Strategic management: Internal Analysis

1 . Introduction

GAP Incorporated is a clothing and accessories company based in San Francisco California . The firm operates is various markers worldwide . It has a retail chain of more than 3 ,130 stores in different global locations . At present , GAP employs more than 150 ,000 personnel . In 2005 the company recorded an increase in earnings which reached 16 billion It is undeniable that GAP will continue to expand and penetrate other markets . GAP has a wide array of products that suites the preference of consumers . GAP has an established reputation as producer

of top notch clothing and accessories (GAP , 2007

2 . SWOT Analysis

The strength of a firm shows the aspects where it attributes success (McGahan , 2004 . The company has one of the most diverse clothing and accessories in the industry . GAP values the uniqueness and flexibility of its products . It aims to target different market segments without losing its identity . The company also has a planned scheme to advertise its products . There were several billboards of GAP products in MLB stadiums . This is one method to introduce the products of the company in the mainstream . GAP prides on its affordable products . The pricing strategy is focused of the middle earning market

The weaknesses of the company are the internal aspects that affect the delivery of its products (Hussey , 1999 . The main culprit for its failure is the lack of clear message that the promotional strategy attempts to convey . In addition , GAP only spends for online advertising at a minimum level . It was revealed that only 2 of the advertising is allocated for online promotions . In addition , GAP has been a subject of controversy regarding its labor practices . The company has been sued for manifesting unfair labor standards . These complaints have been recorded from various store locations in the world

Opportunities in the market present viable outlets for growth (Porter 1980 . The presence of emerging markets is one of the main future sources of revenue for the company . China is gaining ground and other Asian markets are moving at a fast pace . This is important because eventually , GAP has to channel its operations outside the developed markets . The development of online retail is another possibility for GAP . The firm can save by using the Internet as the medium for selling

Finally , the threats serve as the external aspects that detriment the future plans of the firm (Porter , 1980 . The company has been accused of using designs that were already used by other companies . These problems tend to take time before being resolved . In addition , the costs associated with such predicaments are high . Further , piracy is another major threat to the company . There are several knock off GAP merchandises that are distributed in the market . Unfortunately , the company is powerless to solve this problem

Conclusion

GAP continues to succeed because it has already established a strong pedigree in the industry . It has a defined target market where most of its designs are based . In addition , GAP is known to provide sophisticated...