---
title: "Identifying opportunity and finding a market gap"
subject: "Entrepreneurship Development"
chapter: 2
key: "semester_7/entrepreneurship_development:finding-market-gap"
source: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/finding-market-gap
site: BCT Engineering
---

# Identifying opportunity and finding a market gap

Entrepreneurship Development · Chapter 2: Identification of Viable Business Cases

- Asked in: year not given, 6 marks
- Video: [5 Ways to Identify a Market Gap and Solve a Problem](https://www.youtube.com/watch?v=1JnAiyvjfGM) — Jose Leon
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/finding-market-gap
- Whole chapter: https://www.bctengineer.com/md/semester_7/entrepreneurship_development/chapter-2

## Question

What is a market gap? Explain the sources and methods an entrepreneur can use to identify business opportunities.

## Short answer

A market gap is a customer need not served or poorly served by existing products. Find it by studying customer problems, technology, regulation, demographics, imports, and competitor weaknesses with observation, surveys, trend analysis, and competitor mapping.

## Answer

A **market gap** is a need of customers that is not served, or served poorly, by existing products or services. Filling it gives the entrepreneur a space with less competition.

#### Sources of opportunity
- **Customer problems and complaints:** frustration with price, quality, delay or availability.
- **Changes in technology:** e.g. mobile payments created new services.
- **Changes in regulation, demography and lifestyle:** ageing, urbanisation, new rules.
- **Imports and local shortages:** products bought from abroad that can be made locally.
- **Own skills and work experience, hobbies.**
- **Competitor weaknesses.**

#### Methods to find a gap
1. **Observation and field visits:** watch how people solve a problem today.
2. **Surveys, interviews and focus groups** with target users.
3. **Trend analysis** (PESTLE): political, economic, social, technological, legal, environmental changes.
4. **Competitor mapping:** plot competitors on price vs quality; empty areas show gaps.
5. **Problem-solution brainstorming** and "jobs-to-be-done" analysis.

```text
 Quality
  high |  [GAP]        A     <- A: high quality, high price
       |
       |
  low  |  C            B     <- B, C: low quality
       +---------------------
        low           high  Price
```

Here no competitor offers high quality at a low price, so the top-left area is the gap.

An opportunity is worth pursuing when the need is real, the market is large enough, and the entrepreneur can deliver at a profit.

**Answer:** A market gap is an unserved need; find it by studying customer problems, trends and competitors with observation, surveys and positioning maps.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. A market gap is:
   A. A customer need that is unserved or poorly served
   B. A fall in demand during recession
   C. A gap between two competitors' prices
   D. A shortage of raw material
   Answer: A. A market gap is an unserved or poorly served customer need. (Key point: Market gap)

2. Which is a source of business opportunity?
   A. Copying a competitor's logo
   B. Customer complaints and local shortages
   C. Closing a business
   D. Ignoring regulation
   Answer: B. Complaints, shortages, technology and regulation changes all create opportunities. (Key point: Sources of opportunity)

3. In competitor mapping on a price vs quality chart, what does an empty area indicate?
   A. A saturated market
   B. An illegal product
   C. A possible gap in the market
   D. No customers exist
   Answer: C. Empty areas on the map show positions no competitor serves. (Key point: Competitor mapping)

4. PESTLE analysis is used for:
   A. Calculating profit
   B. Designing prototypes
   C. Measuring customer loyalty
   D. Trend analysis of political, economic, social, technological, legal and environmental changes
   Answer: D. PESTLE is a trend analysis tool. (Key point: PESTLE)

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