Gap Inc.’s Challenges and Management Strategies

Identification of the problem

At this point, Gap Inc. faces various challenges that are related to the internal and external environment of this corporation; in particular, one should focus on the following factors: 1) the competition with other retailers; 2) the impacts of economic recession; 3) inefficiency of the supply chain, and 4) the failure to allocate resources properly. These are the main aspects that can be identified. Nevertheless, the management of Gap Inc. should concentrate on the failure to improve the operational performance of this organization. This issue is critical for the company because it manifests itself in different ways. For example, the necessity to reduce the operational costs adversely affected the quality of the company’s products.

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Furthermore, the company failed to introduce new lines of products that could give them a competitive advantage over other firms. Additionally, one should take into account that this organization introduced complex information systems only in 2009, and this is one of the reasons why this corporation could not reduce its production cycle. As a result, the financial performance of Gap Inc. declined. For example, the earnings before interest and taxes were only $ 1089999,000, while the total sales were 14,197,000,000. This evidence indicates at internal inefficiency of this organization and the inability to use its resources properly. This is why the management of this corporation should not disregard this issue.


One can provide several recommendations for the management of this corporation. The management should eliminate various internal inefficiencies existing in the organization. Senior executives should focus on the work of their supply chain by utilizing information technologies. These tools can be used for identifying those processes or activities which result in extra expenses. For instance, the use of an information system can help the company to determine what product appeal to the clients. Therefore, Gap Inc will avoid such problems as the shortage of goods or stockouts. These are the main benefits of this approach. Furthermore, the organization should pay more attention to inventory management since, in this way, the company can speed up the introduction of new products. This task is important at the time when both domestic and foreign firms introduce new brands that erode the market of Gap. By identifying and correcting internal weaknesses, the company can overcome many challenges related to the external environment

These tasks are important for the performance of the company. This strategy is important because, in this way, the company can ensure its financial stability and retain the trust of stockholders and investors. Additionally, this approach can help the company start a new project and introduce new brands. These are the main goals that should be achieved. Provided that the management copes with this task, the company will be able to withstand the competition of other firms and overcome the effects of the economic recession. So, these recommendations can be important for the long-term sustainability of Gap Inc.

The mission of Gap Inc

To provide products of superior design and ensure excellent store experiences of clients. On the whole, this mission statement suggests that the company wants to gain a competitive advantage by emphasizing the design of their clothing and the quality of their services. These elements are of great concern to the senior executives of this company.


Gap Inc. wants to be a global brand-builder or a corporation that offers the most innovative products. Apart from that, it wants to remain an international leader in the retailing market. One can say that this organization emphasizes the quality of its products and the image of this company as one of the most famous retailers of clothing. This is one of the main aspects that can be identified.

The major aspects of their strategy

  1. It is possible to identify several policies that the management of Gap Inc concentrates on. In particular, this corporation actively relies on celebrities while promoting their products. For example, when the company was beginning its operations, it collaborated with Ernest Hemingway, Marilyn Monroe. This approach enabled them to attract many clients. To a great extent, this policy is adopted by the current managers of this company. One should take into account these elements while analyzing the strategies of Gap Inc.
  2. Apart from that, this company emphasizes the quality of its products. It should be taken into account that this organization prefers the in-house design of the new brands. This approach enables the corporation to produce brands that represent a good ratio of price and quality. This policy is critical for the competitive position of this corporation.
  3. As it has been said before, this company pays close attention to the experiences of clients who visit their stores. The customers want to work with employees who can help them choose the best article of clothing. This interaction with clients is also vital for the performance of Gag Inc and its popularity in various countries.
  4. Furthermore, this management of the company attaches importance to online commerce. In this way, this corporation strives to decrease its operational expenses and attract a greater number of clients.
  5. Corporate social responsibility is an indispensable element of the policies that the company pursues. The managers of this corporation monitor the activities of their suppliers and improve the working conditions adopted in these firms. This policy helps the company to maintain its reputation as a responsible corporate citizen.
  6. This company continuously tries to enter new markets. The name of this corporation is familiar to customers from various regions of the world. The approach enables the company to increase its sales.
  7. Finally, it should be mentioned that the management of this company intends to pursue the policy of cost-reduction because it can enable the corporation to cope with the rivalry of other firms. The necessity for this policy had manifested itself in recent years, especially at the time when many foreign firms began to enter American and foreign markets. On the whole, by analyzing this set of strategies, one can better understand the factors that drive the performance of this corporation. This is why they should be analyzed in greater detail.

Senior Executives

Glen Murphy is the Chief Executive Officer of this corporation. Currently, he intends to implement a set of strategies that can improve the performance of this company.

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Patrick Robinson is the designer who works on the development of new brands. The efforts of this person are also critical for attracting new clients. One can argue that the activities of these people will shape the performance of Gap Inc.

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"Gap Inc.'s Challenges and Management Strategies." StudyCorgi, 12 Jan. 2021,

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StudyCorgi. 2021. "Gap Inc.'s Challenges and Management Strategies." January 12, 2021.


StudyCorgi. (2021) 'Gap Inc.'s Challenges and Management Strategies'. 12 January.

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