Porters Five Forces

Threats Of New Entrants  

As Abercrombie & Fitch is in the current high street market there are a lot of threats. As the brand is currently doing low with investments and expenses with trade. Other competitors are taking over, with product and pricing. The brand loyalty is high within its current market, as new trends appear fast to cause people wanting to buy cheap clothes quickly. 

Tackling the treats could be by the brand being more innovative for new marketing, allowing new and old consumers to be more interested allowing an idea of the brand to separate from competitors. Also lowering the pricing scale and building an economy of scale which can lower price units. 

Threats Of Substitution Products

There is a high threat of substitution as the brand has lost its values within the US market and internationally, and with the increase of the market it causes issues and impact to A&F. As goods are easily accessible for consumers, as the brand’s integrity is at a loss and is replaced. 

Tackling this could be by building a more understanding of their core consumers and allowing the perfect service so it’s not just product orientated which makes it more interesting. 

Bargaining Powers Of Buyers 

There is a high power for the buyer as the products within the market are affordable and there is no insensitive for the current segment consumer. Also, there is a high demand for products within the market.  However, A&F are losing to gain attention from their buyers due to overpricing for a seasonal item. As the buyer’s information of the rebranding is not clear it affects the situation of purchase even more. 

Tackling the buyer’s power is by building a larger consumer based by selling the brand on social media to gain attention.  Rapid innovation for new product marketing idea of outdoor clothing. As it means people would be interested in something new to offer and it allows existing consumers to not get bored. 

Bargaining Powers Of Suppliers 

As A&F is in the high street industry, it means the majority of their materials come from a range of suppliers. These suppliers have can affect the current margins as they have the power to affect the costing rates of A&F. The overall impact is if the cost of raw materials goes up the profit will go down affecting the brand more. 

To tackle this the brand would need more of an efficient and effective supply chain of back up suppliers who would not affect the brand much. To start using material that would affect the cost rate or shift to a material that would work if costing goes up or shift to a better supplier that offers most of the service. 

Rivalry Amounts Existing Competitors 

Competitors rivalry id extremely high. This is a market where competition occurs within the high street. As consumer demands are high and more profit would help the rival competitors. Due to how intense is it can increase or decrease the overall profitability of the industry.

Tackling this is by building a different offer for consumers to make them welcome and wanting to buy innovative items. Building an identity that stands out and is able to successfully compete.