Analysis of an Organisation (Abercrombie and Fitch) and its Coursework

Analysis of an Organisation (Abercrombie and Fitch) and its Competitive Environment, and Recommendation of a Strategy - Coursework Example The company has established its reputation as a â€Å"one-stop† place for shopping of the whole family (MarketLine Advantage, 2014). During the period of management by the CEO Mike Jeffries the company also has gained some negative reputation, for being racist, discriminative and has been involved in several lawsuits. In FY 2013 the company has reported same-store sales decline by 10%, indicating on the worsening financial position of A&F (Business Insider, 2014). A&F being a large diversified corporation is made up of multiple Strategic Business Units. For the current analysis the SBU of A&F has been identified by geographical criteria. The aim of this report is to suggest a number of strategies for A&F. This report will critically investigate and evaluate A&F current & future strategies. Inimitability: capabilities are not as difficult and costly for competitors to obtain or imitate as the company has no manufacturing, and its business is built around the brand, which is weakening (competitive disadvantage); Organizational Support: for now the organization is appropriately organized to exploit it capabilities, however, this might not be enough if the company pursues more aggressive international business expansion (Temporary competitive advantage). One of the major strengths of A&F is referred to the well-diversified brand portfolio comprised of the following brands: Abercombie & Fitch, Hollister, Abercombie kids, and Gilly Hicks. These brands offer sportswear apparel, personal care and accessories for a broad category of customers, including men, women, youth and kids. Due to brand portfolio diversification the company has managed to position itself in the minds of the customers as â€Å"one-stop† store. Also, the company operates a large number of stores in North America, Asia, and Europe, which helps it to reach greater number of customers and thus to generate greater sales. As of 2014, A & F operated more than 1000 stores (MarketLine