| Gap Inc. is a leading international clothing retailer | | | | Gap's competitors for apparel, accessories, and |
| offering attire, accessories and personal care products | | | | personal care products are such famous American |
| for men, women, children and babies. They produce | | | | brands as Abercrombie & Fitch, American Eagle |
| under brands such as Gap, Banana Republic and Old | | | | Outfitters, DKNY, Polo Ralph Lauren, and Tommy |
| Navy. Also Gap brand includes Gap, GapKids, | | | | Hilfiger. Those companies are manufacturing similar |
| babyGap, GapBody and Gap Outlet. They have their | | | | products, although they are targeting a slightly different |
| headquarters in the San Francisco Bay Area, the | | | | customer market. Gap however has to take a lot of |
| product development offices are located in New York | | | | effort to stay aloof among them with pricing policies, |
| City, while distribution operations and offices dealing | | | | quality and design in order to retain their customers |
| with sourcing activities can be found around the globe. | | | | and try to gain new ones. The external threat from the |
| Gap Inc. has created a "Code of business conduct" in | | | | new entries is a minor one because of number of |
| which essential issues of conducting a business, | | | | reasons. The clothing/accessories market is quite |
| employees' behaviors and corporate culture are | | | | difficult to enter, and it takes time to establish a brand |
| outlined. It contains the letter to employees which | | | | name and gain customer loyalty and trust, so in this |
| states the main principles that operate in Gap Inc. The | | | | instance Gap is almost safe at least for some time. |
| company was originally founded and to this day is | | | | Gap Inc. has stores around the globe and naturally |
| maintaining the principle of conducting business in a | | | | employs people from many foreign countries. While |
| responsible, honest and ethical manner. Currently Gap | | | | manufacturing and distributing its products, Gap Inc.'s |
| Inc. remains committed to setting and meeting the | | | | Sourcing and Logistics group, along with their buying |
| highest standards of business conduct, because for | | | | agents, draw up production schedules and place |
| them nothing less will do. They also make such | | | | orders with approved third-party factories. This |
| commitments to their shareholders, neighbors, | | | | process takes place in more than 50 countries where |
| customers and one another not only because it is a | | | | Gap products are made. Clearly Gap involves many |
| legal duty, but because it's the proper thing to do. The | | | | intermediaries in making its product, designating much |
| company claims that their reputation depends on the | | | | power and responsibilities to the factories and |
| integrity and excellence in everything they do. Clearly | | | | suppliers. It purchases from more than 1,000 vendors in |
| such statements shape company's overall vision of | | | | 3,600 factories in more than 50 countries and |
| how they operate and what they expect from their | | | | approximately 13 percent of its products is sourced |
| employees. This code was designed to promote an | | | | from China alone. The company also has a |
| ethical work environment, with all the necessary issues | | | | comprehensive and publicly available Code of Vendor |
| descried in it such as reporting the violations, | | | | Conduct and has instituted excellent internal monitoring |
| responsibilities, laws that apply to different countries in | | | | programs with vendor compliance officers. Gap |
| which the company operates. | | | | company was the first U.S. apparel manufacturer that |
| Gap Inc. was founded in 1969 by Donald and Doris | | | | developed an independent monitoring program by |
| Fisher in San Francisco, California. When they started | | | | agreeing to let representatives of local |
| there was only one store and a couple of employees. | | | | nongovernmental groups monitor its supplier factories |
| Today, they are one of the world's largest specialty | | | | in El Salvador. Gap also supports human rights |
| retailers, with fiscal 2004 revenues of $16.3 billion. They | | | | initiatives through its supplier education programs and a |
| are producing and selling clothes to men, women, kids | | | | number of other projects and is a participant in the UN |
| and babies all over the world. Such brands as Gap and | | | | Global Compact. Social responsibility for Gap Inc. is a |
| Banana Republic are aimed at customers with higher | | | | big concern and it engages in many practices to help |
| incomes who are willing to buy high quality clothes, | | | | solve environmental problems. It has number of helpful |
| although it is not priced too high. Old Navy brand was | | | | environmental projects, including a unique, |
| created to fit the niche of customers such as families | | | | environmentally efficient designed building at its |
| willing to have good looking and quality attire, but pay | | | | headquarters. Their programs incorporate recycling |
| less for it. Many people shopping at Gap are | | | | initiatives for stores, use of wood from |
| customers in Old Navy as well, because the | | | | certified-sustainable forests for the flooring at its |
| company's signature in making clothes can be easily | | | | stores, as well as energy efficiency in lighting. |
| traced. In recent years the company has began | | | | Company's considerations with environmental issues |
| production of colognes and other toiletries which are | | | | are also addressed in store design and construction; |
| suitable for different seasonal collections and can be | | | | Gap Inc. also does not conduct or endorse animal |
| matched with certain clothes. Thus Gap stores, offer a | | | | testing on its products. |
| full range of products from underwear and perfumes | | | | Company's internal policies are accordingly well |
| to sports apparel and winter clothes. | | | | designed and suited to meet their employees' |
| As already was mentioned the Gap Inc. customers | | | | expectations. It offers paid volunteer time for |
| are successful people who are looking for high quality | | | | headquarters employees, and ensures full medical and |
| and reasonable prices. With Old Navy brand it is more | | | | dental benefits for domestic partners, as well as a |
| of a younger audience with less income to spend, Gap | | | | various family-oriented benefits. Throughout the |
| itself aims at middle class buyers wanting a stylish look | | | | company women hold a considerable number of |
| and excellent customer service treatment. Banana | | | | management positions, including the two women who |
| Republic brand is the most expensive and the most | | | | are among the company's top eight executives; there |
| chic one out of all presented by Gap Inc. People | | | | are also four women on the 15-member board of |
| shopping at Banana Republic are looking for latest | | | | directors. Among programs supported by Gap are |
| styles, comfort and still reasonable prices for the | | | | those focusing on helping unappreciated youth, with an |
| quality they receive. Generally company's customers | | | | emphasis on academic achievement. Health and |
| are young and middle aged people eager to try | | | | human services, including HIV/AIDS prevention and |
| something new every season, enthusiastic about color | | | | education, community services and the arts are areas |
| and inspirational design. | | | | of company's interest and sponsorship. |