Abercrombie and Fitch - External Analysis and Internal Analysis

3268 words 14 pages
Alternative Assessment for 2BSO601 BUSINESS STRATEGY

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
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- Social:
Abercrombie benefit from an enviable target market, the teenagers, given the fact that Ablan (2003:21, cited in Gamble and Thompson, 2009:413) stated teens spent approximately $170 billion on goods and services in 2002, with one-third of that amount going toward apparel.
A&F target market have, most of the time, responded positively to their provocative campaigns, because of their strategy, which consists in getting closer to the teenagers by providing products with whom they can identify. - Technological:
Continuous technological progress allowed company to sell via the Internet more easily as on the A&F website. The progress in technology also enables to extend the company database and get more and more customers by mailing the products provided through an electronic catalogue.
Additionally, A&F have had the opportunity to start experimenting with radio frequency identification (RFID) technology, which permits to fight against counterfeited products.

• Industry Analysis

Five Porter’s Forces

- Power of Suppliers: Abercrombie pertains to the fashion industry retail market, where consumers have a strong power because of the fact this market is sensitive to their needs and behaviour, which can change from a moment to another. That is the reason why, Abercrombie is supposed to have to hold little power on its suppliers. On the contrary, in this case suppliers hold little power because of the several existing factories in America and as a


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