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GAPMarket Size and Proposal
TheGap is one of the world’s leading apparel retailers that sellapparel and accessories brands anchored in American casual style. Itsells denim brands, classic white shirts, khakis’ and othermust-have brands that are well established in the accessories designsector. The retailer has a large network in North America with itsstores being over two thousand country wide. It also has many storesoperating in other countries. The retailer has been closing down someof its retailer stores in U.S due to under performance and debts.These stores are being closed as a result of over expansion in thelate 19990’s. The success of any apparel merchandise lies in itsability to satisfy their customers. The Gap retailer experiences thechallenge of lead time decisions on designs which makes their fashiontrends come late into the market after their competitor’s. They arealways trailing and poorly reacting to markets preferences with time.The Gap retailing unit has established an online shopping platform tohelp it keep up with the market trends.
Theprimary business for the Gap apparel retailers is the sale ofaccessories and clothing. The company specialized on selling andlater making men’s jeans at the expense of Levi’s trademark.Lately the company provides clothing on men, women, and even kids.The Gap’s key strategic initiatives include seamless inventoriesand responsive supply chain strategy. They pertains timely matchingof product supply across the markets, product demand testing, andin-season rapid response to demand. They have goals of expansion toAsian countries, increase their international outlet stores,franchise expansion, and increase their online sales internationally.Their most income generating merchandise is net sales from theiraccessories and clothing.
Thecompany expects to increase its revenue by opening additional Athletastores to increase sales, increase their franchises in the year 2015,and increase their shares and other financing sources. The have alsoallowed for one billion shares repurchase aimed at increasing theirrevenues over the year 2015. In addition, the company has commercialcommitments in terms of surety bonds, letters of credit, and bankguarantees. The parent company of the Gap brand is the Gap Inc. aleading retailer and apparel merchandise in the U.S. other retailerswho are part of the Gap Inc. include:
The Banana Republic, a lifestyle brand that delivers modern convertible styles for both men and women accessories
The Old Navy, which aims at giving a fun and energizing shopping environment to all its customers
Piperlime, which offers the leading brands of shoes and handbags
Athleta, a fitness and lifestyle brand that offers women’s apparel solutions, and
Intermix, which concentrates on all current designs and trends in the fashion market.
Themain competitors to the Gap Brand and the Gap Inc. are the Dow JonesU.S. Apparel Retailers and the S&P 500 companies. They alsoexperience competitive forces for their international operations byeither global or local markets depending on their locality. The maincategorized competitors who they regard as a threat are Abercrombie &Fitch Company, Aeropostale Inc., and American Eagle Outfitters, Inc.among others. The Gap’s competitive strength is the supplementretailers it operates along with. The Banana Republic Targets thehigh end incomers while the Old Navy brands targets the low endincomers. This leaves the Gap to target the middle-income class yetthe parent company has access to all the market variants.
THE GAP, INC. Annual report For the fiscal year ended January 31, 2015. 10-k Annual Report. Washington, D.C.: UNITED STATES SECURITIES AND EXCHANGE COMMISSION, 2915. Online. 13 April 2015. <http://www.sec.gov/Archives/edgar/data/39911/000003991115000101/fy201410-k.htm>.