What is Gap Analysis?
A definition of Gap Analysis
“Gap analysis is a method used by businesses to compare actual performance with potential or desired performance. This helps identify areas for improvement and strategies to bridge the gap.”

Business Glossary > What is Gap Analysis?
Examples of Gap Analysis in a Sentence:
The company conducted a gap analysis to find performance issues.
Gap analysis revealed a significant deviation from expected goals.
Effective strategies were developed after a thorough gap analysis.
Why is Gap Analysis Important in Business?
Understanding gap analysis is vital for businesses to identify discrepancies between current operations and desired objectives. It allows organizations to allocate resources efficiently and strategize effectively for achieving optimal performance.
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Associated Terms
Here are some associated business terms and synonyms for “Gap Analysis”:
- Needs Assessment
- Performance Diagnosis
- Discrepancy Evaluation
IBM Gap Analysis
IBM performed a gap analysis when entering the cloud computing market, assessing their current capabilities against competitors. This analysis helped IBM to identify new opportunities and strategize competitive solutions in the market.
Final Notes on Gap Analysis
When conducting a gap analysis, companies should focus on:
- Understanding current performance
- Identifying desired performance levels
- Determining reasons for performance gaps
This process assists in aligning business processes with objectives.
This has been a definition of Gap Analysis meaning.
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