1. Value Chain Definition: Sequence of suppliers that contribute to the creation and delivery of goods and services. Gap designs all its products which are manufactured by independent sources. Gap incorporated purchase merchandise from more than a thousand vendors located domestically and overseas. Not one vendor accounted for more than five percent of the dollar amount of Gap’s fiscal 2001 purchasing. Of all the merchandise sold through fiscal 2001, approximately nine percent of all units (representing approximately …showed first 75 words of 513 total…

…showed last 75 words of 513 total…middle income earners. Gap.com uses Mass marketing as its segmentation strategy. It uses demographics and behavior as its market segmentation. In which it tries to attract consumers of various ages, different ethnic backgrounds, middle income level, and both genders, with high school or higher level of education living in the various parts of the United States. These consumers have interests in Gap products; some of them show high level of brand loyalty. Value Chain