Chapter 2 : Strategic Planning for Competitive Advantage

       Banana Republic, like the other Gap, Inc. companies, has strength in it’s strategic plan. In a very cluttered market, Banana Republic focuses on it’s customer services to act as the point of differentiation from its competition. In this way, Banana Republic utilizes product/service differentiation competitive advantage. Rather than place emphasis on cost competitive advantage in their efforts to win market share, Banana Republic provides something more unique and valuable in order to create an “authentic relationship” and connection with their customers. One of these services is “ship from store,” described as a service that “takes advantage of Gap Inc.’s advanced inventory engine to seamlessly connect online demand to in-store inventory.” Basically, if a customer needs an item and they can’t find it in store, an associate will locate it elsewhere and have it sent to the customer’s door, leaving the hassle of going to another store out of the picture. 

An advertisement for the new service, "Reserve In Store"

       Another way Banana Republic recently differentiated itself from its competition was by introducing a brand new service called “Reserve In Store.” This service is an online concierge service that allows customers to reserve items through the Banana Republic website that can later be picked up and purchased in store. None of the company’s competitors offer this type of service to their customers, allowing Banana Republic to stand out amongst other brands. According to Julie Rosen, Executive Vice President, Banana Republic North America, “Reserve in Store helps to make our customers’ shopping experience seamless and efficient so that they can get the latest, covetable Banana Republic pieces with ease.” The company is determined to gain competitive advantage through its customer services all while bringing consumers top quality fashion. 

A snapshot of "Reserve In Store" on the Banana Republic website 

Sources :

Banana Republic. Gap, Inc. Web. 9 Feb. 2014. <http://bananarepublic.gap.com/>.

"Gap and Banana Republic Make Shopping Easier for Customers this Holiday Season." Gap, Inc. 20 Nov. 2013. Web. 9 Feb. 2014. 

       <http://www.gapinc.com/content/gapinc/html/media/pressrelease/2013/med_pr_Gap_Inc_Announces_Reserve_

       In_Store.html>.

Rooney, Jennifer. Interview with Catherine Sadler. An Inside Look At Banana Republic and Its Brand Strategy. Forbes. 04 Dec. 

       2013. Web. 9 Feb. 2014. <http://www.forbes.com/sites/jenniferrooney/2013/12/04/video-an-inside-look-at-banana

       -republic-and-its-brand-strategy/>.