Chaerin Lee

CASE 1: THE GAP AND OLD NAVY

Q.1. How do you think the growth of Old Navy will affect the sales in The Gap chain?

The growth of Old Navy will negatively affect the sales in the Gap chain. Customers like
quality good for low price and Old Navy is able to give this satisfaction to its customers by being a
low-end store that offers good quality clothes at affordable prices. In addition, its flagship and
discount stores are able to make a good number of sales thereby negatively affecting the Gap who is
the mother company but not well positioned as it is moderately priced.

Q.2. In the next five years, where should Gap, Inc., place the greatest resources: Old Navy, Gap, or
Banana Republic? Why?

Gap is the mother company and as such owes to be the example that Old Navy and Banana
Republic should follow. Therefore, in the next five years, Gap, Inc., should place is greatest resources
on Gap. Because in the past years, Gap has been able to make good profit and is able to do it again if
and only if it develops brand awareness, repositions itself in the minds of its customers and improves
its 360-advertisement campaign due to the existence of competitors.

Q.3 In what ways should the Gap chain enhance customer appeal and loyalty?

Gap may enhance customer appeal and loyalty by improving on their advertisement
strategies. Gap may also provide superior customer services to the maximum because when a
customer feels well treated and pampered, he/she tends to develop close relationship and loyalty
with the brand. Gap may also need to constantly advertise throughout the year in order to attract
more customers.

CASE 2: ONLINE GROCERS

Q.1. What are the challenges of selling groceries over the internet compared to books and CDs?

Some customers will be reluctant to use the online format because the may not be able to
physically feel and examine the desired product before buying them.

There is lack of variety of products selection provided in online stores compared to

traditional groceries stores

Some consumers would rather go to the stores and purchase whatever they desire
immediately rather than ordering online and waiting for the items to be delivered.

The distribution systems of these businesses are vulnerable to confusing either orders or
roads.

Most customers may be insecure about online transactions since there are hackers that
could steal their credit card information and this damage the perception of online shopping security
and privacy.

Q.2 What unique benefits are offered by each of the online grocers?

Webvan offers a wide variety of products including receipt articles, food preparation and
provides in-depth information. It also offers same day to thirty minutes delivery.
 Peapod offers research services, provides consumer goods companies with valuable
information about consumer behavior, provides consumers with interface displaying extensive
product information.

HomeGrocer offers next day delivery services of all the products it sells and supplies
customers with wireless technology to communicate with delivery service people.

Sreamline provides services like film processing and delivers on weekly basis

Q.3. What are the strategic advantages each of the four online supermarkets are attempting to
develop?

Webvan looks forward to being the leading retailer of same day delivery for consumer
products by building brand awareness and market share.

Peapod is attempting to strive success in providing superior customer service, create

membership, increase volume and improve brand identity.

HomeGrocer plans to utilize software for efficient packaging routine to rapidly expand
nationally into several metropolitan areas.

Streamline seeks to expand nationally into 20 high potential markets and aspires to become
the leading national direct supplier of groceries and other goods and services replicating its business
market and increasing revenue.

CASE 3: MAX AND THE TARDY TRAINEE

Q.1. What should Max do, how and why?

Max should treat all the trainees fairly. If he is tough with the other trainees, he ought to be
thought with Sue as well and if he is smooth and understanding with Sue, he oughts be be so
with other employees. Because Sue had had an excuse for her absences about having kids. She
got cautioned before and agreed try to do better. If she has really tried to do better, then a little
compassion will not be bad. On the other hand, if she has not done her best to try to do better
as she promised, then she should be evaluated as the other trainees will.