Abercrombie and Fitch, Strategic Managment
Table of Contents
INTRODUCTION 3
ABERCROMBIE AND FITCH 4
Pest Analysis of A&F 4
1. Political Factors 4
2. Economic Factors 5
3. Sociological Factors 5
4. Technological Factors 6
Michael Porter’s Five Force Framework 6
1. Threat of New Entrants 6
2. Substitutes 7
3. Threat of Bargain Power of Supplier 7
4. Bargain Power of Buyers 7
5. Rivalry 8
SWOT Analysis A&F 8
CONCLUSION 9
REFERENCES 10
INTRODUCTION
Every business in the world has to look for different strategies that will help it to improve and raise more profits. This has become in the ultimate goal in any organisation and it only becomes a reality if the best technique and methods are used. For this, there are some analyses that at the same time need to be done to arrange the most useful tools to achieve the company’s objectives. These procedures, that can be used to study the different strengths, risks or opportunities in externally and internally in each organisation, could be and PEST analysis and a SWOT analysis.
These two different systems to analyse a company’s strategy force will be study in this paper. For this, the company that has been chosen for this purpose is Abercrombie and Fitch. This has been denominated as one of the most important brands in the retailing business.
ABERCROMBIE AND FITCH
The company Abercrombie & Fitch (A&F) is a retailer of informal clothes and accessories. These accessories include including cologne and perfume for men and women. A&F has its operations based in more than 300 stores that at the same time incorporate "abercrombie" stores for children; Hollister (Southern Californian style) and the new brand Gilly Hicks for underwear (Abercrombie and Fitch, 2010)
Its history starts in 1892 when David Abercrombie opens its first store called Abercrombie & Co. This was a camping equipment shop but in 1904 his name was change to Abercrombie and Fitch when Ezra Fitch decided to join the company (Weber, 2010. P. 3).
However, by 1982 the company
INTRODUCTION 3
ABERCROMBIE AND FITCH 4
Pest Analysis of A&F 4
1. Political Factors 4
2. Economic Factors 5
3. Sociological Factors 5
4. Technological Factors 6
Michael Porter’s Five Force Framework 6
1. Threat of New Entrants 6
2. Substitutes 7
3. Threat of Bargain Power of Supplier 7
4. Bargain Power of Buyers 7
5. Rivalry 8
SWOT Analysis A&F 8
CONCLUSION 9
REFERENCES 10
INTRODUCTION
Every business in the world has to look for different strategies that will help it to improve and raise more profits. This has become in the ultimate goal in any organisation and it only becomes a reality if the best technique and methods are used. For this, there are some analyses that at the same time need to be done to arrange the most useful tools to achieve the company’s objectives. These procedures, that can be used to study the different strengths, risks or opportunities in externally and internally in each organisation, could be and PEST analysis and a SWOT analysis.
These two different systems to analyse a company’s strategy force will be study in this paper. For this, the company that has been chosen for this purpose is Abercrombie and Fitch. This has been denominated as one of the most important brands in the retailing business.
ABERCROMBIE AND FITCH
The company Abercrombie & Fitch (A&F) is a retailer of informal clothes and accessories. These accessories include including cologne and perfume for men and women. A&F has its operations based in more than 300 stores that at the same time incorporate "abercrombie" stores for children; Hollister (Southern Californian style) and the new brand Gilly Hicks for underwear (Abercrombie and Fitch, 2010)
Its history starts in 1892 when David Abercrombie opens its first store called Abercrombie & Co. This was a camping equipment shop but in 1904 his name was change to Abercrombie and Fitch when Ezra Fitch decided to join the company (Weber, 2010. P. 3).
However, by 1982 the company
References: • Abercrombie & Fitch, 2010. Retrieved on 24th October, 2010, from: www.abercrombie.co.uk • Basu, Ron • Cartner-Morley, Jess. 2009. The Guardian, History of Abercrombie and Fitch. Retrieved on 23th of October, 2010 from: http://www.guardian.co.uk/lifeandstyle/2009/jun/24/history-abercrombie-fitch-fashion • CIPD, 2010 • Fragance X. Abercrombie & Fitch, 2010. Retrieved on 24th October, 2010, from http://www.fragrancex.com/products/_bid_abercrombie---am---fitch-am-cid_perfume-am-lid_a__brand_history.html • Gereffi, G; Humphrey, J; Sturgeon, T • Gregory, Sean. 2009. Abercrombie & Fitch: Worst Recession Brand? TIME in Partnership with CNN. Retrieved 23th November 2010 from: http://www.time.com/time/business/article/0,8599,1918160,00.html • Miller, Yvonne • Porter, Michael. 1980. Competitive Strategy: Techniques for Analysing Industries and Competitors. Harvard School of Business .................................1985 • Tallman, Stephen. 2010. Global Strategy. Ed. John Wiley & Son • Weber, Phillip