GAP INC Case Study Example | Topics and Well Written Essays - 1750 words

GAP INC - Case Study Example The paper will later do a CSR audit as well as make recommendation to the company. Gap Inc. has experienced tremendous growth since its inception in 1969. Its expansion has led it to be among the top selling brands in the U.S. and abroad. Through its organization and ability to meet customer needs, Gap Inc. grew from single store in U.S. to over 3500 outlets distributed in United States, Canada, United Kingdom, German, and Japan. This expansion came with a number of issues that were environment associated thus leading the management to make decisions based on how to handle the issues. The first issue that Gap Inc. had to deal with was the decreasing sales of Levi’s products. This motivated the company to venture into private-labeled products that has been the main sale in the company to date. The company invested in strengthening brand royalty by enhancing advertising and marketing of the company products. When private labeled products suffered low sales, Old Navy products were invented as a way of attracting customers back to the company’s products. Old Navy products were low cost products yet similar merchandise to Gap stores. Changing fashion trends is one of the major issues experienced by every apparel company (Hines & Bruce 64). The company’s inventory is affected since retailers must order merchandise in advance. The preparation for peak selling calls for higher inventory levels that have to happen before the season. To manage such huge inventory, Gap is faced by an issue that expose it to price shifts and demand that are related to timing of merchandise purchases. Such issues expose the company especially when production is from foreign countries meaning currency differences may check in. Japan market is highly traditional. Gap’s consideration of establishing long-term business relationships is one way of ensuring that the