Pest Analysis of Gap Inc

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PEST Analysis for GAP

Politics
Globalization has been a current trend to every industry which also includes the apparel and fashion industry in which is due to the construction of import international facilities and establishment.

It has been noted that when products are traded, regulations and policies are present. With these regulations and policies, company’s operations may be impaired. Some countries also control the entrance of foreign companies which would also affect the process of operation of these companies. Large tax implementation is one of the controls that government usually pursues. With such government control many companies are impaired and usually can not operate on those countries.

In the case of the regulations in the retail industry it has negative impacts because the regulations in the retail industry could easily be changed beyond the established limit and will affect the business adversely, in addition companies such as target will obtain higher costs in expenses due to the changes.

Furthermore, changes and transformation in overtime regulations and the share of the retail stores in the healthcare bill. It has a huge effect on GAP negatively or positively. In the case of the regulations in the retail industry it has negative impacts because the regulations in the retail industry could easily be changed beyond the established limit and will affect the business adversely, in addition companies such as target will obtain higher costs in expenses due to the changes. The healthcare bill, on the other hand, will have positive effects on GAP because the bill will aid in controlling the prices of the medicines in the market which in return will help the consumers, as well as the company.

Economic
During the period of 2004 to 2006, a change in consumer preferences in apparel is more apparent. Many underground sales of unbranded apparel are very common. It even extends to the export of these apparel to many Asian countries....
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