Case Study: 2010 Description of Industry Gap

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[. . .] More lately, even though the business has been able to bumper the credit crunch and real estate, it has not been able to develop correctly. Nonetheless as per the analysts, the business's aptitude to buffer the so called' recession is a sign of company's stability.

SWOT analysis stands for examination of Strength, Weakness, Opportunities, and Threats of a company. This is a tremendously influential took to understanding the present standing of a business and to predict the business's future viewpoints.

Strength

Gap, Inc. has had a history that is long which extends to about almost 40 years now. It is an established name that has and is unique in its subdivision of market. A detailed of Gap's brand is mentioned later on in the report. The other different strength that Gap has is its worldwide approach. Since, it is a company that is multinational; it is known all over the world. In the meantime, being a multinational business has helped Gap, Inc. To variety its intra-nation market risks. Gap also capitalizes big amount of money that is done in research and development. This has provided the organization regular increase to go forward. Gap's sole method of goods that are ready made and that are from dissimilar nations counting India, Bangladesh, Honduras, and others has aided the organization to lessen the labor prices. At the moment, it is thought-provoking to look at a historical tendency that the company has been able to sustain such a large supply chain and still been able to continue enough accounts in the stock.

Weakness

Although Gap has been able excel in its sector of apparels, it has some weaknesses that it needs to look at. The business's narrow position is one of the major weaknesses. It is restricted in auctions and development. This has also increased the risks that are all connected with the marketplace. Even a minor opposition from another clothing trader can basket the business's over all development. Furthermore, Gap does not have a unique name in certain sections like Reebok and Nike have in sporting goods.

What's more, as demonstrated by BusinessWeek, Gap as far as fashion goes, has not been able to obtain their identity.

Opportunities

After outshining in a business, Gap can now start increasing its period of trade in dissimilar manufacturing sectors. For instance, it has already begun doing other things like having a shoe store which is increasing in popularity. As stated earlier, since Gap is a recognized name, which will immensely help the company to establish its name in most of the other sectors.

Threats

Many competitors are arising in retailing industry every day. These are some of the likely threats for Gap's operation. For example, the gradual increase in Limited Brands processes can hamper the business's development. Furthermore, likely tariffs from administration over the introduced resources, or minor trouble in the long supply chain of the corporation are a risk. The snowballing price of labor in other nations and weakening in worth of U.S. Dollars every day can compel the business to change its way of process.

Five Forces Analysis

Competition

Clothing retailing business is extremely competitive manufacturing. There are a lot of retailers in the manufacturing who combat with each other to recover their customer base; Gap, Inc. is not exclusion to this. Ever since its founding in 1969, Gap has outshined in the segment. Nonetheless, to stay in the opposition, it assimilated banana republic in 1983. This aided the business to stay in the industry as a chief seller in businesswomen attire. Another main step came out when Gap opened up the Old Navy stores which happened in 1994 to contend with the current markdown retailers including Sears and Target. The other contestants of Gap itself are American eagle, Abercrombie and others.

Gap Inc. Henceforth, this business is enormously competitive and the businesses should be up-to-date with fashion and customer gratification.

Ease of Entry

Even though it is not hard to enter the fashion retail commerce, it is hard to create a different brand name. There is a low price of admission in the market and there is no need of high investigation and growth costs.

Substitutes

There are numerous alternates in casual clothing manufacturing. Ever since there is an extensive diversity of products that individuals can pick, they could either be relieved by sporting produces, business attires, cheap clothing resources, and others.

Strength of Suppliers

In transaction business, the power of suppliers differs contingent on the business itself. As per Gap, Inc., the dealers have restricted power. The yearly report positions that no suppliers supply more than 3% of the corporation's request. This gives Gap, Inc. control to set the expense of its raw resources.

Strength of Buyers

The buyers have assortment of selections to make in the trade clothing business. Ever since there are numerous competitors and substitutes in the corporation, the buyers might move spending around. Therefore, the businesses have to work firmer to recall the clients.

Distinctive Notion

As stated by a report delivered by BusinessWeek, Gap maintains 52nd place in top 100 brand names that were all over the world in 2006. In 2005 it was rated in 40th situation. Its product worth in 2006 was $7,516 and in 2006 was $8,295 million. Consuming a long history of nearly 40 years, it has proven a sense of intimacy in the clienteles. This is one of the main reasons for Gap being valued one of the highest retention rates among clienteles. Banana republic is yet another characteristic piece of Gap, Inc. It bids refined and up-to-the-minute collections and is more luxurious than Gap. It particularly requests to mid-age busy women. On the other hand, it is also prevalent amongst men. Old Navy is another field store under the collection of Gap, Inc. Recognized in 1994; Old Navy is separate as the reduction retailer. It is less luxurious than Gap garments and is perhaps the most general brand in the portfolio. The other memberships of Gap portfolio are also getting to get dissimilar in their individual parts.

The Mission of the Gap

Inc. Gap Inc. is through by many to be a brand-builder. The company is known for creating emotional links that are with clients that spread all over the world through inspirational product policy, exclusive store experiences and convincing marketing. Their purpose? basically, to make it easy for their customers to express their personal style all through their life. One thing going for the company is that they have over 170,000 passionate, talented people that are from all over the world who aid in bringing Gap's purpose to life for their customers. Another good thing is that all across their company and entrenched in our culture are important standards that monitor their achievement: honesty, respect, open-mindedness, superiority and balance.

Every day, the company has been able to honor these standards and demonstrate our belief in doing trade in a casually responsible way." -- www.gapinc.com/public/about

Present Generic Strategy for Gaps

"Gap Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring product design, unique store experiences and compelling marketing. It is understood that their generic strategy is found in their purpose? Simply, to make it easy for you to express your personal style throughout your life. We have more than 150,000 passionate, talented people around the world who help bring this purpose to life for our customers. Across our company and embedded in our culture are key values that guide our success: integrity, respect, open-mindedness, quality and balance. Every day, they appear to honor these standards and demonstrate their belief in doing industry in an informally responsible way." -- (Loham)

History

In July of 1969, a man named Donald Fisher and his spouse who happen to be named Doris decide one day to just purchase some Levi's jeans in some store that they were shopping in. It is ironic that there was nothing there the was able to fit the couple, so at that point to feel they really felt that the demand of jeans has out-weighted the supply. With this information, the couple begins a store in that happened to be in as mall shop near San Francisco State University. This store at the time just carried records and some Levi's jeans. The instant reply from young clienteles led Fisher to start their own outlets. As the 1970s arrived, the demand for jeans had grown into a leading high development of the business. $3.5 million in sales in 1971 that had increased to $98 million in 1977 with 189 stores that was in about 21 states. As the recession of 1970s came on the scene, Gap had to respond by making some changes with the lines of clothes to much more cloths. They begin with doing things like trading their own labels which was later aided by… [END OF PREVIEW]

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