Gap Inc
Introduction
GAP Inc has been a member in the family-clothing-store industry for 43 years. They are one of the top four companies with a 16.3% market share as of 2010 (Van Beeck, 2010). They have a chain of stores that include GAP Inc, Old Navy, Banana Republic, Piperlime and Athleta. Between 2002 and 2010 GAP has implemented multiple strategies to accommodate changes in technology and the economy that have driven the strategies of all of the major competitors in the family-clothing-store industry. This presentation will analyse the three key turn around strategies implemented. These include reaching economies of scale through acquiring and broadening their portfolio of product lines and expanding globally, technological advancements in online sales avenues and gaining a competitive advantage over rivals through broad differentiation. The impact this has had on the company will be analysed drawing on strategic analysis of porter’s five-forces, assessing the representative weighted competitive strength assessment, as well as the weaknesses, opportunities and threats present to the company and industry at large.
The three key strategic issues and problems targeted by Gap inc. consist of… * Technological Advancements, * Reaching Economies of scale & * Gaining a competitive advantage
Technological Advancements
Firstly powerful efforts to combat technological issues were faced by Paul Pressler. The e-commerce platform once used by Gap and its connected brands did not effectively address its target audience nor address the desired needs and wants of its buyers (Thompson et al, 2010). Pressler recognised this, his turnaround strategy then aimed its focus on the adoption and facilitation of a completely rejuvenated e-commerce platform (Thompson et al, 2010). Gap.com, Bananarepublic.com and Oldnavy.com were redesigned into one website for maximum convenience and functionality (Thompson et al, 2010). New York Times reported that GAP had one of “the best
GAP Inc has been a member in the family-clothing-store industry for 43 years. They are one of the top four companies with a 16.3% market share as of 2010 (Van Beeck, 2010). They have a chain of stores that include GAP Inc, Old Navy, Banana Republic, Piperlime and Athleta. Between 2002 and 2010 GAP has implemented multiple strategies to accommodate changes in technology and the economy that have driven the strategies of all of the major competitors in the family-clothing-store industry. This presentation will analyse the three key turn around strategies implemented. These include reaching economies of scale through acquiring and broadening their portfolio of product lines and expanding globally, technological advancements in online sales avenues and gaining a competitive advantage over rivals through broad differentiation. The impact this has had on the company will be analysed drawing on strategic analysis of porter’s five-forces, assessing the representative weighted competitive strength assessment, as well as the weaknesses, opportunities and threats present to the company and industry at large.
The three key strategic issues and problems targeted by Gap inc. consist of… * Technological Advancements, * Reaching Economies of scale & * Gaining a competitive advantage
Technological Advancements
Firstly powerful efforts to combat technological issues were faced by Paul Pressler. The e-commerce platform once used by Gap and its connected brands did not effectively address its target audience nor address the desired needs and wants of its buyers (Thompson et al, 2010). Pressler recognised this, his turnaround strategy then aimed its focus on the adoption and facilitation of a completely rejuvenated e-commerce platform (Thompson et al, 2010). Gap.com, Bananarepublic.com and Oldnavy.com were redesigned into one website for maximum convenience and functionality (Thompson et al, 2010). New York Times reported that GAP had one of “the best
References: tjmaxx.asp Abercrombie & Fitch Co., 2010, 'Washington States Securities and Exchange Commission: Annual Report Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 ' Armonk N.Y. 2006, ‘IBM signs 10-year Information Technology Agreement with GAP Inc.’, ibm.com, accessed 1/09/2013, http://www-03.ibm.com/press/us/en/pressrelease/19125.wss Lohman A Thompson A.A, Peteraf MA, Gamble JE, Strickland III AJ, 2010, ‘Crafting & Executing Strategy: The quest for competitive advantage – concepts and cases’, McGraw-Hill Irwin, New York. Van Beec T. 2010, ‘Dressed for Success: Specialty Clothing Retailers, ibisworls.com, accessed 01/09/2013, http://www.ibisworld.com/Common/MediaCenter/Specialty%20Retailers.pdf