swot for aeo
Date: November 4, 2013
To: Board of Directors, Ross Stores
From: Mary Z. Afuso
CC: Dr. Scott Sherman, TAMUCC
RE: Internal Analysis
Ross Stores Inc. (ROST) is the largest retailer in the specialty apparel market. The industry includes Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO), Urban Outfitters (URBM) and Aeropostale (ARO). The comparative firm in the internal analysis is Abercrombie & Fitch.
Value Chain Analysis
The elements that add value are Inbound Logistics, Marketing & Sales, Organizational Infrastructure, Human Resource Management and Procurement. The neutral elements are Outbound Logistics, Culture, and Technological Development. The elements that subtract value are Operations, Service, and Financial Management.
Added Value Elements Inbound Logistics are strong because Ross Stores carries a large inventory that sells quickly. Ross’ inventory is 64.69% larger than Abercrombie & Fitch’s. (ROST,2013; ANF 2013). Ross keeps a large inventory on hand at their warehouses to take advantage of aggressive discounts offered by manufacturers. (ROST, 2013) Average daily sales are 53.6% higher than Abercrombie’s. (ROST,2013; ANF 2013) Ross Days Inventory Outstanding is 62.95 days compared to Abercrombie’s 91.99 days. (ROST,2013; ANF 2013) Abercrombie & Fitch has a better inventory turnover at 10.56 verses Ross’ 8.04. (ROST,2013; ANF 2013) In all other aspects, Ross is clearly the Inbound Logistics leader. Ross takes the lead in Marketing & Sales. Ross creates a “treasure hunt” experience by offering brand name products at discount prices. (ROST, 2013). Marketing & Administration expenses are 14.79% of sales compared to Abercrombie’s 10.5% investment. (ROST, 2013; ANF, 2013). Abercrombie & Fitch use the in-stores experience as their primary advertising vehicle. (ANF 2013). Ross invested $67.7million in advertising on top of their Marketing & Administration expense. (ROST, 2013) Organizational
To: Board of Directors, Ross Stores
From: Mary Z. Afuso
CC: Dr. Scott Sherman, TAMUCC
RE: Internal Analysis
Ross Stores Inc. (ROST) is the largest retailer in the specialty apparel market. The industry includes Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO), Urban Outfitters (URBM) and Aeropostale (ARO). The comparative firm in the internal analysis is Abercrombie & Fitch.
Value Chain Analysis
The elements that add value are Inbound Logistics, Marketing & Sales, Organizational Infrastructure, Human Resource Management and Procurement. The neutral elements are Outbound Logistics, Culture, and Technological Development. The elements that subtract value are Operations, Service, and Financial Management.
Added Value Elements Inbound Logistics are strong because Ross Stores carries a large inventory that sells quickly. Ross’ inventory is 64.69% larger than Abercrombie & Fitch’s. (ROST,2013; ANF 2013). Ross keeps a large inventory on hand at their warehouses to take advantage of aggressive discounts offered by manufacturers. (ROST, 2013) Average daily sales are 53.6% higher than Abercrombie’s. (ROST,2013; ANF 2013) Ross Days Inventory Outstanding is 62.95 days compared to Abercrombie’s 91.99 days. (ROST,2013; ANF 2013) Abercrombie & Fitch has a better inventory turnover at 10.56 verses Ross’ 8.04. (ROST,2013; ANF 2013) In all other aspects, Ross is clearly the Inbound Logistics leader. Ross takes the lead in Marketing & Sales. Ross creates a “treasure hunt” experience by offering brand name products at discount prices. (ROST, 2013). Marketing & Administration expenses are 14.79% of sales compared to Abercrombie’s 10.5% investment. (ROST, 2013; ANF, 2013). Abercrombie & Fitch use the in-stores experience as their primary advertising vehicle. (ANF 2013). Ross invested $67.7million in advertising on top of their Marketing & Administration expense. (ROST, 2013) Organizational