Gap Analysis

Gap Analysis is identifying the distance between a firm's current position and its desired position with regard to an internal weakness. All things equal, it is desirable to take action to close the gap, especially when the gap leaves a firm vulnerable to external threats in its environment.

Definition

According to the Strategic Management by Parnell (4th edition),

Gap Analysis. Identifying the distance between a firm's current position and its desired position with regard to an internal weakness. All things equal, it is desirable to take action to close the gap, especially when the gap leaves a firm vulnerable to external threats in its environment.