In a highly competitive market, there is a need to continuously assess your business offerings. A business can only survive by adapting quickly and effectively – rapidly shifting from struggling markets in order to tackle untapped opportunities with well-designed products and services, and the knowledge to navigate various pitfalls. This is why conducting a White Space Analysis is pivotal to help your business not just survive, but thrive.
White Space Analysis seeks to identify gaps in the market that a business has not addressed through a current core business offering. These spaces reflect a market opportunity that a business could seize if it made distinct and dynamic strides to continue growing. This involves preventing lost opportunities and committing to strategic expansion in order to effectively drive revenue growth.
Lost opportunities occur due to a lack of understanding of current and future market situations. This stems from missing data, judgement errors, or a poor assessment of customer trends. Expansion is effective when paired with a thorough understanding of the market. A business is able to grow by identifying gaps in the competitive landscape and by resolving pain points.
These are two sides of the same coin. A White Space Analysis can prevent a business from suffering from lost opportunities and allow a business to further expand, capturing untapped revenue streams.
Lost opportunities are caused by a lack of understanding of the changing market landscape and failure to adapt accordingly.
Blockbuster is a prime example. Believing that they had built a strong business, they refused to acquire Netflix when it was only a startup. Blockbuster failed to foresee the shift in consumer preference in subscription models over rental, and online platforms over retail. As a result, Blockbuster declared bankruptcy in 2010, while Netflix is currently valued at over $190 billion.
On the other hand, a good understanding of the market can be utilized to tap into markets with expansion potential effectively. One example is Starbucks, who entered the Chinese market early, while the general population still preferred tea. They established a geographic foothold in China while incurring losses for the first 9 years in order to educate the public about coffee and establish the brand as the market leader. By sticking with the market, Starbucks cemented its position as the leading foreign coffee brand and is now profitable, managing more than 6,000 stores in over 250 Chinese cities.
DPO&Co can help you avoid critical errors and execute the right expansion plan for your business, whether you have geographic, product, end-market, or multiple forms of growth in mind.
The Chiropractic and Therapeutic Massage Industry is a well-established but fragmented space with players of varying size and product offerings. Our client offers a service known as Assisted Stretch Therapy, categorized under complementary and alternative medicine. This niche is a relatively new space with little existing competition and has experienced rapid growth, but also has a limited Total Addressable Market due to the lack of insurance coverage for the service. Our client found itself reaching the upper limits of the market and were looking for ways to grow the company further.
DPO&Co conducted a multi-tiered analysis starting with an internal diagnostic of the company and the existing competition not only among direct competitors within the space but also in the broader health and wellness services market. Then, we highlighted the available white spaces, those that are most attractive, and how much increased revenue the business can expect as they capture these markets.
We began our analysis by building out an overview of the market landscape. Creating a thorough understanding of the market by conducting a market sizing assessment to calculate the potential market, as well as highlighting prominent players and their offerings, strengths, and weaknesses.
With a strong understanding of the market in place, we conducted an analysis of the existing customer base, segregated based on categories such as demographics, income level, preferences, and more. This allowed us to map out the highest value customers as well as potential target customers that can be served by making minor changes in the business' core product offering.
Furthermore, by understanding the available market, our customers, as well as customers of adjacent markets, we were able to identify a “grow the pie” strategy. Whilst the client’s niche is relatively new to the market and somewhat foreign to the public, the adjacent markets of chiropractic and therapeutic massage
s are widespread. The client can rapidly grow within their dominant niche , by tapping into broader markets and cross selling their services to new customers.
Considering the nature of the business, we recommended an action plan which allows the client to establish partnerships with chiropractors to maximize the synergistic qualities of the two offerings, avoid cannibalization of the main offering of assisted stretch therapy, while also providing a moat to the business by offering a service that requires certification.
Food and Beverage (F&B) is one of the most competitive markets. Nevertheless, the persistent demand and resistance to market shocks makes it a highly attractive industry. Our client found success in growing their brand within the grocery space as a ready-made sushi chain. The company currently operates in over 50,000 stores and is looking to grow further. However, after successfully picking all the low-hanging fruit, they needed to be more mindful in executing expansion plans.
Market Assessment and Strategic Opportunities
DPO&Co took a top-down approach to assess the grocery sector and the ready-made sushi market players. We identified unexplored locations operated by partner grocers, potential high-value partners, and inaccessible locations that don't meet benchmarked customer criteria. This analysis was key in mapping potential revenue gain and market share. The DPO team also identified key opportunities, by targeting key locations without incumbent F&B providers and displacing competitors in high-value locations.
While entering blue ocean grocers is a relatively straightforward task, displacing existing competition proves to be more difficult. Our comprehensive analysis allowed us to identify why our client stands out from their competitors, while highlighting weaknesses in their competitors' models. Moreover, we also delivered specific value creation plans on how the client can deliver added value, overcoming switching costs for potential grocers.
Beyond expanding within the current market, DPO&Co also identified adjacent markets that the client could explore. Based on the current offerings and target customer profile, three additional potential markets include universities, hospitals, and airports. We also calculated the Total Addressable Market and identify partner targets in these spaces.
Taking into consideration all opportunities in the current and adjacent markets, the DPO team recommended operational improvements to bolster strengths and tackle weaknesses, acquisition strategies to accelerate market entry, and innovation areas to provide more value to partner grocers.
Conducting a white space analysis is immensely beneficial for businesses that find themselves stagnating or are looking to expand further. It allows management to comprehend the different factors at play, both internal and external, and highlights the path of least resistance for future growth. With multiple success stories, DPO&Co can help your business breakthrough to the next level.
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