Abercrombie and Fitch - External Analysis and Internal Analysis

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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 managers…show more content…
- Power of Customers: Customers have always had a lot of influence over the retail industry due to their price sensitiveness. Given the fact that websites and direct mailing are increasing, it gives a stronger power to the customer since they have the opportunity to compare prices, quality and have a large panel of the same products purposed. That is to say, the existence of website purposing the same products, is a threat for fashion retailers because it can push the customer to competitors and gives a significant power to them. Customers loyalty can oblige Abercrombie to re-evaluate its prices, because if they don’t they will lose their customer’s loyalty. - Power of Rivalry: The rivalry in this sector is intense and forces Abercrombie to continuously work on innovating and merger from the others, in order to maintain its status. The main competitors are: American Eagle Outfitters Inc. (AEOS), and Gap Inc, who are publicly held firms and J. Crew group, Inc (JC) who is a privately held firm (Gamble and Thompson, 2009:406). Those three competitors are operating on the same segment than Abercrombie and tried, by several unsuccessful strategies, to become leader, while A&F stays number one. Gap is the largest A&F’s competitor, but there are lots of other competitors on this market segment that haven’t been cited in the case. Thus, Abercrombie have to continuously work on its strategy and compare to the others, in order

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