Some people find it quite difficult to understand the gap analysis where in reality, it is not that hard. If you can’t understand this concept from business perspective, you should understand the word “gap” in general means. You know that gap means the difference between two points or two objects and it is the same meaning that gap analysis carries.
This is the process that is implemented in businesses and especially in project management in order to find the current stage of development and progress, the finish line or the future goals of a company and the gap between them. This is generally an analysis to understand the gap between points A and B. gap analysis defines a company’s position and progress from market’s perspective.
This not only allows the owners and managers of the company to improve their progress but also let them overcome the setbacks and errors that are keeping their company from growing on an ideal level.
Importance of Gap Analysis:
- Defining future goals for a company:
The most important element to run a company is to have some kind of future goals. As a business owner, if you don’t have any objective or goals to reach, you can’t analyze if your company is going in the right direction or even if it’s making any progress or not. Gap analysis helps define and explain the future goals and objectives for a company.
- Allocation of resources:
Resources are the second most important part of a business. You can run your company in any way that you want but it’s not possible for anyone out there to run a business without money not even for the non-profit organizations. Gap analysis allows you to foresee the future of your company and thus helps you to allocate the resources and financial help for your company in time.
- Competition evaluation:
Gap analysis allows the business owners to understand the competition in the market between their company and other companies. This not only helps them to change their policies, goals, objectives and plans but also allow them to run the business in a different way in order to stand ahead of other companies in the market.
Application of Gap Analysis in Business:
Unlike many other business plans and applications, gap analysis is only used by top level companies and global organizations. The reason behind that is because this is not a cheap option that any company can go with but it includes hundreds of hours of market research and identification and analysis of the company’s future goals which is not the ideal expense for new or small companies. Most of the time, top management of a company uses the gap analysis to define the future goals and objectives of the company and the obstacles and possible setbacks that their company might encounter in the future. This allows the company and business owners to foresee the problems and possible delays in order to reach the finish line.
Here is preview of a Free Sample Gap Analysis Diagram created using MS Word,
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