Gap Internal Analysis

            During Paul Pressler’s tenure Gap CEO, Gap Inc.’s mission and vision statement is to be a general brand-builder. The company generates a myriad of emotional connections worldwide with its customers through its innovative product design, enticing store shelving, and its own compelling and charismatic style of marketing. The company adheres to its purpose of enabling people to express individual style during their everyday living. Gap’s essential key values anchor the company towards success.

            Glen Murphy should be very well-aware that Gap Inc.’s organization is augmented by a myriad of essential external factors, which are integrated in order to further maximize the potential of the company. Such factors beyond are beyond Gap Inc.’s boundaries yet they help shape the company as it is. Factors that act as performance catalysts for the company to function in an apt and efficient manner; the external environment of Gap Inc. is comprised of the legal environment, technology environment, political environment, social and cultural environment, economic environment, and stakeholder environment (Gap, 2008).

SWOT Analysis

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Strengths

l  Gap Inc. is considered the Coke of the American casual apparel industry. It is the largest purveyor of  casual clothing in the United States.

l  As a true cultural icon, Gap offers a wide range of American-inspired clothing for customers of all ages.

l   Gap has always been updated in terms of usage and design for their casual clothing and accessories in order to enhance the personal style of their customers. Nowadays, Gap continues its commitment to produce essential clothing like shirts and denims.

l   It’s plethora of products is the progeny of its diverse market segmen. Gap also boasts of brands such as Old Navy, Banana Republic, and Piperlime. Old Navy has been known for producing trendy apparel and basic casual clothing for its consumers at an affordable value. Banana Republic offers a more sophisticated and luxurious seasonal collections of clothing and accessories. Piperlime is an online footwear store. It has a wide array of footwear for all ages and genders. It boasts of a more than a hundred of footwear styles and designs (Gap, 2008).

Weaknesses

l   The subject of price elasticity emerges whenever the price change of an alternative product affects as the demand for such product.

l   The industry where Gap thrives is saturated by a bevy of substitute products, which to tend to constrained the ability of these companies to make an increase in prices.

l  The casual apparel industry is always sporadic and innovative in terms of manufacturing products, which can entice consumers to patronize their products. This results to a letdown in sales for Gap Inc. (Gap, 2008).

Opportunities

l  Perennial competitors of Gap Inc. are not the only ones who pose a threat for the company. New firms attempting penetrate the industry will also have a deliberate effect in the industry. Gap strives to employ a charismatic and alternative advertsing strategies to entice people.

l  Gap ensures that they maximize the generation of opportunities from these emerging threats. Gap utilizes its online store to increase the proliferation of revenues from its products.(Gap, 2008).

Threats

l  The apparent threat of alternative or substitute products is a common adversity for Gap Inc.

l  A number of casual apparel companies have always attempted to overwhelm Gap Inc.’s market share through attempts in cheaper price movements in order for consumers to consider other brands aside from Gap Inc.

l  Gap Inc. does its part through studying potential market segments to lure. Firms that tend to enter and exit a market are subjected to nominal profits (Gap, 2008).

References

Gap.(2008). About us. Retrieved April 15, 2008, from

http://www.gapinc.com/public/About/about.shtml

Gap.(2008). About us. Retrieved April 15, 2008, from

http://www.gapinc.com/public/About/abt_leader.shtml

Wright Reports.(2008).Gapcompanyprofile. Retrieved April 15, 2008,

fromhttp://wrightreports.ecnext.com/comsite5/bin/comsite5.pl?page=report_description&report=COMPANY&cusip=364760108

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