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SWOT Analysis of Gap Incorporated Essay

SWOT Analysis of Gap Incorporated

Gap’s innovative response to the needs of the indecisive society has created a large impact on the company’s ability to raise twice the amount of income as compared to other rising fashion industries (strength). Given the fact that they possess the creative prudence detailed by their marketing department in fashion, style and trend, plus, being the pioneer of “personalized” wardrobes and other sort of the like, it is not questionable how they got the billion dollar sales income from the masses — capturing the hearts of consumers.

However, in such regard, what they seemingly failed to take in to anticipation was that time-series forecasting is an important factor in business, thus, their ability in becoming flexible of various environmental changes and societal influences dragged them down (weakness). It was a good thing that they grabbed the opportunity of venturing into “branching outlets” to widen the scope of their production (Williamson et al. , 2003). With such, they were able to offer numerous kinds of commodities, hence harmoniously taking a positive impact from the society, an intellectual scheme in business (opportunity).

On the contrary, due to slight mishap and over confidence over their employees and their grandeur, they failed in the perception that

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the “taste” of the masses will eventually change in time due to industrialization and the advent of globalization (Easey, 2001), which apparently cost them to lose track in fame (threat). • Five Forces of External Environment Change Marketing studies show that “fashion” as defined, is a sensitive trend occurring in the society which is either manifested by industrialization, or by influence of media and other factors surfacing in human behavior.

As categorized, opportunities and threats, which is basically a portrayal of external change is the scale fall on the line of five forces of threat, namely, (1) threat of new entrants (rising companies of the same product), (2) competitive rivalry (competition in sales, in fame and in production level), (3) threat of substitution (shifting of style and perspective does not give an assurance that it will be effective), (4) power of buyers (upon knowing the fact that the society always change their “taste”) and (5) power of suppliers (the fact that there is competition, resources is most likely to halt leading to scarcity).

All of which serve as the grounds for the success or the failure of a certain commodity/product. Moreover, given the fact that the main subject and prospects for the purpose of venturing into business are the masses, it most likely true that customer satisfaction is a pious must. In simple logic, selling does not only denote giving consumers the idea that a product is sold on the market, but rather dwelling on the array of perception that consumers are after good quality, cheaper price, durable and “line-with-the-trend” (Easey, 2001).

The above mentioned threats then takes place, the world of business is a vortex of intrinsic and extrinsic challenges which requires critical analysis on what consumers need and logical wit to determine the flexibility of the product. That is the main reason why survey and other forms of observation in the society are needed to achieve managerial goals and jive along with the “change of taste” of the masses. Media, advertising, campaigns and other sorts of broadcasting methods are effective tools in obtaining consumer desires (Williamson et al. , 2003). Media power eats a large piece on the arena of influence.

Its weight may change the “trend” as well as the discernment of the society over what is “hot” and what is “already not”. • Options for Growth and Strategic Alliances Since that there are threats lurking in the walls of marketing, the need of aiding the threats with opportunities are considerably taken as neutralizing features for the dilemma. In the case of Gap’s immediate downfall which took occurrence only within two years after 30 years of thriving to be on top, the company’s strategy for growth is characterized as a concentrated defense on threat, thus, the defenses were consequently rough in that sense (GAP, 2007).

They have undermined the possibility that branching out may lead to “betrayal” from the lower level, and that venturing into ‘firms’ in widening the market regime only created a massive disgrace over the company’s credibility (GAP, 2007). With the use of venturing into new markets with new products and services, they shall be able to expand their scope and their production. With this, they will need to further their market research to be able to come up with suitable state of managerial and marketing strategies fir for the immediate period.

Aside from that, they must increase their scale of production by compromising a little amount of their income for technological advancements so as to double the level of generation (Williamson et al. , 2003). Getting better prices in the field of bulk purchasing is also a proficient step, given that they shall be able to balance their profits in the scale of enormity. Lastly, accelerating research and development through the imposition of costs and other forms of resources shall also give Gap the breakthrough in enhancing their capacity in putting up the pieces of consumer satisfaction and organizational benefit.

The initiation of globalization has formidably coerced business enthusiast not to swim in the ocean of conventionality but rather on learning smart tricks to reaching goals.


(2007) About Gap Inc. San Francisco, Gap Incorporated. EASEY, M. (2001) Fashion Marketing, Malden USA, Blackwell Publishers. WILLIAMSON, D. , COOKE, P. , JENKINS, W. & MORETON, K. M. (2003) Strategic Management and Business Analysis, New York, Butterworth-Heinemann.

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