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Please look at QSPM table of GAP Inc. Analyze and give strategies as you see fit. Developing New Products Investment in Digital Marketing Plan Strengths
Please look at QSPM table of GAP Inc. Analyze and give strategies as you see fit.
Developing New Products | Investment in Digital Marketing Plan | ||||||
Strengths | Weight | AS | TAS | AS | TAS | ||
1 | The Gap, Inc. acquires AI startup CB4 | 0.04 | 4 | 0.16 | 4 | 0.16 | |
2 | Opened 175 new stores in Fiscal Year 2021 | 0.03 | 4 | 0.12 | 3 | 0.09 | |
3 | Net sales increased 20.80% year-over-year | 0.03 | 4 | 0.12 | 4 | 0.12 | |
4 | Net income increased 138.50% year-over-year | 0.03 | 4 | 0.12 | 4 | 0.12 | |
5 | EPS rose by 138.20% year-over-year | 0.04 | 4 | 0.16 | 4 | 0.16 | |
6 | Strong stance and rebuttal to child labor in Gap factories | 0.10 | 0 | 0.00 | 0 | 0.00 | |
7 | Online sales grew 57% in 2021 compared to 2019 (pre-pandemic) | 0.06 | 4 | 0.24 | 4 | 0.24 | |
8 | Old Navy sales were up 2% and Athleta sales were up 52% from 2019 (pre-pandemic) | 0.06 | 4 | 0.24 | 4 | 0.24 | |
9 | Projected $700 million in capital spending in Fiscal Year 2022 | 0.05 | 4 | 0.20 | 4 | 0.20 | |
10 | Comparable sales for Fiscal Year 2021 grew 8% versus 2019 (pre-pandemic) | 0.06 | 4 | 0.24 | 4 | 0.24 | |
Developing New Products | Investment in Digital Marketing Plan | ||||||
Weaknesses | Weight | AS | TAS | AS | TAS | ||
1 | Closed 341 stores worldwide in Fiscal Year 2021 | 0.03 | 2 | 0.06 | 4 | 0.12 | |
2 | Net income is down 27.07% from 2019 (pre-pandemic) | 0.04 | 4 | 0.16 | 4 | 0.16 | |
3 | Reports of worker abuse in factories | 0.10 | 1 | 0.10 | 0 | 0.00 | |
4 | EPS is down 26.88% from 2019 (pre-pandemic) | 0.04 | 3 | 0.12 | 4 | 0.16 | |
5 | Gap net sales were down 13% from 2019 (pre-pandemic) | 0.06 | 4 | 0.24 | 4 | 0.24 | |
6 | Banana Republic sales were down 11% from 2019 (pre-pandemic) | 0.06 | 4 | 0.24 | 4 | 0.24 | |
7 | Fourth quarter Fiscal Year 2021 dipped 3% to $4.5 billion compared to 2019 (pre-pandemic) | 0.04 | 4 | 0.16 | 4 | 0.16 | |
8 | Fiscal Year 2021 ending inventory was up 23% year-over-year | 0.04 | 3 | 0.12 | 4 | 0.16 | |
9 | Old Navy net sales were muted in part due to supply chain impacts | 0.04 | 0 | 0.00 | 0 | 0.00 | |
10 | High employee turnover rate and labor shortage | 0.05 | 1 | 0.05 | 1 | 0.05 | |
Developing New Products | Investment in Digital Marketing Plan | ||||||
Opportunities | Weight | AS | TAS | AS | TAS | ||
1 | Strong Global Brand Recognition - the brand hits all target segments | 0.06 | 4 | 0.24 | 4 | 0.24 | |
2 | GAP's clothes are available in more than 90 countries worldwide | 0.04 | 4 | 0.16 | 4 | 0.16 | |
3 | GAP has around 3,000 stores of its own, 500 franchisee-owned stores, and e-commerce sites to take its products to customers | 0.09 | 4 | 0.36 | 4 | 0.36 | |
4 | GAP operates under several brand names to reach wider customer segments (Old Navy, GAP, Banana Republic, Athleta. etc.) | 0.03 | 3 | 0.09 | 4 | 0.12 | |
5 | According to Thomson Reuters diversity and inclusion index, GAP Inc. ranks in top 5 and believes that inclusion, diversity, and opportunity are the keys to drive growth, retain talent and attract new customers | 0.03 | 4 | 0.12 | 4 | 0.12 | |
6 | GAP has an effective supply chain. They focus on flexibility and speed, using ways techniques like fabric platforming and positioning that involves using common fabric across multiple styles for multiple reasons | 0.02 | 0 | 0.00 | 0 | 0.00 | |
7 | GAP has a sustainable business model. Any pair of jeans manufactured by GAP is made with 20% less water than the conventional manufacturing method, which saves about 65 million liters of water every year. | 0.04 | 0 | 0.00 | 0 | 0.00 | |
8 | GAP's new ventures in China and Europe can be profitable to the company moving forward | 0.04 | 4 | 0.16 | 4 | 0.16 | |
9 | GAP brands can boost sales through online promotions . GAP uses one single platform to sell 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 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. | 0.08 | 2 | 0.16 | 3 | 0.24 | |
10 | Store expansions across international borders and domestically can produce more sales. Online expansion and in-store pickup orders will likely drive the company moving forward | 0.07 | 2 | 0.14 | 4 | 0.28 | |
Developing New Products | Investment in Digital Marketing Plan | ||||||
Threats | Weight | AS | TAS | AS | TAS | ||
1 | H&M onlines sales grew 30% in 2021 - one of GAP's biggest competitors | 0.06 | 4 | 0.24 | 4 | 0.24 | |
2 | GAP announced that the sales from store decreased by 5%, and the company has relied more on Old Navy and Athleta brands to revive GAP | 0.04 | 3 | 0.12 | 4 | 0.16 | |
3 | The number of physical stores is proving to be liability for the brand as sales have continued to decline and thus so have profit margins | 0.09 | 2 | 0.18 | 4 | 0.36 | |
4 | GAP has struggled to improve performance as it faces more competition from both lower end fashion apparel as well as higher end apparel brands. | 0.07 | 2 | 0.14 | 4 | 0.28 | |
5 | Rising production costs are hurting profits, coupled with high inflation rates and temporary pandemic store closures | 0.03 | 1 | 0.03 | 1 | 0.03 | |
6 | Other competing brands are offering more fashionable, up to date apparel at a better value | 0.02 | 4 | 0.08 | 4 | 0.08 | |
7 | GAP still hasn't penetrated many emerging economy markets | 0.04 | 0 | 0.00 | 0 | 0.00 | |
8 | Rising pay levels as high as $15/hour and increasing prices in China are beginning to lead to profitability pressures | 0.04 | 4 | 0.16 | 4 | 0.16 | |
9 | New technologies developed my competitors can be a serious threat in the industry in the medium to long-term | 0.08 | 2 | 0.16 | 4 | 0.32 | |
10 | Rising raw material costs pose a threat to GAP's profitability due to inflation and other economic factors | 0.03 | 2 | 0.06 | 4 | 0.12 | |
TOTALS | 5.45 | 6.29 | |||||
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