The Gap, Inc.: Strategies for a turnaround

Gap has long been seen as the go-to for young adults seeking affordable fashion. However, in recent years the company has struggled in an increasingly competitive marketplace. This case study analyzes Gap's recent financial results, compares them to some of its peers, and examines its turnaround strategy.

Scope

Analyzes Gap's business model and looks at why the company has experienced fluctuating levels of growth and decline in recent years.

Assesses why Gap's competitor Inditex is growing at a faster rate and the strategies used by the company.

Provides an assessment of how Gap can increase its revenues and how the company can regain its iconic reputation.

Analyzes growth opportunities for Gap such as expansion in Asia.

Looks at Gap's proactive approach to changing consumer behavior with the introduction of its new e-commerce related initiatives.

Reasons to buy

Why has Gap's revenues been fluctuating in recent years?

What strategies are fuelling growth for Gap's top competitor Inditex?

Has the company's turnaround strategy been sucessful so far?

Why is Gap expanding its presence in Asian markets?

How can an increased online presence help the company increase its revenues?

Companies mentioned

None

Table of Contents

OVERVIEW

Catalyst

Summary

GAP: FLUCTUATING LEVELS OF GROWTH

What is Gap?

Gap: a brief history

Gap’s financial results

Competitors in the market

GAP'S TURNAROUND STRATEGY

Ongoing structural changes to Gap Inc

Fewer brick and mortar stores

Shorten the production calendar

GAP'S EXPANSION STRATEGIES

Segmented marketing increase Gap's consumer base

Increased online presence

Expanding presence in Asian markets

CONCLUSIONS

Gap must find its way in a competitive marketplace and return the brand to its former glory

APPENDIX

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