SWOT Analysis

> SWOT analysis is a method used for analysing a business, its resources and its environment.
> It looks at: Strengths, Weaknesses, Opportunities, and Threats.
> Strengths and weaknesses are internal to the business.
> Opportunities and threats are from the businesses external environment.

The SWOT matrix:

SWOT analysis of Abercrombie and Fitch:

Strengths:

> Popular brand, known internationally.

> Technologically advanced with personalised changing rooms.

> Social media presence.

> Quality in their products, store layout and experience.

> Clear target market.

> Product design - sticks to their casual and young design that they advertise.

Weaknesses:

> Multiple controversies

> Tarnished reputation

> Price - too overpriced for their target market? (18-34)

> Seen as outdated

> Cost of sales increasing

> Store experience potentially seen as intimidating due to its past.

Opportunities:

> Open more stores in big UK cities to have more of a presence globally and target the UK market.

> Expand into new countries to create new demand.

> Diversify different social medias rather than uploading the same post on every social media outlet.

> Introduce student discount to further reach their target market.

> Expand into new markets such as sportswear or homeware.

> Continue to rebuild image/reputation by continuing to launch positive campaigns such as their 2018 denim campaign "Do it in Denim"

Threats:

> Competition - Jack Wills being at the more high end and H&M being at the low end of the high street, price and quality wise, meaning A&F have limited market share because they are part of a saturated market.

> Economic changes.

> Customer tastes changing - the A&F style was very popular in the 2000's but is now seen as outdated - this view needs to be changed.

> Due to lots of competition differentiating can be difficult for a brand especially with copy cat sellers being able to easily replicate designs.