A Comprehensive Case Analysis on GAP Inc.

Background of the company

began its journey 1969 as a small retail store in San Francisco. The company went public in 1976.

Gap Inc. became a world wide retailer.

Gap Inc. became an online retailer in 1997 by forming Gap.com. Gap Inc. established itself as only a designer and marketer; all of its goods are manufactured by others.

Mission Statement: Content analysis

Gap,Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring product design, unique store experiences, and compelling marketing. Our purpose? Simply, to make it easier for you to express your personal style throughout your life. We have more than 150,000 passionate, talented people around the world who help bring this purpose to life for our customers. Across our company and embedded in our culture our key values that guide our success: integrity, respect, open-mindedness, quality and balance. Everyday, we honor these values and exemplify our belief in doing our business in a socially responsible way.

Mission Statement: Contents analysis

Gap, Inc. is a brand-builder. We create emotional connections with customers around the world around the world through inspiring product design, unique store and renowned ecommerce experiences and compelling marketing. Our purpose? Simply to be a leader in the specialty family clothing industry to make it easy for you to express your personal style throughout your life We have more than 150,000 passionate, talented people around the world who help bring this purpose to life for our customers leading us to achieve a major competitive advantage. Across our company and embedded in our culture are key values that guide our success and continued growth integrity, respect, open-mindedness, quality and balance Everyday, we honor these values and exemplify our belief in doing business in a socially responsible way Customers Markets Technology Products or services Selfconcept Concern for employees Concern for survival, growth, and profitability Philosophy Concern for public image

Objectives of Gap Inc.

The Gap Inc. want to increase earning, Maximize stockholder wealth, increase market share, create a stronger global presence, increase productivity, create a positive reputation image, to have more customer satisfaction, higher quality of products, and

Management team
Glenn K. Murphy- chairman and Chief Executive Officer, Gap Inc. Jack Calhoun - President, Banana Republic. Marka Hansen - President, Gap. Toby Lenk - President, Gap Inc. Direct Dawn Robertson - President, Old Navy Michael B. Tasooji - EVP and Chief Information Officer

Managerial Analysis
SWOT Analysis
-Strength: Brand Image, Risk diversity, Strong supply chain -Weakness: Limited market, No Fashion Identity, Over dependence on US, declining cash flows -Opportunities: Expansion, E-commerce -Threats: Competition, Market nature, Tariffs

Managerial Analysis, Contd..

Five forces:
Competition Ease of Entry Substitutes Strength of suppliers Strength of buyers

Distinction Notion
Brand valued at $6,416 million (2006) History Old Navy, Gap, Banana Republic, Piperlime

Financial Analysis
Ratio Analysis
Solvency Ratio
Liquidity ratio: Quick ratio: 1.41 & Current ratio: 2.21 Leverage ratio: Debt to net worth: 0.44

Profitability Ratio Return on sales: 0.05 Return on assets: 0.09

Financial Analysis, Contd

Stock and Market Trend Analysis
Regular dividends .com boom Real estate & credit crisis- Buffering effect

Ethical Issues
Hotline 100% score Human Rights Campaigns Corporate Equality Index Mission Statement & Purpose- Ethics

Portfolio: Strategic Analysis

Distinctive brands Common principles, and purposes Purchase existing companies (Banana Republic) or new establishments (Old Navy from Gap Warehouse)