Stephany Montoya

A00326008

GAP INC. CASE SOLUTION

1- Clothing Stores industry macro-environment

- Economic conditions: Costumer prchaising power,

- Political: In the long term, GAP inc, can be affected in terms of its
usefulness, since
corruption factors allow analyzing the risks that may exist.

- Technological factors: The fashion industry be influenced to

costumers, for that reason the internet and the e-commerce have
facilities the information brands from the customer from the retailed.

- Environmental factors: They have become important due to the

increasing scarcity of raw materials, pollution, health hazards, carbon
footprint targets set by governments to mitigate climate change.

What is competition like in the family fashion industry?

- Buyer Power: important force is the ability of buyers, who can choose to
push down prices in the case of the fashion industry, buyer power is a
relatively large force.

- Bargaining power of suppliers: The industry of family clothing is an

interesting one when it comes to analyzing through the intensity of
competitive rivalry. There are large numbers of retailers who sell very
similar products, but there’s also the concept of brands, which allow
some companies to sell apparel for ridiculous rates. Nowadays there is
little innovation in this space, so the market is quickly becoming
saturated with very similar products.

- Rivalry among Competing Sellers: rivalry can surface from many

different forms such as marketing tactics, sales promotions, heavy
advertising, as well as price cutting.
 - Threat of Substitute Products: When a consumer can view two
products of the varying industries as substitutes a threat exists in the
industry and must be considered.

2-

COMPANY SALES LOCATIONS TECHNOLOGY

INDITEX GROUP 26,3 3659 Medium
GAP INC 15,5 7013 High
ABERCROMBIE & FITCH 3,3 898 Medium

TECHNOLOGY

HIGH
INDITEX
GROUP

MEDIUM
ABERCOMBIE
& FITCH

GAP INC

LOW

LOCATIONS FEW LOCATIONS MANY LOCATIONS INTERNATIONAL LOCATIONS

3- What do you see as the key success factors in the market for family
clothing?

- Good prices.
- Big discounts
- The marketing and publicity investment
- The variety of products that they have in the stores and in the web pages
4- What key factors may determine the success of GAP Inc?

- Diversification of product offerings through their various brands.

- Broad product lines
- Accessible prices for customers
- The revamped E commerce orders faster with greater accuracy.

5- What recommendations would you make to GAP Inc. To improve its

competitiveness?

I would recommend to the company that it become a more fashionable

brand since on some occasions it is uninformed about current fashion and
this causes that consumers prefer other companies.