Swot Analysis Of Gap In China

2309 Words5 Pages

In this paper, we will analysis the current operating conditions for The GAP Inc. in Chinese market base on business model canvas. New business model will also be provided after our discussion. The below are the major parts of this essay.
Part I:
 Explanation of current business model for GAP in China
 Show the linkages among every block and state the issues
Part II:
 Using SWOT analysis to discuss the internal issues for GAP in China
 Using Porter’s Five Forces to analysis the external influence on GAP’s business
Part III:
 A Multiple-Epicenter Model will be recommended
 Deeply describe the linkages in-between the new business model.
Analyzing Tools
Business Model Canvas, SWOT analysis, Porter’s Five Forces
The period success of GAP had taken a turn since 2002. Profits and revenue continued to decline. From 2008-2010, just in U.S, 6000 retail stores had been closed because of the financial recession; during this period, Gap closed more than fifty of its 3251 stores. The annual income of GAP had also been successively overpassed by ZARA in 2008 and H&M in 2009, which dropped down to the third in fashion industry (Liu, 2013). And continually, the company’s net income declined to $833 million in 2011, which is 17% less than it earned in 2010 (Exhibit 1) (Ciasullo, Blauvelt, & Lambert, 2012). In U.S, the largest market for GAP, the elder generation who bought Gap products in 1990s had gradually left Gap for different requirements with the increasing age, and Gap was unable to keep its success with the younger generation. In addition, although Chinese market currently has been the second largest market for GAP Inc., they still operate the GAP brand as a follower without any distinct positioning str...

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.... The company is announcing its approach to start Old Navy franchise in 2014 in key international markets. Additionally, it will consider building upon its success with Gap in China by adding company-operated Old Navy and Banana Republic stores to this important market.
In addition to Gap Inc.’s competitive advantage given its multiple brand, channel and geography model, the company plans to build its online success by delivering an industry-leading world class platform for consumers as the retail landscape continues to merge online and in-store shopping experiences. This end-to-end system, which includes capabilities such as ship-from-store, find-in-store and reserve-in-store, is designed to leverage Gap Inc. channels and resources to drive store traffic and conversion, while meeting the needs of customers who increasingly demand an integrated shopping experience.

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