
Gap is a clothing store that is well known to people of the western world. We know that just by logging on to gap.com, we will find that Gap s a “global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands.” (“SEC Filings”). All of these companies have the same common factor, they all sell clothing and fashion goods to the consumer. For these brands to be in such close ties together, I feel that it allows Gap Inc. to cover a wide range of major clothing stores that many people shop at. Because of this it allows them to control what consumers buy. The stores that are listed above rank in cost level. Old Navy being at the bottom of this chain and allowing consumers to buy fashion at a lower cost, then Gap also owns Banana Republic which is more of a higher end store. By them owning this wide range it ensures that they have their bases covered, which is a smart business approach. Another factor is that these companies are worldwide and consumers just don't stop in the western world. The Gap inc “distinguishes the dominant firms [and] their ability to exploit the "synergy" among the companies they own.”(McChesney) they show this well on their website, where they combine all of their brands together and making it easier for the consumer.
I used the website theyrule.net to look up Gap. I found out that their are other companies and corporations that this company is apart of aside from the brand names that they already own. This website showed that the directors who are on the board of Gap are also affiliated and working with other major companies. These companies include: Starbucks, Dillard's, HCA, Capital One Financial, Chales Schwab, Sun Microsystems, Constellation Energy and Procter & Gamble. This shows that the Gap Inc has become a company that has “moved aggressively to become global players.” (McChesney). They are connected with companies that aren't even related to their main business objective, of selling clothing. I think that this could be a good thing because it allows them to have connections out side of their normal boundaries they are connected with other parts of the worlds leading industries and can use this to their advantage by using their companies information on sales and public appearance to better know the consumers and tailer these findings to the Gap's needs. This could also lead to partnership, lets use Starbucks as an example. By having Starbucks as one of their affiliated partners, they could team up say at christmas and have promotions that benefit each others company, this could also steer their costumers to wanting a product from a different company. If the product is well received by the public then Starbucks would gain costumers and GAP would be known for knowing its costumers and all would be pleased.
Work Cited
McChesney, Robert. "The New Global Media." Nation 11 Nov 1999, Web.
"THE GAP, INC. 2008 ANNUAL REPORT ON FORM 10-K." SEC Filings. 27 Mar 2009. SEC Filings, Web. 19 Nov 2009.