Gap Analysis Competitive Intelligence tool

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This article was written in February 2011. And describes the Gap Analysis Competitive Intelligence tool.

Use Gap Analysis helps study differences between your competitors and your own organisation. Determine what they are doing to create the Gaps. The main goal of Competitive Intelligence is to produce actionable intelligence for decision-makers.

Gap Analysis is a Competitive Intelligence tool to interpret information about your market. A Gap is simply the difference to where you are and where your competitors are. Positive Gaps indicates you are in a better position than your rivals. While a Negative Gap clearly means the reverse — in a worse situation. A fundamental Gap Analysis looks like this:


Assemble lists of known gaps. Introduce groups sessions involving your management, R&D, business development and marketing teams. Ensure that each identified Gap must be specific, understood, well described. Estimate the impact of each Gap. Determine which of your competitors is in a better position than you.

Potential Gaps

Understanding the relevant competitors will help. But you must keep track of the potential Gaps. Assign a member of your team to collect further information. Do this until you can dismiss the threat or point your resources to an isolated Gap.


The above manufacturing example can be countered by monitoring new patents or watching your competitor’s investments into other businesses. Especially investments with complement their current offering. Advertising new job roles is another location for triggers. Most triggers will become predictable. And when trip the required number triggers you will be ready to investigate if a gap is being created.

Trend Monitoring

An isolated trend needs analysis to identify the probable competitor response. And how others, not currently considered competitors, may gain some competitive advantage. Did they respond or where they caught on the back foot? Think of Apple introducing the iPod. And Sony responding by building a compact disc that could how more songs.

Action Plans

Potential Gaps — The goal is to determine the significance of potential Gaps. The size and the potential impact the Gap may have on your operation. Someone within your organisation needs to look for these potential gaps.




About Octopus Intelligence

We understand we live in an increasingly uncertain, competitive and ever-shifting world. And what you need is an active real-world business development strategy.

The UK based Competitive Analysis consultants with a global client base. Offering Competitive intelligence-based growth-focused actions. To answer the what and the how for the now and the next.

So we help you beat competitors, increase sales, be disruptive, enter new markets and invest with more certainty. As Competitor Analysis and Market Intelligence consultants, we offer Strategic Intelligence. Competitive Intelligence and background checking.

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