Gap analysis is used to find out the gap between a companies potential and its actual standing in the market. There will always be a difference in what the company desires and what it has achieved.
Step 1) Finding the gaps- The very first and most important step in the process of Gap analysis is finding the gaps here can be gaps in market segmentation, wherein a market segment which was targeted has not shown interest, or another market segment exists which may give even better business. The competitive landscape might be changing and there may be a gap in the companies perceived competition and the actual competition that exists in the market. There may be a gap in profit expectations and actual profit realization.
Step 2) Narrowing down on key variables- If the gap is in market segmentation, then what is the market segment which you would like to target. This new market segment is the key variable. Similarly, what are the factors causing the downfall of profit, and what is the key
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