Abercrombie & Fitch: An Upscale Sporting Goods Retailer Becomes a Leader in Trendy Apparel Kevin Feldpausch Strayer University Bus 499 Professor Toiya Evans July 22, 2010 ? 1. Identify and describe the greatest environmental threats that have immediate implications for A &F. Abercrombie and Fitch has been a leader in the retail fashion business for many years and have marketed their clothing line to appeal to a younger group of people mostly in high school and college.
They were charged with a lawsuit claiming that their workers and models were predominately tall, skinny, good-looking white people. This could be seen as a threat because they were not hiring anyone of another race. I feel like this could hurt theirs sales and ultimately give them the reputation of a being a racist company. 2. Identify and describe the greatest opportunities available in the marketplace for A&F to pursue. Abercrombie and Fitch was hit hard during the recession and refused to offer lower prices and discounts like their competitors did.
Recently they have introduced a new catalog, still a bit racy as their catalogs were before, but A&F feels that the exposure will be good for the company. A&F has also improved its clothing assortment to offer more selection and lowered prices and cut costs. This could be the chance that they need to establish themselves as a lower priced retailer to regain some of their customers who may shop elsewhere for a better bargain, such as American Eagle and Aeropostale. 3. Identify and describe A&F’s greatest organizational strengths.
Abercrombie & Fitch’s greatest organizational strength is their clothing line. They are well-known all over the world and appeal to young buyers. They have branded themselves as a leader in the fashion industry and buyers tend to perceive Abercrombie clothing as top of the line in fashion. Abercrombie hires young, good-looking people for their stores and has them wearing their clothes while working. When customers enter the store they see the clothes on the associates and this is a good way to display their newest clothing line.
They have a very effective marketing strategy by displaying their clothes on the associates and also with the catalogs that definitely create attention. 4. Identify and describe the company’s greatest weaknesses. The company’ greatest weakness is the high cost of their clothing and their limited customer base. A&F’s clothing is higher priced than many of its competing stores. It is perceived as being overpriced. Most of A&F’s stores are located in malls and are in close competition with rivals such as American Eagle or Aeropostale, which both offer similar clothing at a lower price.
Their customer base is focused on high school and college aged consumers who are thin and good-looking. These are the people they market to and this narrows down the number of consumers for their clothes. 5. Describe how A&F’s strengths can be used to deflect environmental threats to further the company’s success in the industry. Abercrombie & Fitch has a solid financial and market position in the industry and this could help them push ahead of the competition.
Although they have had some negative publicity in the past, with lawsuits of being a racist company, poor choices of slogans on their t-shirts, and sexual ads and catalogs, they seem to overcome this and continue to grow. It seems the bad publicity has not stopped consumers from buying their clothes because they have branded themselves in the industry as being a leader in the latest fashion. 6. Describe how A&F’ strengths can be used to take advantage of opportunities to further the company’s success in the industry.
The strength of having a good reputation for quality clothing is going to set Abercrombie apart from others in the fashion retail industry. Their marketing strategy in the past has went under heavy criticism for being to sexual, especially since they are trying to appeal to a younger group of people. But this has only made the Abercrombie & Fitch label more desirable. The way they market to their consumers seems to work very well and they are continuing to do so.
Considering the style and quality of clothing A&F offers, their customers are willing to pay the higher price because they feel like they have to wear the brand and have the “look” of Abercrombie. This is the reason that Abercrombie & Fitch will remain the leader in industry and continue to grow. ? References www. zimbio. com/Abercrombie+and+Fitch+Clothing/articles/LLQljU8UVsp/abercrombie +polos+Abercrombie+Clothing+070ces www. cbsnews. com www. usatoday. com www. wikiswot. com/SWOT/7_Apparel/Abercrombie___Fitch. html