Abercrombie and Fitch - Paper

1076 Words Apr 15th, 2012 5 Pages
As the current face of preppy America, widely known for its obsession with beautiful people, Abercrombie and Fitch is a long way from its roots as an elite retailer of sporting and excursion goods, aimed at adult shoppers at the time of it’s founding in 1892. Abercrombie and Fitch has experienced significant growth through sell of premium priced apparel and accessories to the 30 and under demographic through its independent brands. An assessment of the company’s strategies, key opportunities and threats as well as industry strategies and competitive dynamics shows a company that is poised to be a long-term leader both in the US and international retailing.

Abercrombie and Fitch, headquartered in New Albany, Ohio, operates
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International growth is however very costly and the company might be unable to successfully open and operate all its new stores. Other issues that could affect international growth include fluctuation in exchange rates and reliance of international suppliers.
Until recently, Abercrombie and Fitch’s business model was not focused on customer satisfaction, but on exclusivity, a sultry attitude and a cooler than thou ambiance giving it a very strong brand presence (Kang, 2005). Abercrombie and Fitch employs a focus differentiation strategy with a very specific target demographic. Their products very highly priced in comparison to their competitors. Abercrombie and Fitch walks the casual and luxury line enabling it to charge high prices. The target demographic is attracted to strong brands, fashion and value. With the recent improvement in customer satisfaction, the brand should continue to realize greater revenue than its direct competitors.
Trying to stand out in the apparel industry can be very difficult but Abercrombie, famous for bare chested models and racy marketing photography, has managed to differentiate itself from its competitors through its marketing campaign (Marketing at Abercrombie and Fitch, 2012). They have a minimalist approach to marketing with a less is more strategy as can be seen through the way their models dress and also lack to a TV presence. Because

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