Swot analysis

Gap, Inc. Case Study Name: Institutional affiliation: Course: Date: Gap, Inc. Case Study Introduction In the early 2000s, Gap Inc. ranked top in specialty fashion globally, with companies such as H&M and Fast Retailing accounting for barely a quarter of Gap's market size. Between 2010 and 2023, Gaps in progress in the fashion retail sector stalled, with some competitors recording significant growth over this period. Gap Inc., was overtaken by Fast retailing in 2016, with the company since then recording temporary and inconsistent profit increases as compared to years earlier (Jeffrey et al., 2022). While trying to regain its lost glory, Gap Inc. has tried to bring in CEOs with the sole goal of re-strategizing and returning the company to its old glory. The 2019 pandemic worsened Gap Inc.'s financial situation with the company recording a 70% loss of revenue and another $140 spending weekly as a result COVID-19 pandemic (Jeffrey et al., 2022). During the hardship period, the company brought in Sobia Syngal as the new president and CEO in March 2020, and post-2020, the company started making progress. Looking at the company’s internal and external environment, this paper seeks to understand how Gaps' Internal and external business environment as well as Sobia Syngal plans to lead the executive leadership team in redefining Gap Inc.'s purpose. General External Environment Analysis PESTEL Analysis GAP Inc. is directly and indirectly affected by the forces in the general external environment. First, political factors play a role. As a top apparel company, it is directly affected by issues such as issues of the press, political stability in the market, bureaucracy and corrupt practices, and lobbying practices. Gap Inc. has been involved in several political controversies and racial controversies in the last decade, occurrences that have impacted its brand negatively. In 2016 for example it released an ad where a white girl rested her arms on a black girl's head, due to online controversy the company was forced to pull down the ad (Chaffey et al., 2023). Emerging trends affecting the industry politically include the increasing pressure to shift towards sustainable and ethical sourcing practices by states, occurrences that continue to influence apparel sourcing and production strategies. Economic factors also play a role in the company’s external environment. The company’s actual economic environment is impacted by the unstable exchange rate, economic downturns post-COVID-19, high cost of labor, unemployment, and low consumer changing patterns (Jeffrey et al., 2022). There are emerging trends in the economic environment such as the shift by consumers to shift towards value-conscious purchases due to changing economic times, thus forcing the company to alter its pricing strategies. Social factors impact the company as well. The changes in demographics in its markets shifts in cultural trends and beliefs, and changing lifestyle preferences (i.e., “athleisure” trend), attitudes and values have continuously influenced consumer demand patterns for fashion products. Gaps Inc. is majorly influenced by a combination of these social factors and successful market penetration starts after a full understanding of its consumers using social factors as the base (Futterman, 2022). The failures in its advert in 2016 were largely a result of its inability to understand how social factors are critical in brand development. Additionally, there are emerging trends which include issues of inclusivity and diversity; sustainability, and ethically produced apparel, which collectively determine Gap's Inc. product offering and its marketing strategies. Technological factors are majorly impacting Gap's operations. As of now, advancement in technology has impacted the company's e-commerce platform, customer engagement strategies, and supply chain management. For example, Gap saw the need to leverage technology by adopting real-time augmented reality to increase convenience among consumers. The emerging trends in the technological aspect include data analytics, and AI technology which can be tapped into by the company to increase profitability. Gap Inc. is also impacted by environmental factors. Accordingly, there are set environmental standards that companies must adhere to avoid being targeted by government agencies or pressure groups due to the growing need to adhere to environmental responsibility. There is an increasing need for environmental sustainability and the need for eco-friendly practices in the company’s manufacturing and distribution processes is important (Chaffey et al., 2023). Gap Inc. has been accused of pollution in its manufacturing plants particularly those located in Bangladesh, occurrences that might trigger huge pollution fines and quotas if the acts continue (Jeffrey et al., 2022). Emerging trends going into the future include a demand for eco-conscious apparel which will force Gap to invest in recycling programs, sustainable materials, and carbon-neutral operations. Other environmental factors affecting the company include legal factors, ethical factors, and cultural factors. With legal factors, there is a growing need for consumer protection regulation, compliance with set labor laws, and intellectual property rights. Recently, the emerging trends tend to focus more on data privacy, labor rights, and product safety standards, occurrences that continue to impact Gap's sourcing practices, legal moves, and marketing strategies. On the ethical aspect, consumers expect the company to engage in ethical business practices and maintain supply chain transparency (Futterman, 2022). The emerging trends in the ethical aspect include the increasing scrutiny of Gap's social and environmental impact which will likely force Gap to engage in philanthropic activities, ethical sourcing practices, and consistent community engagement efforts. Finally, cultural factors raise issues such as cultural diversity in a globalized world. The em...