It was the year of 1969 when man has fascinated its earliest tread internal the moon and "Doris and Don Fisher knowned the earliest Gap garner in US in San Francisco. " The steadsteadfast diversify in mould incompact teenagers and adult control to structure of assembly spectry denominated "GAP". From Justa sole garner In 1969. our anecdote Doris and Don Fisher knowned the earliest Gap garner in 1969. The debate was artless. Don couldnt asindubitable a brace of jeans that fit. They ncontinually expected to diversify hawk. But they did. Guided by modesty, pardon and a hearty yearn to win, the Fishers grew their assembly thoughtfully. ustomers responded.
Today, Gap Inc. Is a controling Interpolitical point hawker behind a while six infamys - Gap, Banana Republic, Old Navy, Piperlime, Athleta and INTERMIX - further than 3,500 garners and further than 137. 000 employees. We're growing globally, and Just behind a whilein the accountinal few years, we knowned our earliest garners In china and Italy. we're dilateing onverse abundanceping to customers, too. Today, customers in encircling 90 countries can buy our fruits. While divers things enjoy diversifyd late 1969, the principles on which we were rested enjoy stayed the correspondent: creativity, deliveaccentuation outcomes, doing what's fit and lways thinking of our customers earliest.
Key Facts Founded: 1969, behind a while a sole garner in San Francisco The chief infamy that brought American unforeseen mould to the globe. Founded In 1909 In San Francisco, cap offers Iconic, yet modern drapery and accessories for adults, kids and babies. Gap gives customers the immunity to pointed their singular sensation of mould. Infamy Includes Gap, GapKids, babyGap, GapMaternity and Gap30dy. Franchise garners: Further than 350 garners in locations athwart Asia, Australia, Eastern Europe, Latin America, the Middle East and Africa Brands: cap Intermix Old Navvy Piperlime
Athleta Headquarters Globe HQ: San Francisco Bay Area Fruit Design: New York City, San Francisco, Los Angeles, London Garner Management, dispensation and fruit manufacturing: Worldwide. Stores Total: Further than 3,500 garners globeextensive Fun Facts The middle absorb of a brace of Jeans at Gap in 1969? Encircling $7! Gap's 1988 Individuals of Mould antagonism was the earliest occasion the assembly specifically hired celebrities as models. In 2004, Banana Republic was incompact the earliest sponsors of the Emmy-nominated sleeper hit "Project Runway. " Gap has encircling 10 miles of garnerfront windows encircling the globe. Old Navvy was spectryd behind a bar in Paris! Retired New York Times mould editor Carrie Donovan was tapped to be the "Old Navvy Lady" in 1997 behind Joking in one of her columns that she'd be protracted for TV spots for the infamy. Behind a wildly lucky escort, Gap Factory Exit was rested and knowned its earliest garner in August 1994. Glenn Murphy is our fourth CEO late our resting in 1969. (Bob Fisher served as interim CEO in 2007 precedently Glenn was hired. ) Celebrity stylist Rachel Zoe can be rest on Piperlime. com, where she portion-outs her picks on her jewel moulds from the footing. ? Athleta, which has served women thletes late 1998, knowned its earliest full-sized garner in 2011. How They Do Business: From the set-on-foot, Gap Inc. 's anecdote wasn't going to be scant to Just vending Jeans. Doris and Don Fisher made indubitable that entireness would behove a hallmark of their regard. As they remain to dilate their closeness interpolitically, They're further assured than continually how their decisions feign the communities in which they do regard. And their philosophy is artless: They trace to import-encircling a settled, accountinaling impression on the fellow-creatures and in the places where they effect.
They incverse to their customers encircling the globe, and portion-out their expectations. For hey, that resources looking deeper into their furnish chain to determine that they grasp a obligatory track throughout the fruit lifecycle, from the fountain to their garners. Financial and Strategic Analysis Assembly Overview The Gap, Inc. (Gap) is a point dress assembly. The fruit verse of the assembly consists of unforeseen dress preservation fruits, accessories and mould dress. The assembly distributes its fruits through its hawk garners, internet and catalog garners. The assembly is too effects interchangeable and franchisee regardes.
Gap effects assembly owned garners in the US, Canada, France, Ireland, Italy, Japan and the I-JK. Financial Performance: The assembly declarationed incomes of (U. S. Dollars) USD14,549. OO pet duaccentuation the fiscal year ended January2012, a subside of 0. 78% from 2011. The gratuitoususe of the assembly was USD 1,438. 00 pet duringthe fiscal year 2012, a subside of 26. 93% from 2011. The net use of the assembly was USD 833. 00 petduaccentuation the fiscal year 2012, a subside of 30. 81% from2011 Portion-out Data THE GAP, INC. , Portion-out Data pnce (USD) as on 01-NOV-2012 35. 5 EPS (USD) Book compute per portion-out (USD) 1. 56 5. 68 Shares Outstanding (in pet) 533 Execution Chart SWOT Analysts THE GAP, INC. , SWOT Analysts Strengths Weaknesses Hearty Liquidity Lie Hearty Fruit Portfolio and Infamy Reassemblage Extensive Geographic Closeness Fruit Resumption Dependency on Third Concern Manufacturers Decreasing Resembling Garner Sales Opportunities Threats Growing Dress Communicate Increasing Onverse Closeness Expansion into New Markets Competitive Environment Changing Consumer Deportment Decreasing Shopping Trips SWOT Analysis - Overview The Gap, Inc. Gap) is a point hawker of dress, footwear and accessories. The I-JK, France, Ireland and Japan. The assembly too has onverse and catalog garners. The assembly's generic fruit portfolio and infamy reassemblage and extensive geographic resence contribute hearty restation for its forthforthcoming augmentation . However, eager emulation and changing consumer deportment are the important areas of regard for the assembly. THE GAP, INC. - strengths Strength - Hearty Liquidity Lie The assembly's liquidity lie corroboblame indicatively duaccentuation the fiscal year 2010.
The assembly narrative present proportion of 2. 19 at the fiscal year ended 2010, as compared to 1. 86 in 2009. Gap had indicative enlargement in its money and lacking account investments duaccentuation the fiscal year 2010. It narrative money and lacking account investments of USD 2573. 00 pet in 2010, as compared to USD 1715. 0 pet duaccentuation the fiscal year ended 2009. Moreaggravate the assembly declarationed a net diversify in money of USD 633. 00 pet in 2010, as compared to a introdden net diversify in money of USD 9 pet at the fiscal year ended 2009.
This was liberally due to enlargement in money instream from gratuitous activities. The assembly' money stream from gratuitous activities enlargementd 36. 54% to USD 1928. 00 duaccentuation the fiscal year ended 2010. Increasing money and money equiponderant represents the assemblys power to stock its regard opportunities, started important needs, discussion lacking account obligations and other important exactments in the forthcoming. Strength - Hearty Fruit Portfolio and Infamy Reassemblage The assembly's hearty fruit portfolio and infamy reassemblage determines financial retention through a variegated customer ignoble.
Gap through its hawk and onverse garners employed in providing a extensive place of dress and accessories for men, women and consequence. The assembly communicates its fruits beneath the courteous disclosed infamys, spectryly Gap, Old Navvy, GapKids, babyGap, GapBody, Banana Republic, and Piperlime. Beneath the Gap infamy, the assembly contributes denim, khakis and T-shirts, mould dress, accessories and idiosyncratic preservation fruits. The assembly too contributes a extensive assemblage f dress and accessories beneath the infamy spectrys GapKids and babyGap.
Under the Old Navvy infamy, the assembly offers dress, shoes and accessories for twain consequence and adults. The assembly too contributes unforeseen and tailored dress, shoes and accessories for men and women beneath its Banana Republic infamy. In conjunction, the assembly too offers its fruits through its websites. The assembly, through its multiple garner banners, caters to a extensive place of customers athwart the globe. Strength - Extensive Geographic Closeness The assembly's extensive geographic closeness insulates it from the risk of gratuitous in a sole distribution. Gap effects 3,082 garners athwart North America, Europe and Asia.
In fruits athwart diverse geographies. The assembly's franchised garners are located in Bahrain, Indonesia, Kuwait, Malaysia, the Philippines, the Oman, Qatar, The Kingdom of Saudi Arabia, Singapore, South Korea, Turkey, the United Arab Emirates, Greece, Romania, Bulgaria, Cyprus and Croatia. The assembly too effects its onverse garners through www. gap. com, www. bananarepublic. com, www. oldnavy. com, and www. piperlime. com websites. The assembly's global closeness enables it to set-up its infamy picture and frequent its hearty lie in the communicate.
THE GAP, INC. - Weaknesses Weakness - Fruit Resumption The assembly's sundry fruit resumptions not solely engender material introdden currency encircling its fruits and regard, but too thwart commercialization of other forthforthcoming fruit candidates. Duaccentuation April 2010, the assembly redenominated its babyGap Marrakesh and Gap Exit baby one-piece swimsuits . This resumption was chiefly due to closeness of a halter straps that were artful too lacking causing the flexible accentuation located at the kernel of the swimsuit to weigh opposite the offshoot's throat and choke the airway.
This poses a strangulation jeopard to the offshoot. Weakness - Dependency on Third Concern Manufacturers The assembly is extremely relying on the vendors beyond the US, which may adversely feign its power to as any strenuous exactments. The assembly escheatments peculiar imprint stock from closely 650 vendors and non-peculiar imprint stock from closely 350 vendors having facilities in closely 60 countries. Duaccentuation the fiscal year 2010, closely 98% of the stock was produced beyond the US.
These beyond vendors exact to furnish behind a while indubitable vendor conducts and environmental, strive, heartiness, and security standards in private and interpolitical communicates. Any nonobservance behind a while the standards ability relapse the donation of the consequence and indicatively feign the assembly's disposition. Thus, the assembly's excellent self-reliance on third concern manufacturers may enjoy an adverse feign on its regard operations. Weakness - Decreasing Resembling Garner Sales The resembling garner sales enjoy been decreasing aggravate the late few years, which is adversely feigning the augmentation of the assembly.
The garners portion accounts for further than 90% of the assembly's aggregate income. Duaccentuation the fiscal year ended 2010, the assembly engenderd USD 13,079 pet as compared to USD 13,496 pet in the iscal year extent 2009, a subside of 3. 18%. Aggravate the late three years, the resembling garner sales figures enjoy been subsided as demonstrated by a subside of 9. 17% in the fiscal year 2009 and a subside of 2. 19 % in the fiscal year 2008. As a outcome, Gap narrative a introdden CAGR of 2. 97% duaccentuation the age 2006-2010.
The subside has been chiefly due to a decverse in net sales in all the infamys due to the weakening hawk environment and a alter of consumers from branch garners to supermarkets and allowance garners. THE GAP, INC. - opportunities The execution of the diligence is intercepted to expedite, behind a while an anticipated CAGR blame of 2. 6% duaccentuation 2006-2011. According to exploration, the US dress hawking diligence is expected to solicit to a compute of USD336. 7 billion by the end of 2011. Gap's garners and trodden portions contribute infamyed dress, footwear and accessories for men, women and consequence through their hawk and onverse garners.
The assembly offeaccentuation avow of the art fruits and solutions through their extensive dispensation machine is mitigated to notoriousize occasion of the growing dress diligence and thereby boost their top verse augmentation. Occasion - Increasing Onverse Closeness Behind a while the preferment bend of e-commerce regard, there is prodigious germinative for the ompany to enlargement its usepower through the trodden-to-customer portion. In the fiscal year extent 2009, the trodden-to-customer portion accounted for 7. 87% of the aggregate income of the assembly and it enlargementd by 8. 4% as compared to the sales at the end of the fiscal year 2010. The assembly can enlargement the subscription of this portion to the income by increasing its onverse closeness. According to Forrester, onverse sales are expected to enlargement 13% to encircling USD 176. 9 billion in 2010. The augmentation is intercept to be 10%, 9% and 8% for 2011, 2012 and 2013, appertainingly. Moreaggravate according to a declaration published by U. S. Census Bureau the non-garner hawk sales for the 10 month age from January to October 2010 enlargementd by 12. 7% from the correspondent age in 2009.
Such web-based garner concept contributes consumers the unoccupied-duration of abundanceping from settlement, doing detached behind a while the occasion consuming Journey and saving on the walk absorb. Thus, web sales are expected to record material augmentation in the forthcoming years as e-commerce remains to after a whilehold communicate portion-out from material garners. The assembly stands to boon from the augmentation bend of e-retail, which is protected by preferment internet acuteness and increasing familiarity o onverse abundanceping. Occasion - Expansion into New Markets The assembly has fascinated diverse initiatives to penetrate new geographies in modern financial years.
Duaccentuation November 2010, the assembly knowned its firsh Gap garner in Italy. This new garner is located on Corso Vittorio Emanuele in Milan's premier abundanceping district. It too penetrateed into an treaty behind a while Armin Systems Scant to baccentuation Gap garners in Thailand. Moreaggravate duaccentuation November 2010, the assembly announced to known its earliest garner in Latin America duaccentuation the fiscal year 2011. The garner get be located in Santiago, Chile. The assembly too had fascinated initiatives to enliberal its Gap, Banana Republic and Old Navvy onverse infamys in Canada, and Gap and Banana Republic onverse in the UK and nine other European countries.
The assembly too has untarnished concern for a practicable inroad into India's point drapery communicate through practicable stake behind a while Reliance Retail. The assembly's diverse initiatives to penetrate new communicates may contribute indicative peril to further variegated customer ignoble and corroboblame its infamy picture. THE GAP, INC. - Threats Gap effects in a extremely competitive point dress hawk diligence. It faces eager ompetition from notorious, notorious, and global branch garners, point and allowance garner chains, inrelying hawk garners, and onverse regardes, which are commerce behind a while correspondent fruits.
The assembly too faces indicative emulation from the notorious players in European, Japanese, and Canadian communicates. The assembly's franchisees too faces emulation in the appertaining communicates. Increasing global emulation in the dress hawking communicate may indicatively feign the assembly's communicate portion-out in the forthforthcoming financial years. Denunciation - Changing Consumer Deportment Owing to recession, consumers in the US are left behind a while lesser chary incomes. It is showing in their escheatment lie Consumers serve to impoverish their discretionary abundanceping.
According to a consumer scan conducted in the US by Harris Interactive, further than half of adults (54%) say they would impoverish discretionary spextent duaccentuation an economic recession and the importantity (63%) of adults said they would not import-encircling a escheatment if there was no market decided. It distinctly avows that duaccentuation an economic recession, consumers would cut budgets, yet get remain to abundance when allowances are conducive. The scenario is a denunciation to point hawkers affect the assembly, which ell discretionary fruits. They get see a subsided footfalls and impoverishd incomes.
In classify to induce customers, these hawkers get enjoy to consume further on coupons and allowances, which get impoverish their margins. Denunciation - Decreasing Shopping Trips The regard of Gap may indicatively feigned due to decreasing abundanceping trips of consumers in the US. The US operations contributed to 82. 1% of the aggregate income of the assembly in the fiscal year extent 2010. According to a examine by Nielsen, exit abundanceping trips in the US has shown an middle monthly decverse of 4% from July 2008 o February 2010.
The assembly has already been recording a decverse in resembling garner sales aggravate the late few years, which accounts for Diversify Factors: In the rise Gap was vend solely Levi's fruits where they enjoy to pause on that feature infamy by and liberal. Later on when they realized depextent too ample on a feature fruit may mischief the regard in the forthcoming, they enjoy diversifyd there way of depextent on a sole feature fruit . Gradually they enjoy came up behind a while there own fruit spectry and incongruous supplier in classify to impoverish risks. In 1983 Gap escheatmentd Banana Republic