Opportunities Weight Rating Weighted Score Stong Global Brand Recognition - the brand hits all target segments 0.06 4 0.24 GAP's clothes are available in more than 90 countries worldwide 0.04 2 0.08 GAP has around 3,000 stores of its own, 500 franchisee-owned stores, and e- 0.09 4 commerce sites to take its products to customers 0.36 4 GAP operates under several brand names to reach wider customer segments 0.03 3 0.09 (Old Navy, GAP, Banana Republic, Athleta etc.) 5 According to Thomson Reuter's diversity and inclusion index, GAP Inc. ranks in top 3 and believes that inclusion, diversity, and opportunity are the keys to 0.03 3 0.09 drive growth, retain talent and attract new customers 6 GAP has an effective supply chain. They focus on flexibility and speed, using ways techniques like fabric platforming and positionang that involves using 0.02 0.06 common fabric across multiple styles for multiple reasons GAP has a sustainable business model. Any pair of jeans manufactured by GAP is made with 20% less water than the conventional manufacturing method, 0.04 2 0.08 which saves about 65 million liters of water every year. GAP's new ventures in China and Europe can be profitable to the company 0.04 3 0.12 moving forward 9 GAP brands can boost sales through online promotions GAP uses one single platform to sel all product ranges from their different brands. GAP has been able to deliver growth from its mobile and online spaces. In the first quarter of 0.08 4 0.32 2018 it beat its own target of $3 billion in online revenue. It is clear that now and moving forward, online will be a strong sales agent. 10 Store expansions across international borders and domestically can produce more sales. Online expansion and in-store pickup orders will likely drive the 0.07 4 0.28 company moving forward Weight Rating Weighted Threats Score H&M onlines sales grew 30% in 2021 - one of GAP's biggest competitors 0.06 3 0.18 GAP announced that the sales from store decreased by 3%, and the company 3 has relied more on Old Navy and Athleta brands to revive GAP 0.04 0.12 3 The number of physical stores is proving to be liability for the brand as sales 0.09 1 have continued to decline and thus so have profit margins 0.36 GAP has struggled to improve performance as it faces more competition from 0.07 4 0.28 both lower end fashion apparel as well as higher end apparel brands. Rising production costs are hurting profits, coupled with high inflation rates and 0.03 2 0.06 temporary pandemic store closures 6 Other competing brands are offering more fashionable, up to date apparel at a 0.02 0.06 better value GAP still hasn't penetrated many emerging economy markets 0.04 3 0.12 Rising pay levels as high as $15/hour and increasing prices in China are 0.04 3 0.12 beginning to lead to profitablility pressures 9 New technologies developed my competitors can be a serious threat in the 0.08 4 0.32 industry in the medium to long-term 10 Rising raw material costs pose a threat to GAP's profitability due to inflation 0.03 2 and other economic factors 0.06