Strategy
Strategy
What is a Market Gap Analyzer?
A Market Gap Analyzer is a strategic visual tool used to plot the competitive landscape. By mapping brands along two key dimensions (e.g., Price vs. Quality), it reveals "white spaces"—areas of the market that are underserved or completely ignored by competitors.
Why Use Gap Analysis?
Finding a unique market position is essential for survival and growth. Gap analysis helps you:
- Avoid Competition: Instead of fighting for the same customers in crowded segments, you can target open ground.
- Innovate Purposefully: It highlights features or value propositions that are missing from the current market.
- Clarify Positioning: It gives you a clear "North Star" for your branding and messaging strategies.
How to Use This Tool
Uncover your next big opportunity with these steps:
- Choose Dimensions: Select two opposing factors that matter to your customers (e.g., "Broad vs. Niche" or "Innovation vs. Reliability").
- Map Competitors: Plot your top 3 competitors based on where they stand on these dimensions and their relative market size.
- Plot Yourself: Place your own brand on the map. Are you too close to a major competitor?
- Find the Gap: Look for empty quadrants or areas with small/weak competitors. This is your opportunity zone.
Frequently Asked Questions
What is a "Blue Ocean" strategy?
Coined by Kim and Mauborgne, a Blue Ocean strategy involves creating new market space (blue ocean) rather than competing in an existing, saturated market (red ocean). This tool helps you visualize where those blue oceans might be.
How do I know which dimensions to choose?
Focus on the factors that drive customer purchasing decisions in your industry. Common pairs include Price/Quality, Speed/Customization, or Modern/Traditional.
What if there is no gap?
If the map is crowded, you may need to pivot to different dimensions. For example, if everyone competes on Price and Quality, try competing on Sustainability or Customer Experience.