Course Paper
ABERCROMBIE AND FITCH
CASE STUDY
Table of Contents:
1. Company Background
2. Company Strategy
3. Financial analysis
4. SWOT Analysis
5. Five Forces Model of Competition
6. Competitors & Rivalry
7. Key Success Factors
8. Company Value Chain
9. Recommendations
10. Conclusion
11. References
Company Background:
Abercrombie and Fitch (ANF) is a specialized apparel store which focuses on high quality clothing, beauty products, and accessories. Abercrombie Co. was established in New York City on June 4th, 1892 by David Abercrombie as a small waterfront shop located in Manhattan. Eight years later one of the stores frequent customers, Ezra Finch, decided to leave his current job as a lawyer and buy a substantial stake in the company from Mr. Abercrombie. In 1904 the pair decided to finally add Mr. Finches surname to the company and reestablished their brand name as Abercrombie and Fitch Co., which has remained unchanged since.. The fast growing success led the company to adopt the motto “The Greatest Sporting Goods Store in the World”. During the 1950’s, A&F’s President Otis L. Guernsey, began a strategy of rapid nationwide expansion by stating "The Abercrombie & Fitch type does not care about the cost; he wants the finest quality," (Wikipedia). After overextending their financial position and a period of economic decline, A&F is forced to declare for bankruptcy in 1976 and was eventually bought by Oshman’s Sporting Goods Inc. in 1978. Ten years later, Oshman’s decided to sell A&F to The Limited. It is during its early years under the new management that Abercrombie and Fitch is able to re-establish itself in the market as an upscale youth retailer. In 1996, A&F is spun off into its own company and enters the New York Stock Exchange under the ticker ANF. In 1998, A&F launches its “Abercrombie” brand which is targeting children ages 7-16. Two years later A&F launched its Hollister brand, which is a laid back surf themed
CASE STUDY
Table of Contents:
1. Company Background
2. Company Strategy
3. Financial analysis
4. SWOT Analysis
5. Five Forces Model of Competition
6. Competitors & Rivalry
7. Key Success Factors
8. Company Value Chain
9. Recommendations
10. Conclusion
11. References
Company Background:
Abercrombie and Fitch (ANF) is a specialized apparel store which focuses on high quality clothing, beauty products, and accessories. Abercrombie Co. was established in New York City on June 4th, 1892 by David Abercrombie as a small waterfront shop located in Manhattan. Eight years later one of the stores frequent customers, Ezra Finch, decided to leave his current job as a lawyer and buy a substantial stake in the company from Mr. Abercrombie. In 1904 the pair decided to finally add Mr. Finches surname to the company and reestablished their brand name as Abercrombie and Fitch Co., which has remained unchanged since.. The fast growing success led the company to adopt the motto “The Greatest Sporting Goods Store in the World”. During the 1950’s, A&F’s President Otis L. Guernsey, began a strategy of rapid nationwide expansion by stating "The Abercrombie & Fitch type does not care about the cost; he wants the finest quality," (Wikipedia). After overextending their financial position and a period of economic decline, A&F is forced to declare for bankruptcy in 1976 and was eventually bought by Oshman’s Sporting Goods Inc. in 1978. Ten years later, Oshman’s decided to sell A&F to The Limited. It is during its early years under the new management that Abercrombie and Fitch is able to re-establish itself in the market as an upscale youth retailer. In 1996, A&F is spun off into its own company and enters the New York Stock Exchange under the ticker ANF. In 1998, A&F launches its “Abercrombie” brand which is targeting children ages 7-16. Two years later A&F launched its Hollister brand, which is a laid back surf themed
References: Figure 2 source: ANF 2009, 2008, 2007 Annual Report. Figure 4 source: ANF 2008, 2007 Annual Report.