Strategic Gap Analysis

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.



RELATED TERMS
  1. Gap Analysis

    1) The process through which a company compares its actual performance ...
  2. Gapping

    In general, a trading strategy in which the participant borrows ...
  3. Common Gap

    A price gap found on a price chart for an asset. These gaps are ...
  4. Breakaway Gap

    A term used in technical analysis. A breakaway gap represents ...
  5. Gap

    A break between prices on a chart that occurs when the price ...
  6. Exhaustion Gap

    A gap that occurs after the rapid rise in a stock's price begins ...
Related Articles
  1. Forex

    Gaps

    Those who study the underlying factors behind a gap and correctly identify its type can often trade with a high probability of success.
  2. Forex Education

    Playing The Gap

    Learn how you can earn money by analyzing the disruptions in normal price patterns.
  3. Trading Strategies

    Know How To Manage Gaps On Your Trading Strategy

    Gaps generate profitable strategies right after they print, as well as during retracements that test those levels, often months or years later.
  4. Charts & Patterns

    Analyzing Chart Patterns: Gaps

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com A gap in a chart is essentially an empty space between one trading period and the previous trading period. They usually ...
  5. Trading Strategies

    Gap Strategies To Try For Intraday Trades

    Many traders lack effective strategies to manage gaps, whether they pop up on open positions or mark the first play of the day. These strategies may help.
  6. Investing News

    Should Investors Squeeze Into The Gap?

    The Gap is closing stores and conducting layoffs. Will investor panic lead to opportunity?
  7. Trading Strategies

    Analyzing The Market With Trend Mirrors

    Past price action can exert a powerful influence on current rallies and selloffs.
  8. Insurance

    Steer Clear of Over-Priced Gap Insurance Providers

    Major insurers will generally give you a better deal on gap insurance than a car dealership. But watch for gaps in gap coverage.
  9. Entrepreneurship

    Why Do Many Restaurants Fail In Their First Year?

    Too many restaurant ventures will fail in their first year. What can entrepreneurs do to avoid such a fate for their startups?
  10. Options & Futures

    Enjoy Life Now And Still Save For Later

    Find out how to balance living well today and retiring well tomorrow.
RELATED FAQS
  1. How are Sanku (Three Gaps) patterns interpreted by analysts and traders?

    Find out how analysts and traders interpret a Sanku, or three gaps, pattern located within a bar chart or Japanese candlestick ... Read Answer >>
  2. What are the main differences between a Runaway Gap and a Exhaustion Gap?

    Discover the primary differences between runaway and exhaustion gaps, and see why gap differentiation depends on subsequent ... Read Answer >>
  3. What are the main differences between Exhaustion Gaps and Breakaway Gaps?

    Read about the primary differences between two types of price chart gaps – breakaway and exhaustion – and how traders react ... Read Answer >>
  4. How are Runaway Gap patterns interpreted by analysts and traders?

    Find out what runaway gaps mean in a price chart and how traders and technical analysts interpret them differently than other ... Read Answer >>
  5. How do I implement a forex strategy when spotting a Runaway Gap Pattern?

    Read about some strategies to consider after spotting a runaway gap pattern in the forex market, including how to distinguish ... Read Answer >>
  6. How do I build a profitable strategy when spotting an Exhaustion Gap?

    Learn potentially very profitable trading strategies traders use to take advantage of a market reversal after identifying ... Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center