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GAP ANALYSIS

GAP ANALYSIS. Sources of gaps Types of gaps Solutions to gaps. Sources Environmental Legal Infrastructure Cost Managerial Policies due to Distrust Poor integration. Types Demand-side Supply-side. Gaps. Service output supplied= output demanded SOS < SOD

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GAP ANALYSIS

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  1. GAP ANALYSIS • Sources of gaps • Types of gaps • Solutions to gaps

  2. Sources Environmental Legal Infrastructure Cost Managerial Policies due to Distrust Poor integration Types Demand-side Supply-side Gaps

  3. Service output supplied= output demanded SOS < SOD Segment currently receives insufficient service E.g., supermarkets not delivering groceries E.g., same day delivery of specialty books SOS > SOD Excessive service  excessive prices for any significant segment “Wheel of Retailing”—stores keep adding services and lower priced alternatives then emerge Where to draw the line—e.g., Costco Demand Side Gaps

  4. Total cost of performing all flows is higher than needed E.g., travel agents E.g., neighborhood pharmacies Supply-Side Gaps

  5. Combined Gaps

  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

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