Concept Refresher: The Black Swan Strategy

I came across an article  about the sudden fluctuation in market and how the people responded with the jump of NIFTY and SENSEX. The people called it as the black swan strategy that guided the market for that time. The time was a good for few as they invested in right time and a few who missed out were at a loss.

 A black swan is a highly improbable event with three principal characteristics: It is unpredictable; it carries a massive impact; and, after the fact, we concoct an explanation that makes it appear less random, and more predictable, than it was. The impact can be positive as like the success of a I POD or negative impact like the happening of 9/11.

 We as marketers focus more on what we are aware of rather than what we don’t know, this gives room for happening of the unpredicted. Like the markets suddenly going up and the investor falling to put money in right time or few of them able to grab the opportunity so it makes a positive and the negative impact both.

 The companies are seen investing a lot in their risk management to avoid the uncertainty in the areas where they think there is a lot of risk but they are not looking for the areas that may cause them actual risk at the unexpected time in the future years to come. Thus companies must keep their eyes open to see what’s coming and they have a loss free business in the future years.

 

Sometimes Black Swan helps the company and individuals to gain in unexpected way in large amounts and they are able to cover huge looses by making use of the situation that just came up for them unexpectedly.