Essay on Business Analysis: Abercrombie and Fitch

1543 Words 7 Pages
Being an upscale industry, Abercrombie and Fitch would appear to be a successful corporation. Although the company was once successful for a number of years, it’s apparent that there has been a significant decline in its overall appeal and how much revenue the company acquires each year. With just over 1,000 retail stores in the U.S., Canada, and Europe, Abercrombie and Fitch has thrived to be one of the most avid corporate extensions.
While the company may be seeing the start to its decline, past years are proof that Abercrombie and Fitch have made a good name for themselves. How does the industry operate one might ask? There are many sides to the coin when it comes to determining how this company functions, but let’s start with its
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There are four divisions under Abercrombie and Fitch: AbercrombieKids (for younger kids), Hollister (for teenagers), Gilly Hicks (loungewear for women) and RUEHL. These are considered “divisions” because unlike subsidiaries they do not operate on their own, but just act as branches under the demand of the main industry. Although the industry operates all year round, Abercrombie and Fitch has two main seasons in which they bring in the highest percentage of sales; fall and spring.
One of the industries main weaknesses is the fact that they have a low industry ratio. Furthermore, one of their issues in past years was being geographically impotent in their retail locations, but as mentioned before, this issue is declining due to the fact that more locations are being opened worldwide.
In effort to bring in consumers, Abercrombie and Fitch uses indirect strategies to attract and persuade its customers. Large wall photos, uplifting techno songs, and dimmed lighting make for a relaxing ambiance to draw in its buyers. Apart from its in-store attractions, Abercrombie and Fitch use commercial advertising, e-posts, and online music to bring in its consumers. With all of these unique strategies, the Abercrombie and Fitch industry has been proven successful for over 100 years.
The outlook for growth is risky considering this company is very volatile, but if corrections are made to better the industry (i.e. expand
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