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Abercrombie And Fitch Analysis

1482 words - 6 pages

Abercrombie and Fitch Case Analysis
MGT625
April 11, 2012
Elizabeth Payne

Abstract
Abercrombie and Fitch (A&F) is a typical mall front store. They have been in the business for a century and are not going anywhere. A&F sees their fair share of mock items and lawsuits. However, through it all, A&F has made it to be successful, overcome threats, and open similar chains to target a wider range age market.

Introduction
            Abercrombie & Fitch was founded in 1892 as a unique clothing store. Over the century in business they have made a distinct target for young adults. The fashion giant specializes in apparel for ages 18 through 22. “The 118-year-old retailer has ...view middle of the document...

Lawsuits have been brought against the company because of their risqué advertisements. Their market may be young adult but the ads also are seen and can pull in a younger audience. Most of these lawsuits are settled out of court.
            With any popular name brand, consumers will find copycats. A&F is no stranger to its number of imitation clothing. As flattering as the gesture is, the ethics is that the brand is subject to counterfeits and consumers are fooled. This threat can cause lose of audience or sales because imitations often come at a reduced price.
Great Opportunities
            A&F may choose to continue their ventures into other global markets. Increasing their reach into the global market is a big opportunity for A&F because in some far reached cultures, the brand is still new. This can help A&F establish new consumers with an already proven brand in the new markets.
            A&F have already expanded their line of products to include hats, belts, flip flops, and perfume. However, there is still an opportunity to more on this front. While they do provide some options, the options are limited. A&F can introduce a whole line of footwear or the likes to increase brand spread. A&F might also consider extending their accessory line by other non-apparel items such as beach towels or koozies; anything that may also help their ‘beach’ brand.
            Although lawsuits have been brought against the company because of their ads potential to target younger audiences, A&F can tap into that by extending their target reach to include younger or older patrons. They could extend their sizes to included consumers in the 23-30 range and increase profit. The brand is casual wear and versatile enough for ages outside of their main target of 18 to 22.
Organizational Strengths
            A&F have been in business for over a century. They have staying power in different economic times and have proven themselves a survivor. They’ve even managed to become successful in different world markets. “A&F is consistently growing internationally,” (DataMonitor, 2011, para. 16). That is no small feat for any company.
            A&F has also branched out into branding sub-chain stores such as Hollister and Abercrombie. These stores reach the younger audience while still maintaining an image that is more suitable for that audience. Those stores have also flourished in their own environment to gain consumer recognition and loyalty. A&F is able to create successful sub-brand operations that tap into other target markets.
Greatest Weaknesses
           The greatest weaknesses that A&F has is that the economic downturn has forced consumers to tone down their spending habits and give up non-necessary items like brand name clothing. This has been especially hard on online sales for A&F. The company’s sales for online items have been down and the profit margin is non-existent. This makes it hard...

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