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Transcript of SM4
Price vs. Fashion (From strong competitors and its associated subsidiaries) Price vs. Fashion (From international competitors)
Quality vs. Cost LEVERAGE RATIO PROFITABILITY RATIO ACTIVITY RATIO GROWTH RATIO Internal-External(IE) matrix “Indeed, the men who practice charity and the women who practice charity and [they who] have loaned Allah a goodly loan - it will be multiplied for them, and they will have a noble reward.” (57:18) Islamic Perspective GRAND STRATEGY MATRIX To create a unique shopping experience and offered a wide selection of styles. Proposed Actual VISION To be the world leader in providing world class fashion in apparel industry for various market segments while maximizing customer satisfaction. PROPOSED MISSION IFE Matrix IFE Matrix (continued) Gap, Inc. is a worldwide brand. We create emotional connections with customers (1 Customers) around the world (3 Markets) through inspiring product design, unique store and e-commerce experiences (4 Technology), offering good price products without compromising quality (7 Self-concept) as well as convincing marketing. Our determination is to be a leader in specialty family clothing industry (2 Products/self concept) to make it easier for you to articulate your own personal style and fashion throughout your life. In Gap Inc., we appreciate our passionate and talented people (9 Concern for employees) around the world who strives to bring this purpose to reality for our customers, in which leads us to achieve competitive advantage. Integrity, respect, open-mindedness, quality and balance (6 Philosophy) are embedded key values in organizational culture directing our success and sustainable growth (5 Concern for survival, growth and profitability). We honor these values, thus we demonstrate our belief in doing business in a socially responsible way (8 Concern for public image). SWOT ANALYSIS Space Matrix X-axis: -2.25 CS+ 3.85 IS = +1.6
Y-axis:-3.25 FS+ 3.375 SS = +0.125 Bargaining power of consumers: Moderate Bargaining power of suppliers: High Potential development of substitute product: Moderate Potential entry of new competitors: Low Porter’s Five-Forces Model Apparel market growth rapidly
Has a large number of competitors
To compete, Gap Inc. create different product line. Rivalry among competing firms: High cost of switching low
Start up cost is high threat of new entrants low Potential entry of new competitors: Low Apparel essentially has no substitutes
Substitute goods to clothing and their prices could influence the apparel industry Potential development of substitute products: Moderate Gap Inc. has no control over its production
-Price of commodity (cotton)
-Outsourcing from third parties
-Demand for apparel
-Cost of switching to other supplier - high
Bargaining power of suppliers: High Incur low switching costs when they change suppliers
Be price sensitive when other options available Bargaining power of customers: Moderate Rivalry among competing firms: High Rapid technology to market product
Hard to establish a distinct brand name price of substitute incline, customers incline to buy expensive clothes apparel - Competitive Profile Matrix (CPM) Corporate social responsibility -provides clothing, accessories and personal care for various lines of people which are men, women, children and babies under the Gap, Old Navy, Banana Republic, Piperlime and Athleta brands
-Established in 1969 by Doris and Don Fisher
-GAP Inc. headquarters is located in San Francisco
-It has stores in 24 countries throughout Asia, Europe, Latin America, the Middle East, and Australia
-The retailer has about180 franchise stores and plans to increase that to 400 by fiscal 2015. AZYAN LIYANA IBRAHIM 0835042
FARHAH ADILAH FAUZI 0835676
SITI KHAIRUNNISAK ZAIDAN 0912714
NIK NUR FATIN WAN MOHD NASIR 0916398
NUR FATIHAH YAKOB 0916732
NORAQILAH YAKUB 0911886
NUR SYAHIDA ENDUT 0912384
NURFARHANA NORDIN 0830778 QSPM