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Gap Inc.

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Maria Williams

on 1 March 2013

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Transcript of Gap Inc.

Vintage Gap Different vintage themes
Gap: Vintage Gap
Old Navy: New Vintage
Athleta: New Vintage (colors)
Piperlime: New Vintage
Banana Republic: Classic Vintage
Still based on low cost or moderate to high quality
Promotes social responsibility through materials 4. Implementation Vintage fashion: increasing trend in apparel industry
Renew Gap’s iconic brand
Larger target market
All brands can involved 4. Expand Product Line to Market Generations Baby Boomers, X & Y Increase in health-conscious consumers
6.7% sales increase in women's activewear (2010)
Gap Inc. already well-respected brand 3. Expand Athleta Increase R&D staff
Enhance consumer web experience
Create one website showing products of all brands
Expand to global market
Encourage social responsibility posted on websites 2. Implementation 71%
US internet users buy products online (Pew Research Center)
Convenience for consumers to shop
Unite all brands and for bigger consumer base 2. Expand its online distribution Hire strong division leader to focus on international stores
Use celebrities to advertise
Promote to younger consumers
Promote the American style
Promote low cost products
Encourage social responsibility through materials recognition 1. Implementation Gap’s consistent in sales from rise in US unemployment
Europe's debt crisis
Natural disasters in Asia
Low cost strategy 1. Expand Old Navy In The Foreign Market 1. Expand Old Navy in the foreign market
2. Expand its online distribution
3. Expand Athleta
4. Expand product line to market Generations Baby Boomers, X and Y Strategic Alternatives Online retail sales continue to increase
Grow existing product line
Grow Old Navy and Athleta brand recognition
Expansion in foreign countries OPPORTUNITIES Unstable leadership
Low productivity in recent years
Dependence on outside vendors
Have difficulty keeping up with trends WEAKNESSES S.W.O.T Analysis Competitor Analysis Bargaining power of suppliers
Bargaining power of buyers
Moderate Potential entrants
Substitute products
Rivalry over existing firms
High Porter’s Five Forces Political/Legal
-child labor issues
-trendier fashion
-expansion of market Technology
-all age groups
Economic Trends
-rise in unemployment External Environment Consistent Low Earnings
New Leadership
Weak Marketing Support
Legal Issue Issues Don Fisher : Owner 1995
Robert Fisher : Son (Board Member)
Mickey Drexler : CEO 2002
Paul Pressler : CEO 2007
Glenn Murphy : Current CEO Leadership San Francisco 1969
Don and Doris Fisher
High demand in jeans but difficult to find.
Sold Levi Strauss Jeans
Immediate Success
“Fall into the Gap” Campaign
Company Growth History Emma, Andrew, Elizabeth, & Maria Classic Vintage 4. Vintage Themes Hire more designers for Athleta
Use celebrities to advertise brand
Promote to bigger age groups
Promote higher quality products
Encourage other brands to promote fitness
Encourage social responsibility through materials recognition 3. Implementation Weak consumer spending in Europe & US due to economy
Rising unemployment rates
Growth in Counterfeit Markets
Specialty Apparel highly competitive
(J. Crew, Abercrombie, American Eagle, Kohls) THREATS Global Brand Recognition
Store locations worldwide
Variety of Target Markets
Significant Global & Online Presence
Variety in Brands, Price, and Value STRENGTHS Supply Chain
Social Responsibility
Brand Diversity
Iconic Brand Internal Analysis Brands 1. 2. 3. 4 New Vintage
Full transcript