The Gap Inc Essay
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Doris and Don Fisher is the founder of GAP INC. The first GAP store that opened by Doris and Don Fisher is in year 1969.The first store was opened at San Francisco, USA. The reason of why Don Fisher opened a GAP store was simple because Don Fisher could not find a pair of jeans that fit him. Don Fisher was a third-generation of San Franciscan. His great-grandfather, Samuel Fisher, arrived in San Francisco from New York in the1860s which is a decade after the discovery of gold transformed California.
Don was born to Sydney and Aileen Fisher on 3 September 1928. His father was a cabinetmaker. He learn the way to do business from his father cabinetmaker business.
Path to Gap Don Fisher face both succeeded and failed as an entrepreneur between1950 to 1960. In the mid-1960, Don Fisher working with his father branched out to start his own business. His own company is doing refurbished old hotels. He bought the Capitol Park Hotel in Sacramento. After buying the hotel, he leased space to Levi’s salesman to opened a showroom. On one day, Don Fisher go the Levi’s store and could not get a size suite him which is 34 waist and 31 length. This situation led to Don Fisher opened the first Gap store on Ocean Avenue. The Gap was inspired by the idea of “The Generation Gap”. Don Fisher had 2 important quotes which are “change or fail” and “never say no when you can say yes”.
The Gap, INC. is a leading international specialty retailer with five brands which are GAP, Banana Republic, Old Navy, Athleta and Piperlime. There are also Outlets stores available like Gap outlet, Gap Generation and Banana Republic Factory Stores. The Gap, INC. world headquarters is at San Francisco Bay Area. The Product Design departments are at New York City, San Francisco, Los Angeles and London. There are over 3,200 stores worldwide. There are more than 3,100 Company-operated stores across United States, United Kingdom, Canada, China, France, Ireland, Japan and Italy. In the year 1987 , the first Gap store outside the United States opened in the UK.
About 200 franchise stores located across Asia, Australia, Europe, Latin America, the Middle East and Africa. The Gap, INC. growing globally, and just last year, the Gap INC. opened their first store in China, Australia and Italy. The Gap, INC. Expanded their products through online shopping services which were offered to customers worldwide. Today, over 80 countries customers can easily buy Gap INC products. The Gap is a retailer offering clothing, accessories and personal care products for men, women, children and babies. Recognition
In year 2009 , The Gap, Inc. was awarded by Women’s Wear Daily. The Gap Inc. was ranked in the top Ideal employers chosen by undergraduates who were interested in the fashion, retail and apparel sector. Besides that, The Gap, INC. also awarded by Time Magazine’s “25 Responsibility Pioneers”. The Gap, Inc. ranked No. 23, alongside mostly individuals and just three other companies who “are changing the world. Time Magazine described our commitment to doing what’s right: “At Gap, responsibility is in style”.
In the Newsweek’s Green Rankings list, an environmental ranking of America’s 500 largest corporations, the Gap Inc. was ranked 38 overall and 3rd in the retail industry, wastewater treatment at denim laundry and steps to promote sustainable agriculture for cotton. In year 2010, Gap Inc. ranked seventh among specialty retailers in the list of World’s Most Admired Companies. The Gap Inc. was chosen as one of the World’s Most Ethical Companies in recognition of the Gap INC commitment to ethical leadership and corporate social responsibility for the fourth straight year.
Product produced by the company GAP Gap is an iconic retail brand, it offers an inventive American style. Customers can express their individual sense of style with clean, classic clothing and accessories by Gap. Gap which had their first store 40 years ago, continues to build its brand presence around the world. Gap was founded in year 1969. The brand Includes Gap, GapKids, babyGap, GapMaternity and Gapbody. Besides that, Gap outlet is the leading retailer in the outlet attracting customers with unexpected, versatile, trend-right looks at an unbelievable affordable value.The gap outlet was founded in year 1995.
Banana Republic Banana Republic is accessible luxury that brings modern, soulful, effortless and versatile style for men and women around the world. Banana Republic designs, luxurious fabrications at approachable prices. The Banana Republic products include apparel, handbags, jewellery, fragrance and eyewear. Banana Republic was founded in year 1978. Besides that, Banana Republic Factory Store was also available since year 1997. Banana Republic Factory Store is for exclusive designs and great fashion at outstandingly high prices.
Old Navy Old Navy design fashion and value to the whole family. From newborns through adults, Old Navy offer on-trend, modern clothing and accessories, as well as updated basics. The unique, dynamic stores provide an exceptional shopping experience for shopping lovers. Old Navy will ensures that the customers find a great, quality products at good value. Old Navy was founded in year 1994 and was named after a bar in Paris. In 1997, Old Navy became the first retailer to reach one billion in their annual sales less than four years of operation. Piperlime
Piperlime is online fashion boutique targeted on all online shopers. Piperlime inspires their customers with a fresh and unique mix of products, brands and prices. Exclusive contributions from “guest editors” keep our customers in fashion and in the know. Piperlime was launched in year 2006. Athleta
Athleta designed the ultimate performance apparel and gear for every active woman. For women athletes, they road-test, court-test and water-test everything themselves to ensure that each item they offer feature the perfect balance, performance and style. Athleta was founded in year 1998, but Gap INC. acquired Athleta in year 2008.
Target customer Gap INC came out with different range of clothes and accessories to suit every customer. Gap have range from adult to kids. Banana Republic targeted customers which looks for luxury clothes and accessories. Old Navy put their target on family from young to old. Piperlime targeted their customers who always bought goods online. Athleta targeted on females who love sport activities. In conclusion, Gap INC came out with different range and types of clothing and accessories to suit all different customers. Gap INC is targeting everyone either professional or low income customers. Penetrating into foreign markets
The Gap INC was successful in United States market for a period of time. Gap INC started growing into foreign markets. The Gap INC have competitors like Calvin Klein INC, Benetton Group so Gap INC has to expand to other region. The Gap INC first international store was in London. After that, the Gap stores soon sprang up throughout the United Kingdom, Canada, and France. Modes of entry
The Gap INC have both franchises and company operative stores. The region which have about 200 franchise stores are in Asia, Australia, Europe, Latin America, the Middle East and Africa. Besides that, the Gap INC have about 3100 stores across United Kingdom, United States, Canada, France, China, Ireland, Japan and Italy.
Global Consumer Preferences The Gap success is provide merchandise that suite to customers fashion taste. The time consume to reach every purchases is slow, so I cannot respond to new or changing fashion trends or consumers acceptance of my products. Our global specialty retail business fluctuates according to changes in consumer preferences ,dictated in part by fashion and season. Due to the time consume to reach my customers, our fashion trends will be slower and customers will go to my competitors and this situation will affect my company sales. The out dated fashion have to mark down and sold. For example The Gap INC United States Selling the 2012 spring fashion but in Singapore, there are still selling winter fashion. Globalised Production
My products are manufactured by independent third parties. As result of out sourcing, my product are directly affected by the increases of cost. For example the cotton price increase will directly affect my company gross profit. If the current manufacturer charges my company with high price, I will get a new manufacturer. When I go for new manufacturer, there will be delays in production and added costs as a result of giving training to new vendors in making my products, quality control standards, and environmental, labour, health, and safety standards. The delay on production will affect the sales and net income of company. Due to globalised production, the finish goods need to transport from manufacturer to retailer of different nations. There are possible of delay in the shipment and delivery time. The factors that causes delay are availability of transport, work stoppages, port strikes, infrastructure congestion. If the goods are requested goods, I need to arrange for faster transport such as by air. The time of transporting goods from air is faster but the cost of transport are high. Technological Innovations
Apparel and fashion industry has experience a rapid change in technological changes over the years. The fast changes has lead to a more sophisticated, with a significant apparel and fashion items present in the present time. Due to comfort and aesthetic value and being friendly to environment, the new fashion use the latest development of many different technologies. The utilisation of new software and technology for faster production and marketing, the software and technology helps the employees done their jobs easier and error free. The technology changes as the apparel and fashion demand and quality change. The Gap also concern about the changes in technology will affect the environment. For example a new invented machine can produce more apparels and environment friendly. Management Across Culture
The Gap have different design of clothing according to festive or seasons. In Chinese New Year, Gap will come out with red colour as the theme colour and for 2012 there will be dragon on the design. During Christmas ther will be Chrismas themes apparel coming out. General Business Environment
A business firm is an open system where a company gets resources from the environment and supplies goods or services or both to the environment. There are internal and external forces in business environment. External forces may be related to national level, regional level or international level. Under the environment forces, there are opportunities or threats to business community. All business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. External environment cannot change by business organization. Company can only change the internal environment to grasp the external opportunities and face the external environmental threats. A business want to survived and to get success in the industry, the company have to analyze business environment by managers so that we could persue effective business strategy. Political
Apparel and fashion industry also affected the by globalization trend which due to the construction of import international facilities and establishment. Every country have their own trade regulation and policies , because of the regulations and policies, company’s operations may be impaired. Some country control the entrance of foreign company and affected the operations of the company. Some country implement high tax to the company as a control. This situation will affect The Gap on expanding to foreign market.