THE SPACE MATRIX FOR GAP
| FINANCIAL POSITION (FP) | RATINGS |
1 | The company primary capital ratio is 7.87 percent which is 1.87 percent over the required ratio of 6 percent. | 1.0 |
2 | Gap return on assets is 17 percent compared to last year 14 percent | 5.0 |
3 | The company net income was $1.20 billion increase 9 percent from a year earlier. | 4.0 |
4 | The company revenue is $5.89 billion which is 39 percent from the industry. | 5.0 |
| INDUSTRY POSITION (IP) | |
1 | Apparel retail industry is driven by demand from the various demographic group and consumer preferences. | 4.0 |
2 | Rising energy prices can inflict on the apparel industry. | 2.0 |
3 | U.S Department of Agriculture under the standard of the National Organic Program (NOP) states that 95percent of the product content must be organic and extend to the manufacturing process. | 4.0 |
| STABILITY POSITION (SP) | |
1 | Gap has agreements with unaffiliated franchisees to operate Gap and Banana Republic store in other countries around the world. | -3.0 |
2 | Gap is the second largest selling apparel brand in the world. | -2.0 |
3 | The retailer has about 180 franchise store and plans to increase that to 400 by fiscal 2015 | -3.0 |
| COMPETITIVE POSITION (CP) | |
1 | The company provides a wide range of family clothing product including denim, khakis, T-shirt, fashion apparel, shoes, accessories, intimate apparel, and personal care products. | -2.0 |
2 | All Gap clothing is private label merchandise made especially for the company. | -2.0 |
3 | Gap faces strong competition from TJX Companies, and Nordstrom. | -5.0 |
Conclusion
Financial Position average is +15.0 / 4 = 3.75
Industry Position average is +10.0 / 3 = 3.33
Stability Position average is -8.0 / 3 = -2.67
Competitive Position is -9.0 / 3 = -3.0
Directional Vector Coordinates : x-axis : -3.0 + 3.33 = 0.33
y-axis : -2.67 + 3.75 = 1.08
FP
DEFENSIVE
CONSERVATIVE...