Gap Analysis – a comparison between the potential best performance of a company, and it’s actual performance.
There are four types of gap analysis:
Market Gap Analysis/Product Gap Analysis:
Looks at the actual sales versus the budgeted sales, which can be done internally or externally by an analyst. Product gaps look for opportunities where supply is less than the demand. Companies can use a market gap analysis to discover underserved markets that it can turn its attention to.
Strategic Gap Analysis/ Performance Gap Analysis:
Measures the actual performance versus the anticipated performance. This analysis is usually used to inform the company how and what they are doing compared to competitors.
Profit Gap Analysis:
Compares the profit goals to the actual profits achieved by the company in a certain period of time. By analysing this gap, the company is able to dissect why certain goals may not be being met and adjust their strategies where necessary.
Skills Gap Analysis / HR Gap Analysis:
Looks at the company’s workforce resources to measure whether or not it has enough people with the right skills to meet the goals the company as set itself. The gap would be the difference between the company’s current workforce versus the estimated workforce needed to succeed at their goals.