Question

Identify a channel gap analysis of Toys R Us. Identify sources of gaps identified in existing distribution system. Identify gaps that need addressing and if existing online channel identify gaps and strategies to close gaps.

Answer 1

Channel gap refers to a division between low performing channels and excellent channel which indeed has facilitated significant business growth and enhanced earnings. Furthermore channel gap can be due to development of latest technologies which in fact has acted as a significant barrier in an organization desiring for effective and prompt penetration in new markets.

Since channel gap is been considered as the most significant barrier in a company growth the bridging of the gap indeed requires the creation of an efficient and effective economic model such as joint venture partnership framework which can assist in the creation and delivering of cost-effective products and services aimed towards its targeted consumers which in fact can facilitate to create maximum value thus it indeed can help the business to gain a competitive advantage against its competitors and quickly capture the market share.

Thus gap analysis is considered to be an excellent strategic tool used by business administrators to recognize and acknowledge where the organization is going and what is the prospect and potentiality of the company. Furthermore it helps to compare the actual accomplishment against the probable and prospective attainments to examine and evaluate the gaps in the present business policies which indeed needs the effective and efficient closure of the existing gaps by framing effectual business strategies which in fact can facilitate the organization to meet its own potentiality.

For instance a newspaper enterprise persisting to continue with conventional mode of newspaper circulation which is neither inclining to have a website nor a mobile app thus slowly but surely the newspaper would start losing its recognition and attractiveness because it is willing to let go a majority of its potential online and mobile readers.

Thus when the newspaper company does an analysis to examine and evaluate its downfall it would understand and recognize that it was overall due to the technology gap which existed in the market and what the organization actually used and thus it was apparent and important for them to frame effective business policies towards the adoption of latest developed technologies in their newspaper circulation which indeed could have facilitated them to close the gap which in fact has resulted in their failure to attract the newspaper readers.