Abercrombie&Finch Case Analisys Vch.docx - Case Study...

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Case Study – Abercrombie & Fitch: Is unethical to be exclusive? This case study was prepared to review the Abercrombie & Fitch market segmentation and answer the dilemma about the company’s values and finally find possible initiatives to help A&F increase their results and recovered its reputation. Abercrombie & Fitch is a centenary company, its target is young people between 12 and 22 years old. In 1992, had occurred a catastrophic financial result, Abercrombie & Fitch hired Michael Jeffries who has been managing the company. He implanted a successful strategy of market segmentation, in which it’s based on young and skinny people, this strategy creates an exclusive approach. However, this policy becomes discriminatory due to his discourse that states that the brand's consumers should be cool and good-looking. Jeffries's positioning made famous people advocates against the A&F, and it results in a bad reputation reducing its sales by 30%. A&F company is not only adopting a segmentation market strategy but also has been implemented a discriminatory business culture in which the employees should follow an aesthetic model. This situation makes the reputation of this corporation even worst. In addition to the impact on the company's image, the lack of diversity can also negatively affect its results, besides an environment with plurality is more likely to find better solutions to business challenges. The first option proposed is to change the company leadership, including the Chef Executive Office (CEO), this initiative goals are to improve the company’s culture, making it more diverse and open to dialogue with its consumers. Secondly, investing in advertisement focusing on sports and good nutrition to encourage young people to seek
Case Study – Abercrombie & Fitch: Is unethical to be exclusive? a healthy life, which can result in the creation of a sentimental bond between the brand and its customers and increase its market share. Thirdly, A&F should implement new code and rules in which is recommended to hire a multicultural team, as a result for this initiative are expected a workforce more engaged and committed to the corporation’s result. Lastly, as an option to increase the engaging from the society the company invest in public services to help to improve the family’s health conditions, this alternative can improve its reputation and can also increase the market for this exclusive brand. Implementing these alternatives should create a company image of social responsibility and multicultural, which can transform its consumers on brand ambassador. This engaging should be the key to A&F return to better financial results. Introduction The main objective of this case of analysis is to determine the possible impact on stakeholders, when strictly business decisions such as market segmentation, are publicly expressed with a tint of discrimination and the impact that such comments lead to unforeseen consequences not only over its company market share and profit levels

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