Gap Swot Analysis

Topics: Gap, Banana Republic, Product Red Pages: 6 (2003 words) Published: October 11, 2010
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. -A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, has been the subject of much research • Strengths: attributes of the person or company that is helpful to achieving the objective(s). • Weaknesses: attributes of the person or company that is harmful to achieving the objective(s). • Opportunities: external conditions that is helpful to achieving the objective(s). • Threats: external conditions which could do damage to the objective(s). - Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. The decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. -A company should maintain or leverage its strengths while finds ways to remedy or eliminate its weaknesses. Furthermore, it should prioritize on seizing and optimizing opportunities and prepare to counter and minimize the effect of potential threats.

Gap Inc.

It was the summer of 1969: Man took his first walk on the moon. Nearly 450,000 people gathered in upstate New York to witness the historic Woodstock concert. And Doris and Don Fisher opened the first Gap store in San Francisco. Today, Gap Inc. is one of the world's largest specialty retailers, with approximately 3,100 stores and fiscal 2009 revenues of $14.2 billion. We operate five of the most recognized apparel brands in the world — Gap, Banana Republic, Old Navy, Piperlime and Athleta. Every day, they look for new ways to connect with customers around the world, provide value to their shareholders and make a positive contribution in the communities where they do business.

SWOT analysis for gap Inc.
Strengths: - T
The Gap's multiple brands have become some of the most recognizable labels within the apparel industry. Its product line offers a selection of clothing for all ages. Products include: Gap, Gap Body, Gap Kids, baby Gap and Gap Maternity) The company used multiple brand strategy to acquire greater market share. This strategy allows a company to seize their opportunities from multiple approaches. For some benefits of the multiple brand strategy, it enables a company to get more shelf space of its products and to respond to consumer demand for something new. It can saturate a market by filling all price and quality gaps. It also offers products to brand-switchers who like to experiment with different brands. In 2009, CRO magazine ranked Gap Inc. one of the "100 Best Corporate Citizens" among major U.S. companies for the fourth straight year

2-Large network of physical stores
Gap, the company, has a large network of physical locations. At the beginning of February 2010,the company had 3,167 stores, including 1,249 in the US and 1,918 in international locations such as Canada, the UK, France and Japan. Gap has also entered franchise agreements to operate Gap stores or Gap and Banana Republic stores in Singapore, Malaysia, United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, Indonesia, and Korea. Comparatively, Gap’s competitor, Abercrombie & Fitch Co, operated 1,035 stores in the US, Canada and the UK. Another competitor, Aeropostale merchandise operates 828 stores. Gap’s large physical network of stores enhances the company's sales penetration and gives it a competitive advantage. 3-Building financial strength

• in fiscal 2009, they generated free cash flow...
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