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Old Navy Vs Banana Republic

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Gap is one of America’s leading chain of clothing stores that operates under the brand names Gap, Old Navy, Banana Republic, and Athleta. This humongous company has over 3000 stores worldwide and is located in major outdoor shopping centers and malls.

The store's chain offers American type style clothing that ranges from Jeans, Shirts, and Khakis at a fair price. One of its brands, Old Navy offers lower priced clothing’s that include denim, t-shirts, and cargo pants. Its other Brand, the Banana Republic offers a much higher priced luxury line of clothing along with other accessories like shoes. In this article, we will list the first part of Gap ten facts. You will be amazed at some of the facts that you will go through.

Number Ten: Did you
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What I observed from two clothing stores: Old Navy and Goodwill is that the environment of a business is what you pay for it to be. In this circumstance customers purchasing things at Goodwill are paying very little for the products they are purchasing, whereas at Old Navy customers are paying a good amount of money for their purchased products. This often leads to the investment in the environment of the store to vary. Goodwills environment was dark which prevented sight of available options, was dirty which made shopping uncomfortable and, clothing was disorganized which made finding things take longer. I believe these circumstances are the way they are because the company does not pay to staff employees that are responsible for cleaning, organizing, and, changing light bulbs.

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Denim was once only thought of as a functional item of clothing belonging in the wardrobe of cowboys and construction workers, but label giant Calvin Klein set the fashion world on its ear when they featured a teenage Brooke Shields in an advertisement boasting that nothing came between her and her ‘Calvins’ (Barney & Hesterly, 2015, PC1-11). With this the designer jean movement began in 1970 and reached its pinnacle in 1981 “when sales jumped to record $6 billion and 520 million pairs” (Barney & Hesterly, 2015, PC1-12). Since this time, a myriad of premium denim lines have emerged, the largest of them being “Buckle, Guess, Joe’s [Jeans], Levi’s, Liz Claiborne, People’s Liberation, True Religion, and VF Corp” (Barney & Hesterly, 2012, PC1-39)

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RECENT OPERATIONAL PERFORMANCE Gap Inc. Gap Inc. is a global specialty retailer offering clothing, accessories and personal care products for men, women, children and babies. The company has grown from a single store to a global fashion business with five brands — Gap, Banana Republic, Old Navy, Athleta and Intermix. Gap was founded by Doris and Don Fisher in 1969. The Fisher family still owns about 40% of Gap Inc..

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Threats of substitute product - high • Buyers are likely to shift to other products considering the weather conditions. • Low price jeans. • Substitute like formals and trousers Bargaining power of customer – high • The power of buyers is comparatively high considering the fact that they can simply change to other brands. • Converting cost is low. • substitutes Competitive rivalry – high • high chance for customers to shift to substitute brands – ( CK jeans , guess jeans, DKNY jeans and Diesel) • mid – class employees prefers low rated jeans • Low level of product difference will increase competition because of no brand ID.

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