Often, a business based on a gap in the market is remarkable. Such businesses have been able to see something they can provide that no one else did.
Market gaps are opportunities disguised as voids. For example, Netflix has filled several market gaps over the years. First, with its initial mail-order movie rentals and then with its online streaming platform. Likewise, Whole Foods fills the market gap when health-conscious consumers wanted a central, convenient place to shop for organic, healthy, and natural food products.
Every successful business you can imagine serves some sort of market gaps. Whether you are starting a business or looking for growth opportunities in your current business, a market gap can be an amazing source of inspiration for your next big idea. A gap in the market is a business opportunity. The gap in the market is a specific area.
An area where you can dominate. An area where are few possibilities for someone else to exceed your domination. The gap in the market might be providing a product or service in a completely different way. Tom Peters calls this creative swiping , where you take an idea from someone else, and give it a good twist to make into something new.
LoveFilm rented DVDs; they captured the market by sending them through the post, rather than using the video shop model. This approach delivered convenience to customers, while offering a huge list for consumers to choose from. Today, this business model is out of date because Netflix and Amazon deliver films instantly through online streaming and have taken over this space in different ways. Gumtree provide classified advertisements that local papers have made money from for centuries. While finding the gaps in the market, there are definitely business opportunities in niche areas, especially when your core business model involves directly selling to end-consumers.
