Gap Case Analysis
Gap Inc. Case Analysis and Recommendations
Micah Keith
GBA 490
June 10, 2013
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Table of Contents
Recommendations & Justification………………………………………………………………...2
Appendix
Dominant Economic Characteristics………………………………………………………3 Market Size and Growth Rate Number of Rivals Scope of Competitive Rivalry Product Innovation Demand-Supply Conditions Consumer Characteristics Pace of Technological Change Economies of Scale Learning/Experience Curve Effects Five Forces Model………………………………………………………………………...5 Drivers of Change…………………………………………………………………………7 Key Success Factors………………………………………………………………………8 Strategic Group map………………………………………………………………………9 Current Strategy………………………………………………………………………….10 Computer Analysis & Competitive Strength Assessment…………………………….…12 SWOT……………………………………………………………………………………13 Financial………………………………………………………………………………….14
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Recommendations & Justification
The following list contains my three recommendations for Gap Inc. that I have come up with after analyzing the case. I believe that Gap Inc. can continue to improve if they pursue any of the following:
1. Increase their focus on new product development * See Exhibit 1- Product Innovation (pg. 3-4) and Exhibit 4- Key Success Factors (pg. 8) * Keeping up with latest trends and being able to quickly create new product lines are key to top performance in the U.S. family clothing Industry * Gap Inc. can do a better job with this
2. Increase the breadth of their International store locations and Franchises * See Exhibit 3- Globalization (pg. 7) * Currently 10-20% of Gap’s sales were generated from international stores, and I
Micah Keith
GBA 490
June 10, 2013
-------------------------------------------------
Table of Contents
Recommendations & Justification………………………………………………………………...2
Appendix
Dominant Economic Characteristics………………………………………………………3 Market Size and Growth Rate Number of Rivals Scope of Competitive Rivalry Product Innovation Demand-Supply Conditions Consumer Characteristics Pace of Technological Change Economies of Scale Learning/Experience Curve Effects Five Forces Model………………………………………………………………………...5 Drivers of Change…………………………………………………………………………7 Key Success Factors………………………………………………………………………8 Strategic Group map………………………………………………………………………9 Current Strategy………………………………………………………………………….10 Computer Analysis & Competitive Strength Assessment…………………………….…12 SWOT……………………………………………………………………………………13 Financial………………………………………………………………………………….14
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Recommendations & Justification
The following list contains my three recommendations for Gap Inc. that I have come up with after analyzing the case. I believe that Gap Inc. can continue to improve if they pursue any of the following:
1. Increase their focus on new product development * See Exhibit 1- Product Innovation (pg. 3-4) and Exhibit 4- Key Success Factors (pg. 8) * Keeping up with latest trends and being able to quickly create new product lines are key to top performance in the U.S. family clothing Industry * Gap Inc. can do a better job with this
2. Increase the breadth of their International store locations and Franchises * See Exhibit 3- Globalization (pg. 7) * Currently 10-20% of Gap’s sales were generated from international stores, and I