When engaging with customers outside the building, it is important to consider the competitive environment. The competition extends beyond the confines of the business model canvas, and visualizing your canvas among others can provide valuable perspective. This approach encourages an assessment of who else is in the market and their activities. Understanding this environment helps in identifying opportunities and potential threats, ensuring that your value proposition remains distinct in a crowded marketplace. A key question to explore is why a particular problem remains unsolved or why a service is not being offered by others. This inquiry can indicate whether you have a genuine insight or if something critical might be overlooked. Engaging with customers to ask if they have encountered similar solutions can provide insights. If multiple vendors have attempted and failed to address the same issue, it may require further investigation. It is essential to ensure that your approach or insight differs significantly and can overcome past challenges. Market size is another important consideration when developing your value proposition. Understanding the scale of the problem you are addressing is vital for determining if it warrants long-term commitment. A detailed analysis of market size will be discussed later, but understanding its magnitude early on helps decide whether the potential market supports business goals and long-term growth. Once there is a clear understanding of customer needs, determining how to effectively address them becomes crucial. This involves not only identifying appropriate solutions but also understanding broader technology and market insights. Ann Miura-Ko from Floodgate suggests that startups' value propositions can be categorized into technology insights and market insights. Technology insights often drive efficiency, size reduction, and cost savings, while market insights focus on distribution, bundling, and branding. The most compelling value propositions often combine both elements, creating a synergy that addresses customer needs in innovative ways. ## Activities - Watch the video [Value Proposition Questions](https://youtu.be/tnEuPQPfJkE) ([[Udacity - How to Build a Startup]], Lesson 5.23) - Watch the video [Technology and Market Insight](https://youtu.be/zEesUJ4lKG0) ([[Udacity - How to Build a Startup]], Lesson 5.24) - Watch the video [Types of Value Proposition](https://youtu.be/GRjwHq3Aov4) ([[Udacity - How to Build a Startup]], Lesson 5.25) - Watch the video [Value Proposition Examples](https://youtu.be/2msCma96k6o) ([[Udacity - How to Build a Startup]], Lesson 5.27) Next: [[Market Opportunity Analysis]] Back to: [[What Will Be Your Unique Value?]]