Gap Inc - a Portfolio Analysis

Gap Inc. – A Portfolio Analysis

Submitted By:

Pradeep Sapkota (Gap Inc. - Comprehensive Report)

Albi Alikaj (Gap Stores)

Kristina Daily (Banana Republic)

Sony Byanjankar (Old Navy)

Moureen Atieno (Piperlime)

Submitted to: Dr. Tim Wise

April 23, 2008

Abstract

This paper is an analytical overview of Gap, Incorporated and its portfolio members. It describes the birth of the company and goes on to describe its current position. As part of the description process, it includes the four major companies that are part of Gap, Inc. These companies include Gap, Banana Republic, Old Navy and Piperlime. A Managerial Analysis is included herewith that gives an insight into SWOT analysis and Five Forces Analysis of the company, and also included is the Strategic Distinction of the company. As per the Financial Analysis part, financial tools such as ratio analysis, consolidated financial statement comparison, and stock trend are analyzed to assess the company's progress. The paper also keeps close track of company's social, ethical, environmental and managerial aspects in day to day operations. Future expectations and possible diversification or anti-diversification process that the corporation can practice are also part of the paper. It includes the 9-cell matrix to show the existence of company and its portfolio. As a conclusion, the paper sums up ideas from a group of five undergraduate students and incorporates them to breakdown the strategic and financial aspect of Gap, Inc.

Introduction

Gap, Inc. is a leading American specialty apparel retailer based in San Francisco, California. It sells casual apparels, accessories, and other personal care products for men, women, and children. The products of Gap, Inc. include denim, khakis, T-shirts, boxers, casual wear, and others. It is traded in New York Stock Exchange under the symbol GPS. Currently, the company boasts approximately 150,000 employees and 3,139 stores all around the world. Gap, Inc. sustains a large number of brands, namely Gap, Old Navy, Banana Republic, Forth & Towne, Piperlime, and others. These different companies are bought by the parent company in different times. Started as a general