H.264/SVC (Scalable Video Coding) enables the transmission and decoding of partial bit streams to provide video services with lower temporal or spatial resolutions or reduced fidelity while retaining a reconstruction quality that is high relative to the rate of the partial bit streams. Hence, in comparison to H.264/AVC (Advanced Video Coding) SVC provides functionalities such as graceful degradation in lossy transmission environments as well as bit rate, format, and power adaptation. These functionalities provide enhancements to transmission and storage applications and demands appropriate encoding parameters. SVC has achieved significant improvements in coding efficiency with an increased degree of supported scalability relative to the scalable profiles of prior video coding standards. This paper provides an analysis of scalability based on GOP (Group of Picture) in scalable format to achieve reasonably better coding efficiency with best quality.