...fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This new scenario has created opportunities for large exporters like China and India 1 that are considerably increasing their market share whilst at the same time creating challenges for European Union member states in order to remain...
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...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 . And a weighed Key Success Factor/Strength Measure | Importance/Weight | Gap Inc. | TJX Companies | Ross Stores | Abercrombie& Fitch | American Eagle Outfitters | | | Rating ...
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...“The Future of Gap” Jocelyn Bridgett Columbia College Gap Inc. is a large retail company that operates outlet stores which sell casual apparel and accessories for men, women, and children. The company primarily conducted its business through four business divisions: Old Navy, Gap, Banana Republic, and others (Wheelen & Hunger 2010, p.21-3). A resource must have five qualities to be seen as contributing to competitive advantage: it must be valuable, durable, rare, difficult to imitate and complex. That is, the resource must be valuable in that it contributes to the value perceived by the customer. It must also be durable, meaning that it is not temporary. It must be rare as well; many other companies should not possess this competitive resource. As Gap growth started to plummet the manager came up with something new such as: Gapkids, babygap, and then discount stores. Gap had a method wearing khakis and blue shirt. However, it was easy to replicate therefore Gap found themselves competing with other retailer’s such as Target and Khol’s at the time. Now-a-days there are several stores duplicating Gap’s same image of the khakis and blue shirt. The Exchange where I am employed is now going to the khakis and blue shirt as well starting May 15, 2012. Capabilities Old Navy capabilities incorporated plus sizes for women which help boost their sales. Gap, Old Navy, and Banana Republic were able to expand their target market by offering their clothing etc. online as well...
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...Gap Inc. in 2010: Is the turnaround strategy working? Gap Inc. is a leading international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies. Gap owned and operated more than 3,100 Gap, Banana Republic and Old Navy stores world wide in 2010. With stores located in the U.S, UK, Canada, France, Japan and Germany, Gap Inc. employees nearly 165,000 employees world wide. Since 2002 Gap Inc. has been a number of issues including the declining sales of the family clothing store industry. During this time many turnaround strategies have been implemented in the attempt to eliminate long term debt, redesign the companies online presence, create a new e-commerce platform, expensing internationally and improving quality, styling and overall image. Through this adoption since 2002, the market share and sales of Gap Inc. have still decreased and the brand image has also taken a hit. An Internal analysis shows that even though sales have decreased, Gaps financial performance has strengthened year on year. Gap’s Liquidity, leverage and profitability have shown a stead increase that has helped the company maintain a stronger business situation than competitors throughout the recession. A SWOT analysis of Gaps Inc.’s internal structure shows strengths in net profit margins, a strong franchising model and the reinstatement of their strong brand image. Weaknesses include high levels of competition, large amount of substitutable...
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...Zara vs. GAP Inc. American GAP and Spanish ZARA Abstract We are going to compare two super giant clothing retail companies of the world in this thesis. These two giants are dominating apparel retailing market nowadays with their simple and attractive with high level quality of clothes. We will try two analyze working culture, business performance and history, competition and geographic dominance of two clothing retailer giants. Years before two small stores opened and they succeed to dominate market with their modern style and different business doing. • Zara has already changed the fashion industry. - Business Insider Zara is most #58 biggest brand in the world according to Forbes. • America's largest apparel retailer is embarking on a turnaround plan to recapture cool customers. - Business Insider Gap inc is #745 Gap biggest brand in the worlds according to Forbes Zara shops followed swiftly in New York in 1989, Paris in 1990. Now the group has nearly 3,900 stores in 70 countries around the world. Gap has 3,100 stores globally and employs about 150,000 people. A Gap spokeswoman declined to comment on the loss of the top spot to Zara. Let's check analyses of these two giants with full provided information. Firstly take brief tour to their history and about founders. Brief History of Brands Fashion giant, Zara, forms part of the retail group ‘Grupo Inditex’ which Mintel (2007) acknowledges as one of the “largest, fastest growing...
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...fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This new scenario has created opportunities for large exporters like China and India 1 that are considerably increasing their market share whilst at the same time creating challenges for European Union member states in order to remain...
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...non-exempt positions. The GM is responsible for implementing the individual store strategy in a manner consistent with Gap Inc.'s Purpose, Values and Behaviors. The GM leads their team to meet net contribution goals, sales goals, customer service targets, and Operating and Human Resources objectives through motivation, inspiration and accountability. The GM is accountable for professional representation of our brands within their locale, understanding our competitors and their operations as well as driving excellent tenant and community relationships. Leadership and Employee Results (25%) • Holds Store team and self accountable to all Gap Inc. standards of performance and behavior. • Effectively sources, recruits, selects and on-boards all management and non-exempt store personnel. • Maintains optimal staffing levels to ensure business needs are obtained while promoting associate retention. • Promotes a high-quality store associate experience from on boarding through the associate life cycle. • Promotes maximum team and individual performance through consistent coaching and feedback. Drives in-store performance management processes. • Partners with District Manager to create individual development plans that support performance needs and career growth for self and direct reports. • Recognizes and rewards behaviors that are in alignment and support Gap Inc. s Purpose, Values and Behaviors to promote a high-performance team. • Recognizes escalated associate and customer...
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...in stock Exchange per minute. For each stock, for each day, we have a detailed amount of messages, detph for ask and bid and the volume traded. AA ADBE AMAT AMZN BHI BRCM CELG COST CTSH DIS EBAY GE GILD GOOG HON INTC KMB MMM PFE PNC 1.2 Instructions Alcoa Adobe System Applied Material Amazone.com Baker Hughes Inc Broadcom Celgene Costco Wholesale Cognizant Technology Walt Disney Ebay General Electric Gilead Sciences, Inc Google Honeywell International Intel Corp Kimberly-Clark 3M Corp P zer Pnc Finance AAPL AGN AMGN AXP BIIB CB CMCSA CSCO DELL DOW ESRX GENDZ GLW GPS HPQ ISRB KR MOS PG SWIN Apple Inc Allergan Inc Amgen Inc American Express Co Biogen Idec Inc Chubb Comcast Cisco Dell Dow Chemical Express Scripts Holding Corning inc Gap inc Hewlett-Packard intuitive surgical Kroger Mosaic Corp Procter and Gamble Southwestern Energy Construct 4 equally portfolios with the average of message by stock as criteria. Plot the graphs reprensenting the spread, depths, messages and volume for these portfolios. Construct 4 equally portfolios with the average of volume by stock as criteria. Plot the graphs reprensenting the spread, depths, messages and volumes for these new portfolios. Compare between the 2 constructions of the portfolios depending on the criteria. 2 2 METHODOLOGY 2 Methodology 1. Filter the data by minut, so as we can have all the information concerning the variable (spread,...
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...| Assignment2: GAP INC 1. 5-forces analysis reveal about the strength of competition in the US family clothing stores industry:- US apparel industry is segmented based on gender, age, size and price considerations. Most of the clothing industries focus on women’s segment, because their clothing has a major market value of 50 % and the remaining 50% is shared by men’s wear (37%) and children’s wear (13%).Other than this market share is divided by price point.65 percent of market share is value price clothing industry, other 35 per cent is occupied by higher price items. With the help of 5 force analysis we will study the US family clothing industries competition in detail. i. Threat of rivals As per the above conditions we can say that US clothing industry is highly fragmented. In this market there are many small firms which are fighting to improve their market share along with customer base to have higher margins. However, the four largest (Gap, TJX, A & F, Ross) national chains acquired 39.4% of US market share. In this atmosphere every firm is offering discounts to compete with the discount retailers, because of this the profit margins are becoming thinner. Other than this firms need to customize their designs with regular intervals as per fashion and should be up to date to capture the customer attention and satisfaction. ii. Threat of new entrants. Because...
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...7 August 2013 Making Products Ethical Global Competition • As global competition increases, many international companies have transferred their production to developing countries. • Consumers demand for quality products at lower prices. • Consumer awareness and concern for ethics has grown. Thus, they seek for products that are made ethically. Products made in Sweatshops • This concern exploded in the late 1990s. • Activists embarrassed famous brands with exposés of working conditions abroad. • Nike and Wal-mart are two of the key targets of these activists. White House Task Force • Consumer activists and industry representatives collaborated to form the White House task force. • This task force suggests that codes of conduct must be established for overseas production. • Firms are to label their products “not made in sweatshops” • Mattel and Disney are two of the companies who adopted and attempted to enforce the codes of conduct. • Mattel hired an independent panel to monitor its factories; Social auditors visit Mattel factories three times a year • Disney conducted overseas inspections and cut off subcontractors who failed to make improvements. Social Accountability 8000 • Involves nongovernmental agencies operating in developing countries and major international auditing firms to oversee firms that comply with this standard. High Profile Culprits: • Nike o Formed a labor practices...
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...INTERNATIONAL MARKETING CASE STUDY ZARA: THE SPANISH RETAILER GOES TO THE TOP OF WORLD FASHION Professor: Jennifer Stack Student: Martina Sekuloska San Sebastian October,2014 International marketing [ZARA:THE SPANISH RETAILER GOES TO THE TOP OF THE WORLD FASHION] INTRODUCTION Inditex is a fashion retailer which dates back to 1963 when it started life in a small workshop making woman’s clothing. Today it has more than 6.460 stores all over the world (Inditex, 2014). Officially it all started with the launch of the first Zara store in La coruña, north-west of Spain in 1975. At that time the textile maker Amancio Ortega decided to open his own store after years of work in the textile industry. This was followed by the brand’s internationalization at the end of the 1980s and the successive launch of several another retail concepts: Pull&Bear, Massimo Duti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. Today, Inditex is considered to be the greatest fashion retail group, and its founder Amancio Ortega, the richest person in Spain. Zara is the flagship chain of the Inditex Group which generates nearly 65% of the net sales of the group (Inditex annual report 2013). It encompasses many different styles, from daily clothes, to more formal elegant clothes for women, men and children. This case study tackles the challenges of being the world’s fashion retailer, the sustainability of the competitive strategy, and the group’s internationalization process. ...
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...……………………………………………………8 Organizational Design for an International Environment……………………….….9 Products and Service……………………………...………………………………………...9 Information Technology and Control Systems………………….……………………..10 Company Size, Life Cycle and Possible Declines………………………………………..11 Organizational culture…………………………………………………………………...12 Ethical value…………………………………………...…………………………………...14 Decision making processes……………………………………...…………………………...17 Conflict, power and politics…..…………………………………………………………..18 Brief Summary of Key Findings……………….……………………………………………...20 References.……………………………………………………………………………..………21 Executive Summary This report is an organizational analysis of The Gap Inc. and its portfolio members. It describes a brief overview of the company to where it is now. It also outlines the major brands that are under gap inc. such as Banana Republic, Old Navy, Athleta, and Piperlime. The strategies section goes through a brief analysis of the company under Miles and Snow typology, the company’s goals and objectives, the strategies the company has in place to achieve these goals and objectives, and whether these strategies have been effective. A short summary of the organizational designs and its effectiveness along with how the company’s organizational structure and whether this structure works for them and their business. An internal and external analysis outlines...
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...factors such as globalization, technology, innovation, diversity, and ethics impact the functions of management. I chose to do my paper on Gap Inc.; I have worked for Old Navy for almost a year now, and Gap Inc. owns Old Navy. I see some things in the company that are benefitting to the company and will help make the business successful. There are also some things I see that will not make the company any money but in turn down the line have the company lose profit. Sometimes an organization does not see what they are doing unless they sit back and realize they need to get involved in the business more than just inspections and an occasional email. Internal and External Factors Internal factors of the organization Gap Inc. include planning for an event or sale. Making sure that the store has the correct advertisement for an individual sale so that people will see that a deal is happening. Making sure that every store has enough products for the sale to ensure people are happy with the deal and want to come back to the store. Planning for a sale or even the holiday and making sure there are enough employees to cover each store. All of these are internal factors of management for an organization. When an organization tries to come up with ways for the company to make more money they will look at the consumer for suggestions and that is what Gap Inc. does, they will give shoppers surveys to fill out and the incentive for completing the survey is a discount on future purchases. ...
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...Gap Inc. Meghan McGowan Simmons College Introduction Gap Inc. is a major player in the family clothing market worldwide. They have locations in the United States, the United Kingdom, Canada, France, Ireland, Japan and franchised locations in Bahrain, Indonesia, Kuwait, Malaysia, the Philippines, Oman, Qatar, Saudi Arabia, Singapore, South Korea, Turkey, the United Arab Emirates, Greece, Romania, Bulgaria, Cyprus, Mexico, Egypt, Jordan, and Croatia, and Israel. In 2009 they had the highest market share in the U.S. family apparel industry. Five Forces Analysis 1. Competition from rival sellers is strong. The rapid introduction of new trends in fashion causes the clothing industry to be in a state of constant change. The myriad of options for consumers of stores to purchase clothing causes switching costs to be low. It is essential the companies are able to respond quickly to new trends in order to appeal to consumers and create brand loyalty due to the high amount of competition in the industry. 2. Competition from potential new entrants is weak. In the apparel industry the barriers to entry is very high. It is imperative for a company to have high brand loyalty, due to the low switching costs. This makes it difficult for new entrants to survive, because they will not have brand loyalty. Consumers tend to stick to clothing brands that they like and to continue to shop there if they trust the company...
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...Situational Analysis and Action Plan-Fall into the Gap Dawn N. Noguerra MBA 6241 Human Resource Management in the 21st Century Knowledge Organization PO Box 1214 Inglewood, CA 90308 Telephone: (323) 204-2783 Email: justsyd2001@yahoo.com Instructor: Dr. Jane Abstract Social Recruiting is fairly new tactical way for employers and recruiters to screen potential candidates via social media sites. This trend has been taking place since 2008 and although still in its infant stage, it is slowly but surely gaining momentum in the talent acquisition world. With the world headed into an era where everything is automated or computer driven, Social Recruiting will no longer be a thing of the future but a thing of the present. My Topic Selection that I have chosen is: Social Recruiting: Talent Acquisition & Social Media. According to David Smooke, a San Francisco Bay Area – Director, Content & Social Media @ SmartRecruiters, “Social recruiting is a contested term. It is a concept at the intersection of recruitment and the embryonic field of social media. There are several terms used interchangeably including social hiring, social recruitment and social media recruitment.” Allison Doyle, Job Search and Employment Expert at About.com, said, “Social Recruiting is when companies and recruiters use Facebook, LinkedIn, Twitter and other social media sites to source and recruit candidates for employment.” According to Matt Alder, Strategy Consultant for HR and Founder...
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