GAP Inc. Analysis Essay

GAP INC. Analysis

GAP, Inc. is a world-wide retail company that operates as dress in supplying accoutrements, personal attention merchandises for work forces, adult females and kids under its trade names ; Gap, Banana Republic, Old Navy, Piperlime, Athleta and Intermix trade names. The company besides provides pregnancy dress, athleticss and fittingness accoutrements every bit good as insouciant wear and luxury merchandises ( Businessweek.com, 2014 ) .

It was founded in 1969 by Donald and Doris Fisher. This was because ; Donald could non happen a fitting brace of denims. Therefore, Fisher decided that she instead sell denims alternatively of purchasing them. From so on, the GAP retail saw its growing, enlargement every bit good as planetary laterality ( Farfan, 2013 ) . From this, it is apparent that the chief end and intent of the company is to supply merchandises that are in line with the gustatory sensations and penchants of its clients. In between the old ages 2004 and 2011, the company lost focal point of its chief end and focused more on its fiscal ends which led to the down autumn of the company. This was characterized by the diminution in stock monetary values, negative net income borders and autumn in its popularity.

After designation of how it had lost focal point from its ends, the company has since made a enormous betterment by switching its focal point from fiscal to client based satisfaction, which has seen it come back to the top once more. Presently, the company’s net gross revenues have increased by 10 % to $ 1.33 billion against $ 1.21 billion last twelvemonth. The company whose central office is in San Francisco, California, has besides seen the debut of a new member to its direction squad. Marissa Webb has been announced by the Banana Republic, as the Creative Director and Executive Vice President of Design which was effectual from April 28, 2014 ( Businessweek.com, 2014 ) .The company operates 3,100 shops every bit good as 350 franchise shops in 90 states. Through company-operated shops, franchise shops, e-commerce sites and catalogs, the company is able to supply its merchandises to 1000000s of people worldwide.

Swot Analysis

  1. Goals and objectives-this company’s chief end is to fulfill the customer’s gustatory sensations and penchants. Therefore, this forces the company to maintain up with current tendencies in the society devising this its chief aim. For case, since the company retails apparels as one of its merchandises, the company has to supply apparels that are in line with the current manner tendency.
  2. Strengths-planetary trade name acknowledgment due to its worldwide based company-operated shops every bit good as franchise shops. Besides proviso of its multiple trade names such as Gap, old naval forces, banana democracy, piperlime and athleta have seen the popularity of the company grow and expanded the company’s client and seller base.
  3. Weaknesses-for a big company as GAP, the chief failing that it faces would hold to be control of the company since its huge enlargement has led to the outgrowth of assorted subdivisions across the universe. Therefore, it becomes hard for direction to pull off the subdivisions.
  4. Opportunities-the company has different persons working for it who can assist the company maintain in line with the current emerging tendencies. Besides the debut of e-commerce services in the company helps hike entire gross revenues of the company due to the debut of web based shops.
  5. Threats-a large company such as GAP faces many menaces in its twenty-four hours to twenty-four hours operations. Some of these challenges include ;
  1. Keeping up with current emerging tendencies is hard due to alterations in customer’s gustatory sensations and penchants every bit good as emerging tendencies in manner.
  2. The company has grown to a degree where it is hard for top directors to command the assorted subdivisions every bit good as sections of the company which are based worldwide.
  3. Execution of new and originative thoughts is slow due to the immense size of the company.
  4. Emergence of extremely competitory dress retail industries such as Abercrombie and Fitch.

Gap analysis of Gap Inc.

Measure of possible and existent public presentation of a company or the step of optimal allotment of inputs compared to the current allotment is what is referred to as spread analysis ( Jennings, 2000 ) .

Gap Inc. is one of the major international retail companies that face many challenges in order to stay at the top in the retail industry. In malice of attempts put in by direction every bit good as staff members to accomplish this aim, the company has spreads within its system that decelerate down execution of steps to recognize this aim. Some of these spreads include ;

  1. Opening of new shops in Europe and China. The company has programs in opening mercantile establishment shops in Asia and Europe. Plans are underway to open its first shop in Italy and China. This is an chance for the enlargement of its immense client and seller base but it is every bit good a spread since Asia and Europe are parts with different civilizations and beliefs from those of America. Therefore, in order for employees to come into footings with the conditions for working within the Gap Inc. regulations and ordinances, they will necessitate preparation ( Marston & A ; Modarres, 2002 ) .
  2. Communication between the employees and direction every bit good as between the company and its clients. The employees require communicating preparation to better their communicating accomplishments. This will assist them to hold better dealingss with senior most directors every bit good as amongst themselves such that in instance of exigency or new moneymaking thoughts, immediate action is taken. This will besides better and do bringing of client attention services more efficient.
  3. Over trust on 3rd party sellers. Most of the ware is dependent on 3rd parties outside the US. This causes hold in supplies, deficit of merchandises every bit good as addition in costs such as production costs, storage costs and supply costs. These 3rd party sellers require preparation to enable them have the ability to calculate the sum of ware they require for a certain period to avoid assorted cost associated with cargo and storage.
  4. Keeping up with tendencies in the market is hard and this is seen during the ruin of the company between the old ages 2004 and 2011. At the clip it was declared that the company’s ware was non appealing to ladies. In order to maintain up with emerging tendencies, the company can travel into partnership with an art school and advance some of the merchandises from the school under its trade names. This encourages outgrowth of new merchandises and the company could acquire new talented interior decorators.

Training Needs Assessment

Due to the immense size of the company, for the demands assessment the best methods to utilize would be the usage of interviews and questionnaires. This is because, non all employees or directors can be interviewed therefore keeping interviews with different subdivision directors would be appropriate. The interviews would be effectual through the usage of picture naming via the cyberspace to be able to interview subdivision directors from the different subdivisions worldwide.

The usage of the questionnaire would be most appropriate to direct to clients particularly those utilizing the online based shops. For those traveling to the existent shops could be provided with the questionnaire during purchase of the ware or instead they could be given a web site nexus where they could rate the public presentation and services offered by the company ( Royse, 2009 ) .

For the interview, inquiries asked are about ;

  1. What they think about how rivals run their companies
  2. Their current gross revenues schemes
  3. Their direction patterns in footings of communicating with the employees, retail merchants every bit good as clients
  4. What are the challenges they are confronting
  5. What ought to be done for the company to maintain in line with emerging tendencies.

For the questionnaire, the clients are required to rate the company on the followers ;

  1. The efficiency of the client attention services provided
  2. Response of the company to issues that arise in instance a client has an issue with the merchandise purchased
  3. For those utilizing on-line based shops, how efficient are the bringing services of the company after doing of an order.
  4. Is the client satisfied with the quality of the merchandises offered by the assorted trade names of the company
  5. Remarks on what needs to be implemented or avoided by the company.

The efficiency of this needs appraisal would be realized if the consequences are taken into consideration and the alterations and executions made with immediate consequence. This will assist the company addition efficiency of the services they offer every bit good as assist them maintain in line with the emerging tendencies.

Decision

The preparation plan that would be recommended for this company would be team edifice. This is because, squad edifice brings together employees to work as a unit and besides enhances communicating amongst the employees. It besides helps employees every bit good as direction settee feuds among them. Besides a client service preparation would be required to better efficiency of client attention service bringing.

Mentions

Businessweek.com, . ( 2014 ) . GAP INC/THE ( GAP: German Stock Exchange ) : Stock Quote & A ; Company Profile – Businessweek. Retrieved 14 May 2014, from hypertext transfer protocol: //investing.businessweek.com/research/stocks/snapshot/snapshot.asp? ticker=GAP: GR

Farfan, B. ( 2013 ) . Behind Gap Inc. Earnings Report and Performance Success – How Glenn Murphy Led The Gap From Big Store Closings Back to Retail Relevance In Two Old ages ( GPS, JCP, SHLD, RSH ) .About.com Retail Industry. Retrieved 14 May 2014, from hypertext transfer protocol: //retailindustry.about.com/b/2013/08/22/behind-gap-inc-earnings-report-and-performance-success-how-glenn-murphy-led-the-gap-from-big-store-closings-back-to-retail-relevance-in-two-years-gps-jcp-shld-rsh.htm

Jennings, M. ( 2000 ) . Gap analysis: constructs, methods, and recent results* .Landscape Ecology,15( 1 ) , 5 — 20.

Marston, S. , & A ; Modarres, A. ( 2002 ) . Flexible retailing: Gap Inc. and the multiple infinites of shopping in the United States.Tijdschrift Voor Economische En Sociale Geografie,93( 1 ) , 83 — 99.

Royse, D. ( 2009 ) .Needs appraisal( 1st ed. ) . New York: Oxford University Press.