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It can saturate a market by filling all price and quality gaps. It also offers products to brand-switchers who like to experiment with different brands. However, the only disadvantage of this strategy is the high cost for the company to operate. According to the case, Gap Inc. had positioned Gap as the purveyor of “fresh, casual American style,” Banana Republic as an “affordable luxury” retailer with an “elevated designer expression,” and Old Navy as a formidable player in the value sector” offering basic and fashionable items in a fun shopping environment. From the separation, the company will have more potential and opportunities to compete with competitors in each segment...
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