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GAP Sample Case Analysis Part 2

The document discusses Gap Inc.'s strategies using various matrices including SWOT, BCG, Grand, and SPACE. It analyzes Gap's internal factors and external opportunities and threats. It recommends strategies like offering clothing for baby boomers, producing plus sizes, and creating a catalog to enhance marketing.

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VirgileOrsot
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© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
1K views

GAP Sample Case Analysis Part 2

The document discusses Gap Inc.'s strategies using various matrices including SWOT, BCG, Grand, and SPACE. It analyzes Gap's internal factors and external opportunities and threats. It recommends strategies like offering clothing for baby boomers, producing plus sizes, and creating a catalog to enhance marketing.

Uploaded by

VirgileOrsot
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SWOT Matrix

SO Strategy
Gap Inc. can make big, odd, and more tailored
clothing offered on their website by taking
advantage of their e-commerce and easy online
purchasing (S14, O5).

WO Strategy
GAP Inc. should hire a CEO that has a wellrounded knowledge of clothing trends and
incorporates better quality clothing in order to
target baby boomers and the expected
increase in population (W8, O7, O8).

SWOT Matrix (cont)


ST Strategy
Create advertising campaign to gain more
effective marketing and advertising that will
utilize the new store credit card with more
celebrities that will increase customer
patronage (S7, S8, T5).

WT Strategy
Find a CEO that has more well-rounded
experience in the apparel industry to design
more attractive clothing to compete in the
industry(W8, T6).

IFE = 2.85
EFE = 2.91

High

IE Matrix
The IFE Total Weighted Score
Strong
3.0 to 4.0

Average
2.0 to 2.99

Weak
1.0 to 1.99

II

III

IV

VI

VII

VIII

IX

3.0 to 3.99

Medium
The EFE Total
Weighted Score

2.0 to 2.99

Low
1.0 to 1.99

IFE = 2.85
EFE = 2.91

High

IE Matrix
The IFE Total Weighted Score
Strong
3.0 to 4.0

Average
2.0 to 2.99

Weak
1.0 to 1.99

II

III

IV

VI

VII

VIII

IX

3.0 to 3.99

Medium
The EFE Total
Weighted Score

2.0 to 2.99

Low
1.0 to 1.99

IE Matrix (cont)
Strategies

Promote more by creating a catalog


for Gap Inc. stores, similar to what
Abercrombie & Fitch has, to enhance
marketing and capture interest from
consumers
Produce a line of big and tall clothing

$
15,943,000,000.00
$
17,404,637,000.00
high
= 0.916020254
high

Industr
y Sales
Growth
Rate

BCG Matrix
low
Relative Market Share Position

BCG Matrix (cont)


Since baby boomers have a lot of
disposable income, offer a line of
clothing geared toward baby
boomers

Grand Strategy Matrix


Industry sales growth
rate = negative
QuadrantII

RapidMarketGrowth
QuadrantI

Weak
Competitive
Position

Strong
Competitive
Position

QuadrantIII

QuadrantIV
SlowMarketGrowth

Grand Strategy Matrix (cont)


Strategies

Create a joint venture with an


European company by developing
stores in Europe to capture the
market of teens demanding
American style clothing

SPACE Matrix
Financial Position (FP)
Return on Assets (ROA)
Leverage
Net Income
Brand Name
Inventory Turnover

Stability Position (SP)


4 Rate of Inflation
6 Technological Changes
3 Price Elasticity of Demand
5 Competitive Pressure
5 Barriers to Entry into Market

Financial Position (FP) Average 4.6 Stability Position (SP) Average


Competitive Position (CP)
Market Share
Product Quality
Customer Loyalty
Technological know-how
Control over Suppliers and Distributors

-3
-3
-2
-2
-2

Competitive Position (CP) Average


-2.4

Industry Position (IP)


Growth Potential
Financial Stability
Ease of Entry into Market
Resource Utilization
Profit Potential
Industry Position (IP) Average

x-axis: -2.4 + 4.6 = 2.2


y-axis: 4.6 + -2.6 = 2.0

-2
-2
-2
-5
-2
-2.6
5
5
3
5
5
4.6

SPACE Matrix (cont)


FP

Conservative

Aggressive

6
5
4
3
2
1
CP

1
2
3
4
5
6
Defensive

SP

Competitive

IP

SPACE Matrix (cont)


Strategies

Utilize GAPs financial position and the


industry stability to aggressively attract
baby boomers
Since baby boomers have a lot of disposable
income, offer a line of clothing geared toward
baby boomers and use promotions, like
coupons via the mail, to make them more
aware of the new clothing line
Gap Inc. can make the website user friendly
in order to ease the use for baby boomers

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