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The Gap, as an incumbent firm, must try to maintain their position in the market by trying to increase barriers that prevent potential businesses from making a successful entry into the retail business. The threat from potential competitors is not as significant as the threat posed by the other incumbent companies in the retail industry which can leverage certain aspects of the external environment to negatively affect The Gap’s revenue. Another external factor that The Gap will have to contend with is the bargaining power of customers as this will play a major part in The Gap’s strategic decisions...
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