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Brand Builder Companies

Gap Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring product design, unique store experiences, and compelling marketing.

Analyze this company from a marketing perspective
a) MANAGEMENT AND OTHER RESOURCES.
Does Gap Inc have adequate leadership and administrative capability? Does the company have adequate capital and cash flow to support its marketing and sales activities properly?

b) PERFORMANCE
How successful is this company, in terms of profit or loss and market share? are profits and share going up or down?

Review the strengths, weakness, opportunities and threats.

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Gap Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring product design, unique store experiences and compelling marketing.

Analyze this company from a marketing perspective
a) MANAGEMENT AND OTHER RESOURCES.
Yes, it has the resources including managerial and other resources. This is discussed in Strengths.

b) PERFORMANCE
This is discussed in SWOT analysis.

Review the strengths, weakness, opportunities and threats.
Gap, Incorporated is an American clothing and accessories retailer based in San Francisco, California and founded in 1969 by Donald Fisher and Doris Fisher. As of October 2006, Gap Inc. had approximately 150,000 employees and operated 3,139 stores worldwide in the United States, Canada, Mexico, France, Ireland, Japan, Indonesia, South Korea, Malaysia, Peru, Singapore, Turkey and the United Kingdom. (Wikipedia)

Let us discuss their external environment:

1) Globalization is increasing the opportunities. Hence, it's good for GAP as it will have huge opportunities in various markets especially emerging ones like India, China etc.
2) Technology
GAP will have to contend with:

1. Turbulent markets that change rapidly and unpredictably
2. Highly fragmented 'niche' markets instead of mass markets
3. Ever greater rates of technological innovation in products and processes
4. Shorter product life cycles
5. Growing demand for tailored products - 'mass customization'
6. The delivery of complete 'solutions' to customers, comprising products and services.

And all of the above to be achieved at less cost!
Hence, it needs to reducing the cost and making supply chain more efficient by adapting the latest technologies.

Political Legal regulations

As a large company, GAP will find it tough to handle regulations. One should also be aware of foreign trade regulations, attitude towards foreign companies as it is a multinational company.
Societal Trends
It is of very much importance to retail giant. The factors like lifestyle changes, age distribution of population, life expectancies etc. For example, Gap claims to have altered the fit and style of its jeans to make their basics more attractive. But there is a problem: jeans were fashionable last year, not this.

Industry analysis
Today's business environment is extremely competitive and in economics parlance where perfect competition exists, the profits of the firms operating in that industry will become zero.

However, this is not possible because, firstly no company is a price taker (i.e. no company will operate where profits are zero).

Secondly, they strive to create a competitive advantage to thrive in the competitive scenario. Michael Porter, considered to be one of the foremost gurus' of management, developed the famous five-force model, which influences an industry.
GAP Inc. is the industry leader. But clothing industry is one of the most competitive industries. Another major factor that adds to the industry rivalry is the fact that the entry barriers to restaurant industry are very low. Creating brand awareness and franchisee amongst consumers is the key for long-term survival. Competition is one of the main factors affecting the recent poor performance of Gap Inc. Increased competition and new entrants effectively copying the Gap's historically successful business model are some of the causes of their weak operating results. Some of ...

Solution Summary

This solution answers various questions about a brand builder company.

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