Posted in Marketing and Strategy Terms, Total Reads: 3893
Definition: Strategic Gap Analysis
Gap Analysis refers to the comparison between what the performance was (actual) and what the performance should has been (potential). The results of this analysis help identify the errors in resource allocation and what steps need to be taken further to help improve performance through better utilization of the input resources.
The current performance is extrapolated back and compared with the desired performance level to get the results.
Gap= Current Performance- Desired Performance
Strategic Gap Analysis helps identify performance gap with respect to the strategy the company follows to achieve its goals, whether the performance is aligned with the mission and vision of the company. This leads to resource optimization through the sages of determination, writing and application.
Strategic Gap = what the firm is doing - what the firm must do
The variance between the current and desired performance is an indicator of the gap in this case. The outcome is the identification of means to fill the gap.