Case study: GAP Inc.

Thèmes abordés

Fashion, GAP, OLD NAVY, limepiper, strategy, internalization, financial health, history, clothing sector, apparel, mass market, shares, store, competition, product, consumers, e-commerce, banana republic, swot

Résumé du document

This document consists of a study case of the GAP Inc. group. After a brief introduction, the history of the group is detailed as well as its brands are included in the group's portfolio. Then, the analysis of the financial data leads to the problems experienced by the group and particularly its non-successful internationalization strategy. As a conclusion, some recommendations are provided to improve GAP's performance.

Extraits

[...] GAP Inc. Case Study Gap.jpgUntitled-2.JPG < number > INTRODUCTION gap_logo.giflogo_BANANA_REPUBLIC_OUTLET.gifoldnavy_Full.jpgpiperlime_logo.gifPicture 1.pngUntitled-2.JPG < number > HISTORY OF THE GROUP 1_quote_landing.jpg I created Gap with a simple idea: to make it easier to find a pair of jeans. We remain committed to that basic principle. Don Fisher, Gap Inc. Founder and Chairman Emeritus Untitled-2.JPG < number > GetAttachment-2.aspx.jpegGetAttachment-1.aspx.jpeg THE DIFFERENT BRANDS Untitled-2.JPGUntitled-2.JPG < number > GAP - “The iconic American style” gap_logo.gif GAP was created in 1969 with the original creation of GAP Inc as a corporation. It constitutes the parent brand of the GAP Inc Group. [...]

[...] Untitled-2.JPG < number > PROBLEMS WITH GAP Inc. PERFORMANCE Non-successful internationalization strategy There is no fashion identity Considerable loss of market share over competitors. Overdependence on US market. Cannot adapt well to EU markets. Declining sales and cash flows. Too many stores in the US market. Untitled-2.JPG < number > A NON-SUCCESSFUL INTERNATIONALIZATION STRATEGY GetAttachment-5.aspx.jpeg Gap Inc presence in the non-American markets is very limited. European stores close one after the other, signaling a problem in the groups internationalization strategy. Untitled-2.JPG < number > RECOMMENDATIONS Selection and establishment of an appropriate mode for entering foreign markets (ie direct investment/franchising). [...]

[...] Competitors of that time: Target, Wal-Mart, JC Penny etc. In 2000 Old Navy launched its online store. By the end of 2008, Old Navy had 5,232 shops in the US and Canada. The brand offers trendy apparel, accessories and basics at great value. There are specialized sections from men, women, boys, girls and infants. Target Market: fashion oriented yet price conscious teenagers and adults. jarah_mariano5.jpgUntitled-2.JPG < number > Piperlime - “A fresh online Shop” piperlime_logo.gif The Piperlime site was officially launched in November 2006 It is only an online shop and it only sells shoes and handbags. [...]

[...] The product designs are feminine and fit to athletic physiques. Product lines range from sport costumes to after –sport, comfortable but still sporty outfits. Athleta has been outfitting women athletes since its launch, in 1998. Picture 1.pngathleta_mag.jpgUntitled-2.JPG < number > Net sales are decreasing since 2007 as well as number of stores as shown by the financial figures below Picture 2.pngPicture 3.png FINANCIAL HEALTH Untitled-2.JPG < number > GAP Inc. SWOT ANALYSIS STRENGTHS Strong Supply Chain Known Brand Image Risk diversity due to different brand names launched. Strong product “depth”. [...]

[...] Acquaintance with the political, economic and cultural nuances. Knowledge of purchasing habits, desires and expectations of consumers. Adapt/promote brand image to local consumers. Untitled-2.JPG < number > Adaptation of brand lines, styles, assortment to local consumers' needs. Develop distribution systems in Europe for faster product replenishment (customers want fast fashion). Launch of online store to serve European markets. Diversification might prove appealing to both the European and US markets. Increase promotion activities. Untitled-2.JPG < number > gap-1.jpg THE END. [...]