Abercrombie and Fitch - External Analysis and Internal Analysis

3263 Words Nov 22nd, 2010 14 Pages
Alternative Assessment for 2BSO601 BUSINESS STRATEGY

INTRODUCTION
Abercrombie & Fitch is an American fashion retailing company headed by president and CEO Michael Jeffries.
Abercrombie & Fitch brand focuses on offering apparel that reflected the youthful lifestyle for a target audience, which was college students, designed to encourage teamwork and creativity
On February 2007, A&F retailer operated 944 stores in 49 States, District of Columbia and Canada.
Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL.
With the running of those four brands, the company is collectively targeting consumers of 7 through 35.
David T. Abercrombie founded the company in 1892, A&T
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• Macro-environment analysis

- Political/ Legal:
As A&F has always been a brand generating controversy, they have to pay attention at not being disrespectful toward the US laws. The company have generated a lot of scandals, like in April 2002, when they launched a line of T-shirts with matching ethnics slogans: “Wong Brothers Laundry Service Two Wongs Can Make It White”; “Wok-N-Bowl”; “Buddha Bash: Get your Buddha on the Floor” (Gamble and Thompson, 2009:414). Since, the US is a country of vigilance against discrimination, sexual crime and alcoholism, Abercrombie has to comply with the US laws, which are really strict, and stop engaging in risky practices in order to attract attention.
The company also have to prevent counterfeiting, since the US is a big country and it a lot of company have been faced with this kind of problem. - Economic:
The retailer market sector is a huge market, which implies a lot of concurrence: American Eagles Outfitters (AEO), Gap (GPS), and J. Crew Group (JC) (Gamble and Thompson, 2009:406).
In addition, the fashion retail market sector is a sensible one, which means that if trends or lifestyles change, the market will be affected. That is currently the case in the US due to the financial crisis occurring and it has had an impact on Abercrombie finances. Moreover, A&F has always been on the top of the competition in its sector, but since the American economy has entered a recession, because
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