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Problem Contextualization

Escaping the 'Better' Trap

Most companies live in the world of 'better.' They offer a product that's slightly faster, cheaper, or has one more feature than the competition. This is a treadmill to irrelevance. Competing on 'better' leads to price wars, shrinking margins, and a constant battle for incremental advantages. You become a commodity, another option in a crowded field.

Category creation is about choosing a different game entirely. Instead of making a better version of what exists, you create a new category of one. This isn't about incremental improvement; it's about — introducing a solution so fundamentally different that it defines its own market. Think of how Netflix didn't just offer a 'better' video rental store; it created a new category of on-demand streaming that made the old model obsolete.

The goal isn't to be the best in an existing category. The goal is to make existing categories irrelevant.

Finding What's Missing

To create a new category, you first need to find a problem that current categories fail to solve. This isn't a small feature gap. It's a fundamental 'missing' piece—a disconnect between how the world has changed and the solutions people are stuck with. This gap is created by major shifts in the environment.

Your job is to become a detective, looking for clues in three main areas:

  • Technology: When a new technology becomes viable (like mobile internet, AI, or blockchain), it often makes old ways of working and living obsolete. The old solutions weren't built for this new reality. Salesforce, for example, saw that the internet made expensive, on-premise CRM software a relic.

  • Culture: As societal values change, so do expectations. Think about the growing demand for sustainability, the shift to remote work, or changing attitudes toward mental health. These cultural waves create new problems and desires that older products don't address. Oatly didn't just sell another milk alternative; it tapped into a cultural shift towards environmental and ethical consumption.

  • Regulation: New laws or regulations can instantly create or destroy markets. GDPR, for instance, created a massive need for new data privacy and compliance solutions. Changes in financial regulations or environmental laws often force industries to rethink their entire approach, opening the door for new categories of solutions.

Mapping the Customer's Journey

Once you've identified a 'missing' piece, you need to articulate it clearly. The most powerful way to do this is with a 'From-To' map. This isn't a typical customer journey map focused on touchpoints. Instead, it defines the fundamental transformation your customer will experience. It crystallizes the problem and frames your solution as the only possible answer.

A great 'From-To' map doesn't describe your product features. It describes a change in the customer's world. For example, when HubSpot introduced inbound marketing, their 'From-To' was:

  • From: Interrupting customers with ads they hate (outbound marketing).
  • To: Attracting customers with helpful content they love (inbound marketing).

This simple narrative did two things: it clearly defined the problem with the old way and positioned their new category as the inevitable future.

Anchoring the Problem

Identifying the problem isn't enough. You have to make the market feel it. This is called problem anchoring. Your goal is to name, claim, and evangelize the problem so effectively that customers can't unsee it. When they think of the problem, they must think of you.

This involves creating a compelling narrative. You tell the story of the shift—the technological, cultural, or regulatory change—that makes the old way untenable. You provide data, case studies, and compelling language that makes the 'From' state feel risky and outdated. The more urgent and painful you can make the problem, the more customers will seek out your solution. You are not just selling a product; you are selling a new point of view on the market itself.

By contextualizing the problem, you move the conversation away from features and price. You're no longer just another vendor. You are the architect of a new and better future, and your category is the only way to get there.

Quiz Questions 1/6

What is the primary risk for a company that focuses its strategy on being 'better' than the competition?

Quiz Questions 2/6

Which of the following is NOT one of the three main areas identified for discovering a 'missing' piece that can lead to category creation?