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Competitive Strategies Case Study

Case Title:

The Future of Gap Inc

Publication Year : 2007

Authors: Mridu Verma

Industry: Retailing


Case Code: COM0201P

Teaching Note: Not Available

Structured Assignment: Not Available

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Gap Inc (Gap) is one of the leading international specialty retailers offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy and Forth & Towne brand names. Paul. Pressler (Pressler) who became Gap Incís CEO in October 2002 has been heralded for his cost- cutting strategies that have restored financial discipline in the company. But there has been a trade-off. Pressler, who has little retail experience, has not steered Gap toward its customersí tastes. Realising his mistakes, Pressler has changed his strategy in mid 2004 to generate growth. He has revitalized the marketing strategy, tied up with renowned designers and increased the focus on emerging economies. Will he succeed in rejuvenating Gap Inc and attracting customers once again?

Pedagogical Objectives:

  • The case discusses the dynamics of the US garment industry
  • The case analyses Gapís repositioning strategy and its decline
  • The case debates over Gapís revival strategy

Keywords : Gap; Competitive Strategies Case Study; Banana Republic; old navy; marketing strategy; repositioning strategy; brand cannibalisation; consumer preference; turnaround strategy; employee exodus; SWOT analysis; merchandise

Contents : 
Presslerís Turnaround Strategy
Recovery Efforts
Gap Incís SWOT Analysis
Gapís financial information
Brand-wise Store Details

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