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Business Opportunities In The Leisure Goods And Activities Industry - Essay Example

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The essay describes the analytical approach used to evaluate prospective business segments, within the leisure industry, that are useful from an investment perspective for AGPO Limited. The analysis is based on latest figures on a consumer in various leisure activities…
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Business Opportunities In The Leisure Goods And Activities Industry
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Business Opportunities In The Leisure Goods And Activities Industry

Download file to see previous pages... The researcher states that given that the leisure goods and activities industry encompasses such varied businesses, it becomes necessary to evaluate existing ventures across specific industrial segments to ascertain the continuity and profitability of any potential investments into such firms.  Besides, it is also necessary to analyze the revenue stream of a target company over a few years to determine the long-term prospects of the firm and its internal stability. Common examples of leisure-based goods or companies include Water Parks, Disneyland, Holiday Tour operators like Thomas Cook etc (Mark, 2010). The primary task of a leisure-based company is to ensure that all requirements of a person on a vacation are adequately provided for within the latter’s budget and schedule. According to Mathies, consumers are wealthier today, with higher disposable incomes, than they were 20 years ago. In fact, per-capita real income has increased by over 3 times since the 1970s while the standard of living has risen by over two-thirds during this period, especially across the developed world. Victoria says that over 45% of spending is currently categorized as ‘discretionary’ among consumers in the United States (US) and the United Kingdom (UK). With rising incomes, families now have broader flexibility in their household spending and divert as much as 20% of their incomes on leisure activities. This estimate is similar to the proportion spent by an average American household on food and beverages. Canwell conducted an extensive survey of households in the US and determined that over 80% of consumers spent regularly on leisure-based goods and services. ...Download file to see next pagesRead More
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