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Introduction
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
Background
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.
The company can improve its channel strategy to enhance its current performance in one way. The company’s website is too reliant in the physical stores. The website has photos of the physical store ostensibly to help customers to connect with it. This idea seems well founded. However, the target market for any company that operates an online shopping system is not local. It transcends geographical boundaries. The company needs to consider how it can make the online shopping experience authentic and complete for customers who may never visit any of its physical stores. A website makes a company a global player. In this regard, the company needs to expand its channel strategy to take into account an expanded potential market. This shift in strategy will increase the sales the company makes.
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
... fashion industry. I believe through all of their marketing tactics and great leadership they will continue to thrive. Although I am not a customer of the brand, I have found great interest in completing this product to explore and expand and broaden my fashion in the brand. The company has had consistent sales increase and if it continues to utilize its business plans wisely, I believe it will continue to increase.
Topman already has more than 309 fashion stores nationwide with another 50 stores outside the United Kingdom division. Topman boasts the worlds largest fashion store in London with over 200,000 shoppers per week, Topman gets twice deliveries per day and 7,000 looks per season. In the year 2006, Topman’s operating profit hits 110 million with its annual sales of 600 million now. It brings a strong brand image of Topman based on the successful achievement to consumer’s mindset. Strong brand image builds confidence and reliability towards Topman’s product. In a nutshell, expending Topman’s market in Vietnam has a strong potential to gain sustainable profit.
With the reputation of an online experience that includes an “erratic nature of delivery time makes us nervous when buying online with a hard deadline,” Kohl 's nearly begs customers to come in and try on the merchandise, then buy somewhere else. Obviously, as in the case with JCPenny and Sears, Kohl 's must follow Target 's lead and immediately overhaul its online shopping experience to lock consumers into both the in-store and online loop of consumption and purchase. While revamping an online platform sounds easy, it is, obviously a difficult task . But one that must happen if Kohl 's is to usurp the JCPenny and sears customers while competing with
... Marketer of the Year. The publisher of Fashion Network Report observed that "they made their name into a brand. They are one of the few retailers that has that luxury." Gap now spends more than half a billion dollars a year on advertising: almost five percent of the company's sales is devoted to selling the attitude that brands the clothes and the people who wear them.
Offering special products is marked under strengths and opportunity; however, long term sustainability must ease the weaknesses and threats posed by competitors and external markets forces. However, they are several other strengths of this company that outweigh the weaknesses but can easily be threatened. Lululemon has a great brand equity and knowledge in the market which has helped them development a customer loyalty. While Lululemon’s strengths is challenging, limiting their products to a special market, with higher than normal prices opens the markets for competitors. Lululemon has several weaknesses, they only offer a specialty product and it mostly aimed to attract woman. The company’s profitability has decreased over the recent years, showing the necessity for Lululemon to sustain its economic growth through product diversification and geographical expansion. Many of their competitors have grown, mostly likely due to their global growth and divarication. If Lululemon would expand their market growth this would open up so much more opportunity for this company to grow. One of their weaknesses is there is the dependence on suppliers. This opens a great opportunity for Lululemon, right now they are heavily relying on suppliers around the world and they do not have their own manufacturing facilities. This is causing the company to spend more money of vendors to
As a citizen of America you have definitely seen a store owned by Gap Inc. such as stores like Old Navy, Gap, Banana Republic, Etc. These stores represent an ionic and proud American store since 1969 which has multiplied since they opened their first store in San Francisco. This marked the first of many stores that would open and take over America. Gap became an icon as it started to multiply as larger variety stores came about. Such stores as Old Navy taking over the lower budget gap clothing to Gap as a middle budget and on to Banana Republic which serves as a high profile high budget Gap Inc. store. Gap Inc. To the eyes of Don and Doris Fisher opening the first store was more than just selling jeans; it was to serve the people and to gain integrity. They also wanted to create a lasting impression to the consumers. This has become the mission statement for Gap Inc. and has stuck with them ever since they opened their first store. Gap has broadened their products from the jeans that Doris and Don could not fit and made to the countless of apparel items and accessories that they offer.
Gap Inc. is a global organization, which provides consumers with retail items such as clothing and accessories. According to the 2016 Fortune 500 list, Gap Inc. is ranked #177. They are also ranked #40 on the annual Fortune Change The World list. The company is comprised of a series of brands (Old Navy, Athleta, Banana Republic, Intermix, Gap), which allows them to appeal to a wide range of consumers. Each brand has a specific style, culture and economic level that they are looking to target. When the brands are seen altogether, the organization is able to show its diversity. Gap Inc. shares many similarities with numerous organizations which obtain large individual market shares.
Adding to overseas sourcing so that lead time could be faster for design and production they could also divide the business up and have different locations for orders and new products to make business faster and
When Gap was founded in 1969, Gap was unique and new. Gap's target customers were younger generations. Gap's hottest seller at the time was its "basic" look, which consisted of signature blue jeans and white cotton t-shirts. Gap founders realized that jeans were becoming popular among the younger generation of customers. Nevertheless, the company recognized that despite Gaps popularity among the youth, there were not enough assortments of jeans in the clothing outlets. Capitalizing on this deficit was merely the next step in expanding. Gap's founders were sure that jeans could be sold through a chain of small stores devoted solely to that product. As Gaps business idea became successful, Gap expanded their line of offering and now Gap offers a range of clothing for men, women, and children. As Gap's business began to boom, Gap also began to expand. Gap Inc. added two new entities to the company, Banana Republic and Old Navy. All three chains have their own target markets. Banana Republic is known for their casual luxury, with high-quality apparel. Banana Republic tailors their store to appeal to the unique market of pleasing the most fashion conscious consumers.
Its unprecedented growth is a direct result of meeting a niche in the clothing market, at a time when The Gap was well positioned to meet the new demands of this "business-casual" trend, introducing other chains to expand its customer base, and aggressive expansion in the global marketplace.
the global leader in online retail. By taking advantage of the opportunities to capture the market
For the past several decades, globalization has been a hot topic and it also anticipates every aspect of the world to connect each other. Likewise, globalization also allows consumers to have more access to catch up with updated fashion. The advantages of globalization bring a new philosophy called fast fashion, which holds quick response time and enhanced design in fashion apparel industry. In this paper, I will deliver By exploring all the aspects of each system, I will conclude the reason why fast fashion becomes the mainstream of the fashion apparel industry, and use one particular brand, Zara, as an example to discover the impact on consumer behavior in detail. Finally I will make some comments on the future of fast fashion and what luxury brands will react to this circumstance……..