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Transcript of Gap, Inc.
Andres R. J. Rael
Rodrigo Gechem Mission Statement: Simply, to make it easier for you
to express your personal style throughout your life. S W T • Gap, Inc. has had a long history of almost 40 years now. It is an established name and is distinct in its sector of market.
• The Gap, Inc. has a global approach as it is a multinational company that is recognized all over the world.
• Invests large sums of their money in research and development giving the company a regular boost to move forward in the industry.
• Has an array of ready made goods from different countries including Honduras, India, Bangladesh, and others has helped the company to reduce the labor costs.
• Sustains a large supply chain and still is able to maintain enough inventories in stock.
• Consists of 5 distinct brands such as Gap, Old Navy, Banana Republic, Piperlime and Athleta and brand extensions such as GapKids, babyGap, gapbody and GapMaternity.
• This Gap, Inc. has the power to set the price of its raw materials as no suppliers supply more than 3% of the company’s demand. O (Strengths) (Opportunities) (weaknesses) (threats) • The Gap, Inc. has a narrow niche is one of the major weaknesses.
• It is limited in sales and growth. This has also increased the risks associated with the market as even a minor competition from another retailer can hamper growth.
• The Gap, Inc. does not have a distinct name in certain sectors and with a wide variety of products that people can choose, they could either be substituted by sporting products, business apparels, etc.
• The Gap, Inc.’s product lines consist of less attractive clothing for consumers who are interested in trendy clothing. • The Gap, Inc. can increase its span of business in different industry sectors.
• Penetration of e-commerce and increase market share; The Gap, Inc. has introduced web-based stores yet still in growth stage.
• Many companies have experienced a misjudgment of the market and anticipation of fashion trends and changing consumer preferences can be beneficial.
• Opening of Old Navy stores overseas (first in 2012 in Japan). • Many competitors are arising in retailing industry everyday.
• Always the possibility of tariffs from government over the imported materials, or any minor disturbance in the long supply chain of the company.
• The increasing cost of labor in other countries and decline in value of US Dollars.
• Emerging fast fashion retailers like H&M, Forever21, Inditex (Zara), and Primark.
• The market for prime real estate is competitive and locations of the Gap, Inc. stores are a key factor of its strategy. Problems, Challenges &
Opportunities Internal Group
External Groups Employees
Board of Directors Customers
Communities/Society Identification of Parties Customers Employees Partners Community main
characters Competitors 12,700 Employees
Net Income 166,000 Employees
1.34B Net Income 6,900 Employees
181.86M Net Income Gap Inc. supply Chain Founded in 1969 by Donald Fisher to sell Levi jeans to the youth of San Francisco, CA.
The Gap Inc. retail divisions: The Gap, Old Navy, Banana Republic, Piperline, and Althleta.
3, 246 store location worldwide.
Net Income $1.204 billion in 2010.
CEO is Glenn K. Murphy - each division has a separate president.
Successful promotion - "Gap Khakis Swing" commercial 1998.
Unsuccessful promotion - new logo introduced in October 2010.