The case of Abercrombie and Fitch Co Study Example | Topics and Well Written Essays - 750 words

The of Abercrombie and Fitch Co - Case Study ExampleThe only forbid result being a minimal decrease in the profits per square foot at the end of that fiscal period (Berman & Evans, 2011). The bon ton should increase its effort on increasing retail space. though the number of Hollister stores is one-third more than A & F, it is believed that the larger profits cognize by the latter is ascribable to a greater average size. The un statementlable factors within any business environment are cognize as external factors or macro environmental factors. Such factors are usually beyond the control of any company or organization but rather they have to adjust for them to cope. For A & F, the frugal turmoil of 2007-2009 affected their operations (Berman & Evans, 2011).The turmoil was caused by the significant decrease in demand for the companys products as a result of the prevailing economic conditions. As a consequence, the company realized a dip in its revenue. The second factor has been the entry of new competitors in the apparel industry. A & F experienced a decline in sales in 2009, and this was brought about by change magnitude competition from companies like American Eagle and Aeropostale (Berman & Evans, 2011). It therefore, has to develop mechanisms to cope with such competitors in order to check or improve its profit margins the market share. A retail strategy involved developing a plan that is to be followed by a retailer in relation to the actions. They usually span a period of one year and include the following missions, goals, consumer market, overall and specific activities and control mechanisms (Berman & Evans, 2011).