Abercrombie And Fitch Swot Analysis

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Founded in 1892 in the USA, Abercrombie & Fitch have been designing and producing high quality American clothes to customers. It got a stable revenues from 2011 present with an average sales of more than $4 billion. Since 2008, this company started accessing the UK market with the establishment of 3 stores. Until now, it has 31 stores in the UK as the biggest international market. However, in the last two years, 2013 and 2014, there has not been any new stored opened in this market . The company’s revenues in the UK are also dropped. Such a fact questions the future of this brand as well as the necessary to clarify its strengths, weaknesses, opportunities, and threats here. Consequently, this study applies PESTEL and SWOT analysis
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Thus, it must calculate its imported tax as one part of the cost of goods sold. Consequently, the price of its products will increase. In addition, it has to follow the UK legal requirments on labelling stated in the Textile Products (Indication of Fibre Content) Regulations 1986. Furthermore, this company also must to follow employment law since it needs to hire employees to work in the stores.

SWOT analysis is applied to clarify strengths, weaknesses, opportunities, and threats of Abercrombie & Fitch in the UK market. Details are provided in the table 1.
Strengths Weaknesses
- Recognized brand name with a long history of development since 1892
- Strong marketing campaigns with Sponsored role for the Elite Racing Team, and social contributions in both domestic and international operations.
- American clothes, which are unique with the UK people, coming from different cultures.
- Five - year – working operation in the UK market.
- Being aware of changes in product’s design, size offers, and customer targets as a good start for a new business strategy. - High price in the UK compared to the same products in the US, resulting a negative business image
- Lack of products for middle and elder since aging population is arising
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However, it must start from providing its different - size – products with more creative and attractive design in order to satisfy different customers. Importantly, it must refine its target market widely, rather than a concentration on only young people at the present in order to increase sales. Finally, this company must review its operating cost to optimize its cost structure. Consequently, it can reduce price and increase its competitiveness against

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