Creating a New Market Category for Competitive Edge

In the fast-paced and competitive world of consulting, breaking through as a new player can be overwhelming, especially when the market is already dominated by established firms with decades of experience, resources, and client trust. But what if, instead of competing directly, you created your own niche?

What if, rather than following the same well-worn paths, you could carve out a space where you are the go-to expert?

This is the story of how I successfully segmented and created a new market category, transforming my consulting business into a leader in just two years by shifting focus to diaspora recruitment.

The Competitive Landscape: Battling the Market Leader

When we first entered the recruitment consulting industry in Nigeria, we found ourselves competing directly with market leaders. They had an extensive client base, brand recognition, and a long-standing reputation for delivering excellent services. No matter how hard we worked, how much we marketed, or how much effort we put into perfecting our offerings, we were still struggling to gain a significant foothold in the industry.

For two years, we competed head-on with this market leaders, vying for the same pool of clients, offering similar services, and playing by the same rules. It became clear that we were engaging in a battle that we were unlikely to win by using the same strategies. We needed to differentiate ourselves, not by being marginally better, but by doing something different.

The Epiphany: A New Segment in Diaspora Recruitment

The turning point came when we realized that the real opportunity lay not in competing for the same clients but in focusing on a different segment of the market, one that was overlooked and underserved: Diaspora recruitment.

As a recent returnee to Nigeria after spending significant time abroad, I had an insider’s understanding of the challenges faced by other returnees. My experience gave me a unique perspective on the expectations, cultural adjustments, and professional reintegration issues that individuals in the diaspora face when trying to reconnect with opportunities back home.

The large consulting firms we were competing against hadn’t tapped into this niche because it was not yet fully recognized. This gap presented a golden opportunity. I realized that instead of continuing to compete directly with market leaders on their established terms, we could pivot to address the needs of diaspora talent—a growing segment with unique challenges that no one else was solving.

Focusing on a New Segment: Understanding and Meeting Unmet Needs

By pivoting to this diaspora recruitment niche, we no longer had to battle the market leader head-on. Instead, we became specialists in a segment that was both underexplored and rapidly expanding. This strategic decision allowed us to become market leaders in this newly defined space within just two years.

Here’s how focusing on this new segment helped us:

1.    Personalized Expertise: Unlike the established firms, I had firsthand knowledge of the diaspora experience. My background as a returnee gave me insight into the frustrations, uncertainties, and challenges that other returnees faced. This allowed us to offer personalized recruitment services specifically tailored to address these needs.

2.    Tailored Solutions: We didn’t just provide recruitment services—we offered holistic support for returnees, including relocation assistance, cultural reintegration advice, and career planning that aligned with the Nigerian job market. This differentiated us from competitors who were only focused on filling positions.

3.    Trusted Partnerships: We built strong relationships with companies that were seeking highly skilled diaspora talent. These businesses needed consultants who understood both the local market and the needs of returnees. Our ability to bridge that gap made us invaluable to clients.

4.    Becoming the Go-To Brand: By targeting a niche market, we avoided the crowded space where other consulting firms were competing. We became the go-to firm for diaspora recruitment because we offered something uniquely tailored to both companies and candidates in this niche.

Achieving Market Leadership: Diaspora Recruitment Success

Within two years of shifting our focus to diaspora recruitment, we gained significant traction in the market. Our specialization in this niche allowed us to grow rapidly and differentiate ourselves from the competition. One of the defining moments in our journey was when CNN featured our business, recognizing us as pioneers in the diaspora recruitment space. This global exposure not only gave us credibility but also significantly boosted our brand and client base.

The CNN feature was a game-changer, elevating our profile both nationally and internationally. It showed that by narrowing our focus and serving an unmet need, we could achieve market leadership in our own right—even when competing against long-standing industry giants.

Lessons Learned from Creating a New Market Category

This experience taught me several key lessons about how to segment the market and create a new category to gain a competitive edge:

1.    Identify Market Gaps: Instead of competing in crowded markets, look for gaps where client needs aren’t being fully addressed. These gaps are often overlooked by larger players who are focused on established revenue streams. By identifying and filling these gaps, you can serve a specialized group with a solution that is deeply aligned with their needs.

2.    Leverage Personal Experience: Your personal story and background can be powerful tools in creating a niche. In my case, being a recent returnee meant I could relate to my target market in a way my competitors could not. Use your unique perspective to offer insights and solutions that others might miss.

3.    Solve Specific Problems: The broader your service offerings, the harder it can be to differentiate yourself. Focus on solving specific problems for a targeted group of clients, as this allows you to become the expert in that niche. By solving the distinct challenges of returnees, we became the go-to consultants for diaspora recruitment.

4.    Build Strong Brand Authority: Once you create and dominate a niche, you’ll start to gain recognition. The CNN exposure we received was the result of consistently delivering value in our niche and being seen as the authority in diaspora recruitment. Once you’ve established your category, external validation and recognition will follow, boosting your reputation.

5.    Know When to Pivot: Don’t be afraid to pivot when you realize your current strategy isn’t working. In our case, competing directly with the market leader wasn’t delivering the results we wanted. Pivoting to a new market segment gave us the breathing space to build our brand and become market leaders on our terms.

Conclusion: The Power of Segmenting for Competitive Edge

Competing with established players can feel like an uphill battle, especially in industries where incumbents have a stronghold. But success doesn’t always come from trying to beat them at their own game. Sometimes, it’s about finding a new game—one where you make the rules. By strategically segmenting the market and creating a new category, you can tap into unmet needs and establish yourself as a leader in that space.

In our case, focusing on diaspora recruitment not only helped us grow but also positioned us as pioneers in a niche that was previously overlooked. As we learned, market segmentation isn’t just about finding a smaller audience; it’s about finding the right audience and delivering exceptional value where it matters most.

Difference Between a Unique Selling Point and Your Value Proposition: Using your Compelling Personal Experience.

Value Proposition - Defining Your Solution as the Best Alternative for the Client

Many consultants mistakenly confuse a Unique Selling Point (USP) with a Value Proposition. A USP focuses on what makes your offer distinct in the marketplace—what makes you different or innovative. While that’s important, it doesn’t necessarily address whether your solution is the right fit for the client.

A value proposition, on the other hand, is entirely centered on the client’s needs, challenges, and desired outcomes.

It focuses on why your solution is the most suitable in their particular context, even if it’s not unique in the market.

The goal is not to highlight your distinctiveness but to demonstrate how your approach effectively meets the client's expectations and solves their problem better than other alternatives.

Understanding the Value Proposition

A value proposition is not just about having a product or service that is unique to you as a consultant. It’s about providing a solution that is the best alternative for your client in solving their specific problem or meeting their needs.

This is an important distinction to make because too many consultants focus on highlighting what makes their offering unique, rather than why it’s the most effective from the client’s perspective.

A strong value proposition answers the key question clients are asking: Why should I choose this solution?

Your product or service may not necessarily be unique in the broader market, but it must be the best choice for the client’s situation.

This involves:

• Understanding their pain points and what they need.

• Aligning your solution with their priorities and goals.

• Demonstrating how your approach delivers better outcomes than other available options.

Example: Leveraging Personal Experience to Add Value

My personal story perfectly illustrates how to craft a value proposition that focuses on what the client needs rather than emphasizing personal uniqueness.

As a returnee from the diaspora, I was able to successfully differentiate myself in the Nigerian market by leveraging my experience in both the diaspora and Nigeria. My success came not from having the most innovative recruitment process, but from my deep understanding of the challenges that candidates from the diaspora face.

Example Context: Competing for Recruitment Contracts

I was competing against two other market leading consultants based in the UK for recruitment projects in Nigeria, targeting candidates from the diaspora. My agency was probably the least qualified and experienced as well.

Despite not being based in the UK at the time, I was able to convince my client that I could offer better value because of my unique position as a returnee who had first-hand experience of the challenges and needs faced by diaspora candidates.

This gave me a distinct advantage over my competitors who were based in the UK. I was on the ground in Nigeria, understood the local market, and could bridge the gap between the diaspora experience and local realities.

This made my offer more attractive to the client, even though it wasn’t necessarily unique from a technical perspective.

Key Elements of My Value Proposition

1. Client-Centric Understanding: I demonstrated a deep understanding of both the diaspora experience and the Nigerian employment market. I wasn’t just offering a recruitment service; I was offering a solution that resonated with both the candidates and the client’s needs.

2. Best Alternative, Not Just Unique: My value proposition wasn’t about being different from my competitors in the UK—it was about being the best alternative for the client. My personal experience of transitioning from the diaspora to Nigeria gave me insights that my competitors simply didn’t have.

3. Geographical Advantage: I was based in Nigeria while my competitors were in the UK. This allowed me to offer real-time support, local market expertise, and a faster response to client needs, making my solution more practical and efficient for the client.

Crafting a Value Proposition Based on my Example

To create a compelling value proposition similar to mine, you need to focus on why you are best suited to solve the client’s problem, even if your competitors have similar offerings.

Here’s how my value proposition was articulated:

Value Proposition Statement:

"For organizations seeking to recruit high-quality talent from the diaspora, I provide a recruitment service that not only connects you to top candidates but also ensures a smooth transition process for recruits. As a returnee from the diaspora myself, I offer first-hand knowledge of the challenges candidates face and can provide tailored support for both recruits and your organization. Unlike my UK-based competitors, I am on the ground in Nigeria, offering you local insights, immediate support, and faster response times to ensure a seamless recruitment process."

Breaking Down the Statement

1. Target Audience: "For organizations seeking to recruit high-quality talent from the diaspora…" This identifies who the service is designed for, making it clear that the consultant understands the client’s specific needs.

2. Client’s Core Problem: "...recruitment service that not only connects you to top candidates but also ensures a smooth transition process for recruits." This highlights the primary concern of the client, which is not just finding candidates but ensuring they can successfully integrate into the organization.

3. Solution with Contextual Expertise: "As a returnee from the diaspora myself, I offer first-hand knowledge of the challenges candidates face and can provide tailored support for both recruits and your organization." Here, Shola highlights his unique insider experience that resonates with both the client and candidates. His value lies in understanding the candidate’s journey and the client’s expectations.

4. Comparative Advantage: "Unlike my UK-based competitors, I am on the ground in Nigeria, offering you local insights, immediate support, and faster response times." This emphasizes why the consultant is the best alternative, not just unique. The geographical advantage and real-time support make the offer more aligned with the client’s needs.

   
   

Summary of What you Statement Must Cover

1. What are you offering

2. Who are you offering it to

3. What problem will it solve

4. Why your alternative is best for the client

   
   

The Essence of the Value Proposition

The essence of a great value proposition is how well you can position yourself as the most suitable option for the client’s unique situation. In my case, my experience of transitioning from the diaspora was more valuable to the client than my competitors’ qualifications.

The advantage wasn’t technical or based on unique service features but stemmed from his personal and geographical alignment with the client’s needs.

The goal of your value proposition is to demonstrate why your solution will work best for the client, even if other consultants offer similar services. It’s about fitting into the client’s context better than anyone else.

This may involve factors like personal experience, location, timeliness, or understanding specific industry challenges—all of which may not be unique but are still the best match for the client’s needs.

Conclusion

My value proposition succeeded because it was focused on offering the best alternative for the client’s recruitment needs, rather than solely emphasizing what made him unique as a consultant.

By leveraging personal experiences, local presence, and insights into both the diaspora and Nigerian markets, I provided a solution that was clearly superior to my UK-based competitors in terms of meeting the client’s immediate goals.

This example shows the importance of crafting your value proposition around the client’s specific needs and context. Instead of focusing on how you are different, highlight why your solution fits their needs best, even if others offer similar services.

That’s the true power of an effective value proposition!

"Solving Customer Pain Points: The Next Step - Root Cause Analysis"

Case Study: Tackling High Staff Turnover with Root Cause Analysis and Organizational Culture Reform.

We were approached by a client in Abuja, Nigeria, who owned a growing business but was facing a recurring issue—high staff turnover.

Employees were leaving frequently, and the client's immediate response had always been to simply hire replacements. Over time, this approach became routine: as soon as someone left, the client would look for a replacement without pausing to assess why people were leaving in the first place.

During our initial briefing session, we carefully listened to their frustrations. The client believed that the solution was straightforward—recruit more people to fill the gaps left by departing staff. But from the very beginning, we suspected that the real issue might go deeper than just hiring more employees.

Instead of jumping to a quick fix, we asked a few probing questions about the company culture, the work environment, and the reasons employees gave when leaving. It quickly became clear that the problem required more than just replacing outgoing staff.

We realised that without addressing the root cause, the cycle would continue indefinitely, costing the company more in recruitment fees, time, and lost productivity.

Applying Root Cause Analysis: The 5 Whys Approach

We suggested to the client that we conduct a more thorough investigation using Root Cause Analysis, specifically the 5 Whys technique.

This is a simple yet powerful tool used to uncover the underlying causes of issues, rather than treating surface-level symptoms.

What is the 5 Whys Approach?

The 5 Whys is a problem-solving technique used to explore the underlying cause of an issue by repeatedly asking the question "Why?"

It helps consultants and organizations drill down into the root cause of a problem, rather than just addressing surface symptoms.

For example, if there is high employee turnover, instead of stopping at the first reason (e.g., employees leaving for better jobs), the 5 Whys helps to uncover deeper causes like poor management or weak organizational culture by asking "Why?" five times or until the root issue is identified.

Dealing with Clients Concern or Objections

The client, however, expressed some skepticism, believing we were simply trying to extend the assignment to inflate the cost of consulting. This is a common challenge consultants face, especially when the recommended solution requires additional time and effort.

But as a consultant, it’s essential to stand firm on what you know is right for the client. We calmly explained the importance of understanding the root cause. We illustrated how merely replacing staff without addressing the fundamental issue would lead to a revolving door of employees, and ultimately cost the company far more in the long run.

We laid out the choices, the potential impact of each, and how this deeper approach could create a more sustainable solution.

Applying the 5 Whys: Finding the Root Cause of High Staff Turnover

The approach using the 5 Whys:

1st Why: Why are employees leaving?

The client’s initial answer: “They are leaving for better job offers elsewhere.”

At first glance, this seemed to be the key reason, but we didn’t stop here. Instead, we dug deeper.

2nd Why: Why are they looking for better offers elsewhere?

Answer: “Because they feel dissatisfied with their work here.”

Dissatisfaction can be caused by many factors, so we continued probing.

3rd Why: Why do they feel dissatisfied with their work?

Answer: “Because they claim their is a lack of motivation and a sense of being undervalued.”

Now we were getting closer to the core issue, but we still needed more clarity.

4th Why: Why do they claim they are undervalued and demotivated?

Answer: “Because they claim there’s little recognition, poor communication from management, and no clear career advancement opportunities.”

This revealed deeper organizational issues that were directly impacting employee morale and engagement. However, there was one more level to explore.

5th Why: Why is there poor communication, a lack of recognition, and no career development?

Answer: “Because we are a growing small company and we dont think we can afford what they are asking for.”

Root Cause Analysis

Employees felt undervalued, disengaged, and were often unclear about their roles or growth opportunities within the company. There was a general lack of communication and cohesion between management and staff, which fostered a negative work environment. This was the true cause of the high turnover—not the positions themselves, but the organizational environment employees were working in.

Discovery: The Real Problem Was Organizational Culture

After gaining the client's trust, we proceeded with the root cause analysis.

Through a combination of interviews with departing staff, surveys with current employees, and a detailed examination of the workplace environment, it became evident that the high turnover had little to do with the job itself and everything to do with the company's organizational culture.

Avoid Solving Symptoms

In consulting, it's important to avoid addressing only the symptoms of a problem, as this leads to temporary fixes without solving the underlying issue.

Symptoms are the visible effects of deeper problems, like high staff turnover or declining sales. If you focus solely on the symptoms (e.g., replacing staff or boosting short-term sales), the root cause remains unaddressed and the problem will likely resurface.

Effective consulting involves diagnosing the root cause—whether it’s poor organizational culture, ineffective processes, or leadership issues—and implementing long-term solutions that prevent the problem from recurring.

The Solution: Culture Change and Strategic Recruitment

Once we identified the root cause, we moved forward with a plan that focused on creating a healthier organizational culture while recruiting new staff that fit well within this improved environment.

1.      Be Honest and Courageous: Standing your ground and advising a client to take a more comprehensive approach, even when they are skeptical, is crucial. Long-term success often requires time and a willingness to investigate the deeper issues.

2.     Root Cause Analysis is Essential: Using techniques like the 5 Whys can help uncover the real issues beneath the

3.      Cultural Shift: First, we worked closely with the leadership team to redesign key aspects of the organizational culture. This included improving internal communication, introducing recognition programs to show appreciation for employees' contributions, and setting clearer paths for career advancement.

We held a series of team-building workshops to realign the company’s values with its goals, fostering a more collaborative and engaged workforce.

4.     Recruitment Strategy: After making these cultural adjustments, we moved on to recruiting new staff. But this time, the recruitment process was more strategic. We looked for candidates who not only had the right skills but who also shared the company’s newly established values. This created a better cultural fit and long-term potential for success.

5.     Cementing the Changes with a Retreat: To ensure the changes stuck, we organized a 2-day retreat for the entire team. This retreat was designed to reinforce the new cultural direction and build unity within the company.

We conducted training sessions on collaboration, leadership, and personal growth, giving everyone a chance to bond and align with the company’s new vision.

The Results: Long-Term Success and Growth

The impact was immediate and lasting.

The high staff turnover that had plagued the company for years dropped significantly. Employees were more engaged, motivated, and aligned with the company's direction.

Furthermore, one of the newly recruited staff members demonstrated exceptional leadership potential and, within a short time, was promoted to the role of General Manager.

The company not only solved its turnover problem but also built a stronger, more cohesive team capable of driving the business forward.

Key Lessons for Consultants:

1.      Don’t Rush to Quick Fixes: As a consultant, it's important not to rush into solving the obvious problem without digging deeper. In this case, simply replacing staff would have been a temporary fix and would have led to continued turnover.

surface. Without this, you risk treating symptoms rather than the true cause of the problem.

2.     Cultural Alignment is Key: Organizational culture plays a critical role in employee satisfaction and retention. By addressing cultural problems, you can create a better working environment that reduces turnover and increases employee engagement.

Conclusion:

This case demonstrates the value of taking a strategic, root cause approach to consulting.

The impact wasn’t just a short-term solution—it was a transformation that led to a healthier company and a more engaged team.

As a consultant, your job is not just to solve the immediate problem, but to leave a lasting positive change in your client's business.