Gap Inc. SWOT Essay Example | Topics and Well Written Essays - 500 words

Gap Inc. SWOT - Essay Example This essay stresses that poor management made the Gap’s core stores its worst competition. Under CEO Paul Pressler, the same products were carried in the Gap, Old Navy and the Banana Republic at different price points. Frustrated consumers stopped going. The Gap failed to keep its brands diversified. Originally Old Navy was the Gap’s bargain basement store. Consumers could go there and find cost effective clothing. Thanks to Pressler, consumers went their to get discount prices on Gap products. This paper makes a conclusion that the Gap’s management continued to create more problems for the company. The Gap started cloning itself by creating the GapMaternity, GapKids, BabyGap and others. This expansion hurt both the individual stores and the entire chain. Each new store requires employees, utilities and rent. The deluge of stores with specialized Gap products cut into the corporation’s profitability. Gap Inc is an international company. Having stores in several countries protects it from local economic downturns, recessions or depressions. The Gap’s competitors provide better customer service and adapts better to the fickle fashion climate. All of these companies are significantly smaller than the Gap and are able to implement changes quicker. The Gap is also vulnerable to US government regulation. China apparel and textile restrictions are in effect until December 31, 2008. A change or increase in these restrictions could raise production costs.