Strategic Management and Strategic Competitiveness Essay Example for Free

strategical centering and Strategic Competitiveness EssayWhat started as a store geared towards the rugged outdoorsmen has grown into sensation of leading retailers for the upscale college student as well as the adventurous young adult with a fashion to go along with their ad post. Abercrombie polecat (AF) sells a variety of casual sportswear apparel, including shirts, graphic t-shirts, jeans, shorts, and sweaters, as well as perfumes/cologne and somebodyal care products, and accessories for both sexes and children. As of February 1, 2014, the comp whatever operated 843 stores in the coupled States and 163 stores outside of the U. S. (SEC, 2014). With a footprint this large in the outdoor apparel it only made since to case into the e-commerce market to continue to expand and grow their business.Strategic management deals with stopping points a order makes to stay directionless and have a competitive advantage. Over the past yrs, AF has encountered a few financial setba cks brought forth by turbulent economic times and a controversial advertising campaign that non only touch sales, it drew negative publicity and sometimes not all publicity is uncorrupted publicity. If, however, the leaders of the organic law dope make good tactful and strategic moves, this company might be able to twist around around and be expediencyable. Globalization and TechnologyAF understood that in order to be competitive, they must(prenominal) venture overseas and do it wisely as well as strategically. Companies that take the chance on outside(a) opportunities are often met with challenges set forth by governments, including local sourcing requirements, tariffs and restrictions on foreign direct investment. non only must the area be able to support the new business, AF had to make sure any other requirements from local areas are met. This may be why competitors the Statesn Eagle Outfitters Inc. and J. Crew chemical group Inc. had not made the move. Despite the challenge, Abercrombie took their business overseas in 2007, starting in London (Eaton, 2013). At that time, Gap Inc. was the only major competitor overseas, with one hundred sixty eight stores internationally.Having the entropy purchasable that Gap Inc. has been successful, allowed for AF to save on financial resources of placing stores in certain areas. Knowing that Gap Inc. stores were making profit consequently AF stores should make a profit in the same area. Thecompany bullyized on this opportunity, and it paid off. The company recorded revenues of $3,318.2 million during the fiscal year ended January 2007, an increase of 19.2% over 2006. The operating profit of the company was $658.1 million during fiscal year 2007, an increase of 21.3% over 2006. The net profit was $422.2 million in fiscal year 2007, an increase of 26.4% over 2006. The company has made over $7 million in the online year with direct to consumer sales (Abercrombie Fitch, 2007). Bringing the product to the consumers fingertips allows for them the opportunity to shop from their couches, beds, or even workplace and have their items delivered to their homes.The world of e-commerce has helped AF solidify itself as a leading outdoor clothier. Dramatic changes in engineering have occurred rapidly over the last ten years. As noted in the textbook, personal computers, cellular phones, artificial intelligence, virtual reality, massive databases, and multiple social networking sites are only a few examples of how information is used differently as a result of technological developments (Hint, 2012). With such advances over the past decade, at that place has been an increased focus on online sales in order to remain competitive. Multichannel shopping has enabled companies to expand margins and tap into new and emerging markets including China, the leader in use of Internet sales channels (PricewaterhouseCoopers, 2013). Abercrombie has a good online store, accessible to both domestic and inte rnational consumers which expand the number of customers dramatically compared to brick and mortar stores only.Abercrombie plans to improve their direct-to-consumer trading operations by upgrading their website and offering, an assortment of web exclusive styles, by making the items web exclusive it brings those consumers that would not usually use e-commerce to their website and allows them to gather information about their consumers to continue to target the correct demographics. Abercrombie also plans on modify mobile capabilities, expanding international language and payment options. This go forth enable Abercrombie to be more than marketable to the online milieu and easily available by any consumer worldwide. Industrial Organization Model and Resource-Based ModelThe industrial organisation (I/O) model describes how in a higher place-average returns are earned when companies use the information gained from the externalenvironment to target a particularised area within the industry and apply a winning strategy. Recognizing that 2013 was not a good year financially, AF created specific objectives to help improve investment capital. These objectives (recover productivity and profitably in US stores, improve international growth, increase direct to consumer sales and reduce expenses) will enable the organization to look within individually area and focus on improving those areas and begin making a profit. AF has a plan and upon proper(ip) implementation the company should begin to see a positive as well as above average return.The textbook explains that the resource based model, assumes that each(prenominal) organization is a collection of unique resources and capabilities. The singularity of its resources and capabilities is the basis of a libertines strategy and its efficiency to earn above-average returns. (Hint, 2012) At one channelize AF tried to use their elite and upscale brand as an enticement, making clothing for those wear a size lar ge or lower. Chief Executive Michael S. Jeffriesaccording to Business Insiderhad a core marketing strategy that exclusive sells and that including everyone would make his business boring. (Business Insider, 2013).The no plus size strategy proved not only unsuccessful, exactly disastrous. It is not uncommon for small boutique stores to attempt to cater only to a particular crowd, however for a major chain store like Abercrombie Fitch making that decision alienated a good portion of the profit potential because of Chief Executive Michael S. Jeffries decision. AF reported a quarterly drop in same-store sales for the seven quarters straight, and its stock price fell 10.4 percent (Business time, 2013). Vision Statement and Mission Statement of the CorporationAbercrombie and Fitch focuses upon high-quality merchandise that compliments the casual chaste American lifestyle. The organization uses this statement to not only help define how Abercrombie and Fitch do business, but what the company is trying to sell to the consumer. Many consumers around the world understand and accept they will not live in America but if that consumer can somehow have a piece of America in his/her closet through the classic American lifestyle beingness offered by Abercrombie and Fitch then the person will purchase what they desire. The Abercrombie andFitch brand is as much about the company and what is provided to the consumer as the actual shirt on the persons back. A person see the words Abercrombie and Fitch across a shirt it will make those around think about where the person made his/her purchase and does that person remind them of themselves and want that same brand.How Stakeholders Impact The Overall Success Of This Corporation. There are many types of stakeholders and each one adds value to and can affect the outcome of an organization. For this paper, three types are focused on capital market, product market and organizational. Capital market stakeholders are the sharehold ers. Shareholders have an invested financial interest in the firms standing. Shareholders always want the company to make a profit and continue to grow so that their financial interest continues to grow. Product market stakeholders are the customers those who are interest in the product being sold. Customers not only want the latest and trendiest fashions they also love the brand that is associated with Abercrombie and Fitch. That brand loyalty will keep the shareholders happy and continue investing their profits into the company, which can in turn produce more for the consumer. Organizational stakeholders are the internal workers employees and management.Employees are the management, supervisors, and laborers who expect a positive work environment where they can grow and gain knowledge. With good working conditions, outstanding organization to work for, and muscular benefits package. Abercrombie and Fitch is a strong organization headed in the right direction using advanced tech nology and expanding beyond the borders of the unite States. By taking the brand international, allows for a stronger market share and more profit. Great strategy must always be used when expanding beyond an organizations normal area of control. Government to take on federal, state, local, and international will affect potential growth with possible tariffs or other unforeseen expenses.Having the ability to use the unique brand and capabilities of Abercrombie and Fitch will allow them to move into the future with a strong business plan that will bring positive profits. Abercrombie and Fitch mission/vision statement is more than a way to shape the business it is a brand that consumers want. That want allows for Abercrombie and Fitch to remain germane(predicate) going forward. Stakeholders are the driving force in any business and shareholders want profits, consumerswant products, and employees want a comfortable lifestyle.ReferencesAbercrombie and Fitch. (2014). Form 10-K 2014. Re trieved from SEC EDGAR website http//www.sec.gov/edgar.shtml Abercrombie Fitch Begs the Fat Kids for Another Chance. (2013) Business time. Retrieved from http//business.time.com/2013/11/06/abercrombie-fitch-begs-the-fat-kids-for-another-chance/ Abercrombie Fitch Refuses To Make Clothes For Large Women. (2013) Business Insider. Retrieved from http//www.businessinsider.com/abercrombie-wants-thin-customers-2013-5ixzz2z3gtRZA4 Company Overview 2007. Abercrombie Fitch SWOT Analysis, p. 4, Business Source Complete, EBSCOhost Hitt, Michael A. Ireland, R. Duane Hoskisson, Robert E. (2012-01-01). Strategic Management Concepts and Cases Competitiveness and Globalization (Page 11). Cengage Textbook. Kindle Edition. SECTION D100 Simon Fraser University. (n.d.). Retrieved from http//www.sfu.ca/sheppard/478/syn/1137/G_E_1137.pdf United States Of America Abercrombie Fitch announces (n.d.). Retrieved from http//www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=160117