...build something not only for them, but something that the whole world could use and be inspired by. Gap Inc. is definitely a retail business that has a past story that has inspired costumers and anyone wanting to take a step into the world of retail business. Don and Doris Fisher created the Gap in order to cater to their needs, but in the process helped thousands of customers find what they needed when it came to certain merchandise. The year 1969 was a year to remember in the business of retail. Located in San Francisco, California, Donald G. Fisher and wife Doris Fisher opened the very first Gap. Don Fisher initially had no real experience in the business of retail seeing as he made his living from real estate, but when Mr. Fisher could not find the right pair of Levis jeans to fit what he wanted, he decided to take matters into his own hands. He decided to open up his own retail store that would have everything that a customer could dream of having. In order to get his start Mr. Fisher had to identify the type of clothing and the age group that he would appeal to. Considering the time period and his original dilemma with finding the right pair of jeans he found his niche. During this time jeans had become the trend among teens, and even though he wasn’t a part of this generation he felt that he could be more successful in selling to this specific generation. Hence, the name the Gap was given to the retail store that he established. Jeans had become the type of clothing that Don...
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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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...| 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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...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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...……………………………………………………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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...• Gap Inc. has the components of a global retailer: centralized, standardize, and vertically integrated o (They look for countries that will except their company as is without much change… this is true to Gap Inc. the biggest change in their merchandise came during the move to Japan where they altered their clothing size to fit them) • Although most of gaps revenue (about 89 %) comes from domestic sales, it has expanded internationally to the United Kingdom, Canada, Germany, France, and Japan • Gap Inc. has acquired several other brands in order to expand its target market while still staying true to its original Gap aesthetics • An example of this took place in Germany. While moving its company there they realized it was not brining in revenue, in fact it was the companies smallest international business. Gap, Inc. decided to acquire H&M in order to optimize their growth. • Brands Include: Gap, Banana Republic, Old Navy, Intermix, piperlime, and athleta • More then 150, 000 employees and approximately 3700 stores worldwide • -400 franchise stores • -United Kingdom: In 1987 gap opened their first store outside the United States, which was located in London. Today there are approximately 189 stores located in Europe • Canada: gap Inc. largest international market. In 1998 Canada was introduced to its first gap store. Gap has continuously kept the strategy of opening big stores, their biggest, and extensive advertisement strategies in Canada • -Germany: 1990s,...
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...A Gap Year: Weighing the Pros and Cons By Michelle Knoll on August 1, 2012 Are you considering taking a year off from school? If so, you are not alone. Gap years, as they have come to be known, are becoming increasingly popular, as well as highly debated. Supporters say it can provide students clarity and give them an edge when returning to school. Opponents say it can be unproductive and actually make it harder for students to return to the classroom. Regardless which side of the debate you are on, one thing both sides agree on is a gap year needs to be well thought out and thoroughly planned with set goals. What is a Gap Year? Simply put, a gap year is a break from education. It can be taken at any time, but most often occurs after graduating high school and before starting college. Gap years are not always a year. They can span in length from a few weeks to a year. Why Take a Gap Year? Students take a gap year for a number of reasons. Some are just academically burnt out and need a break. Some are unsure of which direction or career path they want to pursue. Others want to travel, study abroad, volunteer and do things they may not necessarily have time for later in life. Still others take a year off to work and save up money in order to afford college. The Cons of a Gap Year Gap year opponents fear once students leave the educational setting and get a taste of the ‘real world’, they may never want to go back to the stress, structure and rigor of academic...
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...The Gap Year The “gap year” has been a common rite of passage in many foreign countries for decades, but it has now started to gain significant steam here in America as told by Danielle Wood, a parent from Today’s Parenting. This leads to many questions that parents and students want answered, such as: “Is the “gap year” a good or bad consideration?” “Will this decision put me behind?” “Does this stop me from ever going to college?” “Will I ever get my college degree?” All of these questions have can be answered yes and no, all depending on the person and their determination. Some people argue that a gap year is not a good idea, however; others say it is a great idea and every student should consider taking one. However, as I mentioned in my thesis, it all depends on how each individual indulges in the activities that help them to become better prepared for the transition. A gap year does not mean that your child will NEVER go to college or ever get a college degree. It is merely time taken out to plan out what exactly they want to do in college and experience life in the real world. During this time off the student and parents should take time to complete college applications and decide on what major and school environment is right for them. Still this does not mean that every parent is in agreement with this gap year. Most parents do agree that after twelve years of consistency in school, a student may need to take a break, whereas; others say that a student should continue...
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...Gap in Japan: Market Expansion Gap Inc. currently has 198 stores in Japan, with 147 Gap stores, 10 Old Navy stores and 41Banana Republic stores. As the largest market outside of the United States, Gap Inc. Japan and Asia in general have been growing rapidly with 14.7 percent increase in net revenue while the sale of other international markets has stagnated. However, the three brands of Gap Inc. currently face strong competition from local brands such as Neighborhood and Music Earth & Ecology and international brands such as Uniqlo and Zara. In order to retain the current customers and expand on market share, Gap, Old Navy, and Banana Republic must each develop more distinct and specific market position. According to Deloitte’s report on Global Power of Retail, the apparel and footwear industry scored 3.05 on the Q ratio. Q ratio measures publicly traded company’s market capitalization to the value of its tangible assets; the higher the ratio, the more financial market participants believe that part of the company’s value comes from its non-tangible assets, such as market dominance, customer loyalty, and differentiation. However, Gap Inc. scored a 2.17 Q ratio, which is below the 3.05 of the industry, while competitor H&M scored a 5.5. When consumers think of affordable fashion brands, they would immediately relate to H&M. And when consumers are asked where they would get basic clothes, they would without a doubt answer Uniqlo (Q ratio 3.41). As of now, the brands...
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...Financial Statement Analysis Project GAP (GPS) MBAB 5P01 Section 2 Team E Instructor: Sohyung KIM Team Members: JIANG, YU ZHENG, RUYU LIN,CANGJIAN CHU, SICHAO DONG, YANXI 5418207 5514690 5035498 5519574 5485966 Due Date: October 22, 2013 Part 1. Who is my peer? 1. Gap, Inc. Exchange traded: New York Stock Exchange (NYSE) Ticker Symbol: GPS Gap Inc. is a global specialty apparel company. It operates in two segments: Stores, which includes the operations of the retail stores for Gap, Old Navy, and Banana Republic, and Direct, which includes the operations for its online brands, both domestic and international. As of January 28, 2012, the Company had 3,263 store locations, of which 3,036 stores were Company-operated and 227 stores were franchise store locations. (The Gap Inc.) 2. Buckle, Inc. Exchange trade: New York Stock Exchange (NYSE) Ticker Symbol: BKE The Buckle, Inc. is a retailer of casual apparel, footwear, and accessories for men and women. As of January 28, 2012, the company operated 431 retail stores in 43 states throughout the US. The Company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops and accessories. The company purchase products from manufactures within the US, as well as from agents, who source goods from foreign manufactures. (The Buckle, Inc) 3. Methodology of choosing Gap’s peer a. Industry matching Industry is a branch of companies or groups concerned with economic goods or services. Matching...
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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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...Short Case Analysis of Gap Inc. in 2010: Is the Turnaround Strategy Working? Author of the article Annette Lohman of the California State University, Long Beach The Gap Inc. In 2010 Case Summary Case Summary This case study describes the business environment of the apparel market and how Gap Inc. tried in this highly competitive market environment to manage a turnaround in the time between 2000 and 2010. The U.S. clothing store sector accounted for approximately $156 billion in the year 2009 and had slightly declined compared to 2008 due to the worldwide recession. Average before-tax profits estimated by IBIS-World were around 3% in the year 2009. The level of globalization in the market is relatively low and made up by a large number of small and few major, domestically owned companies. The family clothing store industry is the most important sector, as it is responsible for more than half of the revenues in the U.S. clothing market. Concerning the gender woman clothes are most interesting, due to their will to spend more. Women clothing accounts for 50% of the market, followed by men and children with market shares of 37% and 13%. Hereby more than one third of the adult population has to be considered obese. According to price sensitivity 65% of the market is value-priced driven and targeted by family stores of companies such as Ross Stores or TJX Companies. They focus on still wanted brand names and discounts by delivering off-season styles. More emotional driven...
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...trading- uses private company infomation to further insers own fortuenes or those of their family and friends. Unified system- this happes after managers have decided a course of action now they need to organize the fimr to accomplish their goals. Middle management- this includes gernal managers, division managers, and branch and plant managers. B. Discuss the organizationl structure of the business relative to these five functinal areas: Marketing - The different forms of marketig, sales, and adverting for Gap are television, radio, credit card discounts, mail, and email. Gap spends a certain amount of money on advertising everymonth, and if they do not feel as though they are getting the response they hoped for they will pull the plug on that idea and go the next. Gap has commercials on television and radio, they are actully pretty catchy. Males and females from birth to 65 is their target market(gapincccom). I think they do a good job. Human resources - Gaps human resources department is functional it is head up by Eva Sage-Gavin her and her team personally hire all the regional managers and supply all the information for...
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...Table of Contents: 1.0. Company Overview: ........................................................................................................ 3 2.0. Industry Overview: .......................................................................................................... 3 3.0. Gap’s current channels strategy’ analysis: ....................................................................... 4 3.1. Gap’s market segmentation: ........................................................................................ 5 3.2. Gap’s Current Channel Chains:................................................................................... 6 3.3. Gap’s Directional Policy Matrix: ................................................................................ 7 4.0. Gap’s future channel chain: ............................................................................................ 9 5.0. Recommendations: .......................................................................................................... 9 6.0. Limitations: ................................................................................................................... 11 7.0. References: .................................................................................................................... 12 8.0. Appendix:...................................................................................................................... 14 ...
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...Case: The Gap Inc.’s Social Responsibility Report 1. Do you think Gap has demonstrated global corporate citizenship, as defined in this chapter? Why or why not? Gap has demonstrated global corporate citizenship because they develop one of the most comprehensive factory- monitoring programs in the apparel industry. 2. In its response to problems in its contractor factories, do you think Gap moved through the stages of corporate citizenship presented in this chapter? Why or why not? Gap move through the stages of corporate citizenship because they recognize their problem, develop a program to address the issue, made a pledge to do business with vendors with a high set of standards, they expanded discrimination section of the Universal Declaration of Human Right, and also hired dozens of vendors compliance officers, or VCOs to audit Gap factories. 3. Compare Gap Inc.’s social audit and reporting practices with those of others companies described in the chapter. In what ways is Gap’s effort different, and in what ways is it similar? Do you think Gap’s social auditing and reporting is better or worse than those of other companies, and why? What differs is that the other companies utilized a multiple stakeholder governance structure so that the firm interacts with many of the stakeholders it seeks to serve though its multiple performance targets. On the other hand what’s similar is that many companies commit to social responsive practices. 4. Will Gap Inc. maintain...
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