Gap, Inc. Swot

Threat of new entrants: Retail industry has a higher barrier to entry. First, it is difficult to work out a good value chain as it involves a complex process. Second, it is difficult for new entrants to gain competitive advantage and earn above-average returns in such a highly competitive market. Besides,

The threat of entry of the supermarket industry in US is low, which base on the analysis of the three major sources that related to the entry barriers. The first barrier is the economies of scale of the existing large supermarkets. When these incumbents achieved larger volume sales, they can have lower unit costs than new entrants, and it will very difficult for those new entrants to compete with them (Johnson, Whittington, &Scholes 2011). For example, Wal-Mart had invested in innovative procurement, automated distribution centre and bar coding to increase its economies of scale, and these investments created a great barriers for new small retailers to enter into the supermarket industry (Porter 2008). The second barrier is the incumbency advantages, which mean the incumbents established their own strengths that cannot be used by competitors (Porter 2008). For example, the top ten supermarkets in US have accumulated extensive experiences on how to run their businesses more efficiently than new entrants (Johnson, Whittington, &Scholes 2011). The subtle differentiation between the products that sold in supermarkets is the third barrier for new entrants. Because most of the product assortment is same or similar between each supermarket,

The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic

According to Yahoo! Finance, the market capitalization of the Apparel Store industry is 82.5 billion and within this group, there are 45 entities. To get the average market capitalization, the author of this paper will simply divide the total market capitalization to the number of entities (82.5 billion / 45). The resulting figure is 1.83 billion.

The industry does not possess major threat from new entrants due to strong barriers to entry and strong competition for retail space. There is also a strong rivalry between competitors as limited space is being contested by major players alongside

The retail industry has been highly competitive for many years. JCP, Kohl’s, Macy’s and Sears have been clashing for some time to keep the attention of the avid shopper. It would seem that each company would be on an equal playing field, but according to the strategic group map below, Macy’s is in a group all by itself. Macy’s pricing and number of stores are different for JCP. Macy’s promotes the branding of having high class products that have celebrity names on the tags, which draws the shopper who is attracted to being in the know. The Macy’s customer is willing to pay more for their product because they know that a celebrity made this, which ultimately allows them to connect with their favorite stars. The supplier power is what helps Macy’s stay in a different category than JCP, Kohl’s, and

In this segment, the retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry. In terms of the general external environment, the retail industry is a multi-trillion dollar business in the United States alone and maintains operations primarily due to consumer spending. Such purchases rely upon the disposable income of

Threat: Forces shaping the Nordstrom’s strategy is that it is operating in highly competitive environment, where apparel sold by it is not only competing with large organized departmental chains but, also from small independent boutiques in the U.S. As a result competition has become very stiff in retail

The retail industry is highly competitive, with few barriers to entry. Each Company competes with many other local, regional and national retailers for customers, associates, locations, merchandise, services and other important aspects of the Company’s business. Those competitors include other department stores, discounters, home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses and other forms of retail commerce. Some competitors are larger than JCPenney, have greater financial resources available to them, and, as a result, may be able to devote greater resources to sourcing, promoting and selling their products.” There are many factors that characterize competition, including advertising, service,

The clothing industry in the US entails more than 100,000 stores with combined revenues of over 150 billions dollars a year. The giants within this industry include Abercrombie & Fitch, GAP, Urban Outfitters, and TJX Companies, which I shall be concentrating on

The research draws attention to the fact that in 2009, the US stores generated 81.2% of Abercrombie and Fitch’s net sales. The shares of international stores and direct-to-consumer net sales were very small in comparison. Over the next two years the US stores decreased net sales percentages while net sales increased. Further investigation reveal

In the apparel industry, the American Apparel’ faces stiff competition from the Gap, Urban Outfitters, American eagle, and Express.

At the beginning of 2017 the retail industry was not having the best fiscal year, the apparel sector. Gap was able to remain above the downward fiscal trend, that most other retailers were facing. The firm was able to plan, prepare and execute, to finish the year strong.

Gap Inc., a leading global specialty apparel retailer, continued to lose market share and revenues as customer loyalty declined across the company’s five brands. Struggling to deliver a consistent product and customer experience, Gap Inc. was challenged to redefine its strategy once again. Going forward, the company is focused on driving long-term growth by expanding its customer base.

The Retail industry consists of a systematic system including the products information, inventory system, employee’s information as well as for the billing purposes. To keep track of the sales and to avoid mix up in inventory and to have a aligned billing system to avoid mix of bills amongst the patrons. Other retail stores at the malls or separate factory outlets etc. is using this system to be able to give a good service to its patrons.