a computer scientist that has conducted hands on research, but I
also am the son of an executive of a Fortune 500 tech company that does a great
deal of automation and logistics all around the globe. Through this lens, I’ve
been able to perceive a lot of the higher level societal and industrial shifts
that have occurred in the past 5-10 years. I have a very close relationship with
my dad, so he’s always done a good job of teaching me about the industry and where
it is going. Through this, I’ve been able to spot opportunities in tech such as
this one that are very feasible and able to be seized right now.
Hi John!
ReplyDeleteGreat work as usual. I thought that your analysis was very in-depth and accurately assessed the opportunities available with each emerging regulatory or economic factor. I thought your understanding of the difficulty of pursuing a given venture by analysis of its barriers to entry was particularly profound, and utilized information offered in other classes (Microeconomics, I assume). All in all, a great post that meets the standards of excellence I've come to expect of your work.