Business Analysis And Its Core!!

Have You Ever Wondered if the whole sector business core lies in only one point? Only one factor decides whether your investment is gonna worth its value or not.

Let us think upon such 2-3 core observation businesses and analyze them for further decision-making.

Here I described the sectors in which I got familiar such as Fast-food, Electronics, and Education. You can observe and verify in your familiar business sector too.

I always think about what’s one thing drives businesses. After observing I came across the food sector, electronics sector, and education sector. I tried to look what’s the one thing that sector depends upon.

What was the observation?

Each sector has a core and it lies in its fundamentals. No one can deny the core and must have to align with it. The food Sector a has Margin Utility core, the Electronic industry has an ignorance gap in its core while the education sector has a core in its resources. If someone got those concepts as early it would increase the understanding of the real business for various purposes. For every entrepreneur, it’s challenging to disrupt its core structure by Providing an optimized core structure for more growth. For some entrepreneurs and innovators, it’s possible to combine various cores in a single business for sharing maximum benefits but it’s challenging to keep it as its core. In the article below one case is discussed where pizza makers want to keep up the secrecy about its process and the results are discussed below.

Fast Food Sector.

I got amazed at where the whole fast food industry’s profits lie. Is it in keeping secrecy about the process or is it selling more for more revenues? What I found is that its margin utility that how much I can sell more with a minimum cost function. In much simpler terms how much vada-pav I fried in the same hot oil at a time? For a simpler detailed explanation please read the previous blog margin utility applied!! How variable cost decreased is explained in the blog by using examples. The whole fast food sector business lies on margin utility. Each firm tries to optimize its cost function and maximize profits. By knowing such core, you can able to pick pain points and also able to maximize profits. Growth can be occurred by luring consumers through offers and improving cost functions aligned with its core. So it’s one of the essentials for every entrepreneur’s journey to be able to analyze where the opportunity core lies.

Electronics/Software Industry

In the Electronics and Software Industry, the core lies in the ignorance gap. Consider I have headphones worth Rs.100 and also I have the paper/knowledge of conversion of electrical signal into sound waves. Even though I know the mechanism of how it’s done still it worth 100 Rs to me because I don’t have an implementable solution for making such wires and this gap is worth 100 Rs. So the logic is straight. Increased Product Worth is directly proportional to the increasing application gap in it. Now Each electronic and software business tries to optimize its function by increasing such gaps in each application & increases the product’s worth even though we(consumer) knows the mechanism behind it. Service Provider MNCs will share benefits by adopting such practices such as introducing new technologies until the gap reduces up to common use and then moving to the next higher technology as better versions of previous versions. Exa. Google Journey from C to Robotics via Artificial Intelligence, Deep Learning.

Education Sector

The most familiar and the most profound sector core lies in Resources. Historic libraries and knowledge in papers was the only resource for students to gain knowledge. While today it shifted towards digitization. Resources are now available on digital papers and content for such resources is also available in visual formats on platforms like Youtube and Vimeo. The sector got disrupted from offline access to online access with sophisticated formats for understanding. So the observation was technology changes but the core (laws) do not. Resources remain the core but the way to access them is get disrupted as it optimized the previous one.

The question arises now How to Use such observation and analysis in daily life. Now We can predict what could be done in a particular sector, What is the essentials in each business, and how much disruption, and innovation required for optimization. How do further growth and market trends impact the market scenario and how to remain survived in critical situations?

In starting days of Pizza, Pizza makers decides to introduce the ignorance gap into pizza making process by keeping it a secret so it will increase profits but failed to sustain it for 6 months because it’s challenging for pizza makers to keep it secret. In human psychology taste buds always tries to guess and want the process of the food, especially in ladies it got certainly popular to discuss recipes and how it could be done and such a tendency leads to challenges for entrepreneurs to introduce new core application gap into the food sector. Let's accept the challenge & what can be the solutions for it.

I want answers from you. Comment below & don’t hesitate to ENTER, it's our platform for our development.

Digambar Mali

Active Analytical Thinker, Currently working on Financial Literacy.

Enthusiastic about Leadership and Psychology

Publicity Co-Ordinator Syncing.GCEK

Email | LinkedIn

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