This report does not claim to be a complete analysis of Abercrombie & Fitch Co, but it provides a general overview of the situation of the company. It looks at internal and external factors using marketing tools like PEST- or SWOT-analysis. Because of the better data situation it focuses on the US market.
General Information
Abercrombie & Fitch Co. (A&F) is a stock exchange listed clothes company. In its 1,125 shops it sells high quality casual clothes, personal care items and accessories for men, women and kids. It consists of the brands Abercrombie & Fitch, Abercrombie, Hollister and RUEHL. Its headquarter is located in Albany Ohio (USA) since 2001.(Abercrombie & Fitch, 2009).
In 1892 David Abercrombie opened a shop called Abercrombie & Co which
specialized in camping equipment. In 1904 Ezra Fitch joined the company and the name was changed to Abercrombie & Fitch (Pitzke1, 2007).
With a change in the management in 1992 Abercrombie & Fitch repositioned itself in the market shifting its main focus on young and casual lifestyle fashion with the main target group being 18 to 22 year-old college students, male and female.
With the brand Abercrombie launched in 1998 the Company extended its business and tried to reach boys and girls between seven and fourteen.
Table of Contents
1. Introduction
2. General Information
3. Macro Environment and competitive audit
3.1. PEST Analysis of Abercrombie & Fitch
3.1.1. Politics Factors
3.1.2. Economic Factors
3.1.3. Social Factors
3.1.4. Technological Factors
3.2. Abercrombie & Fitch Competitive Analysis
3.2.1. Top Abercrombie & Fitch Competitors
3.2.1.1. American Eagle Outfitters Company Description
3.2.1.2. The Gap Company Description
3.2.1.3. J. Crew Company Description
3.2.2. Competitive Forces Analysis- Five Forces Model
3.2.2.1. Threats of Rivalry
3.2.2.2. Threats of New Entrants
3.2.2.3. Threats from Substitute Products
3.2.2.4. Threat from Bargaining Power of Supplier
3.2.2.5. Treats from Bargaining Power of Buyers
4. Internal analysis
4.1. The value chain
4.1.1. Primary value chain activities
4.1.2. Support activities
4.2. SWOT Analysis of Abercrombie & Fitch
4.2.1. Strength
4.2.2. Weakness
4.2.3. Opportunity
4.2.4. Threat
5. Conclusion
Objectives and Topics
This report provides a strategic overview of Abercrombie & Fitch Co., focusing on the US market. The primary objective is to evaluate the company's internal and external business environment through established marketing management tools to assess its current competitive standing.
- Macro-environmental analysis using the PEST framework.
- Competitive benchmarking against key industry players such as The Gap, American Eagle Outfitters, and J. Crew.
- Application of Porter’s Five Forces Model to the apparel retail sector.
- Evaluation of the internal value chain and organizational support activities.
- Comprehensive SWOT analysis to identify strategic strengths, weaknesses, opportunities, and threats.
Excerpt from the Book
3.2.2.1. Threats of Rivalry
In the market for trendy clothes the competitive pressure is considerably high. Some big market leaders focus on the same target market and are positioned in the same segment. In addition to this, counterfeit clothes from China and Asia continental moving further in the market. American Eagle Outfitters, for example, has its main focus on casual teenager clothing but is planning the launch of a new label to enter the market of the 25 to 40 year old. (American Eagles Outfitters, 2009)Parallel J. Crew is developing a new label with casual clothing for woman. This shows how the top brands try to expand with new shops in new locations with new labels in order to conquer a new niche and to grow their market share. But because each competitor comes up with similar designs dictated through the trend and the need to satisfy a certain target group, the value of each brand gets reduced. The buyers can choose from a broader range of products and because of a similar quality and a similar price the burden for switching brands is very low. Thus it is important for the brand to create an emotional bond with the customer.
Summary of Chapters
1. Introduction: The introduction outlines the scope of the report, noting that it provides a general business overview and utilizes specific marketing frameworks.
2. General Information: This chapter details the company history, its brand portfolio including Hollister and RUEHL, and its strategic repositioning toward youth-oriented lifestyle fashion.
3. Macro Environment and competitive audit: This section assesses the external landscape using PEST analysis and conducts a competitive audit against key industry rivals.
4. Internal analysis: This chapter examines the company's internal operations, utilizing the value chain model and performing a SWOT analysis to assess performance.
5. Conclusion: The conclusion summarizes the company's healthy financial status and its competitive advantages, suggesting future stability and attractiveness to investors.
Keywords
Abercrombie & Fitch, Marketing Management, PEST Analysis, SWOT Analysis, Competitive Analysis, Value Chain, Apparel Industry, Porter's Five Forces, Brand Strategy, Retail Management, Market Positioning, Consumer Demographics, E-commerce, Operational Efficiency, Corporate Strategy.
Frequently Asked Questions
What is the core focus of this assignment?
The report provides a structured overview of the current business situation of Abercrombie & Fitch Co. within the US market.
Which marketing tools are applied in this study?
The author uses the PEST framework for macro-environmental factors, Porter's Five Forces for industry rivalry, and SWOT analysis for internal assessment.
What is the primary objective of the research?
The goal is to determine the company's competitive position and evaluate its internal and external drivers of success.
How is the competitive landscape characterized?
The report highlights high competitive pressure due to similar product designs, low switching costs, and the presence of both established rivals and counterfeit goods.
What does the internal analysis cover?
It analyzes the value chain, focusing on inbound logistics, operations, and the role of support activities like technology and human resource management.
What are the characterizing keywords of the report?
Key topics include brand positioning, retail competition, value chain management, and the impact of the macro-environment on apparel retailers.
How does A&F handle the threat of supplier bargaining power?
The company mitigates this risk by sourcing from over 246 factories across multiple regions, ensuring no single supplier holds excessive power.
What is the impact of RFID technology on the company?
RFID is used to improve operational efficiency in security, shelving, and inventory management, leading to real-time data accuracy and cost savings.
What legal and management issues are identified?
The report notes challenges regarding high leadership turnover and various legal complaints related to labor practices and fair treatment of employees.
What conclusion does the author reach regarding the company's future?
The author concludes that A&F is a healthy, profitable organization with strong performance, making it an attractive prospect for potential investors.
- Citation du texte
- Phillip Weber (Auteur), 2009, Abercrombie & Fitch. Marketing Analysis, Munich, GRIN Verlag, https://www.grin.com/document/147508
