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Swot Analysis Of Gap

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Strengths GAP Inc. originated from a small company 1969. In its early stages, the company invested into making its iconic name into “jeans that fit”. Over time it utilized a multi- channel marketing system which allowed it to generate its “brand name” to provide for an effective recall. With a robust network, both domestically and internationally it was able enabled its products to be accessible and sold worldwide. Therefore, this led to the expansions on of various subsidiaries. Gap Inc. is now prominently recognized for its commitment to the community and is dominating the global apparel retail industry. According to ("Gap Inc. Recognized for Commitment to Community," n.d.), Gap has effectively invested talent, time and resources to improve …show more content…

(Personal Advancement & Career Enhancement) program that focused on women empowerment especially those who manufactured Gap. Inc clothing and “This Way Ahead” which helped to jumpstart employment opportunities for first-time teens in impoverished neighborhoods; framed the future vision of GAP Inc. This generated a movement for the communities globally to partner-up with their businesses that led to the company ability to have employed over 140,000 employees and open over 3,200 franchises worldwide. Additionally, through technological advancement, Gap Inc utilized their years of business experience, to understand and readily adapt to consumer needs, which has been a major strength for this corporation. Gap focuses on produce long last lasting durable products and pricing at its lowest cost. In the article found ("Gap Inc. Business Strategy and Competitive Advantage - Research Methodology," n.d.), it states that Gap Inc adopted marketing methods known as cost leadership. This marketing method aims to “exploit scale of production, have a well-defined scope and other economies, producing highly standardized products, and using advanced technology” ("Cost leadership - Wikipedia," n.d.). This was once very beneficial for the company, however, more recent years Gap has been facing adversaries in maintaining both its domestic and international market share and ensuring its …show more content…

has been a further decline in sales and profits. There has been a constant fluctuation in the retail market. Therefore in 2014, Gap Inc entered into a 15 billion Japanese yen whose repayment is due the year 2018. While in 2015 the Piperlime brand finally came to a closing. Merchandise handling and receiving expenses and distribution center general and administrative expenses recorded in operating expenses were $255 million, $243 million, and $231 million in fiscal 2014, 2013, and 2012, respectively. Since the classification of expenses differs amongst clothing industries, they cost of goods sold and occupancy expenses and operating expenses may not be comparable to its competitors ("GAP SWOT Analysis | USP & Competitors | BrandGuide | MBA Skool-Study.Learn.Share," n.d.). In addition, The Gap brand's comparable sales in fiscal 2015 fell 6%, while those at Banana fell 10%. And Old Navy, long a high-flyer, was flat for the year, hurt by a sudden drop at the end of the year, that commenced after President Stefan Larsson parted with Gap Inc to own Ralph Lauren ("Gap Inc's 2016 Profit Forecast Underwhelms Wall Street | Fortune.com,"

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Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah. These three visionary had their sight on a one-stop shopping for the do-it yourselfer. They opened there first two Home Depot on June 22, 1979 in Atlanta Georgia. Home Depot is known as the largest home improvement specialty retailer and the 9th largest retailer in the world.

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The Mintel stores (2013) reported that although consumers within the clothing industry increased their purchases of clothing items therefore driving up sales in the industry, volume growth slowed down due to inflation making the market vulnerable to rising costs especially that of cotton. The company’s pre-eminent rival Next Plc. is slightly longer established and therefore having an advantage in accessing more customers compared to Ted Baker which still has a larger room for growth. Other competitors include Primark, All Saints, Zara, SuperGroup Plc. and GAP Inc. 3.2 Company’s Industry Position With the rival Next Plc. prompting to lower its annual profit guidance from £775m to £815m, Ted Baker has continued to gain enhanced attention in the clothing industry and more consumers are increasingly identifying with the brand as

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P&G has changed their strategy to a large extent. They went from a company that was focused on brand management to a company that focuses on category management. Instead of relying completely on branding, they decided to concentrate on customer satisfaction to drive sales by restructuring SKU 's that were tailored to customer 's needs. The shift from buyers to category managers positioned P&G to identify higher selling products in each category and maximize revenue generation by demonstrating to the retailer 's that P&G brands generated more profit per unit of shelf space compared to other products in the same category. The Sale of the CRP system to IBM was a major strategic move by P&G to standardize the industry as a whole, which in turn allowed P&G and its customers to improve internal processes and

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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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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.

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3. Chapter 2 – Methodology 3.1 Introduction This chapter challenges all levels of knowledge, according to the ‘Bloom’s taxonomy’ method. Within this chapter the aim is to focus on a specific US clothing line called American Apparel, founded in 1989 by a Canadian named Dov Charney. Today, this company is based in all corners of the world, however its main quarters are in Los Angeles, California.

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Instead of working on a better product line, Gap Inc tried a stop gap fixing arrangement instead of understanding who they should target. c. FREQUENTLY NEW COLLECTIONS: More colors, an extreme range of options for teenagers, Gap Inc totally alienated it young adults market – which was its core segment since 1965. Displaying edgy teen products was not exactly Gap’s forte. It deflected from its traditional style and catered to a market that didn’t value the brand. Teenagers are a segment which is very brand transitional and loyalty isn’t a criteria that can be found within it.

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A Familiar organization There are many familiar organizations that have successfully used globalization to expand markets and profitability. One of such organization is Nike Inc. Established in 1964 with the name ‘Blue Ribbon Sports’ (BRS) by Phil Knight and Bill Bowerman, the organization began as a distributor and importer of Japanese running shoes before embarking on a project to design its brand, which has become a household name in sportswear industry (O 'Reilly, 2014). Analyzing ways Nike Inc. has successfully used globalization to expand markets and profitability. There are various ways Nike Inc. has successfully used globalization to expand markets and profitability.

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They are now focusing on their expansion United States of America. They plan on expanding to other parts of the world as well. Their business strategy so far has been very clear. Some of the points below highlight their business strategy: • Developing products of exceptional quality: -They have modified their business model in such a way that they take care of the entire business process, right from the planning and research till the final sales. This enables them to produce goods of exceptional quality thus enduring consumer satisfaction.

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Driving forces provide a framework to decide where and how to exercise market leadership. In this case, globalization is one of the main driving force that affect the fashion industry. Gap was recognized as a must have brand. However, through the years it has been losing competitive advantage due to the continual change. During the last years, Gap has been facing struggles because of its clothing design and faltered misjudgment fashion trend.

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