Swot Analysis Of Gap

Strengths GAP Inc. originated from a small company 1969. In its early stages, the company invested into making its iconic name into “jeans that fit”. Over time it utilized a multi- channel marketing system which allowed it to generate its “brand name” to provide for an effective recall. With a robust network, both domestically and internationally it was able enabled its products to be accessible and sold worldwide. Therefore, this led to the expansions on of various subsidiaries. Gap Inc. is now prominently recognized for its commitment to the community and is dominating the global apparel retail industry. According to ("Gap Inc. Recognized for Commitment to Community," n.d.), Gap has effectively invested talent, time and resources to improve

(Personal Advancement & Career Enhancement) program that focused on women empowerment especially those who manufactured Gap. Inc clothing and “This Way Ahead” which helped to jumpstart employment opportunities for first-time teens in impoverished neighborhoods; framed the future vision of GAP Inc. This generated a movement for the communities globally to partner-up with their businesses that led to the company ability to have employed over 140,000 employees and open over 3,200 franchises worldwide. Additionally, through technological advancement, Gap Inc utilized their years of business experience, to understand and readily adapt to consumer needs, which has been a major strength for this corporation. Gap focuses on produce long last lasting durable products and pricing at its lowest cost. In the article found ("Gap Inc. Business Strategy and Competitive Advantage - Research Methodology," n.d.), it states that Gap Inc adopted marketing methods known as cost leadership. This marketing method aims to “exploit scale of production, have a well-defined scope and other economies, producing highly standardized products, and using advanced technology” ("Cost leadership - Wikipedia," n.d.). This was once very beneficial for the company, however, more recent years Gap has been facing adversaries in maintaining both its domestic and international market share and ensuring its

has been a further decline in sales and profits. There has been a constant fluctuation in the retail market. Therefore in 2014, Gap Inc entered into a 15 billion Japanese yen whose repayment is due the year 2018. While in 2015 the Piperlime brand finally came to a closing. Merchandise handling and receiving expenses and distribution center general and administrative expenses recorded in operating expenses were $255 million, $243 million, and $231 million in fiscal 2014, 2013, and 2012, respectively. Since the classification of expenses differs amongst clothing industries, they cost of goods sold and occupancy expenses and operating expenses may not be comparable to its competitors ("GAP SWOT Analysis | USP & Competitors | BrandGuide | MBA Skool-Study.Learn.Share," n.d.). In addition, The Gap brand's comparable sales in fiscal 2015 fell 6%, while those at Banana fell 10%. And Old Navy, long a high-flyer, was flat for the year, hurt by a sudden drop at the end of the year, that commenced after President Stefan Larsson parted with Gap Inc to own Ralph Lauren ("Gap Inc's 2016 Profit Forecast Underwhelms Wall Street | Fortune.com,"