Write a 250- to 300-word response to the following:
From last week’s personal reflection, share one of the most important things you have learned in this course.
USE THIS: An integrated strategy is critical to the success of a company. Companies may be able to reduce competition and acquire greater control over supply and distribution using various integration tactics. Their market share might expand and strengthen, giving them an edge over the competition. The organization selected for this case is Gap Inc. Among Gap’s many offerings are denim and khakis, T-shirts, and other contemporary items of clothing, as well as shoes, socks, and other personal care items. Every Gap product is manufactured in-house and marketed under its private label. Gap has complete control over its casual image, from the drawing board to the retail displays. Although there are smaller divisions of integration strategies, this response highlights why it is advantageous for Gap Inc. to use the vertical and horizontal integration strategies.
Vertical integration strategy. In order to achieve vertical integration, a corporation must have control over the production and distribution of its goods. Cutting expenses and expanding the distribution of the company’s goods may help it obtain greater market power. Gap shut down all 53 of its Old Navy stores in Japan in 2016, but it plans to grow in Mexico and China (Futterman, 2022). There were 200 Gap and Banana Republic stores, which ensured the company would be around for a long time, showing that implementing the vertical integration strategy would be highly beneficial.
Horizontal integration strategy. Businesses also use horizontal integration to get an advantage over their rivals in the market. In contrast to vertical integration, horizontal integration refers to the acquisition of companies that provide similar goods and services (Ramirez-Peña, 2020). This aids the company’s expansion or entry into a new market or area. With the Gap’s business model, consumers can afford to appear fashionable and hip. Athleta and Intermix are two brands owned by Gap Inc. in addition to Gap and the Banana Republic. This shows that the horizontal integration strategy could be used to gain more brands and expand the company.
Why it is important to you and how do you intend to apply it? Please also respond to the posts of others on additional learning you may take away in addition to what they have shared.
Include your own relevant experience as well as 2 citations that align with or contradict your comments as sourced from peer-reviewed academic journals, industry publications, books, and/or other sources. Cite your sources using APA formatting. If you found information that contradicts your experience, explain why you agree or disagree with the information.
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