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The GAP Strategies - Case Study Example

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The intention of this study "The GAP Strategies" is to analyze the strategies applied by GAP, Inc. With more than 4,250 stores, Gap Inc. boasts of its worldwide lead as a retailer for clothing, accessories, and personal care products under the brand names of Gap, Banana Republic, and Old Navy…
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The GAP Strategies
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Download file to see previous pages Dressing down according to Kelly and Silverstein (2005) became an acceptable norm for the society whose rules for dressing became relaxed and interest in fashion waned. With home-based jobs sprouting people saw no need to buy fashionable clothes. Ordinary retail and clothing sales saw a disappointing decline as the millennium ushered in comfort dressing. Gap Inc., whose target clients are teens and the middle market with its basic style should see a logical push compared to Banana Republic’s affluent clientele and Old Navy’s fashionable yet bargain minded customers.
Gap Inc. however, suffered tremendous drawbacks against its gracious fashion profit enjoyment of the 90’s that Brady attributed to its electronic retailing in 1997, as prevailing modes of expression sank the sales of summer 2001. He revealed how store sales showed a 12% dip compared to the previous year. Given the sales shortfall, shares of stocks remained on the defensive that Hea positively believed could pick up during the fall months. However August and September saw weak store traffic owing to the lack of buyers’ enthusiasm for its apparel lines. The Old Navy division suffered the highest setback with the biggest sales drop that then CEO Millard Drexler acknowledged as its priority, “the need to find the right balance between key items and fashion”. In its numerous attempts to survive the fashion crash, Drexler was later replaced in 2002 according to Brady(2003) that has brought in bolder colors that certainly help cut the inventory, squeezed out costs, and helped Gap triple its earnings and stocks rose to more than $18 per share.
By redesigning a “look” to fit in with the season and the environment, Gap’s strategies included highly focused surveys and research on consumer needs and fashion trends that high-lighted classifying its clientele as the “style-conscious, updated and classic”. ...Download file to see next pagesRead More
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