Breaking Boundaries: Designing for Opportunity, Not Location
Value goes where opportunity flows.
“It’s safest to start and stay local.” Many business leaders believe this to be true. Historically, business decisions have been dominated by geography, with factors such as physical infrastructure, resource access, and local market proximity determining expansion and operations. This location-focused mindset often prioritized the “where” over the “what” when it came to strategic choices. The reliance on traditional trade routes, the concentration of industrial factories near ports, and the evolution of modern supply chains have made geography a central factor in business decision-making for centuries.
The Shift in Business Dynamics
Today, however, digital technologies, distributed production networks, and rapid communication have reshaped the business landscape. These advancements enable businesses of all sizes to pursue opportunity-driven strategies that surpass geography-based approaches. Whether a company has one person or 10,000, it can now launch products and services globally without a physical presence or substantial investment. It’s possible to reach customers worldwide through digital platforms and access diverse talent and partners across borders, breaking traditional constraints.
Opportunity-Driven Entrepreneurship
There has been a rise in opportunity-driven entrepreneurship1, where the focus is on identifying and capitalizing on emerging opportunities rather than being bound by existing geographic or resource limitations. This approach is about recognising unmet needs, leveraging market gaps, and embracing innovation to create value that goes beyond where a business is based. It is dynamic and involves identifying market inefficiencies, reimagining existing solutions, and turning challenges into growth opportunities.
This mindset encourages calculated risk-taking and adaptability, allowing companies to shape markets instead of simply reacting to them. It’s not just tech companies that benefit from a global approach to opporunity to achieve scale. Business leaders embracing opportunity-driven strategies include those addressing pressing socioeconomic and environmental challenges, combining profit with broader impact.
Examples of Opportunity-Driven Entrepreneurship:
SELCO (India)2: Provides solar energy solutions to underserved communities, addressing energy poverty and reducing reliance on polluting fuels. While initially targeting underserved communities in India, SELCO expanded its solar solutions to other regions in Southeast Asia while adapting its approach to different energy needs and socioeconomic contexts.
Sistema.bio (Mexico)3: Offers biodigester technology for small-scale farmers to convert waste into biogas, tackling waste management and renewable energy needs. The biodigester technology began with small-scale farmers in Mexico and has since been scaled to other Latin American, African, and Asian countries that faced global agricultural waste and renewable energy challenges.
M-KOPA (Kenya)4: Uses mobile payment systems to deliver affordable solar power on a pay-as-you-go basis, improving energy access for low-income households. M-KOPA leveraged mobile payment systems to offer solar energy to low-income households across multiple African countries, adapting its pay-as-you-go model to different regional markets.
Rubicon Global (USA)5: Connects businesses to recycling and waste management solutions through a digital platform, promoting sustainable practices and reducing landfill use. Although it started in the US, Rubicon has expanded internationally by connecting businesses with local waste hauliers across different countries and has promoted sustainable waste management practices on a global scale.
Each company started by addressing local problems and expanded wherever the opportunity existed to solve similar challenges. Historically, the cost and complexity of expanding across borders would have been significant barriers. However, technological advancements, global communication, and digital platforms have reduced these barriers, making it easier for businesses to scale internationally and, crucially, follow the opportunity. Despite this, many companies still remain local due to perceived risks, costs, and complexities associated with entering foreign markets. Embracing an opportunity-driven mindset can help businesses overcome these challenges and tap into broader markets.
The Strategyzer Approach: Designing for Opportunity
The Strategyzer framework, known as the “Design-Test Double Loop,” can be used to explore shifting from geography to opportunity6. With its approach of “Design as if you were right, test as if you were wrong,” challenges assumptions about the risks and rewards of staying local versus going global. This iterative process enables companies to develop innovative solutions with global aspirations, rigorously testing them across different markets to identify the best path forward.
Strategyzer’s “Design-Test Double Loop”
Source: https://www.strategyzer.com/library/design-test-repeat-cycle-visual
In the Business Design phase, companies develop bold ideas as if they are viable, crafting solutions that target global markets rather than limiting themselves to familiar locations. The Test phase then pushes businesses to challenge their assumptions by running experiments, gathering feedback, and making data-driven adjustments. This approach helps uncover real opportunities, often in unexpected places or market segments.
This iterative approach enables companies to experiment with market-specific adjustments in different regions, using data to refine product offerings based on varying consumer needs, regulations, and economic conditions.
Why Opportunity Wins Over Geography
Several factors explain why opportunity-based business strategy is increasingly advantageous over a geography-based approach:
Access to Global Markets: Digital platforms have lowered barriers, enabling businesses to reach international customers without a physical presence.
Flexible Workforces: Remote work allows companies to build global teams based on talent rather than geographic constraints.
Emerging Technologies: Cloud computing, artificial intelligence, and digital payments help businesses scale operations without being tied to specific locations.
Shifting Consumer Preferences: Consumers are open to international brands, favoring products and services that meet their needs regardless of origin.
Implications for Business Leaders
For leaders, adopting an opportunity-driven mindset requires moving beyond the default reliance on geography or location-based competitive advantages. It means reconsidering risk assessment and being willing to test business models in diverse markets. The Strategyzer framework provides a practical structure for this shift, treating the world as a testing ground and pushing businesses to explore areas beyond traditional, “safe” markets.
As the world becomes more interconnected, businesses that succeed appear to be those with a global vision and that adapt across multiple markets. Opportunity, not geography, is increasingly a driver of growth and innovation.
There is more to the world than what we see.
When we zoom-out to see the bigger picture, we can zero-in to better set strategic priorities.
It pays to look beyond geographic boundaries to find the new possibility.
Do you, or your competitors, design for geography or opportunity?
If your default is to see the world in terms of geography, what are the major barriers to seeing opportunity?
https://fastercapital.com/content/Opportunity-driven-entrepreneurship--Innovation-and-Opportunity--Fueling-Entrepreneurial-Success.html
https://selco-india.com/
https://sistema.bio/es/
https://www.m-kopa.com/
https://www.rubicon.com/
https://www.strategyzer.com/library/the-role-of-an-effective-innovation-coach