Assignment Questions for Case 11 Gap
1. What does a five-forces analysis reveal about the strength of competition in the U.S. family clothing stores industry?
2. What factors are critical to success in the U.S. family clothing stores industry?
3. Develop a competitive strength assessment of the four major competitors in the U.S. family clothing stores industry using the methodology presented in Chapter 4. Based on the results, who is in the strongest overall competitive position? Who is in the weakest position?
4. What is Gap Inc.’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fi t the competitive approach that Gap is taking? What type of competitive advantage is Gap trying to achieve?
5. What does a SWOT analysis of Gap reveal about the overall attractiveness of its situation?
6. What is your overall appraisal of Gap’s financial performance? (Use the financial ratios in Table 4.1 on pages 94-96 of the text as a guide in doing your financial analysis.)
7. What recommendations would you make to Gap senior management to improve upon its turnaround strategy? What actions are necessary to restore the competitiveness of its core Gap, Banana Republic, and Old Navy brands?

Hints:
You can use a five force model like this one below

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And a weighed

Key Success Factor/Strength Measure | Importance/Weight | Gap Inc. | TJX Companies | Ross Stores | Abercrombie& Fitch | American Eagle Outfitters | | | Rating Score | Rating Score | Rating Score | Rating Score | Rating Score | Fashionable product line | 0.2 | 7 | 1.4 | 6 | 1.1 | 6 | 1.1 | 9 | 1.8 | 8 | 1.6 | Speed to market | 0.15 | 7 | 1.05 | 6 | 0.9 | 6 | 0.9 | 8 | 1.2 | 7 | 1.05 | Broad network of stores | 0.2 | 10 | 2 | 8 | 2 | 7 | 1.4 | 7 | 1.4 | 4 | 0.8 | Brand building capabilities | 0.2 | 8 | 1.6 | 6 | 1.6