Gap Swot Analysis

Company Overview

The Gap, Inc. (Gap) is a leading global specialty retailer. It offers clothing, accessories and personal care products for people of all age groups including men, women, children and babies. The companhy offers its products under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. The product line of the company consists of casual apparel such as denim, khakis and T-shirts; footwear, personal care products, accessories and fashion apparel. The company distributes its products through its retail stores, internet and catalog stores. The company is also operates wholesale and franchisee businesses.

THE

STRENGTHS WEAKNESS

• Improved Financials

• Strong Product Portfolio

• Global Brand Recognition

• Wide Geographic Presence

• Franchising opportunities

• New stores openings • Dependency on outside vendors for its goods

• Asser under utilization

• Decreased return on assets and equity

• Long term debt may hinder growth

• Weak global presence

• Depending on older consumers

• Product Recall

• Less attractive in trendy clothing

• Emerging Markets

• Growing Opportunities in E-Retailing

• Expansion into New Markets – Plus size women’s apparel

• Opportunity for growth in Asia

• Growth opportunity for GapKids • Changing Fashion Trends and

• Pricing Pressure

• Growing Counterfeit Products

• Competitive Environment

• Increase labour cost

• Slow economic recovery

OPPORTUNITIES THREATS

SWOT findings:

Gap’s strengths include a strong global presence in the United States and abroad and experienced strong profit margins that could be attributed to the 3068 company owned stores and 178 franchise stores. Gap has also shown an increasing presence in the ecommerce market.

Wide Geographic Presence protects it from the risk of operating in a single economy. Gap operates 3,082 stores across North America, Europe and Asia. In addition it has also entered into a number of franchising agreements to distribute...