The Gap Inc. is one of the most economically significant companies of the 1980’s -1990’s in the USA. Moreover, it is the influential element of the pop culture in the 1990’s. This company was founded by Doris and Don Fisher in 1969. It was the first blue jeans retailer in San Francisco during that period.
The development of the Gap Inc. resulted in determining the company as a giant in the family clothing store industry in the USA and in the world which is considered as one of the most famous retailers offering apparel, accessories, and other different products for families.
The Gap stores are located not only in North America but also in the countries of Europe and Asia. However, the 2000’s were not too successful for the company because it experienced the difficulties connected with the progress of the competitors in the industry.
People all over the world use the products for men, women, their children and babies which are known under five famous brands. They are Gap, Banana Republic, Old Navy, Athleta and Piperlime. Moreover, there are several brand extensions in the company such as GapKids, BabyGap, Gapbody, and GapMaternity.
All these brands focus on retailing products for personal care and clothes. Today the company is declined and many stores are closed in different countries. However, the managers and economists of the Gap Inc. accentuate their intentions to expand their presence in the Asian region including China.
SWOT Analysis
Strengths
It is possible to determine some significant points in the development of the company which can be considered as strengths. The first important aspect which can contribute to the company’s progress is the brand recognition. The Gap stores are famous worldwide, and they are the important part of the pop culture in the 1990’s.
The diversity of brands (Gap, Old Navy, Banana Republic, Piperlime, and Athleta) is also thought of as the strong point of the strategy. Moreover, the company depends on the strong supply chain presented in the worldwide stores, on the effective customer service, and the successful advertising policy.
Weaknesses
The company’s weaknesses are connected with the limited market possibilities in other countries. Furthermore, there is no fashion identity for the products of the company and many products are not considered by consumers as fashionable or popular. Thus, today customers are inclined to choose the other shops because of their trends.
Opportunities
The main opportunities for the development of the company are associated with the goals for the expansion in new territories. The managers of the Gap Inc. pay much attention to the Asian market. Moreover, it is important to focus on the evaluation of the e-commerce and online sales as the alternatives.
Threats
The main threats are connected with the progress in the industry and the increase of the role of competitors. Thus, the possible competitors are divided into two groups including the companies based in the USA and local companies and international retailers which develop in the market. The main competitors are J. Crew, Abercrombie & Fitch, Urban Outfitters, TJX Companies Inc., and Ross Stores. Moreover, the influential international companies such as H&M and Zara.
PEST Analysis
The Peculiarities of Political and Economical Analysis
The major aspects of the political and economical influence on the company are connected with the development of the globalization processes and with intensifying the control over the entrance of foreign countries into the local markets. These processes are limited with the help of strict tax regulations.
Social Analysis and Technological Analysis
The Gap Inc. is known as one of the world’s most ethical companies in which it is paid much attention to the social responsibility, to the employees’ and customers’ needs. The company is inclined to use the innovations for intensifying the trading processes.