A&F Case Analysis - Abercrombie Fitch Case Analysis Hailey...

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Abercrombie & Fitch Case AnalysisHailey BerlinNovember 20, 2014BUS1100J: Introduction to Business
Problem Statement: Abercrombie and Fitch fails to keep up with their customers, therefore causing a decline in sales.SWOT Analysis:StrengthsWeaknessesStrong brand name (MKT)Forming partnerships with other companies (MKT)Unique advertising (MKT)Product is expensive (ACCT)Corporate dress code (HR)Decrease in annual revenue (ACCT)Negative company values (HR)Controversial CEO (MGMT)Strengths:Abercrombie and Fitch is a brand name known across the country and around the world. With over a thousand stores nation-wide as well as in Canada, Europe, and Asia, Abercrombie has maintained a reputation for high quality clothing. The retailer has also taken Hollister Co., a division of Abercrombie and Fitch, and formed a partnership with well-known shoe company, Keds, to release an exclusive line of Hollister patterned Keds-brand sneakers. Abercrombie also has a very unique way of marketing their product. Their “in-store experience” is central to the company’s advertising technique. The walls of Abercrombie and Fitch covered in photographs of models wearing their clothing, causing customers to aspire to be like the person they see in the photo. The company also creates an emotional attachment between their product and the customers via their signature smell. By spraying all of the company products with their brand name cologne, customers will automatically think of Abercrombie and Fitch simply by smelling a shirt or pair of jeans.Weaknesses:Abercrombie and Fitch provide high-quality products and therefore sell them at higher prices. However, the parents of the teens that are purchasing Abercrombie’s products (their target market), are not seeing the retailers clothes as getting the best bang for their buck. As the economy has worsened, Abercrombie and Fitch maintained their high prices in order to support its “near-luxury lifestyle” brand image. The company’s sales and financial performances declined and employees were laid off. Abercrombie also maintains a corporate dress code. Employees are expected to wear the style of clothes they sell. This seemingly harmless policy was then taken too far as Abercrombie and

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