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Abercrombie & Fitch: an Upscale Sporting Goods
An upscale Sporting Goods Retailer Becomes a Leader In Trendy Apparel Bus 499 July 26, 2010 Identify and describe the greatest environmental threats that have immediate implications for A&F. One environmental threat to Firebombed & Fitch would be counterfeit products. These are products that can be mass produced, with poorer quality material, & with cheap labor. When these can be sold for less money and still appear to be the same product, then those that can’t afford A will go for the product that costs less. This Is a definite threat to their profits.
The rental rates an also be a threat to A. When It comes to renting space In major cities Like Manhattan and Los Angles, this can become extremely costly. Even space in a mall can take away from your profits by it being so expensive. One other very important environmental threat to A is the economy. In these economic times the consumer just isn’t spending as much money on clothes right now. This is a major threat to A&F especially now. Identify and describe the greatest opportunities available in the 2. Marketplace for A&F to pursue.
From what I have read concerning A&F, I feel they have several opportunities available In the marketplace to pursue; they seem to be holding themselves back at this time. They seem to be pigeon holed Into one particular group. To be honest they seem to only market to preppie white boys & girls. This is an area in which they can expand upon. They need to try and market to a more diverse group of people, and I am sure that they could possibly open up more opportunities for them. I also feel that their prices are a little high for group that they are currently marketing to.
When you are marketing to teenagers you have to realize that they are not the ones that are eying for their clothes most of the time. I think they could do better if they expand their clothing line and start to offer more than what they do now. Their vision right now seems to be extremely narrow. I feel they could see a difference in their sales If they Just did something as small as increase the sizes that they offer. If they changed some of the pictures that they hang In their stores to show more ethnic groups, this might also make a big difference.
I do not feel that they are thinking outside the box right now, this Is a business and they seem Limited In who they want to appeal to. Firebombed & Fitch greatest organizational strengths at this time I would have to say is their branding. You can find their name on almost all of their tees, sweatshirts and pods. I must admit they seem to have a strong hold on the limited group that they do market to. From what I have read and seen so far, I do not see much strength right now. I have done a lot of reading and have tried to find some outstanding strength, but I haven’t yet. Identify and describe the company’s greatest weaknesses. . The biggest weakness that I see for Firebombed & Fitch in my observation is the act that they are limited in their geographical areas. They are limited in their locations. Another weakness that I see is that they do not have something that sets them apart from The Gap, Benton Group, Reportable, Inc, or Tommy Hillier Corporation. This is where some of their biggest competition comes into play. As far as my research has shown me, their products are not sold in department stores. They are Just in their own specialty stores and this means that they are not as accessible to consumers.
Another one of Firebombed & Bitch’s weaknesses is that he company does not own or operate any manufacturing facilities. In other words, the company depends upon various third parties for the manufacture of all its merchandise. The Company relies on domestic and international manufacturers to produce its merchandise. The fact that the company relies on others for merchandise could potentially lead to problems. For example, a manufacturer’s inability to ship orders on time or meet the company’s quality standards could cause delivery date requirements to be missed, which then could lead to a loss in sales.
Another en of Firebombed & Fitch weakness is that the company operates one distribution center to receive, store and distribute merchandise to all of its stores. The fact that there is only one operating base could prove to be a huge problem for the company. If by chance there was any event such as an accident or some sort of natural disaster, it could have an adverse effect on the Company’s financial condition and results. 5. Describe how A&F’s strengths can be used to deflect environmental threats to further the company’s success in the industry.
One of Firebombed & Bitch’s strengths is the one group that they market to seems o be strong in their following of the company. The environmental threat is the economic climate that we have right now, along with the making of counterfeit products. One way to pull this all together to me would be allowing their products to be sold in major department stores around the United States as well as having the specialty stores. They might have to let go of their exclusive image, but this is a business. This way they can mass produce their clothing to deflect some of the costs and make them more available to more consumers.
This would also allow some of their pricing to go down. This to me would be a positive outcome for the company. Further the company’s success in the industry. The major strength that they have is their branding. What this company needs to do is expand on their brand. The brand name is already being used on most of their clothing. They are now making Jewelry and scents. They need to make sure that their brand name becomes better known to a more diverse group of people. They need to find a way to become a household name. They also need to develop their on line sales, there are many people who do not go into the stores.
These are the people who eave to get gifts, students who do not have time to go to a store or do not live near a store. In conclusion I do want to add how I feel about this store or specialty shop. There was actually a lot that I did not know about Firebombed & Fitch. I took a good look at the website and what I had already read in the book and was shocked when I saw how they were really marketing their clothes to young people. I have to admit that I do find this to be extremely offensive and if I were the parent of teenagers then I would not support them shopping in this store.