External and Industry Analysis of Gap, Inc.

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EXTERNAL ANALYSIS OF GAP, INC.

I need assistance with the external analysis of GAP, Inc. Specifically, the the factors of the Macro environment, threats and opportunities, and an industry analysis using Porter's Five Forces Model.

I am required to write a two page report on this subject.

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 ...