1.
a) How did Gap succeed as a Market Driving Company in 1980's and 90's?
How can we define the GAP brand at the end of the 1990's? People would say at that time that it was a hip and trendy, purveyor of the new uniform - basic jeans and T-shirts - for a generation that rejected "dress up" clothes for work and play. This only sentence could explain why Gap Inc. has been so successful as a Market Driving Company: as being a pioneer in the casual ware industry, they managed through decades to teach customers theirs needs and to create a high brand value.
The question that remains is now to find how Gap managed to reach such a point in the market. Here are the facts that can explain this major success:
- The growth during this period of time is a direct result of meeting a niche in the clothing market and being a pioneer in this niche.
Indeed, as an innovator in the apparel industry, Gap Inc. managed to "help buyers learn what they want" (Kellogg on Marketing-Chapter 5). When Gap was first introduced, their niche was their basic clothing, which consisted of its signature blue jeans and white cotton t-shirts. Gap was more than a brand; it had changed the clothing industry in many ways, offering a range of clothing for men, women, and children. As Gap's business began to boom, it also began to expand.
As we have seen in the past with brands such as GE, Wal-Mart or even Motorola is that being a pioneer in an industry, therefore being a Market Driving Company, can generate a competitive advantage as shown in Figure 5.3 of Kellogg on Marketing, reproduced below.
This competitive advantage often leads to a leading market position. Indeed, the brand (in this case G ...