External Analysis Gap

In examining the Gap's external environment many factors help shape and contribute to the Gap INC over all success. At the Gap the company truly believes in and supports the community and finds positives way to give back to its stakeholders and employees who GAP considers its "biggest community asset with more 150, 000 employees world-wide". The Gap looks to "leverage its brands, corporate asset, stores and vendor relationship to bring about social change in the community". The Gap has a couple of causes in which it contributes in the world and in various countries. The ability to provide for under privileged youth by focusing on job readiness education and career exploration in countries has proved successful for the Gap as it looks to close this type of "disparity among less advantaged youth". Of the youth targeted in developed countries the ages range from 12-18 years. The GAP supports various organizations such as the Big Brother and Big Sister; Boys and Girls Club of America to name a few. Another cause would be to teach women strong "life skills through work and education to break the cycle of poverty". Various programs such as "(P A C E) Personal Advancement Career Enhancement is partnered with the International Center for Research on Women (ICRW)". (GAP INC 2007).

Giving back to the Community:

The GAP has distributed more than 60 million in grants worldwide and in the places they do business such as the "Harlem Children's Zone, the United Negro College Fund and ALAFA (Apparel Lesotho Alliance to Fight AIDS)" whether it be by grant or cash grant given through "strategic partnerships with select community organizations", the Gap is generous in the way its gives back and supports various groups and programs. Volunteering ones times as an employee is a very rewarding way to give back to the community as well. "Volunteer Match, is a nonprofit organization that harnesses the power of the Web to connect community groups with individuals ready to get involved". (GAP INC 2007).

Global Compliance, Global Partnerships, Social and Community Investment, and Environmental Affairs all make up and comprise the team that "work together to bring positive change to the factories where our clothes are made".

Industry Analysis of the GAP using Porters Five Forces Model:

Potential Competitors and Rivalry amongst competitors:

The Gap competes with other competitors like the Limited Express, Abercrombie and Fitch, American Outfitters, Eddie Bauer, Levi Strauss, Guess and LL Bean. "Some of the risks that The Gap faces include ongoing competitive pressures in the apparel industry, risks associated with challenging international retail environments, changes in the level of consumer spending or preferences in apparel, trade restrictions