Gap Inc. in France

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Global Business Plan: GAP, Inc going to France 2012
3/25/2012

Introduction:

Since the 16th century, France has been the epicenter of high fashion. From elegant designs of the old royal court to the stylish threads made by contemporary French Fashion Designers like Christian Dior, Coco Chanel and Jean-Paul Gaulthier. I'm very sure we would all agree that location is a key factor in the success of a business and France is known to many if not all as the fashion capital of the world hosting many world renowned designers such as Gucci, Chanel, Prada and many more. The country has advantages in being well known for fashion in that many consumers have often travelled to France to obtain firsthand experience of the beautiful glamorous lifestyles associated with the country of fashion. In terms of tourism, France is the most visited country in the world and hosts seventy-five million visitors a year. The success of the tourism industry through the fashion attraction has help the economy grow in that people from all over the world bring money from various countries to spend in France. What better place to set up a GAP, Inc. like banana republic. With our growing base of loyal customers in our various different locations, both in our stores and online, we’re confident that shoppers in France will have a strong appetite for banana republic’s proposition of affordable luxury, as we open yet another location. Introducing something new and slightly different would most definitely be a challenge but would also attract and build a new customer relation experience.

Identifying Global Business Opportunities

Siddha Param of Worldwide Business Connection online magazine begins one of his articles with the quote “Opportunity is very often found in solving existing inefficiencies in a market”. I believe this statement as true because identifying global markets; making a proper assessment the inefficiencies affecting that particular market; and making a strategic move to fill that need, is the formula for creating successful business. For instance, a local water purification company may be looking to expand their markets. They may see where a particular region has been affected with a natural ditsier, economic straits or any number of situations; but where left with the need of fresh water. A smart opportunity would see the needs of that community and began to supply their goods to fulfill the demands that region. This would be an example of solving existing inefficiencies by identifying business opportunities. In most cases of supply and demand with in the global community has practically fulfilled the wants and need of all consumers. Leaving no room existing inefficiencies to be resolved. In the case of introducing GAP Inc. to France, an already established fashion haven, I would have to ask where the opportunity to succeed in this market is. A possible opportunity would be establishing GAP as an affordable alternative for clothing competitors. In doing so, you would have created an inefficiency to be filled thus opening the door successful operations in a new global market.

Analyzing International Competitors

Potential Competitors:
Gap Inc. competes with local, national, and global department stores, specialty and discount store chains, independent retail stores, and online businesses that market similar lines of merchandise, probably too many to mention. But to name a few of these companies, we feel are similar to ours include brands like Zara (owned by a Spanish company Inditex) and H&M (from Sweden). This designer brands cater to the same target market as GAP Inc. they offer high quality clothes at an expensive price and the crowd is willing to pay that much to look good.

Competitive Advantage:
Gap’s style will be rooted in simple, easy to wear pieces that form the foundation of any wardrobe – the jean, the khaki, and the pocket tee. It will epitomize casual cool which...
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