What is gap analysis?

The term “gap” refers to the space between “where we are” (the present state) and where “we want to be” (the target state). Gap analysis assesses the differences between the actual and expected performance in an organization or a business. It can also be called a need analysis, need assessment, or need-gap analysis.

What is the difference between static and dynamic gap analysis?

Static gap analysis looks at the firm’s sensitivity to changes in interest rates. Dynamic gap analysis looks at the firm’s discrepancy between its assets and liabilities. A gap analysis is a technique that companies can use to evaluate their current position, decide their dream position, and formulate a plan on how to bridge the gap.

Should you do a PESTLE analysis or a gap analysis?

If you want to do a more in-depth analysis of your market environment, try a PESTLE analysis instead, as it adds legal and environmental factors to the PEST analysis. The gap analysis process is essential for any business to streamline their operations for efficiency and cost-effectiveness.

What is a product gap?

The product gap —also called the segment or positioning gap —is that part of the market a particular organization is excluded from because of product or service characteristics.