Gap
Gap was very popular in the U.S. People love its styple. Gap becomes a big corperation.
However, our world is fast changing technology environment. If you don't update yourself, you will fall behind. If you are slow, you will lose in the game. I believe that's why Gap is not doing good these years.
Compare to Gap's rivals, it doesn't have much product varities. Gap also has a problem for product changes. Gap takes a long time to introduce new products. I think that's why it falls behind H&M these years.
H&M doesn't have a long history as Gap, now H&M has surpassed Gap. When Gap is still selling the old products, H&M has changed to new products a few times. Gap is losing its loyal customers because of limited choices. Our customers now like new things everyday, especailly clothes. Therefore, Gap's customers go to H&M or other rivals. When it lost its customers, its profits also drop so much. As profits drop, it will be hard to finance the operation and engineer study. This will goes like a circle. Limited products and slow product changes will make Gap lose more and more customers. So, more profits will be taken away by its rivals...
At the result, Gap has to close some of its stores or sell off its stores around the country. So, I believe these two symptoms contribute to the stategic problems. Gap needs to introduce more products and faster to compete with its rivals.
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5 comments:
i dont think Gap is slow to changing with the times,
I feel that Gap is trying to set its own trends. If they feel that black is the new color they will promote that until you feel the same. Thats not having limited supply, its more like trying to convince you this is the only choice.
I also feel that gap is very adaptable to the changing times. They seem to keep up with what the consumer wants
I totally agree with you. I have not been to Gap ever since I started high school. One of the reason is that I don't like the style Gap offers and I think they are not trendy enough when you compare it with H&M and others..while their price is too high compare with their quality and their name.
I think that you're right by stating that Gap is not a very fast paced company. It needs to react to consumer preferences more quickly and change product lines accordingly. However you can't forget the target market that Gap is trying to attain - young professionals. Gap's core competency has been Khakis and business casual clothes and therefore it should not follow H&M's route because it is not targeting the same market.
Like I said in my presentation, one of the biggest challenges that Gap is facing is fashion trends. I'm not sure about technology though, I think Gap just chooses wrong fashion trends and people think of it as played out.
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