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The Gap Inc - Case Study Example

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The Gap Inc. is a specialty retailer that operates more than 3100 stores, employs more than 150,000 people, and had revenues in excess of $15.8 billion in FY2007. Their products are marketed under the brand names of Gap, Banana Republic, Old Navy and Piperlime…
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The Gap Organization mission and vision The Gap Inc. is a specialty retailer that operates more than 3100 stores, employs more than 150,000 people, and had revenues in excess of $15.8 billion in FY2007. Their products are marketed under the brand names of Gap, Banana Republic, Old Navy and Piperlime. Gap is driven by a mission to create "inspiring product design, unique store experiences and compelling marketing", while reflecting the core values of "integrity, respect, open-mindedness, quality and balance". Gap Inc. also devotes considerable resources to corporate social responsibility that includes long-term environmental sustainability, collective stakeholder value, and international relief causes. (About Gap Inc: Social Responsibility Report)
Products and Brands
Their products are marketed under the brand names of Gap, Banana Republic, Old Navy and Piperlime. The brands are moderately upscale labels that target the fashion conscious consumer. Gap manufactures and markets wearing apparel and accessories and the brands have some overlap in products and target markets. Gap, Banana Republic, and Old Navy, manufacture similar products that are differentiated by luxury, price, and value. Piperlime is an online shoe store that specializes in marketing over 200 brands of fashionable, upscale footwear. All their products are direct marketed online at dedicated brand web sites. In 2007, Gap Inc. test marketed a brand under the name of Forth and Towne. They subsequently closed 19 stores in 10 cities after the brand failed to demonstrate significant potential. (About Gap Inc: 2007 Annual Report)
Organizational stakeholders, CEO and executive team
The organizational stakeholders at Gap Inc. are 150,000 employees, shareholders, CEO, Board of Directors, and executive office holders. Gap Inc. is headed by CEO Glenn K Murphy, who has over 20 years of retail experience. He has been at the head of Gap Inc. for less than one year and this is his first experience in the apparel industry. Japan and Europe are directed by presidents John Ermatinger and Stephen Sunnucks. Each brand name has an individual president, while the departments of finance, strategy, sourcing, and social responsibility are headed by executive vice presidents. Among the senior staff, Marka Hansen, the president of Gap, is the senior member with 21 years at the company. All other presidents have less than 5 years tenure with the firm. (About Gap Inc)
Geographic Locations, Size
Gap Inc. currently has stores in 15 countries. Outside North America they have major outlets in Japan and Europe, and recently opened their first store in the United Kingdom. They have additionally expanded their operations through franchising and have 75 franchise stores in the Middle East and Asia. Gap Inc. currently has over 150,000 employees worldwide. The Gap brand operates 2,863 stores in North America as of February 2008. They operate 304 stores which are divided about equally between Europe and Asia. While the number of stores has declined in North America in the past year, Asia and Europe have seen a 7 percent increase. (2007 Annual Report)
Total revenue for FY2007 was $15.8 billion. Gap has seen a steady decline since recording a record $16.3 billion in FY2004. Gap and Old Navy each had revenues of approximately $6.5 billion and Banana Republic had revenues of about $2.8 billion. Banana Republic was the only brand to experience an increase in revenues over FY2006. The US accounts for nearly 80 percent of all of Gap's revenue. (2007 Annual Report)
Works Cited
About Gap Inc. 2008. Gap Inc. 29 Apr. 2008 .
Gap Inc. 2005-2006 Social Responsibility Report. San Francisco, CA: Gap Inc, 2006. 29 Apr. 2008 .
We Are Gap Inc.: 2007 Annual Report. San Francisco, CA: Gap Inc, 2008. 29 Apr. 2008 . Read More
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