GAP Analysis PPT

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PRESENTED BY – AMIT LAKADE GAP ANALYSIS

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In business and economics, gap analysis is a tool that helps a company to compare its actual performance with its potential performance. Gap analysis is a business assessment tool and method that focuses on the gap between a company's current performance and desired performance. The goal of gap analysis is to identify the gap between the optimized allocation and integration of the inputs, and the current level of allocation. DEFINITION

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This analysis includes a description of the company's current situation, and what the company wants to achieve in the future. The difference between these two items is the gap. The analysis includes specific action steps the company must complete to close this gap and achieve its goals.

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Step 1: Decide the topic you’re going to do the Gap Analysis on? This is the challenge you’re trying to tackle. Gap Analysis sample topics include: Revenue Profit Market Share Product Functionality/Features PROCESS OF GAP ANALYSIS

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Step 2: Identify where you are right now based on attributes. Examples: Revenue — We’re at Rs.2 crore in annual sales right now Profit — We’re at 20 lakh in annual profit right now Market Share — We have 10% of the market share right now Product Functionality/Features — Our product has was just launched so it has limited features

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Step 3: Identify where you’d like to be over a specific time frame? Examples: Revenue — We’d like revenue to grow to 20 crore in annual sales by 2015 Profit — We’d like profits to grow to 2 crore per year by 2015 Market Share — We’d like to own 25% of a particular market by 2015 Product Functionality/Features — We’d like our product to have industry leading features by 2015

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Step 4: Identify the gap between where you are and where you want to be. Example: Revenue — The gap is 18 crore per year in annual sales by 2015 Profit — The gap is 1,80,00,000/- in annual profit by 2015 Market share — The gap is 15% market share by 2015 Product Functionality/Features (let’s use Web site as an example) — The gap is that you’d like to have the following features by 2015: a blog, a sign-up form to let visitors follow your business on Facebook and Twitter and a way for customers to buy products directly.

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Step 5: Determine how the Gap should be filled. Manpower — The people resources you need. Methods — The processes you need. Metrics — The measurements you need. Machines — The automation or technology you need. Materials — The material items (such as physical goods or marketing collateral) you need. Minutes— The time you need.

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Correct gap analysis should increase an organization's production and performance, resulting in higher quality products at a lower total cost. Gap analysis also measures the amount of time, money and resources needed to fulfill an organization's potential and reach the desired state. ADVANTAGE

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The two most popular types of gap analysis are 1)PRODUCT GAP - Product gap analysis concentrates on internal improvements and growth limitations due to certain product or service characteristics. 2)MARKET USAGE GAP- Market usage gap analysis focuses on the possibilities of growth by evaluating and comparing the current market size to the potential market size. TYPES

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Uploaded By Abhishek Varshney (AV)