There is a gap in the market, Agreed, but is there a market in that gap?
Posted on July 20, 2020 by Joseph Sudhip, One of Thousands of Business Coaches on Noomii.
A Value Proposition exercise helps in finding the gap and Business Model workshop helps in identifying the market in that gap
Lets look at the normal scenario: Many markets are crowded (multiple sellers chasing same customers) – this competition lowers profitability – Market gaps (a new product or sector of the market) offer enticing prospect of healthy profitability – But does the gap contain enough business to generate profit? – A gap in the market is identified but is there a market in this gap.
Finding a space in the market that is unchallenged by competition is the Holy Grail of positioning strategy. Unfortunately these space know as market gaps are often illusive and the benefits of finding one are often equally illusory. Unoccupied markets can present major opportunities for businesses, but the challenge lies in identifying which gaps are profitable and which are traps.
Value proposition exercise helps in identifying the gap – In this we work with clients to understand their products and services better and identify the customer segment. The jobs for which the customer hires the clients products and services, the pains customer has during the job and gains the customer looks forward while doing the job.
Business model workshops helps in identifying the market in the gap – These workshops identifies two things, whether the market needs this product or service, and whether the client can make this and is this a viable business proposal.
The above helps to reduce uncertainty and risk in the business, take action, assess the gap and the market within the gap.
