According to a study by McKinsey & Company, even before the pandemic hit, 92% of company leaders thought their business model would not remain viable due to the digitization rates at the time.
In this way, in the middle of a crisis, reinventing yourself has become much more than a choice – but a necessity for most companies. And that requires discovering opportunities that were never explored before and have great potential to generate growth.
What is White Space?
White space is where the unspoken and unmet customer needs are, which need to be discovered to spur innovation. It is a business process to unlock opportunities such as new audiences and product improvements.
In this way, discovering a white space in your segment can be that great insight that makes you ask yourself: “how did I not think of this before?”.
How do I discover the “ace in the hole” in my business?
Now that we know that it means “market opportunities your company may wish — or need — to pursue that it cannot address unless it develops a new business model”. Where are the 3 steps to finding it.
1) Look at yourself
Regardless of your industry, one of the best places to find a white space is within what you currently offer your customers. So, analyze and ask yourself where your customers' needs are and aren't being met through what you sell. Maybe, a new type of service? An improvement on your product? In addition, you can also research how your customers use your products on a day-to-day basis. It's possible to find a white space that you didn't even know existed.
2) Look at your audience
If you're analyzing your audience and trying to figure out where you can innovate, it might be time to take a more targeted look. Consider focusing on a specific niche of your general audience. For example, if you are a men's cosmetics manufacturer, why not focus on developing a product for those who suffer from baldness? Recent statistics show that men are experiencing hair loss at an increasingly younger age – and this is often a deciding factor in self-esteem.
3) Create a new value proposition
Your white space can be used to reaffirm your company's branding strategy. If you find a space for innovation, you can use it to strengthen the way your company is perceived by others. So, when creating a value proposition that is unique and superior to your competitors, you need to act with personality. And, of course, personality is linked to purpose.
According to Johnson in his article for the Harvard Business Review, a white space basically means “a place where a company has wiggle room to innovate, amid a crowded playing field”. Consumers often don't know they need something until… Someone tells them they need it! Therefore, it is the role of companies to be proactive and discover these blank opportunities.