PEST Analysis
Political
There is a stable political environment in United State, and less barriers to restrict the market expansion of GAP Inc., so it can expand its business in local area conveniently. Moreover, sales tax has also applied to online shopping website in 2017 such as Amazon. Some parts of the products of GAP Inc. such as clothes, accessories, shoes etc. have sold in Amazon.com, and therefore the customers may select to purchase from the official online website of GAP Inc. after the sales tax adopted in Amazon.com. Then, GAP Inc. may concentrate the online shopping customer base to gain more profits.
Economical
The economy undergoes slow and rapid growth may affect the company’s probability and buyers’ buying power. The sales …show more content…
to design and operate more products and brands. Gap Inc. mainly sold causal apparels, such as jeans and T-shirts, in early operated. To meet different lifestyles and preferences of customers, Gap Inc. launched different brand step by step. For example, Athleta has been operated since 1998 and provides premium fitness apparels to target customers, which are confident women to cater the needs and more concerns on healthy lifestyle.
SWOT Analysis
Strengths
Gap Inc. has different products’ line such as GAPBODY and GAPFIT, it is not only providing clothing for men and women, but also providing clothing for sport, sleepwear, and even for toddler and maternity to fulfill different customer desires.
Gap Inc. has around 3,600 retail stores located over 50 countries. The reputation is high and the brand is very famous. Different nationalities can purchase clothes in their home countries. Even though there are any GAP retail stores in their country, the customers can purchase their desired products through the Gap Inc. website which is available to ship over 200 countries. …show more content…
is not only designed the clothes for women and men, but also has designed for kids, baby and toddler. Nowadays, younger female was pregnant and they may seek for fashion design for baby and maternity clothing, and then, if the clothes are good-looking and comfortable with proper price, the younger customers are willing to pay. Therefore, Gap Inc. may invest to design and produce the above areas to expand the market share and gain more profits.
Crossover and celebrity endorsement are also a trend for promotion. Many brands are also selected some hit brands as the partners to design together or some famous celebrities to endorse, which aim to improve the reputation of the brand, and increase market sales volume.
Threats
Basically, fashion industry is a big competition and GAP Inc. has the different competitors in the fashion industry such as H&M and Zara. Also, increased labor cost may also be a threat to GAP Inc. The minimum wages have increased continuously due to inflation. For example, some factories have located in Vietnam and the minimum wages have increased 7.3% starting from January 2017, so more operating costs of labor must spend. Moreover, risks of exchange change rate are a problem. The costs of raw materials of GAP Inc. are accounted as US dollars, so the fluctuation of currency exchange may increase the
Political
There is a stable political environment in United State, and less barriers to restrict the market expansion of GAP Inc., so it can expand its business in local area conveniently. Moreover, sales tax has also applied to online shopping website in 2017 such as Amazon. Some parts of the products of GAP Inc. such as clothes, accessories, shoes etc. have sold in Amazon.com, and therefore the customers may select to purchase from the official online website of GAP Inc. after the sales tax adopted in Amazon.com. Then, GAP Inc. may concentrate the online shopping customer base to gain more profits.
Economical
The economy undergoes slow and rapid growth may affect the company’s probability and buyers’ buying power. The sales …show more content…
to design and operate more products and brands. Gap Inc. mainly sold causal apparels, such as jeans and T-shirts, in early operated. To meet different lifestyles and preferences of customers, Gap Inc. launched different brand step by step. For example, Athleta has been operated since 1998 and provides premium fitness apparels to target customers, which are confident women to cater the needs and more concerns on healthy lifestyle.
SWOT Analysis
Strengths
Gap Inc. has different products’ line such as GAPBODY and GAPFIT, it is not only providing clothing for men and women, but also providing clothing for sport, sleepwear, and even for toddler and maternity to fulfill different customer desires.
Gap Inc. has around 3,600 retail stores located over 50 countries. The reputation is high and the brand is very famous. Different nationalities can purchase clothes in their home countries. Even though there are any GAP retail stores in their country, the customers can purchase their desired products through the Gap Inc. website which is available to ship over 200 countries. …show more content…
is not only designed the clothes for women and men, but also has designed for kids, baby and toddler. Nowadays, younger female was pregnant and they may seek for fashion design for baby and maternity clothing, and then, if the clothes are good-looking and comfortable with proper price, the younger customers are willing to pay. Therefore, Gap Inc. may invest to design and produce the above areas to expand the market share and gain more profits.
Crossover and celebrity endorsement are also a trend for promotion. Many brands are also selected some hit brands as the partners to design together or some famous celebrities to endorse, which aim to improve the reputation of the brand, and increase market sales volume.
Threats
Basically, fashion industry is a big competition and GAP Inc. has the different competitors in the fashion industry such as H&M and Zara. Also, increased labor cost may also be a threat to GAP Inc. The minimum wages have increased continuously due to inflation. For example, some factories have located in Vietnam and the minimum wages have increased 7.3% starting from January 2017, so more operating costs of labor must spend. Moreover, risks of exchange change rate are a problem. The costs of raw materials of GAP Inc. are accounted as US dollars, so the fluctuation of currency exchange may increase the