When answering this question, the candidate should first provide a brief overview of the market they were operating in. They should then describe a specific situation where their market understanding led to the identification of a new business opportunity. The candidate should explain the key factors or trends in the market that they observed and how they interpreted these insights to uncover the opportunity. It’s important for the candidate to highlight the impact of their actions, such as revenue growth or market expansion. They should also discuss any challenges they faced and how they overcame them to capitalize on the opportunity. Lastly, the candidate should emphasize the importance of continuous market analysis and how they stay informed about industry trends. Using the STAR framework (Situation, Task, Action, Result) can help structure the response effectively.