Pestel Analysis: Gap Incorporation

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GAP Incorporation
Introduction
GAP Incorporation is an apparel company operating outlet and retail stores around the world. The company’s specialty is in accessories, casual wear, and personal care goods for men, women, and children (Gap Inc., 2015). The company is among the key players in international clothing markets even though it has weakened. The company’s brands include Old Navy, Forth & Towne, banana republic, and Gap (Gap Inc., 2015). The company’s retail stores are in countries like USA, Japan, Ireland, France, Canada, and United Kingdom. Franchised outlets are in Qatar, Oman, Indonesia, UAE, Croatia, Jordan, and Cyprus.
PESTEL Analysis PESTEL analysis evaluates six factors in external environments, which affect the company’s performance.
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GAP Inc. is based in the United States where the political scene is stable. The United States governance enhances democracy, which provides corporations like GAP Inc. with freedom of association and speech. United States has also passed various trade agreements with other countries. The trade agreements give GAP Inc. the opportunity to conduct their business in other countries. Through the trade agreements, the company can also source for raw materials and labor. Finally, the government has enacted laws that regulate monopolistic controls within markets and has deregulated various companies. This ensures that GAP Inc. can conduct its business without victimization by …show more content…
Economic factors include interest rates, economic growth, inflation, exchange rates, and the consumers’ disposable income. The factors may be divided into micro-economical and macro-economic factors. Micro-economic factors define how individuals spend their incomes. Micro-economic factors have major impacts specifically on B2C companies. Macro-economic factors focus on demand management in an economy. GAP Inc. is significantly affected by economic factors since this factor determines the total revenue generated. Economic factors include production costs. GAP’s production costs vary greatly due fluctuations in material expenses. Natural disasters and inflation also play significant roles when determining production expenses. Occurrence of natural disasters increases production rates, which affects the company’s total revenue generated. Consumers’ spending or buying power also affects the company significantly. The pricing of the company’s goods ensures most of the consumers can purchase the

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