Course Content
Internal Strategy Analysis
Internal Strategy Analysis – Resource-Based Approach, Value Chain Analysis
0/4
Business Portfolio Analysis
Business Portfolio Analysis - BCG, GE Business Model, Ansoff’s Product Market Growth Matrix
0/4
Unit VI: Strategic Management

📘 What is GAP Analysis?

GAP Analysis is a strategic management tool used to identify the difference (gap) between the current state and the desired future state of a business, project, or specific process. It helps organizations assess their performance and recognize areas where improvements are needed to achieve their goals.

The purpose of GAP Analysis is to highlight performance gaps, uncover the root causes of these gaps, and create strategies to close them, improving overall performance, productivity, and competitiveness.


🧩 Key Components of GAP Analysis:

  1. Current State:

    • This is the existing situation or performance of the company, department, or process. It could refer to current operations, products, services, or performance metrics.

    • Key Questions:

      • Where are we now?

      • What is our current performance level?

      • What resources do we currently have?

  2. Desired State:

    • This is the goal, vision, or ideal state that the organization wants to achieve. It reflects the future position, whether it’s a target for growth, a performance benchmark, or an innovation goal.

    • Key Questions:

      • Where do we want to be?

      • What does success look like for us?

      • What are the specific goals or objectives?

  3. The Gap:

    • The gap represents the difference between the current state and the desired state. It highlights the discrepancy and identifies the shortcomings in performance or resources.

    • This gap could be:

      • A performance gap (e.g., sales targets not met).

      • A skills gap (e.g., a shortage of certain expertise in the workforce).

      • A resource gap (e.g., insufficient technology or financial resources).

    • Key Questions:

      • What are the key challenges holding us back?

      • What’s preventing us from reaching our goals?

  4. Action Plan:

    • Once the gap is identified, an action plan is created to close the gap. This involves outlining the necessary strategies, resources, and steps required to bridge the difference.

    • Key Questions:

      • What specific actions should we take?

      • What resources are needed to close the gap?

      • What timeframe should we set for achieving the desired state?