Gap Inc Can It Develop a Strategy to Connect With Consumers in 2016
Gap Inc. business organisation strategy in the global market of fashion, style and accessories can be classified as price leadership. The retailer offers stylish and fashionable clothing items and accessories for competitive prices. In elementary terms, Gap business strategy is associated with offering people the opportunities of being 'cool' and 'stylish' for affordable prices. Gap Inc. portfolio comprises Gap, Banana Republic, Old Navy, Athleta, and Intermix brands. Gap competitive advantage has been traditionally associated with innovative casual design of wearable items and accessories and the multifariousness of choice that enables the opportunities for cocky-reflection for a wider range of customer segment.
For the by few years, the manner retailer has been facing challenges in terms of maintaining its United states and global market place share and ensuring the growth of revenues. During the fiscal year of 2015, Gap Inc. experienced a pass up of both, sales and gross profit. Internet sales for financial 2022 decreased 4 percent to USD fifteen.8 billion compared with USD 16.4 billion for fiscal 2014. Gross profit for fiscal 2022 was USD five.7 billion compared with USD 6.three billion for financial 2014.[1]
Gap business strategy to deal with the result of failing sales as announced past CEO Art Peck includes the following plans and initiatives.
- Focusing on its Gap's core products that contributed to the global success of the company. Specifically, the senior management has expressed a commitment to return Gap iconic denim, including a rich array of on-trend silhouettes, washes and fabrications.
- Start selling on Amazon. The company has shun association with online retailers for more a decade mainly because online stores are not able to convey attractive store desing and the signal of buy marketing efforts of the brand. However, in a most recent meeting with shareholders CEO Art Peck announced that "Gap is open to selling its trade on Amazon or other third parties in the U.Southward."[ii]
- International marketplace expansion. The management is planning to open up additional Old Navy stores outside of the United States, including in Mexico, Nippon, and China, open additional Gap stores in Cathay, open up additional international outlet stores, and continue to grow online sales internationally[3]…
Gap Inc. Study contains more detailed give-and-take of Gap Inc. business concern strategy. The report also illustrates the application of the major analytical strategic frameworks in business studies such every bit SWOT, PESTEL, Porter'south 5 Forces, Value Chain analysis and McKinsey 7S Model on Gap Inc . Moreover, the report contains analyses of Gap Inc. leadership and organizational structure and marketing strategy and discusses the issues of corporate social responsibleness.
[1] Annual Report (2015) GAP Inc.
[2] Safdar, K. (2016) "Gap CEO Says He's Open to Selling on Amazon" The Wall Street Journal, Available at: http://www.wsj.com/manufactures/gap-ceo-says-hes-open up-to-selling-on-amazon-1463584218
[3] Almanac Study (2015) GAP Inc.
Source: https://research-methodology.net/gap-inc-business-strategy-and-competitive-advantage/
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