Gap Inc. 1

Gap Inc. – A Portfolio Analysis

Submitted By:Pradeep Sapkota (Gap Inc. - Comprehensive Report)Albi Alikaj (Gap Stores)Kristina Daily (Banana Republic)Sony Byanjankar (Old Navy)Moureen Atieno (Piperlime)

Submitted to: Dr. Tim Wise

April 23, 2008

Gap Inc. 2

Abstract

This paper is an analytical overview of Gap, Incorporated and its portfolio members. Itdescribes the birth of the company and goes on to describe its current position. As part of thedescription process, it includes the four major companies that are part of Gap, Inc. Thesecompanies include Gap, Banana Republic, Old Navy and Piperlime. A Managerial Analysis isincluded herewith that gives an insight into SWOT analysis and Five Forces Analysis of thecompany, and also included is the Strategic Distinction of the company. As per the FinancialAnalysis part, financial tools such as ratio analysis, consolidated financial statement comparison,and stock trend are analyzed to assess the company’s progress. The paper also keeps close track of company’s social, ethical, environmental and managerial aspects in day to day operations.Future expectations and possible diversification or anti-diversification process that thecorporation can practice are also part of the paper. It includes the 9-cell matrix to show theexistence of company and its portfolio. As a conclusion, the paper sums up ideas from a group of five undergraduate students and incorporates them to breakdown the strategic and financialaspect of Gap, Inc.

Gap Inc. 3

Introduction

Gap, Inc. is a leading American specialty apparel retailer based in San Francisco,California. It sells casual apparels, accessories, and other personal care products for men,women, and children. The products of Gap, Inc. include denim, khakis, T-shirts, boxers, casualwear, and others. It is traded in New York Stock Exchange under the symbol GPS. Currently, thecompany boasts approximately 150,000 employees and 3,139 stores all around the world. Gap,Inc. sustains a large number of brands, namely Gap, Old Navy, Banana Republic, Forth &Towne, Piperlime, and others. These different companies are bought by the parent company indifferent times. Started as a general jeans retiling store, Gap, Inc. today has a market value of $13.32 billions. Throughout its history, Gap, Inc. has established itself as a leader in the industry.

Purpose and Values of Gap, Inc.

“Gap Inc. is a brand-builder. We create emotional connections with customers around the worldthrough inspiring product design, unique store experiences and compelling marketing.Our purpose? Simply, to make it easy for you to express your personal style throughout your life.We have more than 150,000 passionate, talented people around the world who help bring this purpose to life for our customers. Across our company and embedded in our culture are keyvalues that guide our success: integrity, respect, open-mindedness, quality and balance.Every day, we honor these values and exemplify our belief in doing business in a sociallyresponsible way.” – www.gapinc.com/public/about