- What products do your chosen company and others in its industry sell?
- How do your company and others in the industry make and sell their products?
- What are the markets for workers and other productive inputs (materials, equipment, etc.) like?
- What economic forces are currently acting on the company and the industry? What geographic forces? What legal/regulatory forces? What technological forces?
- How do the company and the industry measure their operations non-financially?
- What trends in the industry are evident?
- What else is unique about your company and its industry or its products?
GAP Inc is an American multinational company that has been engaged in the clothing and accessories retailer. The company was founded in the year 1969 and has its headquarters in California. The company is majorly functioning in the USA and has nearly two-third of its stores operating in the country itself. The company employs more than one lakh employees all across the world.
1. The GAP Inc is a retail chains, having its stores in many countries across the world. It is retail Apparel Company. The company sells its apparels through the help of a retail chain. The apparel in the case of GAP Inc includes clothes, shoes, belt and all the other accessories elated to clothing. The company is also engaged in supplying the personal care products for women, men and even for the children. The company is providing these products under the Gap, Banana Republic, Old Navy, Piper Lime, Athleta, and Intermix brands. The company has specific products under its different brands. The company through the help of its brand currently is selling shoes, hand bags and even jewellery to the customers.
The other companies in the clothing industry sell the similar products. There might be some difference in terms of prices which is being backed up by brand name and quality of the products.
2. The GAP Inc and other companies in the clothing industry sell the product through the help of promotional techniques which includes providing discount options to the clients plus through other promotional offers. The GAP Inc is marketing its products on television and magazines. The advertisement cost in GAP Inc has crossed the mark of $600 m in the year 2014. Similar to GAP Inc, the other companies in the industry are following the similar technique to popularise their products.
3. GAP Inc is one of the fastest growing clothing retail chains in the USA. It has spread its legs all across the globe. The company employs more than 1, 40,000 workers. The company has a combination of both full time and part time workers. The company also hires seasonal employees as well during the peak periods as well. The company, in the case of employees, has taken considerable steps to retain the skilled labour force. The management believes that their success depends on the degree of the continued contributions of its key employees.
The company is carrying out the manufacturing activities in its premises. The company has its fixed raw material supplier that provides quality raw material to the GAP Inc. The company has used the basic vendor selection process to select its vendors.
4. The economic forces that affected the GAP Inc are as follows:
• Workforce of the company
The Geographical forces are as follows:
- Wage rate of the employees
- Working hours of the employees
- Exchange rate prevailing in the country
- The Geographical forces are as follows:
The Legal forces are as follows:
- The policy farmers
- The regulatory authorities working in or outside the company.
- The indirect tax authorities
The technological forces are as follows:
- Latest technology provider
- Annual maintenance services provider
5. Generally, the performance of the company is measured in financial terms. However, in order to sustain the current performance, it is important that the company operates considering the non-financial benefits as well. The non-financial benefits in case of GAP Inc include the feedback received from the customers who are currently using the products of the company. The confidence level in the products of the company in the eyes of the consumers helps in meeting the long-term financial goal of the management.
Further, the satisfaction level of the internal workforce is also important for the growth of the company and the same can be used to measure the performance of the company. The GAP Inc, in the case of employees, has taken considerable steps to retain the skilled labour force. The management believes that their success depends on the degree of the continued contributions of its key employees.
Meeting the corporate social responsibility is another platform that is being used to judge the performance levels of the company, none financially. The clothing industry is working considerably in this area.
Another supply quality product at reasonable price range is also a big non-financial factor. The GAP Inc has multiple brands which have multiple products which vary in quality depending on the prices it charges for the identical products from the customers.
6. The fashion industry is changing very frequently in today world. The company which satisfies the customer’s fashion needs will grow and the other will takes time to adopt itself, will vanish in quick times. With the growing population and per capita income of the individual, the clothing industry is expected to grow in the future. The fashion industry in the coming future is likely to undertake major changes and the clothing companies like GAP Inc are likely to adapt to these changes for its future growth.
7. The GAP Inc is a retail chains, having its stores in many countries across the world. It is retail Apparel Company. The company sells its apparels through the help of a retail chain. The company is operating through the help of its different brands which has multiples products with multiple price range, making its products affordable for all income grades. The GAP Inc is providing these products under the Gap, Banana Republic, Old Navy, Piper Lime, Athleta, and Intermix brands.
This is something unique about the company.
GAP Inc, Back ground of the company, Viewed on 21st Jan 2016, https://www.gapinc.com/content/csr/html/environment/product.html
Annual report of GAP Inc, 2014, Viewed on 21st Jan 2016, https://www.gapinc.com/content/attachments/gapinc/GPS%202014%20Annual%20Report.pdf
Forbes, 2013, This Is What Fashion Will Look Like In Five Years, Viewed on 21st Jan 2016, https://www.forbes.com/sites/sethporges/2013/02/11/this-is-what-fashion-will-look-like-in-five-years/#2715e4857a0b61ce44562c65
Background information about GAP Inc_ https://www.cengage.com/management/webtutor/ireland3e/cases/gap.pdf
Hoovers.com _ Information about GAP Inc. _ https://www.hoovers.com/company-information/cs/company-profile.THE_GAP_INC.5b8839480138c8d6.html