Gap - Case Analysis
Case Analysis and
Strategic Recommendations for GAP Inc.,
Introduction
The Gap was founded in 1969 by husband and wife Don and Dorris Fisher. It started in down town San Francisco as a Levis retailer who also sold records. From the beginning, the Fishers wanted the company to have a unique image. They wanted shopping for jeans to be a fun and easy experience as opposed to the difficult and unexciting experience that was present in the 1969 jeans industry. The Fisher’s opened their first store with $63,000. It made 2 million dollars in the first year. In 1970, the Fisher’s incorporated opened a second store and a corporate headquarters and Gap Inc. was born. By 1973, Gap Inc. operated 25 stores including some in the east coast market. The next year, Gap Inc. began selling private label clothing and The Gap store known today came to life.
Gap Inc. grew rapidly through the 80’s and hit a huge peak of success in the 90’s. Led by CEO Millard Drexler, Gap Inc. helped redefine affordable fashion and was responsible for a series of impactful and innovative ad campaigns that included celebrity appeal and an all- American vibe. Gap Inc. acquired Banana Republic in 1983, which was once a safari-themed boutique and is now a multi-million dollar retailer focused on business and business casual attire. In the 90’s, Gap Inc. launched its largest domestically contributing brand, Old Navy, which contributes over a billion dollars in sales every year. Old Navy is a discounted clothing retailer that sells denim and cotton basics at affordable prices. Drexler left the company in 2002 and is now the CEO of J. Crew.
For the past 10 years, Gap Inc. has restructured its vision and has expanded into over 20 countries. The expansion has been met with difficulties and the domestic brand is not thriving as it was in its glory days. The success of the 80’s and 90’s may not be enough to carry Gap into the new age. It is important to take a step back and analyze
Strategic Recommendations for GAP Inc.,
Introduction
The Gap was founded in 1969 by husband and wife Don and Dorris Fisher. It started in down town San Francisco as a Levis retailer who also sold records. From the beginning, the Fishers wanted the company to have a unique image. They wanted shopping for jeans to be a fun and easy experience as opposed to the difficult and unexciting experience that was present in the 1969 jeans industry. The Fisher’s opened their first store with $63,000. It made 2 million dollars in the first year. In 1970, the Fisher’s incorporated opened a second store and a corporate headquarters and Gap Inc. was born. By 1973, Gap Inc. operated 25 stores including some in the east coast market. The next year, Gap Inc. began selling private label clothing and The Gap store known today came to life.
Gap Inc. grew rapidly through the 80’s and hit a huge peak of success in the 90’s. Led by CEO Millard Drexler, Gap Inc. helped redefine affordable fashion and was responsible for a series of impactful and innovative ad campaigns that included celebrity appeal and an all- American vibe. Gap Inc. acquired Banana Republic in 1983, which was once a safari-themed boutique and is now a multi-million dollar retailer focused on business and business casual attire. In the 90’s, Gap Inc. launched its largest domestically contributing brand, Old Navy, which contributes over a billion dollars in sales every year. Old Navy is a discounted clothing retailer that sells denim and cotton basics at affordable prices. Drexler left the company in 2002 and is now the CEO of J. Crew.
For the past 10 years, Gap Inc. has restructured its vision and has expanded into over 20 countries. The expansion has been met with difficulties and the domestic brand is not thriving as it was in its glory days. The success of the 80’s and 90’s may not be enough to carry Gap into the new age. It is important to take a step back and analyze