Opgavebeskrivelse
1. Define the product, which Abercrombie & Fitch is selling using relevant theory.
2. How does Abercrombie & Fitch create customer value through their brand?
3. Assess how their value creation is linked to their competitive strategy
4. Identify the target market for this company and their product/-s
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Uddrag
1. Define the product, which Abercrombie & Fitch is selling using relevant theory.
Abercrombie has always been leading the denim and t-shirt market, but the brand wants to be present in all genres.
Therefore they have launched a wide range of products for everyone. Abercrombie & Fitch sell physical products.
A physical product is anything offered to a market for attention, acquisition, consumption purpose and satisfy a wand or a need.
The company has two market lines; adults and children. In these lines, the brand has four categories; men, boys, women and girls.
In these categories, the brand has approximately 11 different product categories such as tops, shoes, coats & jackets.
The items which the brand sells in their product categories is different depending on the season, the trends and time, as the brand adapt their products after what is current to make their products more relevant to customers and maintain their revenue stream.
The brand’s products are defined as long-term products, as the products are “consumed” over a long period. In some cases, over several years. The products are also defined as selected goods when looking at the product types in the consumer market. 1
2. How does Abercrombie & Fitch create customer value through their brand? Inbound logistics A distinctive competence for the brand is its ability to manage its supply chain more effectively that a significant part of their competition.
The brand tracks its customer's preferences daily with real-time point-of-sale data, digitally transmitting orders to their approximately their suppliers.2
The brand says that the “partner with suppliers who respect local laws and share our dedication to utilising the best practices in human rights, labour rights and workplace safety.”3
Therefore, it also makes sense that the company’s business partners are contractually required to adhere to our Vendor Code of Conduct, so the brand is ensured that the places their products are manufactured meet the brand’s standards of social responsibility.
Abercrombie & Fitch does not own the factories which manufacture their designs.
Therefore, the brand works closely with suppliers and manufacturing facilities to make their products as successful as possible.
Operations
Abercrombie & Fitch items are primarily produced outside of the United States, in third world countries and Asian making the cost of production a lot cheaper than it would be if the items were made in factories in the US using domestic labour.
However, not much information can be found on this topic on their website or from external sources; besides the fact, their production factories must go through a rigorous Quality Assurance inspection.
Outbound logistics
In 2010 Abercrombie & Fitch implemented a Supply Chain Visibility solution from Management Dynamics.
The solution was implemented to provide real-time visibility into the status of orders, shipments and in-transit inventory.
The visibility solution helps the brand streamline its supply chain process from vendor to distribution centre and collaborate with merchants and service providers to reduce costs, shipment delays and improve customer service.
The solution has been highly profitable for the brand as it has allowed the brand to save valuable time and effort, provided meaningful cost reductions, optimised their shipping options, and improved their customer service.
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