Gap Inc: Internal Analysis

Political Forces:

The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations.

GAP Inc. Case: Trade restrictions, increased quotas, tariffs, safeguards, embargoes, U.S Labor strike, customs restrictions against apparel items, boycotts, and work stoppages increases the cost and reduces the supply of apparel available to the USA and affects the business adversely, operation and financial conditions. The products that are produced and

Also internet based commutation network links manufacturers with suppliers to allow the retailers better tailor the products to their shoppers needs.

2- Make an internal analysis of the firm by analyzing GAP’s core competencies and competitive advantages.

Internal Analysis

GAP’s Core competencies and competitive advantage

1. GAP is a popular retailer provides several lines of products, clothing, personal care products, accessories, for women, men, children and babies.

2. GAP owns different brands (GAP, Old Navy, Banana Republic, Piperlime, and Athleta) which provides different styles, and targeting different segments which makes it meeting different consumers wants and needs.

3. GAP has franchising agreements with unaffiliated franchisees that operates GAP and banana republic around the world.

4. GAP created online stores so it made it easier for consumers around the world to make shopping.

5. GAP provides a wide range of family clothing products, shoes, fashion apparel, accessories, and personal care

Suggested cooperative business-level strategy Strategic Alliances

Suggestion: as an owner of BabyGAP, GAP has a great opportunity to make a strategic alliances with other brands that is selling different line of baby products of what babyGAP is selling, like for example, make a strategic alliance with Chicco, which is selling baby products such as pregnancy and feeding products, baby feeding chairs, trollies, beds, hygiene products, etc. which will benefit both companies, both babyGAP and Chicco customers will find everything they want for their babies at the same place.

3. Suggested corporate-level strategies

International expansion

Suggestions

4. Global product strategy: GAP should exploit its current products and the steady, largest growth in Asia market such as China, and enlarge its existence there to reach more customers.

5. Retrenchment or Exit: GAP should find out the reason of the performance drop of its stores in North America, and tries to solve the problem or if it couldn’t solve it, GAP should exit and close its business in North America to avoid more