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ADMINISTRATIVE POLICY
GMGT 4010
STUDENT NUMBER: 7672599
WORD COUNT: 2736
Dr. Victor Cui
GMGT 4010-A02
Tuesday 2:30-5:15pm Drake 539
TAKE-HOME MID-TERM WINTER 2015
Consulting Letter
Dear Mr. Jefferies, After considering the company’s internal and external analysis, it is clear that Abercrombie and Fitch need to implement a new strategy for future success. Considering consumer trends, and the company’s current outlook, changes need to be made. The strategies I recommend are to market the company as a more receptive brand in the United States as well as looking to penetrate international markets while closing down underperforming …show more content…
Customers no longer need to visit stores to purchase goods and are able to make purchases from their home. This trend poses a serious threat to retail stores in the United States. Furthermore, strictly online sellers may arise (Exhibit 1) who don’t require a store at all. Domestic stores are not gaining enough traffic in order to produce sales and are not maintaining high levels of dollar per square foot. In order to mitigate this threat, creating an online sales strategy and eliminating stores with lower traffic will help with profit restoration.
Threat: Perception of the Brand The brand has faced public scrutiny as far as its current practices are concerned. With previous lawsuits and negative perceptions, it can create a threat to the firm’s ability of expansion and profitability. Marketing the firm in a manner which highlights its improvements and philanthropy as well as conforming to the community’s values can help relieve this threat.
Internal …show more content…
They utilize fictional stories and unique store decorations in order to propel sales. Their sales force is often trained in a manner which fit the company’s look and the stores design. For instance, the Hollister store differentiates itself with its California-like store display. Furthermore, the store attracts customers with their usage of pop music and cologne scents. Their sales representatives greet customers with a specific tagline which aids in the creation of a unique store experience. This strategy is valuable since it has given the firm the opportunity to relate to consumers more efficiently than other brands.
Strengths: E-Commerce and Online Presence Direct-to-consumer strategies have been a key strength for Abercrombie and Fitch’s sales goals. They have a strong presence, notably their website, which facilitates in-store and online sales. It is valuable to them as it allows consumers to shop at their convenience and can browse selection easier. Next, with the increase in online shopping, having a presence online is valuable for future growth.
Weakness: Hiring and Human Resource