Gap Inc.: Has the Retailer Lost Its Style? Essay Example

align="justify">Thirdly, the brand Old Navy includes products for teenagers in their oratorio with a great price/quality value.

The last and new brand is Prelims which offers more than 100 footwear brands on their online shoe shop. 1 _ International Summer School, Spokane, Poland Group Members: Alexandra, Andrea, Roding & Sylvia 2. Situation Analysis In the second part, the current market situation of Gap Inc. Will be identified. The first chapter, analyses the Micromanagement and external environmental pressures that challenge the clothing market.

First of all, demographical change, as aging In society, changes the demand side.

Secondly, rising interest rates and economic crisis lead to the effect that consumers will spend less. In addition, resources prices, especially for cotton, have an impact on the clothing market. Nowadays, customers care more about on how a company acts according to sustainability and corporate ethics. Therefore, terms get more important such as buyer cotton (cotton without any communities). Furthermore, technological advances have good and bad sights.

For instance, on the one hand, information spreads more easily through the internet which can affect the reputation of a firm.

On the other hand, firms are able to reach more easily their target group. Additionally, monopoly regulations and liberalizing trade can also have an impact on the competition in the clothing market. Fast growing emerging markets is a main point and the last according to the term globalization. The next step of analyzing external factors refer to the growing power of the five forces which reduce the attractiveness of the industry.

Firstly, the threat of new entrants in the clothing industry is very high in order to achieve economies of scale and

because the U. S. Racket is mainly saturated in this field. Secondly, threat of substitute products is low.

The reason is that retailers offer similar products within a short product life cycle. Thirdly, high cotton prices lead to the fact that the bargaining power of suppliers is at a medium level. Moreover, retailers try to avoid being dependent on only one supplier to escape shortcuts. Fourthly, if prices raise customer are willing to switch to other products which lead to a high bargaining power of buyers. Fifthly, the clothing market is highly segmented and has many averse players.