Gap analysis in simple terms can be defined as the device used for comparing the prospective performance and the actual performance of a company. It discusses two factors namely what should be the growth of the company as per the expectations and what the actual position is. One possible reason is the company has not put to use the maximum resources or technology. The analysis helps the organization to find the reason for the gap or distance between the real growth and the predicted growth or development. The organization can learn the mistakes and understand where it actually needed improvement.
The analysis of company's growth factor involves other assessments. As soon as the company understands where they have fallen short of the expected development, then it would be helpful to meet the challenges and target in the future. The process of gap analysis includes in finding out the difference between the current potential and the needs of the business. The comparison of the expected output and the actual action is the core success of this analysis. The study is carried out at the operational level or at the strategic level of a company. The study can be focused on various approaches such as human power of the organization, business processes, and business direction and information technology.