Gap Analysis


Gap analysis is a systematic process used by businesses to identify performance and productivity gaps in their current operations. It involves comparing the present state of an organization’s operations with its desired future state. By identifying these gaps, businesses can develop strategic plans to bridge the differences and achieve their goals.

What is Gap Analysis?

Gap analysis is a management tool used to assess the current state of a business and identify areas of improvement. It is a process that involves analyzing the business’s strengths, weaknesses, opportunities, and threats in relation to its goals and objectives. The main objective of gap analysis is to identify performance gaps and determine the actions needed to close those gaps.

Gap analysis can be applied in various areas of a business, including sales, marketing, operations, and finance. It can also be used to analyze specific processes or departments within an organization. The analysis can be conducted at any time, but it is most effective when done periodically to review and measure progress towards achieving business objectives.

Why is it Important?

Gap analysis is crucial for businesses to stay competitive and achieve their goals. It helps businesses identify areas for improvement, prioritize resources, and develop strategic plans to bridge the performance gaps. By regularly conducting gap analysis, businesses can proactively address potential issues and make necessary improvements to stay ahead of their competitors.

Moreover, gap analysis helps businesses align their operations with their goals and objectives. By identifying areas of improvement, businesses can focus on what is most important and eliminate activities that are not contributing to their success. This leads to more efficient and effective operations, resulting in improved performance and increased profitability.

Who uses it?

Gap analysis is a versatile tool that can be used by businesses of all sizes and industries. It is primarily used by managers, executives, and consultants to evaluate and improve business processes. Business owners and entrepreneurs also use gap analysis to identify opportunities for growth and expansion.

Apart from businesses, gap analysis is also used in the public sector to assess the performance of government agencies and services. It is also utilized in non-profit organizations to evaluate their operations and identify areas for improvement.

Use Cases

1. Sales Performance Gap Analysis – A company wants to increase its sales by 20% in the next quarter. By conducting a gap analysis, the sales team identifies the current sales processes and strategies that are not contributing to achieving the desired goal. They then develop a plan to improve these processes and set realistic targets to bridge the performance gap.

2. Human Resources Gap Analysis – A company wants to improve its employee retention rate. The HR department conducts a gap analysis to identify the reasons for high turnover and develops strategies to address these issues. This leads to improved employee satisfaction, resulting in lower turnover rates and overall better performance.


Gap analysis is applicable in various industries and business functions, including marketing, sales, operations, finance, and human resources. It is also useful for evaluating specific processes, such as supply chain management, customer service, and product development. Additionally, it can be applied at any stage of a business, from start-ups to established organizations.


Gap analysis is also known as needs assessment, performance gap analysis, and opportunity analysis. It is often used interchangeably with other management tools such as SWOT analysis, PEST analysis, and Five Forces analysis. However, gap analysis has its unique focus on identifying and bridging performance gaps in a business.


In conclusion, gap analysis is a valuable tool for businesses to evaluate their performance and identify areas of improvement. It helps businesses align their operations with their goals and objectives, leading to improved efficiency, increased productivity, and better decision-making. By regularly conducting gap analysis, businesses can stay competitive and achieve their desired results.

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