Identification of investment opportunities is important for the success of an organisation. Identification of proper investment opportunities helps an organisation to avoid wastage of resources by channelising organisational resources in the right direction. However, in order to recognise investment opportunities, it is important that an organisation uses proper tools and framework. An organisation can use many tools to identify investment opportunities. Some of the most popular tools are mentioned in Figure.
Porter
model:
In this model, Porter advocated that the
attractiveness and profit potential of an industry is determined by five
forces. These five forces are depicted in Figure below.
