The Gap Inc. is an American clothing and accessories company which operates worldwide. It was first founded in 1969 by Donald Fisher and Doris F. Fisher in San Francisco, California. It was first introduced with the idea of pair of jeans but then the product line kept on extending. Within almost 46 years, it has introduced brands like Gap, Banana Republic, and Old Navy which are widely known and valued around the world. Till date it has thousands of stores in around 90 countries along with online stores as well. Gap Inc. has been able to secure its position in the fashion industry and gained a fair market share as well.
Gap Inc. has been competing in the fashion industry and their strategy has been cost leadership. They offer fashionable, trendy and stylish products at very competitive prices. These prices may vary with different brands that they have but mostly the brand is not associated with a very high price but with stylish, quality products. Their customer base is very diverse and consists of almost all age and income groups and it is because of their competitive prices which act as their competitive advantage.
Gap has been successful in developing its own iconic products with exceptional quality and completely different designs than other competitors. Gap became widely known after it introduced fashion apparel with their logo on them. Consumers started wearing their apparel with their iconic logo and then started identifying and connecting with the brand. Their iconic jeans and iconic shirts and hoodies with ‘GAP’ written on it were worn all around the world and that gave more success to the brand. People started associating themselves with the brand because of the image that Gap portrayed in their marketing. This helped them even more in developing a strong, well-known brand name around the world which became their competitive advantage. Today, Gap is known as a brand that people can trust in terms of quality and fashion trends because of the exceptional products that they have produced over so many years.
The expansion of Gap Inc. by entering different international market helped them develop the brand even more. This expansion and success in all these markets gave them a competitive edge as compared to their competitors. Since Gap has reached a level of growth where they have established their brand reputation, it is able to conveniently penetrate the international market and compete with the local brands in terms of competitive pricing as well the kind of image that they carry around the world.
Gap is also dedicated towards constant development in terms of expansion of their product portfolio, entering new markets, fulfilling the fashion needs of their customers and even providing them convenience through online selling. All these things add up and contribute towards the success and growth of their brand.
References
Be the world’s favorite for American style. Retrieved January 22, 2018, from http://www.gapinc.com/content/gapinc/html/aboutus.html
Gap Inc. Business Strategy and Competitive Advantage. (2016, October 22). Retrieved January 22, 2018, from https://research-methodology.net/gap-inc-business-strategy-and-competitive-advantage/
Gap Strategies Analysis. Retrieved January 22, 2018, from https://www.ukessays.com/essays/marketing/how-did-the-gap-change-the-retail-clothing-industry.php