Which Single Opportunity from the Three Would You Invest in and Justify?

Which single opportunity from the three would you invest in and justify

All three of the cases have some fundamental flaws in them and hence I am reluctant to chose one opportunity as is. However, Waste disposal system can be given a chance on the condition that they bring an experienced sales team on board and create a home grown sales force in addition to relying on external sales consultancies.

Things that favor MAL are:

Disruptive product and trust in product development : Proposed product is very clearly defined and seems to be very differentiating, even disruptive in the industry segment. Though actual product is in design phase, the proposed technical solution is proven to work in very rigorous settings(Military and patent grants). Similarly the technical manager seem to be very reputed and talented individual.

Growing Market needs for this solution: The case describes how a waste disposal system not only cuts across industries, ranging from naval ships to healthcare establishments, but also is an integral part of processes in each industry. This makes a huge available market for growth opportunities.

Global Trends : The case talks about UK proposing stricter waste management regulations, which of course is supposed to be a global trend,this creates a very clear early mover opportunity in the sense that MAL might be the only company present in the market with working solutions that effectively solves the problems new regulations create.

Establishment influence/Public Sway: Team seems to have also networks across governmental establishments which might open up much craved public sector projects in the early stages of venture creating a huge advantage over imitators coming up later.

Immunity from competition: Most of the critical technology is protected by patent laws providing some competition immunity at least till the products hit market.

Already available Customer Base: They already have an order ready for a fleet of ships which not only can offset some initial costs but more importantly validates their designs and can help them bolster their brand further.

However, things that make me as an investor anxious are:

Lack of sales experience: Absence of a dedicated sales team and a lack of sales experience of the entire management team is appalling. This means not only a lot of revenue will be wasted in commissions, the company will also miss out on valuable sales networking opportunities (Product Stickiness). This makes a competitor’s job easier and might also hamper growth opportunities in the long run. This issue can be mitigated by convincing management to bring in an experienced sales guy in the team and start building a dedicated sales force within the organization. This can happen in addition to the existing sales consultancies