Case Study Analyses: The Gap, Inc. Essay

1668 Words7 Pages
The central purpose of writing this Case Study Analyses on The Gap, Inc. is to identify and isolate key issues and their underlying implications and offer practical solutions and plans for implementing those solutions. This will be done by highlighting the social influences that influence the Gap, Inc. marketing strategy, segmentation strategies with respect to distinct retail markets, and positioning strategies that can be used or changed in a retail setting, as requested in the course assignment (as cited in the course module). History, Development, and Growth In 1969, Don Fisher opened the first Gap store in direct response to frustrations he was feeling as an inconvenienced customer. His objective was to provide a classic…show more content…
Now, with over 3000 stores globally, the Gap name is easily recognized across the world for its simple clothing styles. By interpreting fashion trends and finding ways to present tried and true items, the Gap is able to sell "inexpensive staples that look good", according to Paul Pressler, CEO ((Stone, B., as cited in Newsweek, 2003). With product utility, a product mix that met the needs of its target audience, brand name recognition, and global influence as its core strengths, the Gap, Inc. was in good position to grow through expansion. Unfortunately, the great strength previously mentioned became one of its greatest weaknesses. Former CEO, Mickey Drexler, in response to his accurate prediction of the khaki craze of the ‘90's, decided to make plans for an aggressive expansion, and by 2001 there were over 4,100 stores across the world (Etzel,, 2004). When sales began to decline and other retailers caught on to the Gap's idea of offering simple styles, the Gap responded by attempting to create a trendier line of clothing and as a result lost a large share of its core market. (Etzel,, 2004). Gap executives figured that if they had the right clothes people would come. They may have been right in that assumption, however, they failed to query their customers about what
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