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Strategy Business Models

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Gap, Inc. (Gap) became a household name in the 1990s through its clever advertising and merchandising strategy that made it largely responsible for making the jeans-and-t-shirt style ubiquitous during that decade. In this CLA, you will evaluate the pros and cons of Gap’s strategy, do a SWOT analysis, identify the strategic issues that Gap management needs to address, and propose action recommendations.
To prepare you for this CLA, read the Gap Case on page 297. Then, review the following:
A 1:38-minute 2015 video concerning “Why Is Gap Closing 175 Stores in North America,”
A 2:01-minute 2015 video titled “Gap Inc. to Open Store in India”
Your assignment: Gap has employed you as a consultant to assess the company’s overall situation, identify the strategic issues that management needs to address, and recommend a set of actions to improve the company’s future prospects.
1. What are the strategically relevant components of the U.S. Retail, Family Clothing Stores industry macroenvironment?
2. What is competition like in the family fashion industry? Which of the five competitive forces is strongest? Which is the weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?
3. What does your strategic group map of the family clothing retail industry look like? Is Gap Inc. well positioned? Why or why or why not?
4. What do you see as the key success factors in the market for family clothing?
5. What key factors may determine the success of Gap Inc.?
6. What recommendations would you make to Gap Inc. to improve its competitiveness in the market while mitigating any current and future risks?

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