I need a 5 to 10 minutes current event presentation . The purpose is to use course concepts to explain and analyze business issues in the real world.

Current Event Presentation By:

Summary

• Originally a Sporting Goods Emporium

• Bought by the Limited 1988 for $47 Million

• Michael Jefferies arrives at Abercrombie in 1992

• Abercrombie and Fitch goes public 1996

• Created a fantasy world that teens wanted to be a part of

• 275 stores worldwide

• Net sales for the third quarter decreased 12% to $911.4 million, compared to net sales of $1.033 billion for the prior year third quarter ended November 2, 2013

• Strict employee dress code and requirements

• Focused on atmosphere rather than customer needs and wants

• December 7, 2014 Michael Jefferies CEO of 22 years steps down in order to help Abercrombie and Fitch Reinvent itself

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The Five Forces Model

Rivalry among existing customers: • Competitors: Forever 21; H & M; American Eagle; Aeropostle; Gap; Aerie • Strong rivalry when firms can not differentiate themselves

Supplier Power • Little power cause company buys merchandise from different factories

around the globe

Barriers to entry • Economies of scale provide advantage over local stores • Low growth in industry makes it unattractive to potential new entrants

Buyer Power • Willing to pay a premium price for brand and fashion recognition • Price points are elastic

Threat of Substitutes • Difficult due to brand identification • Without name brand makes it difficult to tell what clothing is what

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General Environment Analysis

Political and Legal  Labor laws and the use of sweatshops.

 Abercrombie has faced legal issues for discrimination who they hire

Economic  Employment is up

Sociocultural  Fashion trends are constantly changing, which forces retailers of clothing to

keep up with the curve.

 Abercrombie has faced issues with reinventing itself causing the teen market to drift away from them

Technological  Abercrombie has faced challenges with pushing a retail experience rather

than an online experience

Environmental  Often times people want organic fabrics and for companies to reduce their

carbon footprint.

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Questions?

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