DEFINITION of 'Strategic Gap Analysis'
The evaluation of the difference between a desired outcome and an actual outcome. This difference is called a gap. Strategic gap analysis attempts to determine what a company should do differently to achieve a particular goal by looking at the time frame, management, budget and other factors to determine where shortcomings lie. After conducting this analysis, the company should develop an implementation plan to eliminate the gaps.
BREAKING DOWN 'Strategic Gap Analysis'
For example, if a small mom and pop restaurant wanted to become a top tourist destination but currently only served locals, a strategic gap analysis would look at the changes required for the restaurant to meet its goals. These changes might include relocating to an area with more tourists, altering the menu to appeal to out-of-town visitors, hiring more staff so the restaurant's hours become more convenient for travelers, and so on. The analysis would also determine how to make these changes happen. If a business doesn't know where it stands in relation to its goals, it is not likely to achieve them.