Abercrombie and Fitch, Essay Example

Introduction

Abercrombie and Fitch is a well-known apparel brand that specifically gives attention to the trendy desires of the market. Noticeably, it also is able to assume the stand of a pioneer provider of apparel styles that respond to the appeal of the target market. From one specific fashion trend to another, the company aims to be one of the first one to introduce a particular style that would best fit the current demands and fashion taste of the public (Barfield, et al, 2015). Hence, to make sure that the product the company offers distinctly gets the attention of the prospected buyers, the company makes sure that it is able to manage its assets in order to assure a good sense of sales at the point of release of its products in the open market. These two elements include price and place.

The Competition

Unlike other branded clothing lines, Abercrombie and Fitch is able to create a more redefined schedule of pricing that would provide the target market a better sense of choice that would catch their interest especially in buying the product that the company provides the market with (CJen, et al, 2015). It is assumed by the organization that good pricing does allow the business to embrace a new sense of value especially in identifying its role in the process by which fashion is defined by the organization. Most likely, the capacity of the business to create a budgeted procedure of manufacturing the apparel does allow the organization to offer the said products at a much lower and more reasonable pricing.

Pricing Strategies

This approach was considered by the organization when it has achieved the lowest rate of profit from slow sales-activities. The brand that the company wanted to impose on the market was rather static and relatively connected to the establishment of a fashionable reputation; however, it could be understood that through time, such condition of development have been questioned especially at the point of the introduction of new brands of apparels coming from different sources in the international market (Kapper, et al, 2014). Noticeably, new brands and new entrants challenge the already dwindling position of the company. As response to this matter, it could be analyzed how the business tried to take on from such position through becoming more involved in redefining the pricing culture of the organization in relation to the old and new stock-designs of the fashion trend offered by the organization.

Locations Strategy: Place

Another aspect of redeeming its position includes the consideration of the administration with regards the positioning of the location of the retails stores of the company. In which areas would it be easier for the product to be accessed by the target market? This consideration is an important aspect that needs to be fully accounted for especially in relation to how the market is able to take access on the new offered market of the organization. New trends are introduced every now and then, nevertheless, the company makes sure that its designs and styles would be renewed within a specific schedule; thus making a definite mark on how open-systems of promotion and production account for a more effective way of pricing and retail-store placing.

Administrators see to it that when it comes to opening new branches in the market, the locations are strategically managed so as to make sure that the people would be able to see what is new in the product-selection that the company offers (Dulanay, 2014). Basically, the administrators make sure that these locations are able to establish a much stronger source of interest among the target buyers. What makes such strategy effective is that it aims to attract the vision of the people, which later on affects the perception of the public with regards good market attraction that establishes the overall reputation of the organization and the product it offers in the field of fashion.

Conclusion

What accounts for the good competitive stance of the business is that of its capacity to transform its operations for the sake of improving a definite essence of affecting the market. Noticeably, good promotion and production options help out well in the establishment of the reputation of the organization; however, Abercrombie and Fitch is somewhat more dependent on the pricing and the placing of retail-stores distributing the product that the organization aims to offer to the market. Noticeably, these adjustments and transformational options adapted by the organization have been fully accomplished to respond to the challenges that the business needed to face at the time. Basically, business organizations like Abercrombie and Fitch take so much pressure from both local and international markets; retaining its competitive position is rather a distinct challenge to its existence in the market. Taking charge of managing the assets of the business gives it a more definite source of competence in winning the competition.

Works Cited

Barfield, S (et al) (2015). Holding on to relevance: Behind the decline of Abercrombie and Fitch and the fall of its mastermind. Bloomberg: Businessweek.

Chen, A (et al). (2015). American Eagle Shows Strength Among Teens. The Wall Street Journal. Sales Drop.

Dulaney, C. (2014). Abercrombie sales drop 14% warns tough months ahead. The Wall Street Journal.

Kapner, (et al) (2014). Abercrombie CEO’s abrupt exit followed weak sales. The Wall Street Journal