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    YES, Both Demand Side Gap and Supply Side Gap Are Related To Each Other. It Is Important To

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    Aadil Kakar
    Gap analysis involves comparing actual performance to desired performance to identify shortcomings. There are demand-side gaps when customers are unsatisfied with available offerings due to insufficient service levels or high prices. Supply-side gaps occur when needed services can be obtained elsewhere at lower prices. Both types of gaps are interrelated and should be closed to achieve goals. Closing demand-side gaps involves adjusting service levels or target markets. Closing supply-side gaps involves changing channel member roles, investing in new distribution technologies, or introducing distribution specialists.

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    YES, Both Demand Side Gap and Supply Side Gap Are Related To Each Other. It Is Important To

    Uploaded by

    Aadil Kakar
    38 views2 pages
    Gap analysis involves comparing actual performance to desired performance to identify shortcomings. There are demand-side gaps when customers are unsatisfied with available offerings due to insufficient service levels or high prices. Supply-side gaps occur when needed services can be obtained elsewhere at lower prices. Both types of gaps are interrelated and should be closed to achieve goals. Closing demand-side gaps involves adjusting service levels or target markets. Closing supply-side gaps involves changing channel member roles, investing in new distribution technologies, or introducing distribution specialists.

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    Gap analysis involves comparing actual performance to desired performance to identify shortcomings. There are demand-side gaps when customers are unsatisfied with available offerings due to insufficient service levels or high prices. Supply-side gaps occur when needed services can be obtained elsewhere at lower prices. Both types of gaps are interrelated and should be closed to achieve goals. Closing demand-side gaps involves adjusting service levels or target markets. Closing supply-side gaps involves changing channel member roles, investing in new distribution technologies, or introducing distribution specialists.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    38 views2 pages

    YES, Both Demand Side Gap and Supply Side Gap Are Related To Each Other. It Is Important To

    Uploaded by

    Aadil Kakar
    Gap analysis involves comparing actual performance to desired performance to identify shortcomings. There are demand-side gaps when customers are unsatisfied with available offerings due to insufficient service levels or high prices. Supply-side gaps occur when needed services can be obtained elsewhere at lower prices. Both types of gaps are interrelated and should be closed to achieve goals. Closing demand-side gaps involves adjusting service levels or target markets. Closing supply-side gaps involves changing channel member roles, investing in new distribution technologies, or introducing distribution specialists.

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    Gap analysis involves the comparison of actual performance with potential or desired

    performance. Gap analysis is a very important part to find any shortcomings in the process.
    Demand side gaps involve a market situation where consumers are not satisfied buying what
    is available because either the level of service provided is not adequate or because the
    offering is too expensive. 
    Supply side gaps involve firms that provide services that are needed, but ones that can be met
    elsewhere at lower prices.
    YES, both demand side gap and supply side gap are related to each other. It is important to
    close the gap to achieve the desired results.
    Closing demand side gap
    1. Offer multiple, tiered service output levels to appeal to different segments
    2. Expand or retract amount of service level output to the target market
    3. Altering the list of segments targeted (re-segmentation by channel flow efficiencies)
    Closing supply side gap
    1. Changing roles of current channel members
    2. Investing in new distribution technologies to reduce total channel flow costs
    3. Introducing new distribution function specialists to improve the function of the
    channel
    Transaction cost economics is understood as alternative modes of organizing transactions that
    minimize transaction costs. Transaction cost theory means that the optimum organizational
    structure is one that achieves economic efficiency by minimizing the costs of exchange. The
    theory suggests that each type of transaction produces coordination costs of monitoring,
    controlling, and managing transactions. Transaction costs is also defined as the costs of
    running the economic system of firms. Such costs are to be distinguished from production
    costs and that a decision-maker can make a choice to use a firm structure or source from the
    market by comparing transaction costs with internal production costs. Thus, cost is the
    primary determinant of such a decision.
    According to resource-based theory, organizations that own “strategic resources” have
    important competitive advantages over organizations that do not. Some resources, such as
    cash and trucks, are not considered to be strategic resources because an organization’s
    competitors can readily acquire them. Instead, a resource is strategic to the extent that it is
    valuable, rare, difficult to imitate, and non substitutable.

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