Gap Inc. is a global apparel retail company that owns Gap, Banana Republic, Old Navy, Athleta, and Intermix clothing, fashion and accessories brands. The first GAP store was opened in 1969 by Doris and Don Fisher and today Gap Inc. is the largest specialty apparel retailer in the North America with 3,721 company-operated and franchise store locations around the globe. The company has more than 140,000 employees worldwide (Annual Report, 2015) and its organizational structure can be characterized as hybrid integrating certain elements of divisional and hierarchical organizational structures.
Gap Inc. uses cost leadership business strategy for all five brands within its portfolio offering fashion, apparel and accessories products for much cheaper prices compared to the prices of premium fashion brands. Apart from cost leadership, competitive advantages possessed by the company include a strong portfolio of distinct brands across multiple channels, a global presence of the brand and strategic relationships with its suppliers. At the same time, Gap Inc. has certain weaknesses such as declining sales and profits, failure to utilize online sales channels in an efficient manner, dependency on external manufacturers and others.
The company has been struggling with declining sales and profits during the last two years. Net sales for fiscal 2015 decreased 4 percent to USD 15.8 billion compared with USD 16.4 billion for fiscal 2014. Gross profit for fiscal 2015 was USD 5.7 billion compared with USD 6.3 billion for fiscal 2014 (Annual Report, 2015). The range of initiatives introduced by CEO Art Peck to deal with this problem includes focusing on core products that contributed to the global success of the company, start selling on Amazon and engaging in international market expansion.
Gap Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Gap Inc. Moreover, the report contains analyses of Gap Inc.’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.
1. Executive Summary
2. Business Strategy
4. Organizational Structure
5. SWOT Analysis
6. PESTEL Analysis
6.1 Political Factors
6.2 Economic Factors
6.3 Social Factors
6.4 Technological Factors
6.5 Environmental Factors
6.6 Legal Factors
7. Marketing Strategy
7.1 7Ps of Marketing
7.2 Segmentation, Targeting & Positioning
7.3 Marketing Communication Mix
7.3.2 Sales Promotion
7.3.3 Events & Experiences
7.3.4 Public Relations
7.3.5 Direct Marketing
7.3.6 Personal Selling
8. Porter’s Five Forces Analysis
9. Value-Chain Analysis
9.1 Primary Activities
9.2 Support Activities
10. McKinsey 7S Framework
11. Corporate Social Responsibility (CSR)
11.1 CSR Programs and Initiatives
11.2 CSR Criticism
List of Figures
Figure 1 Gap Inc. organizational structure
Figure 2 Gap Inc. annual lobbying budget
Figure 3 Gap Inc. Porter’s Five Forces
Figure 4 Apparel market share in the US
Figure 5 Gap Inc. Value chain analysis
Figure 6 Gap Inc. McKinsey 7S Framework
List of Tables
Table 1 Gap Inc. SWOT analysis
Table 2 Gap Inc. brands and respective products
Table 3 Gap Inc. segmentation, targeting and positioning
Table 4 Gap Inc. CSR performance
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- Published: October 2016
- 9662 Words
- 33 Pages