Gap Inc. Gap organizational structure has the following pattern:. As it is illustrated in figure above, Gap organizational structure is divided into five divisions with each division representing a separate brand and headed by a president. At the same time, the organizational structure of each division is highly hierarchical and there are multiple levels of management between the president of the division and a shop floor assistant. It is clear that these earnings per share will increase.
Of course, the coefficient of variation indicates the volatility amount of risk that is assumed that the investment undertaken has in comparison to the expected return on the investment.
The coefficient of variation decreased substantially from the second quarter but it increased in the second fiscal, indicating that the higher the earning per share the higher the volatility on the investment.
Demand It is well known that the demand for clothing nowadays is inelastic, as clothing is one of the basic needs that someone should satisfy. However, the fact that there are many substitutes for clothing makes the demand quite elastic.
As Sapkota, Alikaj, Daily, et. So, the demand for clothing is quite price sensitive, leading people to purchase apparel that are that are more affordable to them, depending on their disposable income, and mostly on the economic condition. Moreover, when the price of clothing of one company increases consumers tend to purchase clothing from another company, which sells less expensive clothing. Namely, is of great importance that Gap Inc.
For instance, in the case of Banana Republic line Gap Inc. Furthermore, complements such as footwear, jewelry, bags do not have a great impact on the demand of clothing. Namely, products such as yoga pants, sports bras, and footwear such as sneakers are in sale in Old Navy stores.
That is, women are able to wear both comfortable and stylish clothes. Brendan, and Michael, In the case of Gap Inc. This gives Gap, Inc. More specifically, Gap Inc. Since there are many substitutes in the market for clothing the buyers might choose among the alternatives the product that fit them more, based on its price, quality etc. As Springstubb. Thus, a lot of work is necessary in order to maintain the customers Sapkota, Only small and local firms might be able to compete to Banana Republic but not to expand internationally.
Moreover, many consumers are brand loyal and it would be very hard for the new firms to increase the number of its customers. Product Life Cycle Stages The product life cycle has four clearly define stages, the introduction stage, the growth stage, the maturity stage, and the decline stage.
At the first stage, the products are being designed and merchandized and samples are created for the customers, in order to try the product out. This is the most expensive stage for the company. The company at this stage 8 Gap Inc. Namely, at this stage the product has been established and the main purpose of the company is to maintain the market share through the different marketing strategies utilized. The company at this stage reviews all the information regarding sales and makes some assessments, as the market for a product or a product line start to shrink.
After seeing sales decline at this stage Gap Inc. There are many clothing retail industries in the market that compete with each other in order to maintain or increase the number of their customers. The global specialty apparel retail industry is highly competitive. That is, Gap Inc. Moreover, Gap Inc. Some of the major competitors of Gap Inc.
As Cannon, Davis, Mei et. Four different marketing strategies should be identified in order to maintain or increase the sales on the strategic business units. Those strategies are market penetration, product development, market development, and diversification "Identifying Strategic Business Units.
In addition, Gap Inc. This high responsiveness of the consumers is being achieved because of the business-level strategy of differentiation that is being utilized by the company. However, by expanding more internationally penetrate foreign markets more than domestically United States and by developing its brands the company could increase its sales even more, and increase its market share.
Change Volume 5,, Today's Range Pricing Previous Close. Today's High. Today's Low. Shares Out MIL. Market Cap MIL. Latest Developments More. Industry Retail Apparel. Executive Leadership Bobby L. Martin Executive Chairman of the Board. Key Stats 2. Return on Investment TTM.
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