Go After the Gaps Not the Goliaths in a Competitive Marketplace

Are you exhausting your resources chasing giants in your industry? You may find that you can grow faster by filling gaps in the competitive marketplace, instead.

Filling Gaps in a Competitive Marketplace is Better than Taking On Big Players

The Biblical account of David and Goliath makes for a compelling and inspiring story: the new kid on the block (of the battlefield), small town boy David, with few resources at his disposal, goes one on one with mammoth, unbeaten Goliath using just a stone and slingshot – and wins. In business terms, this would be equivalent to a newly opened, inexperienced independent merchant taking out a big retail chain with one well-timed viral marketing campaign – and that simply isn’t a story that you hear very often.

Too many independent local business owners wear themselves out chasing the leaders in a competitive marketplace, when they could gain ground far more quickly by identifying needs and desires that the “Goliaths” among their competitors are not fulfilling. What often happens then is that local independent businesses exhaust themselves trying to compete with larger or more well-established competitors on their (the larger rival’s) own turf. The problem with that approach is that small business owners have a hard time taking away “turf” from competitors because they often lack funding, time, experience and other resources necessary to wrestle away any significant market share.

In a competitive marketplace, instead of trying to grow your business by going head to head with larger competitors in areas they “own” you can gain on the competition and grow your business by taking “no man’s land,” instead.

Here are two examples of local independent businesses finding success in filling gaps rather than fighting the ‘Goliaths’ in a competitive marketplace in order to grow.

Culver City, California e-commerce merchant Figs sells scrubs for use in medical and dental environs. While selling medical attire isn’t a new concept, Figs has made it their mission to end 100+ years of fashion-less medical and dental professional appearance by introducing scrubs that fit better and look better.

Scrubs by industry newcomer Figs even feel better, too, since they are made of higher-quality antimicrobial fabrics. Says Figs co-founder Trina Spear: “The industry has been around for 100 years and there hasn’t been any innovation. When you think about odor control, keeping you dry – why isn’t that available for the medical professional?”

And even in industries known for innovation, gaps between needs and wants and products or services to fill those needs exist. Take the electronics industry and headphones.

Since headphones are already produced in a variety of sizes, styles and even colors, you might think that there’s no room for innovation. However, Frends saw the gap and took advantage of the opportunity to introduce a new line of stylish headphones with the fashion power of designer handbags; heck, they even come in bags that look like chic clutches!

Of course it’s easier to say than to actually do; after all, most independent local business owners would be more than happy to fill gaps instead of compete against the Goliaths in their town or industry. But the gaps aren’t always easy to find!

So here are two ways to grow a small business by finding a niche and filling gaps where competitors are unable to meet the needs or desires of local consumers.

2 Ways to Find Gaps and Fill Them Before Anyone Else Can in a Competitive Marketplace

1. Services or products that haven’t evolved recently or have failed to keep up with technology.

The co-founders of Figs identified a gap between products available for medical or dental personnel in two areas: comfort (and health) and fashion, in a niche which hadn’t evolved much for a century. Are there businesses, destinations, recreation options or products or services available in your locale which haven’t changed in a long time or kept pace with technology?

Fill those gaps! Do something traditional in a new way. Many people like variety, change and novelty. Plus, being different at doing something that other businesses do often gives you the edge in attracting new customers and in garnering word of mouth publicity.

2. Niche target markets which are under-served.

The products offered by Frends are high-tech, but they are not targeted to everyone. They are targeted to women and men who care not only about the quality of audio they experience while listening, but who also care about how they look while they are listening, as well. By focusing on under-served segments of your target markets, you may be able to identify a market for new or modified versions of the products and services that you (and your competitors) offer.

Even in a highly competitive marketplace, opportunity exists to grow. Yes, you can grow your business by taking away business from competitors, but that can require and consume significant time, money and resources. By investing in innovations that set your business apart from competitors in ways that actually matter to your customers or focusing efforts on meeting under-served segments of your target markets, you may be able to grow faster and at a lower cost.

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