Last Updated 20 Apr 2022

Pestle Abercrombie and Fitch

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Economic Growth As we know, the economy of the United States took a bit of a nosedive in September 001, but more recently things are beginning to take a turn for the better. In the latter part of 2004, personal income along with personal savings increased. In November 2004 the total income of individuals increased $30. 4 billion dollars. In the past six months there has been an increase in sales in the clothing industry. The purchase of clothing and shoes in the month of May escalated $2 billion and increased $1. 7 billion in June.

Today's culture shows children having more money both from their own odd Jobs such as baby-sitting or delivering newspapers and heir allowances from parents. This extra income and spending power has influenced much of the clothing market. Coloratura Trends Society and culture have an effect on what consumers' value and what is considered "popular". When it comes to the clothing industry, there are many factors that are important including fashion trends and purchasing power. Fashion trends are constantly changing, which forces retailers of clothing to keep up with the curve.

Clothing companies need to know which items are going to be popular and how many of each item to have in stock. Part of keeping up with trends is keeping up to date on colors and designs that are appealing to the audience. According to Apparel News, it is now the teens that are setting new fashion trends. Some of the new lines that they have coming include bohemian embroidery, baby-doll tops, and camouflage prints. A number one cultural trend that we did not face ten years ago is the number of mothers that are working outside of the home.

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This has in return affected how major purchase decisions are made. With mom and dad both working, it is often the men's that are becoming more independent and making purchasing decisions on their own. There are currently 2. 7 million teens who have money from odd Jobs and allowances, and they choose to spend $14 billion annually on clothing, Technological Advancements Technology is affecting everything about our society including the clothing business. The number one aspect is the Internet. Having on-line access has changed the way that consumers find information and the way that they shop.

During this past holiday 82 percent of consumers surveyed said that they would be doing holiday shopping n-line. The Internet gives retailers a way to show new fashion trends and give consumers access to their products. As technology continues to improve it will make it easier and faster for consumers to research products online and purchase with confidence. Web Advertising is another key element that can be affected by technology. Clothing companies are able to inform consumers about their products, advertise specials, etc. This allows buyers to become acquainted Witt products before purchasing in the store or on-line.

Pestle Abercrombie and Fitch essay

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What is the PESTEL analysis of Abercrombie and Fitch?

PESTEL analysis provides great detail about operating challenges Abercrombie & Fitch Co. will face in prevalent macro environment other than competitive forces. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Abercrombie & Fitch Co. if it is situated in unstable political environment.

How do political factors affect Abercrombie&Fitch's profitability?

Political factors play a significant role in determining the factors that can impact Abercrombie & Fitch Co.'s long term profitability in a certain country or market. Abercrombie & Fitch Co. is operating in Apparel Stores in more than dozen countries and expose itself to different types of political environment and political system risks.

How does Abercrombie&Fitch forecast the future of its business?

Abercrombie & Fitch Co. can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as Apparel Stores industry growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization.

How will macro-environment factors impact Abercrombie&Fitch's competitive landscape?

Changes in the macro-environment factors can have a direct impact on not only the Abercrombie & Fitch Co. but also can impact other players in the Apparel Stores. The macro-environment factors can impact the Porter Five Forces that shape strategy and competitive landscape.

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