SWOT Analysis of GAP
GAP is an international fashion brand, which is busy in exhibiting apparel and accessories and it is connecting with the lifestyle and retail. This fashion brand has the mission to provide the products to every generation and the people can buy their products in one store for the whole family. This is the strong competitor for other fashion brands in the market but its SWOT analysis can help the clients to understand its products and services.
Strengths
• Having strong recognition around the globe with American style, pop and emotional attachment
• Company’s outlets around the world including US, UK, France, Japan, Canada and Ireland. It has franchises in Turkey, UAE and other countries
• It expands its business with franchise system and expose its products internationally
• Products are durable and long lasting
• Introduces baby products, as they are highly demanded
• Having sufficient knowledge and experience to adapt new trends of fashion
• Enjoy good reputation through its constant advertising through TV and print media and clients can watch its products online
• Set up strong and effective dealership teamwork to reach all customers across the world
• Strong financial position
• Having durable multi brand portfolio
• Serving worldwide customer
• Strong employee base of approx 141,000 as of 2015.
• Registered approx 16 billon dollars revenues in 2014.
Weaknesses
• Strong competition in introducing apparel segment
• It has limited market share with high brand switching
• Fail to introduce products in emerging markets and economies
• Mostly depend on vendors for exhibition of its products
• Still utilizes its assets
• Fail to get return on asset and equity
• Less attractive in introduction of trendy dresses than its competitors
• Do not have control over production process, which is important in fast fashion retailers
• Having third party vendors, which causes delay in shipment, shortage of products and increase in cost
• Limited resources to keep up fashion trends and maintain quality of products
• Profit to Earning (P/E) is low as compared to its competitors.
Opportunities
• The products can be promoted online and invite clients to do shopping, which can boost its sales
• Make connection with other fashion brands and expand their business through other outlets
• Increase women’s apparel to boost its sale
• Avail opportunity to launch products in Asia
• Take advantage of online retailing trends and develop and improve their website for exposure of their products to other clients
• Prepare dresses for kids and grow it in other markets as well
• Set up web based stores and two additional stores online
Threats
• It has been facing strong competition from TJX Companies, L Brands, Ross Stores and Nordstrom
• Having tough economic situation
• Cost of revenue has increased in 2015
• Having the counterfeit goods in the market and feeling difficulty in maintaining their name and brand
• Increase quality of products of other companies
• Provision of products at the highly subsidized rates by the competitors
• Huge number of fashion retailers, which are emerging in the market quickly and their provision of products in the market
• The prime real estate market is highly competitive.
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