MGT599SLP3: internal analysis

Running head : MGT 599 SLP 3 : INTERNAL ANALYSIS

MGT 599 SLP 3 : INTERNAL ANALYSIS

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SWOT Analysis

Strengths

One of the strengths of Gap Inc would be its well known brands in the market that provided the said company with tremendous profit and market share namely : Gap , Old Navy and Banana Republic (Hollinger , 2004 . These three clothing brand serve as the source of Gap Inc 's competitive advantage in the international market . Moreover , aside from its three major brands , another source of internal strength of Gap Inc would

be its large number of store operating around the globe which is roughly equal to 4 ,100 stores . This enables Gap Inc to tap various market segments and increase its share in the international market Furthermore , the unique style and design of Gap Inc 's cloths are the main reason why customers are continuously patronizing the product lines of the said company . The approximately 165 ,000 skilled employees of Gap Inc also serve as the pillar for high quality products that it produces into the market . Moreover , Gap Inc strategically operates in United States , United Kingdom , Canada , France , Japan , and Germany which have the largest potential market for Gap Inc . the last but not the least strength of Gap Inc would be its different price range which provides them with enough room to tap even consumers on a tight budget

Weaknesses

Gap Inc only concentrates its clothing line to young people thereby limiting the growth of the company into one market segment (Ops .com , 2006 . Furthermore , by targeting only young people would require Gap Inc to innovate its product lines from time to time considering the fast-paced changes on the preferences of this consumer group . Another weakness of Gap Inc would be its quick changing of product lines in the market which requires extensive use of valuable resources to the company and for conducting research . Replenishing clothing lines in the market are too much expensive to do

Opportunities

One of the opportunities that Gap Inc must utilize in to maintain the pace of its growth would be to use the internet in expanding the market venue of the company and serve as additional medium for marketing its product lines (Tedeschi , 2005 . Electronic advertisement is already one of the most effective means of product publicity and marketing Gap Inc 's product lines . Furthermore , there is a great possibility that sales volume of Gap Inc will improve through opening online stores in the internet . This will give Gap Inc enough room to expand its target market and promote its product lines on a mass scale . In addition to this , the elimination of textile quotas on various countries due to the influence of economic globalization , will give Gap Inc chances of increasing the volume of products that they export to other countries which later on improves the sales growth and profit of the said company The last but not the least opportunity for Gap Inc would be to launch business casual trend of...