GAP analysis
A GAP analysis is a tool used to identify the difference between an organization's current performance and its desired performance. It provides insight into areas where improvement is needed and helps create a plan to address these deficiencies.
How does a GAP analysis work?
A GAP analysis begins by identifying an organization's current performance, such as productivity, revenue, customer satisfaction or quality. It then identifies the desired performance, for example, based on the organization's goals or industry benchmarks.
The difference between current and desired performance is called the "gap." This gap can be analyzed to identify the causes of the deficiencies, such as by conducting a SWOT analysis or collecting feedback from customers and employees. Based on this analysis, improvement actions can be determined and implemented to improve the organization's performance and reduce the gap. By regularly conducting a GAP analysis, an organization can continuously improve its performance and achieve its goals.
GAP analysis of competition
A GAP analysis can also be used to compare yourself with competitors. Here the focus is not only on the internal performance of your organization, but rather on how you score compared to others in your industry. This provides valuable insights into your competitive position and helps discover opportunities to differentiate yourself.
The analysis begins by identifying your competitors' strengths and performance, for example, by analyzing their market strategy, product offerings, pricing or customer satisfaction. You then compare these to your own organization's current performance. The differences - or "gaps" - show where you are lagging behind, but also where you have opportunities to grow or position yourself as unique in the market.
For example, a competitive GAP analysis can reveal that your customer service is less efficient than that of your competitors, or that your product offerings are less aligned with the needs of your target audience. This insight allows you to develop targeted strategies that not only help close the gap, but also build competitive advantage.
