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Abercrombie & Fitch Co. (SWOT Analysis) - March 2011

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Abercrombie & Fitch Co. Overview


Abercrombie & Fitch (A&F) is a specialty retailer selling sportswear apparel, personal care products and accessories. A&F operates in North America, Europe and Asia. The company is headquartered in New Albany, Ohio and employs about 19,000 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor






  • Strong brand portfolio
  • Strong presence in the e-commerce business


  • Weak operating margin compared to its key competitor
  • Declining comparable store sales



  • Expanding international presence
  • Online retail sales in the US are expected to grow
  • Increasing demand for men’s clothing and accessories.


  • Economic recession in the US would dampen sales
  • Increased minimum wages in the US would impact profitability
  • Dependence on independent third party manufacturers.
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