This question requires you to have a strong understanding of the hiring company's industry. Spend time conducting research on the hiring company, its primary industry, and its target customer base. Show the interviewer that you are knowledgeable of the industry and that you keep up with changes. Mention one challenge that you foresee in the next 12 months. Rather than focusing your response on the challenge, focus more on potential solutions. These ideas don't have to be revolutionary. They can be simple suggestions that will compound to good habits and positive change. The way you approach this question will show your critical thinking and problem-solving skills.