Business Strategy of Gap: Objectives, Issues, and Solutions

This presentation discusses the business strategy of Gap, including its objectives, issues, and solutions. It covers the company's vision and mission, corporate philosophy, business ethics, and business model. It also analyzes the issues faced by the company, such as competition and outdated practices, and provides strategic solutions to address them.

BUSINESS STRATEGY OF GAP
NAME OF THE STUDENT:
NAME OF THE UNIVERSITY:

INTRODUCTION
 Gap Inc. is a popular retailer that provides clothing
accessories and personal care products for babies,
children, women and men.
 The company provides the products under a variety of
brand names like Gap, Old Navy, banana republic,
Piperlime and Athleta brands.

INTRODUCTION
The company experienced a major growth from the year 1980.
The time between the years 1990 to 1999 was the progressive
expansion efforts of the company.
 In the year 1993 the organization became the second largest
fashion styling apparel brand in the globe.
The company is slowly expanded itself globally as they entered
into the French Marketplace which is considered as the
birthplace of fashion.

VISION AND MISSION
The company in original does not have any proper mission and
vision statement.
The company generally claims itself to be a brand builder and
also claims to create emotional connection with the customers
around the globe through providing proper product design
unique store experiences and a great marketing experience
(gapinc.com, 2018).

CORPORATE PHILOSOPHY
 The management of the company find it hard to claim a leader in the
clothing industry.
 The statement of corporate philosophy of the company States that the
company wants to make a lasting and positive impression on the people and
the communities with whom they do business.
 This is because the company believes that it is right to do the things that are
good for the business.

BUSINESS ETHICS
The management of the organization has formulated when
established code of ethics and has translated it into a large
number of different languages that helps to address the
different aspects and guidelines about the purpose
responsibilities lodge violations retaliation policy charges
benefits and other waivers of the company (gapinc.com,
2018).
The following code also establishes a responsible and
ethical work environment for all the employees and
supervisors.

BUSINESS ETHICS
It also provides a common platform for the employees two
voice their concerns against conflict of interest discrimination
or violence in the workplace.
The company will employ a zero tolerance policy if any
employees are found to violent the code of ethics.

OBJECTIVES OF GAP
The current objectives of the company are as follows,
Targeting life skill casual clothing consumer family
Targeting the secondary consumers who seeks sports
clothing

BUSINESS MODEL OF THE
COMPANY
The business model of the company is the plan of the
organization to generate revenue and make a profit.
 It discusses on what kind of products and services, the
management of Gap Inc plans to manufacture and what kind of
the expenses that the organization will incur to ensure the
profit of the organization.

BUSINESS MODEL OF THE
COMPANY
 The management of Gap Inc. has proposed a five year goal to implement
the plans of the organization.
 It aims to attain the tag of being the frontrunner company for the production
of different types of green products with an innovative and effective supply
chain (gapinc.com, 2018).
 The company will adapt its strategies in line with the new survey results
where it is seen that almost75% of the consumers in the modern market will
be more likely to buy a product or service from any organization if it aims
to become sustainable in nature.
 Other initiatives that will be taken up by the management of the clothing
company will involve the investment in human resource capital,
partnerships with other large as well as small organizations and also
acquiring organizations to continue the growth of the business.

ISSUES FACED BY THE COMPANY
The presence of a large number of social media channels,
online retail stores, online websites of shopping has change the
way the modern consumers does shopping.
The availability of less time and the increase in different types
of shopping options for the consumers have thus changed the
trends of shopping. A shopper nowadays prefers an online
shopping site more than that of a store in large shopping mall.

ISSUES FACED BY THE COMPANY
Another issue which the company faces is from the designing
of the cloth items by the organization.
The clothing manufactured by the organization is generally
designed, manufactured and then packed for shipping to the
retailer.
All of the following process totally involved a total traditional
set up and the total process of producing and then actually
transferring the same to the end consumers usually took a long
time and was very much costly.

ISSUES FACED BY THE COMPANY
Lastly the presence of strong competitors in the market is one
of the key issues of the decline of the company in the global
market.
The presence of large scale competitors in the business like
Inditex Group, famous for the brand Zara Stores and other
famous retail brands is one of the major threats to the growth
of the organization in the market.

STRATEGIC SOLUTIONS TO THE
ISSUES
The emergence of fast fashion has outdated the traditional
process and thus the management of the company needs to
immediately implement the following process to ensure the
chances of profitability.
It is important for the company to discard old practices and
implement modern and technologically advanced practices to
ensure success for the organization.

BCG MATRIX AND PORTE’S FIVE
FORCES
 For BCG matrix it graphically portrays the differences among the divisions
in terms of the relative market share position and the growth rate of the
industry in which the company operates (Elliott, Rosenbaum-Elliott, Percy
& Pervan, 2015).
 The BCG Matrix’s product portfolio matrix is designed in such a manner
that it helps with the long term strategic planning which help the business to
consider different kinds of growth opportunities by the review of the
different kinds of the products and their portfolio.
 The Porter’s Five Forces generally deals with five different elements
namely threat of substitutes, entry of new forces, power of supplier, power
of buyers and rivalry among the competitors.
 According to the following case study the main force that will bother the
following organization is the rivalry that exists among the competitors of
the company.

RECOMMENDATION AND
JUSTIFICATION
The combination of the omnipresence of the retailers along
different channels and creating a number of distribution
channels he is one of the modern practices of marketing.
The organization must concentrate on nothing less than to
satisfy the fashion designers of the consumers by ensuring
quality but yet affordable clothing through the different
clothing brands of the company.
Secondly it is necessary for the organization to organize a
clear and precise segmentation of the market in which it
operates. The fashion trends are always changing therefore the
company must identify its niche market.

REFERENCES
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Elliott, R. H., Rosenbaum-Elliott, R., Percy, L., & Pervan, S. (2015). Strategic brand management. Oxford
University Press, USA.
Gapinc.com. (2018). Home. [online] Available at: http://www.gapinc.com/ [Accessed 4 Dec. 2018].
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