Hi Class:
I am planning to write a memo to the CEO of Gap Inc for several reasons, some of which I have highlighted below. I would be interested in hearing anyone's feedback of my argument. Also, it would be interesting to hear any opinions/thoughts about the company.
1. GAP has struggled the past 5 years and is still in need of redefining itself. They have incurred turnover at top management. Brand is not as valuable as it once was losing to much trendier names such as Abercrombie, Anthropology, JCrew, Zara, etc.
2. In order to freshen up their image, they have moved into new product lines such as "Piperlime.com" which is an online store for handbags, shoes, accessories which features non-GAP brand products. I am not sure the strategy behind this product launch as it seems they are moving away from selling their GAP brand of products.
3. I think they can better leverage technology to improve inventory management system as well as improve their product cycle launch. For example, GAP's competitor, Inditex (parent company of Zara), operates on a more flexible production model, enabling them to quickly take advantage of new fashion trends by being able to get a product from the pre-design stage to its shelves in 3-4 weeks.
4. Think they could utilize web/social networking to better advertise and market their products – partnering with Facebook, Youtube, etc are optons.
5. Macro-economically –The retail industry's current struggles during this economic environment is no secret. More than ever GAP needs to differentiate itself from its competitors in order to get customers back in its stores. I think GAP should invest in IT innovations that will improve cost efficiencies and drive sales at a time when its competitors are culling investment projects.
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This sounds interesting, Scott. As an online shoe purchaser myself, I'll be curious to hear how Piperlime is doing. If you look at Endless.com it's hard to even figure out that they're owned by Amazon unless you do some digging on the site. Contrast that with how Gap has integrated Piperlime right into their site: it has a separate "tab" but it's clearly under the umbrella of Gap. I wonder how that branding is working out for them...
ReplyDeleteIt is worthwhile taking a look at Amazon, eBay and others to see what Gap can do to reinvent the brand... and still develop ways of making customer develop an affinity. More importantly, is Gap a brand leader or a channel? How should Gap evolve in the future...... and the social networking ideas are worth exploring both in the context of brand and as a channel....
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