Case Analysis GAP Inc
Case Study: GAP Inc.
Viewpoint: Robert Fisher
Time context: 1st Qtr of 2007
I. Problem Statement
How could Gap Inc. win the Yuppies market in Metro Manila, Metro Cebu and Metro Davao?
II. Objective
To win the yuppies market In Metro manila, Metro Cebu, Metro Davao in 1 year time.
III. Areas of consideration
Strength:
a. Has a multi-brand category with existing market. (Gap, Banana Republic, Old Navy)
b. Entered into international markets and become the second largest brand in the world.
c. Earn a total of 3,131 stores around the world.
d. Brand builder.
e. 150,000 passionate talented employees around the world.
f. Strong hold of company culture and key values.
g. Expansions in personal care products, through partnership with Inter Perfumes, 3 new women’s jeans and super soft denim line; high quality Italian handbag; Old navy special edition denim and maternity apparel, and improve plus-sized offerings.
h. Improve vendor relationship, optimized store fleets to quicken response time, better inventory system, improve promotions, improve store facilities, and improve on-line interactive facilities.
i. With improved cash flow, Gap repurchased $2 Billion shares and doubled the dividends to 18 cents with a plan to increase at to 32 cents.
j. Introduced own credit card, with Visa logo and issued by GE company.
Weakness
a. Due to 2% decline in net sales, Gap close more than 100 underperforming stores.
Opportunities
a. Economy experience 2.9% growth.
b. GDP expected to grow at historic average.
c. Consumer spending has 6.9% gains.
d. Inflation per CPI relatively higher.
e. CPI forecast to remain moderate.
f. Baby boomers remain the biggest per capita consumers of apparel.
g. Consumers are obsessed with promotional pricing.
Threat
a. Low rate of unemployment
b. Credit market fell from 105 to 90 points.
c. Apparel industry trends are affected by demographics, consumer preferences and spending patterns.
d. Consumers
Viewpoint: Robert Fisher
Time context: 1st Qtr of 2007
I. Problem Statement
How could Gap Inc. win the Yuppies market in Metro Manila, Metro Cebu and Metro Davao?
II. Objective
To win the yuppies market In Metro manila, Metro Cebu, Metro Davao in 1 year time.
III. Areas of consideration
Strength:
a. Has a multi-brand category with existing market. (Gap, Banana Republic, Old Navy)
b. Entered into international markets and become the second largest brand in the world.
c. Earn a total of 3,131 stores around the world.
d. Brand builder.
e. 150,000 passionate talented employees around the world.
f. Strong hold of company culture and key values.
g. Expansions in personal care products, through partnership with Inter Perfumes, 3 new women’s jeans and super soft denim line; high quality Italian handbag; Old navy special edition denim and maternity apparel, and improve plus-sized offerings.
h. Improve vendor relationship, optimized store fleets to quicken response time, better inventory system, improve promotions, improve store facilities, and improve on-line interactive facilities.
i. With improved cash flow, Gap repurchased $2 Billion shares and doubled the dividends to 18 cents with a plan to increase at to 32 cents.
j. Introduced own credit card, with Visa logo and issued by GE company.
Weakness
a. Due to 2% decline in net sales, Gap close more than 100 underperforming stores.
Opportunities
a. Economy experience 2.9% growth.
b. GDP expected to grow at historic average.
c. Consumer spending has 6.9% gains.
d. Inflation per CPI relatively higher.
e. CPI forecast to remain moderate.
f. Baby boomers remain the biggest per capita consumers of apparel.
g. Consumers are obsessed with promotional pricing.
Threat
a. Low rate of unemployment
b. Credit market fell from 105 to 90 points.
c. Apparel industry trends are affected by demographics, consumer preferences and spending patterns.
d. Consumers