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Module 3.3 Case Study: Gap Inc.
Embry-Riddle Aeronautical University
MKTG 449 – Strategic Marketing Management
November 5, 2023
2
What is the issue?
Gap Inc. is a specialty retailer that operates stores that include well-known registered
trade names, such as Gap, GapKids, BabyGap, Gap Shoes, Gap Maternity, Banana Republic, and
Old Navy. The company has a focus on developing and growing brands and is taking action to
maintain and strengthen brand loyalty, including significantly increasing its investment in
advertising and marketing (Czinkota et al., 2021). Gap, as well as other retail apparel businesses,
is subject to fluctuations according to changes in customer preferences and changing fashion
trends (Czinkota et al., 2021).
Gap is also trying to expand internationally, but faces competition in European and
Japanese markets from established regional and national chains. If this international expansion is
not successful, it could result in an adverse effect on the company’s operations (Czinkota et al.,
2021). For example, Banana Republic closed all its physical stores in Europe in 2017. Gap is
also facing more and more competition in the Canadian apparel market, especially as Canadian
consumers ditch name brands and buy cheaper clothing to save money (Czinkota et al., 2021).
What is the goal of the analysis?
What is the context of the problem?
What key facts should be considered?
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