Gap Inc. in 2010: Is the Turnaround Strategy Working?
1. BACKGROUND INFORMATION
|Timeframe |Country(s) Involved |Key Individuals & Titles |Company Type & Size | | |USA; China; Vietnam; Philippines; India; |Donald and Doris Fisher - Founders |Public Traded | |1990-now |Cambodia; Indonesia; UK; Canada; Germany; Poland|Mickey Drexler - Former CEO; |Revenue over U$ 15 bln | | |; Saudi Arabia; Bahrain; Kwait; Qatar; South |Paul Pressler - Former CEO; |Over 130 thousand employees | | |Korea; Turkey; Greece; Russia; Israel; Mexico; |Glen Murphy - CEO; | | | |Romania; Jordan; Spain; Japan; Sweden; France; |Patrick Robinson – Design Chief | | | |Ireland; Cyprus | | |
2. BRIEF SUMMARY OF CASE SITUATION
|Business or Industry Description |Gap Inc.’s Current Situation | |The Apparel Industry consists of companies that design and sell|Gap Inc. is a leading international specialty retailer offering clothing, accessories | |clothing, footwear, accessories and personal care product in |and personal care products for men, women, children and babies. Current is the largest| |Gap Inc’s case for men, women, children and babies |pure apparel firm in the country. |
3. INDUSTRY AND COMPETITIVE ANALYSIS
|Industry Macro-Environmental Characteristics |Industry Driving Forces | | | | |The US clothing store industry includes over 100,000 stores with annual |Slow Growing Industry | |revenue of roughly $150 billion. Retail stocks have performed well in 2012 |Intense Competition | |thus far. The total return year--‐‑to--‐‑date for the S&P Retail Select |Highly Fragmented Market | |Industry Index is 16.41%, 11th best out of 23 industry indexes. The U.S. |Current Fashion Trends | |economy appears to be getting stronger with an increase in consumer |Sales Analysis | |pricing. | | |TJX Companies’ Competitive Strategies |Ross Stores’ Competitive Strategies | | | | |- Cost Advantages – Buy left over poducts at huge discounts. Also Buy |- Maintaining recognizable brands, labels, and fashions at Strong discounts | |products overseas. |throughout the store | |- Their stores focus more on functionality than appeal which in turn has |- Meeting customer needs on a local and consistent basis | |enabled the company to keep...