Case study - A Brief History of Gap Inc Gap Inc is a leadingAmerican specialty apparel retailer based in San Francisco California It sells casual

Case study - A Brief History of Gap Inc Gap Inc is a...

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A Brief History of Gap IncGap, Inc. is a leadingAmerican specialty apparel retailer based in San Francisco, California. It sells casual apparels, accessories, and other personal care products for men, women, and children. Doris and Don Fisher founded The Gap in 1969 in San Francisco, California and was made public in 1976. Gap Inc. has several brands including The Gap, Old Navy, Banana Republic, Athleta, and Piperlime. Gap was created to meet the needs of San Francisco teenagers. The Fishers vision was to "make it simple to find a pair of jeans." By the 1990’s Gap was well known for providing affordable styles that represented American pop culture. Gap’s clothing could be found on anyone, to a popular celebrity to typical American families. The firm sells a variety of casual-style and chic clothing to men, women, and children in over 3,100 stores worldwide in 2010.The company had a few CEOs including Millar Drexler who was fired due to decreasing sales, Paul Pressler who resigned due to the company’s weak performance and he was replaced by Glen Murphy. Pressler’s turnaround strategy for Gap included reducing long-term debt.Analysis of the Gap IncThis case study describes the business environment of the apparel market and how GapInc. tried in this highly competitive market environment to manage a turnaround in the timebetween 2000 and 2010. The U.S. clothing store sector accounted for approximately $156 billionin the year 2009 and had slightly declined compared to 2008 due to the worldwide recession,whereby the average before-tax profits before estimated by IBIS-World were around 3% in theyear 2009. The level of globalization in the market is relatively low and made up by a large1
number of small and few major, domestically owned companies. The family clothing storeindustry is the most important sector, as it is responsible for more than half of the revenues in theU.S. clothing market. Concerning the gender woman clothes are most interesting, due to theirwill to spend more. Women clothing accounts for 50% of the market, followed by men andchildren with market shares of 37% and 13%. Hereby more than one third of the adultpopulation has to be considered obese. My analysis has indicated that consumers in the clothing industry are faced withmany options from different providers. The high number of providers means that Gap shouldadopt certain success factors to survive in the industry. Some of the key success factors are;Developing a new product lines that capture the latest trends in fashionsAvailing the products in the marketDeveloping good consumer brand loyaltyHave broad network of retail storesMove towards internet retailingCompany Mission and ObjectivesAccording to the Gap.com corporate website, the mission statement of The Gap stores is: Gap, Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring product design, unique store experiences, and compelling marketing.The Gap, Inc. mission statement lists a set of key values designed to inform us of 2
their beliefs. The key values of integrity, respect, open-mindedness, quality and that balance are

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