Analysis of Baby Gap
Baby Gap is the company which used to be rather popular among youth in 1990’s. Still, the wrong expansion strategy of the company turned it to suffer greatly. The company debt increased and to save the situation, Baby Gap spent less on the quality of the product. People noticed it immediately and the company sales were declined as well.
Since 1990’s up to 200’s the situation in the company was rather unstable, still, having expanded internationally and having invited a new designer, the company is planning to return its positions at the market.
The main competitors of the Baby Gap are the following family clothing industry performers, TJX Companies Inc., Ross Stores Inc., and Abercrombie & Fitch. These companies have managed to store their positive image and offer the customers the products of the top quality that makes Baby Gap attempts to occupy strong positions at the market harder.
SWOT Analysis
Strength
The main strength of the company s that it used to be popular and it is recognised among the customers. Additionally, the company has grown internationally that opened new markets before the company. The market globalization in general is an essential step forward which has pushed the Baby Gap.
Weaknesses
The company has failed to store its positive image and this is one of its weaknesses. It is hard to return positive image. In comparison with other companies, Baby Gap may fail to restore company positive image. Additionally, having expanded internationally, Baby Gap still has some problems in the USA, the debts which are to be paid back. It goes not give the company an opportunity to go forward too fast as other companies in the industry can do.
Opportunities
The international market is full of opportunities as the customers there may be unaware of the bad image of the Baby Gap which has occurred during the previous years. Nevertheless, the USA market may also return its privilege to the company if it uses the correct strategies for renewing its image.
Moreover, using the franchise strategy as the international marketing business, Baby Gap does not have to spend too much on advertising as the company brand is recognized. Moreover, the company has entered the international market that opens many countries for franchising as this strategy does not pretend much input.
Threats
However, using franchising as the strategy for entering the international market, the Baby Gap is threatened to decrease its image which may worsen the situation. Additionally, there are a lot of companies which managed to become successful while Baby Gap recovered from crisis. Thus, it is possible to state that high development of the rivals is one of the main threats of the company. The failure to return its positive image is also the company threat
Conclusion
Therefore, it may be concluded that having mistaken once Baby Gap may suffer greatly, even ore than the debt is had to pay back up to 2007. The company rivals have managed to strengthen their positions, however the entrance of the international market provides the Baby Gap with more new opportunities.
The company should make all possible to return its positive image and the successful social promotion activities may be one of the best way out. The competitors of the Baby Gap are strong and they have managed to get the preference of the customers.