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Gap: Case Study

By | November 2007
Page 1 of 21
SYNOPSIS

Gap, Inc. was originally founded by Doris and Donald Fisher. The company has evolved from a single store located in San Francisco, California into a predominate retail chain that includes the Gap, Banana Republic, Old Navy, Forth & Towne, and Piperlime.com. The company sells a huge variety of clothing from casual to chic for men, women, and children. The 21st century has brought hard times to this extremely successful company, especially Gap adult stores and the company is losing market share. Key problems with the company have been identified and the follow solutions have been offered: increase supply chain streamlining and efficiency, decrease number of stores, hire creative staff to focus on fashion styles and trends, narrow target market, stabilize merchandise style and fabric quality issues, establish clear brand image, and cut bureaucracy and hire more executives with retail experience. The company needs to employ several of the previous solutions, since many of them intertwine and will help each other. First, Gap needs to narrow its target market. Gap is trying to please too many population segments and should focus on one particular group. Once it has clearly defined its market it is easier to complete step two, establishing a clear brand image. Gap should create a story or image that will directly appeal to this new established market. Third, Gap must stabilize merchandise style and fabric quality. With a clear picture of the target customer and brand image, Gap can produce the correct merchandise, assortment, and advertising for that specific demographic. If Gap focuses on these three issues and solutions and hits the mark on each step it will definitely see a turnaround in business. Customers will once again know what Gap stands for.

PROBLEM

In the 1990s, specialty retailer Gap was known as a hip and trendy place to shop. Its television commercials with teens dressed in khakis dancing to swing music attracted the...

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