Gap Inc. Equity Valuation and Analysis Valued at November 1, 2006

more of a strategy that is important in adapting to a moving environment and its
social groups. Since almost all the firms in our industry have name recognition,
success in this market must be achieved by adapting to a moving environment
that is obsessed with the latest trends, while producing comfortable and casual
styles of dress.
Competitive Analysis
Gap Inc. is in the highly competitive, ever changing, clothing retail
industry. The Gap is implementing technology into its stores which contain
certain intrinsic competitive advantages which give the corporation a head up on
the competition. Not only does this new technology allow for more cost effective
distribution, but it also offers a more time-efficient experience for both the
consumer and the employee. Instead of spending large amounts of money yearly
by manually taking inventory, The GAP will now be able to access inventory data
quickly and easily through a handheld device. If there is a situation where
merchandise is out of stock at a particular location, it can be dealt with quickly
and effectively, by communicating with other GAP stores to replenish the missing
units.
These measures taken to provide technological advantages over other
companies will pay off, simply because it is a more convenient way of shopping.
It literally bridges inventories from multiple stores in a region, giving the
customer a larger selection of sizes and styles. This allows for customers to try
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