Which gap in gap analysis is associated with expanding sales?

• A. Efficiency gap - savings
• B. Expansion gap - expanding sales
• C. Diversification gap - riskier strategy ie new markets
• D. Market growth gap

Answer: (B)

Expansion gap focuses on increasing sales by broadening the scope of the business—adding new products, new channels, or entering adjacent markets to extend selling opportunities beyond the current offerings. This is the path that directly targets expanding sales rather than cutting costs or changing the core market approach.

Efficiency gap looks at achieving cost savings through better processes, not sales growth. Diversification gap involves pursuing entirely new products and new markets, which is a riskier move. Market growth gap aims to grow sales within the existing market, but expansion gap specifically covers expanding sales by broadening how and where the current business can sell, such as through new product lines or distribution channels.