GAP%20ANALYSIS

1
GAP ANALYSIS

• Sources of gaps
• Types of gaps
• Solutions to gaps

2
Gaps

• Sources
• Environmental
• Legal
• Infrastructure
• Cost
• Managerial
• Policies due to
• Distrust
• Poor integration

• Types
• Demand-side
• Supply-side

3
Demand Side Gaps

• Service output supplied output demanded
• SOS lt SOD
• Segment currently receives insufficient service
• E.g., supermarkets not delivering groceries
• E.g., same day delivery of specialty books

• SOS gt SOD
• Excessive service ? excessive prices for any
  significant segment
• Wheel of Retailingstores keep adding services
  and lower priced alternatives then emerge
• Where to draw the linee.g., Costco

4
Supply-Side Gaps

• Total cost of performing all flows is higher than
  needed
• E.g., travel agents
• E.g., neighborhood pharmacies

5
Combined Gaps
Cost/ Performance SODgtSOS SOD SOS SOD lt SOS
No supply side gap (efficient) Room for higher price, more SO No gap Room for lower price, less SO
Supply side gap (excess cost) Too low value at too high cost SO demanded even at high cost Insufficient value
6
Closing Demand-Side Gaps

• Multiple, multi-tiered services to different
  segments (e.g., Marriott and Courtyard)
• Adjusting current offering toward market balance
• Reconsider target market

7
Closing Supply-Side Gaps

• Changing channel flow objectives
• Investments in efficiency
• Improvement of existing channel