Weaknesses.
.
• Lost focus .
In 2001, Gap forgot to stay true to three basic ideas; Offer the right products in the right .
assortments. Be consistent in everything you do. Always keep it simple. Therefore, it .
disappointed its customers and shareholders in 2001.
• Recently became too fashion forward.
Gap has recently been the subject of negative criticism in the business media. Gap's phenomenal .
growth during the 1990s was largely credited to Mickey Drexler, the President and CEO. Drexler .
was praised as a brilliant merchant who spearheaded the company's award winning campaigns. .
However, the past several quarters have been marked by a series of merchandising miscues. For .
example, in Q3 of 2001 Gap spent $27million to cancel the shipment of new lines of clothing that it .
felt were not suitable for its consumers. Similarly, Gap was recently a victim of its own success when .
it got caught up in trying to be fashion forward and consequently lost focus of its core consumer. This .
was acknowledged by Gap's management at Goldman Sachs conference in September 2001 when .
its CEO Drexler addressed in which he stated that "We changed too much, we changed too quickly .
in ways that weren't consistent with our brand, we tampered with our formulas too much and lost .
consistency. We got sloppy and had too many cooks in the kitchen."" Moreover, Gap's standardized .
marketing message worldwide ensures that products are represented identically in every city in every .
country. While generally easier to manage and administer, this approach effectively produces a .
homogenized, monotonous look. There are evidences to suggest that today's consumer prefers a look .
that differentiate them from their peers, which challenge components of Gap's marketing message .
(i.e., "Everybody in Leather-). Gap Outlet seems to compete for Gap as it manages its multiple .
brands. For example an item that costs $38 at Gap sell for $20 at Old Navy.
