Gap Inc

Strategic topic #1 Concentrated on enlargement at a rapid pace Although paste had its many a(prenominal) an(prenominal) strengths as a retail company, such as segment market places, punctuate recognition, product utility and multiply stores worldwide; it failed to come the brilliance of its customers by focusing completely on intricacy quite a than customer needs. Expansion as a key strategy is only when successful when appropriate inquiry is undertaken. For many stores, concentrating on expansion is the correct strategy, but only when factors such as customer loyalty and a strengthened foothold in the market are clearly foreknow equal. In Gaps case, neither of these factors was present. Focusing solely on expansion done cutting expenditure in certain areas of the company resulted in Gap losing sight of its affection concept and goals. This allowed competitors (such as Wal-Mart, TJX and Ross Stores) to fall into the manufacture and grasp a strong eminence. T hese other retailers were up to(p) to keep up with the ever-changing needs within the industry as they were smaller and able to change quickly when prompted. Whereas Gap was too large to oppose to the changes in an efficient and utile manner. wherefore this resulted in a decline in gross gross sales (leading to last inventory) and stock depreciation (dividends being low).

Strategic Issue #2: Not focusing on customer needs (too many segments) Gaps goal was to provide people with the right vestments believing that this would safari sales. They assumed correctly, though they did not choose customers what they (as customers) really wanted. referable to Gaps inability to comprehend customer needs, sales were declining. This ! was also imputable to its core market being doomed through the requital to other retailers by offering a trendier line of array (which was not meeting the needs of its customers). Therefore this was an inapposite strategy.Being so large and expanding continuously as a company, Gap was a threat to itself. The company had so many different market segments...If you want to get a full essay, order it on our website: OrderEssay.net

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