Advantages and weaknesses portrayed by GAP with regard to contemporary Essay

Advantages and weaknesses portrayed by GAP with regard to contemporary technology - Essay Example The company to focus on in the paper is GAP which has had tremendous impact on people with regard to clothing. Research Problem What are some of the value chain advantages and weaknesses portrayed by GAP with regard to contemporary technology? Literature Review Gap is one of the oldest clothing companies in the United States of America. Since its founding in the year 1969, the company has had numerous milestones that it has overcome. This built the company’s reputation in the 1990s making it one of the top clothing sellers in the United States. Despite the fortune that it made, its market went down with the dawn of the new century due to numerous factors. However, the year 2010 saw the company begin rising again against all economic odds. It is imperative to analyze the internal situation of Gap amongst other factors in an effort to gain an in-depth understanding of the company. Analyzing the resource capabilities of the company, one major aspect to observe is the incorporatio n of intangible assets. Overlooking of these assets is a contemporary trend when understanding the structure of a company because people pay more attention to the corporeal assets within a company. However, it is important to understand that these assets play a key role in either the success or failure of a company. Technology is the intangible asset to focus on. In an effort to uphold quality inventory in its earlier years, Gap ensured that it had innovative technology that would also help the company reach a larger audience. The easy to navigate website captured the attention of many customers making it very simple for people to order clothing. As years have gone by, the company has incorporated modern age technology in an effort to increase the market value of its products. In 2009, Gap introduced a software package that would assist in monitoring its workflow and make forecasts on the effects caused by various real estate decisions made. Moreover, it acquired a system that would help intensify its e-commerce trades by faster processing of orders. With the advent of new technology, the company is bound to make even higher sales (Fleisher, 2008, 48). With relation to tangible resources, it is important to note that the company has made numerous strides in an effort to keep in touch with advancements in the industry. The company has had the ability to buy new machinery that has assisted in cutting down the costs per production. This is from the fact that in earlier years, the company had faced numerous challenges having to outsource some of its departments facing the uneven market demographics. Human resource has also worked to ensure that the company gets back to its high market position that it enjoyed in the 1990s. This is from the increased number of retail shops around the world majoring in the sale of Gap products Understanding the relative price position of Gap is also vital in comprehending the internal situation of the company. With the increase in i ts sales over the 90s decade, Gap made the mistake of lowering the quality of its products due to high demands and also increased the prices of its products. However, by the year 2003, the company had reduced its income from the loss of customers. The company thus reduced the prices of its commodities with an effort to lure back the customers but it faced numerous challenges from the market entrance of other clothing lines. The year 2010 saw the company increase the sales of its products from the moderation of prices innovation introduced by a new Chief Executive. By the month of May that year, the net sales had increased by