The presentation analyses a case of Gap Incorporation. The Gap Incorporation is an international specialty retailer located in the United States. A strategic audit of the company is presented, as an internal and external analysis of the company's environment is necessary.

1. Anna Osmanay
Anatolia College –American College of
Thessaloniki (ACT)
GAP INC. – CASE ANALYSIS
(STRATEGIC AUDIT)

2. GAP INC.: BACKGROUND
 One of the American “leading international
specialty retailers”
 Offers apparel, accessories and personal care
products for men, women, children and babies,
under:
Gap
Banana Republic
Old Navy
Forth & Towe

3. STRATEGIC AUDIT
Current Situation
Current Performance:
Net sales decreased by 8% compared to
2014.
 Gap Global: negative 9 percent versus positive 1
percent last year
 Banana Republic Global: positive 2 percent
versus negative 10 percent last year
 Old Navy Global: positive 3 percent versus
positive 4 percent last year

4.  Mission: “Gap Inc. is a brand-builder. We create
emotional connections with customers around the
world through inspiring product design, unique
store experiences, and compelling marketing.”
 Purpose statement: “Our purpose? Simply, to
make it easier for you to express your personal
style throughout your life. We have more than
150,000 passionate, talented people around the
world who help bring this purpose to life for our
customers.”

5. Corporate Governance:
Board of Directors: responsible for oversight of the
business, affairs and integrity of the company,
determination of the company's mission, long-term
strategy and objectives.
Top Management: A diverse and talented executive
management team focused on executing Gap Inc.
strategy to engage customers and maximize
shareholder returns

6. Fractions Weight
(Total: 1)
Rating Weighted
Score
(WS:3.15)
Strengths
Brand recognition .10 4 .40
Appeal to broad market target .15 5 .75
Large network of physical stores .15 5 .75
Marketing campaigns .10 3 .30
Cut 9 months production cycles to 3
months & customize deliveries
.10 3 .30
Weaknesses
Struggle to recapture customers
who had abandoned it
.10 1 .10
Decline in revenues .15 2 .30
Overdependence on North
America
.05 3 .15
INTERNAL ANALYSIS

7. EXTERNAL ANALYSIS
Fractions Weight
(Total: 1)
Rating Weighted
Score
(WS:3.15)
Opportunities
Growth in online retail spending .10 4 .40
Line extensions (accessories, baby
wear)
.15 5 .75
Markets in Southwest Asia .20 3 .60
Launch of Piperlime .10 3 .30
Threats
Shoppers switched to rival clothing
retailers
.20 3 .60
Increased competition .10 2 .20
Remarkably easy to imitate .15 2 .30

8. RECOMMENDATIONS
 Better capitalize on its brand image and
Recognition.
 Gap also needs to realize the potential threat of
European companies’ expansion into the United
States and Canadian markets.
 Further strategically restructure its product range by
increasing its lineup of plus sized apparel.