The central purpose of writing this Case Study Analyses on The Gap, Inc. is to identify and isolate key issues and their underlying implications and offer practical solutions and plans for implementing those solutions.
This will be done by highlighting the social influences that influence the Gap, Inc. marketing strategy, segmentation strategies with respect to distinct retail markets, and positioning strategies that can be used or changed in a retail setting, as requested in the course assignment (as cited in the course module).
History, Development, and Growth
In 1969, Don Fisher opened the first Gap store in direct response to frustrations he was feeling as an inconvenienced customer. His objective was to provide a classic line of clothing in a wide variety of fits and styles and make the shopping experience easy and convenient for the customer. (www.gapinc.com).
Its unprecedented growth is a direct result of meeting a niche in the clothing market, at a time when The Gap was well positioned to meet the new demands of this "business-casual" trend, introducing other chains to expand its customer base, and aggressive expansion in the global marketplace.
Today, Gap, inc. is recognized as one of the world's largest specialty retailers. It. operates four of the most well known clothing brands on the planet: Gap, Banana Republic, Old Navy, and Forth & Towne. (www.gapinc.com).
Internal Strengths and Weaknesses
The Gap was bound for success early on because the utility of its product mix (Etzel, Stanton, Walker, 2004) was perfect for a specific market segment. The Gap offered a classic line of khaki pants and cotton button-down shirts (p.200), perfect for the new "business-casual" look, and gained great brand recognition as a result.
Not long after, in 1976, The Gap went public. With the new wealth the company was enjoying, it further strengthened its share in the market by continuing to expand its product mix and add new stores across the world (Etzel et.al., p.200).
Now, with over 3000 stores globally, the Gap name is easily recognized across the world for its simple clothing styles. By interpreting fashion trends and finding ways to present tried and true items, the Gap is able to sell "inexpensive staples that look good", according to Paul Pressler, CEO ((Stone, B., as cited in Newsweek, 2003).
With product utility, a product mix that met the needs of its target audience, brand name recognition, and global influence as its core strengths, the Gap, Inc. was in good position to grow through expansion.
Unfortunately, the great strength previously mentioned became one of its greatest weaknesses. Former CEO, Mickey Drexler, in response to his accurate prediction of the khaki craze of the 90's, decided to make plans for an aggressive expansion, and by 2001 there were over 4,100 stores across the world (Etzel, et.al., 2004).
When sales began to decline and other retailers caught on to the Gap's idea of...