Gap Case Study Essay Sample free essay sample

Gap Inc. is a big retail company having several trade names such as Gap. ( including Gap Kids. Gap Baby. Gap Body ) Banana Republic. Old Navy Piperlime and Athleta. The company is an American vesture and accoutrements retailer based in San Francisco. and was founded in 1969 by Donald and Doris Fisher. They strive to sell quality vesture. largely the rudimentss. for good monetary values. They are a taking company in the dress retail market with 3. 085 shops. Through the five trade names that Gap Inc. owns. they are able to make several different monetary value points. which each attract a different client. Gap’s mark market age section includes work forces and adult females from 17-30. This includes individual adolescents. immature grownups. and immature married twosomes. They besides try to aim minorities such as Hispanics. African Americans. and Asians. The client is by and large middle-upper category and lives in urban and suburban countries. We will write a custom essay sample on Gap Case Study Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Most of them tend to be career- oriented and household oriented. They want to purchase quality made rudimentss with edification at low-cost monetary values. They besides offer babe and children’s vesture. which entreaties to mas who shop at Gap that will purchase dressing for their childs as good. Gap offers a broad mixture of basic vesture. and work vesture. They sell denim. t-shirts jumpers. tops and accoutrements for work forces adult females and kids. They besides offer personal attention merchandises. Gap places itself to be â€Å"Iconic. American. Imaginative. † They want the consumer to see them as a retail merchant that offers American manners that are stylish and alone. They strive to be purveyors of mundane manner. The trade name is founded on the end to give clients fashionable insouciant vesture for the right monetary value. SWOT analysis:Strengths:-Strong trade name image: Gap is recognized globally as and American manner. pop civilization and emotional affinity -loyal clients ( Baby Boomers and Generation Y ) . and a big mark market -many retail shops around the state and internationally. They have 3. 095 shops worldwide in the US. France. Japan. United Kingdom. Canada and Ireland. They besides have franchises in Turkey and United Arab Emirates. -strong president and CEO Glenn Murphy. who has turned the company about since 2007 -quality-made. lasting merchandises -Gap corsets true to its nucleus principals and values of offering consumers the best quality at the best monetary values.-Multiple trade names and trade name extensions help them make a broad scope of sections. Gap has 5 distinguishable trade names such as Gap. Old Navy. Banana Republic. Piperlime and Athleta. They besides have trade name extensions such as GapKids. babyGap. gapbody and GapMaternity. Failings:-Gap’s vesture line doesn’t offer voguish vesture to clients. which puts them behind their rivals.-Nearly all of their ware relies on 3rd party sellers outside the US. Third party sellers can do deficits. transportation holds. and increased costs.-Uncontrollable production procedure-Declining runing hard currency flows-They are losing touch with their nucleus client. and confounding the consumer as they try to spread out their mark market.-Weak public presentation of Gap- gross revenues have declined in the last few old ages-Competitors may offer lower monetary values-Recently. merchandises aren’t vibrating with the client Opportunities:-To enter the planetary market in Europe and China- they plan to open shops in Italy and China -Grow into new markets and sections of the population. They can aim Latino Americas. who are the fastest turning minority in the US. -Expanding into new merchandises such as places. pocketbooks. accoutrements. etc. -Become a trendsetter -Utilize e-commerce to bring forth increased sales- Gap has introduced a web-based shop Menaces:-Economic downswing and recession consequences in reduced gross revenues. and decreased client disbursement -The Global forte dress retail industry is extremely competitory. Rivals include: J Crew. Abercrombie and Fitch. American Eagle Outfitters. etc. -Discounters who offer quality vesture at a better value -Competitors who offer mass market. fast manner. voguish vesture are turning. such as: Everlastingly 21. H A ; M. Anthropology Urban Outfitters. -Fashion tendencies are altering quickly and Gap is falling behind -Production costs continue to lift. even abroad -The market for premier retail is competitory. and location of shops straight impacts gross revenues. -Rising monetary values of cotton due to endure leads to increases costs and retail monetary values -Designer Patrick Robinson leaves the company ( loss of cardinal staff ) Harmonizing to the article. Gap is confronting a hard state of affairs as their caput interior decorator. Patrick Robinson. leaves the company. Retail analysts believe that the company needs to be downsized by shuting unproductive shops. they need to do direction alterations. and they need improved merchandises that are consistent with the selling schemes. The basic job is that Gap’s image has declined and people are get downing to tie in them as â€Å"tired. commoditized. driven by monetary value. † Gap needs to be repositioned. and they need person who understands the client. that will turn the trade name about. Gap’s scheme is to shut all shops that are underachieving in order to cut costs. They will besides pass more money on advertisement and selling to a younger market and to minorities such as Hispanics. Asians. and African-Americans. By making so. they hope to get greater market portion. They will besides utilize new engineering that will turn up merchand ises on-line and in shops. In my sentiment. I think that Gap’s image has decidedly started to worsen. Today. most clients are merely looking for the best manner at the best monetary value. They aren’t as trade name loyal as they one time were because now there are so many trade names offering the same merchandises. Gap needs to maintain up with tendencies if they want to remain in front of their rivals. It’s clip for them to spread out their merchandises into new classs such as footwear. pocketbooks and accoutrements. Particularly when the economic system is down. people turn to inexpensive and fun accoutrements to update their expression. alternatively of new apparels. This can be a new chance for Gap to convey in more clients. By presenting tendencies they will besides appeal to a younger market. whose shoppers are by and large interested in the last tendencies and colourss. Gap should take to shift their company as a manner frontward. cutting border trade name alternatively of a trade name â€Å"that offers great monetary values and quality. † There are many trade names that do that. nevertheless at the terminal of the twenty-four hours people are traveling to purchase the merchandises that they like the best. and happen to be the most fashionable. Gap offers the same basic manners twelvemonth after twelvemonth. but it is clip to give it some more depth. The designs must stay consistent to the selling program. Gap’s biggest failing is merchandise betterment and design. and now that Patrick Robinson left. they need to engage an advanced interior decorator who will understand what the consumer wants.