Environmental Analysis

In starting my Environmental Analysis for Gap Inc. I have found how wide spread the company is. It is hard to know where to start gathering data and to know how much information is enough. The external environment is one of the most important factors for marketers because if they do not understand it, the firm cannot intelligently plan for the future. Along with the marketing mix and other data gathered about the company one can then start to analyze what they gathered and see what is useful. A SWOT analysis is used to show what the company has to offer, what they need to work on and what may lead to problems.

I never knew how much time and effort went into assessing a company to decide what their marketing plan should include. So much data is gathered and analyzed before making decisions. I have gained a lot more insight into what marketers actually need to know before they try to sell a product. I was previously under the impression that anyone who is a good talker can sell anything but the environment, age, social class, and the market itself has a large impact on how easily something can be marketed.

I also never thought about competition and the market when it comes to large companies. Gap Inc. has other brands including Banana Republic, Old Navy, and piperlime just to name a few. It seems they cannot be beat because they have so much to offer at such high quality. It also appears they will never go out of business and do not need to worry about the recession because they have established a brand and everyone will always need clothing.

 I think the most important part of the environmental analysis is the SWOT analysis. In only doing one analysis a lot of factors are taken into consideration. The company will have a clear picture of their strengths, weaknesses, opportunities, and threats. This will allow for less drastic surprises and the company will be able to react and change as needed. It is always good to know what you are good at and what needs improvements so the company can become better rounded and more successful and take chances where they find opportunity and close off the threats.

I think it would have been better for us to research a smaller company with not so many components because it appears each brand stands for something in itself and is hard to analyze data on Gap Inc. without compiling an overwhelming amount of data. 

Is it better to collect more data than necessary or does there come a point where there is so much data that it is confusing? Do larger companies have advantages or is it the people working within the companies who fuel the success in marketing based on the data gathered and analyzed?