Environmental Analysis: Pestle Analysis Of Hollisterco

The following analysis of Porter’s 5 Forces Model will help in determining the threats that my be present now or in the future and help determine opportunities and decisions regarding the marketing plan.

To assess the industry structure and profitability, a Five Forces analysis will be conducted on the department store-retail industry.

First, Porter’s Five Forces analysis method is used as an “initial step” in evaluating new markets. This method is first introduced in the book during Justin and Scott Beckett’s, VP and General Manager of Oil and Gas division at HGS, meeting in which they discussed their analysis of the men’s white dress shirt industry. Beckett goes as far as using the Five Forces model to describe how all kinds of threats are high (Rivalry, Buyer Power, Substitutes, Entry, and supplier Power). Justin quickly buys into Beckett’s argument and how the men’s white dress shirt industry is not a viable option for Plastiwear to enter. This is an example of Justin deterring from his original views and altering them to agree with the other party, which cannot be necessarily correct in the situation regarding Beckett’s view. As senior director, Ken McCombs states, the most attractive industries according to the five forces approach would have no rivalry, no close substitutes, no threats, and no powerful buyers or suppliers. This type of industry makes us go with lower risk markets, which

As alternatives to Hollister, customers likely consider brands located in the surrounding areas such as American Eagle, Forever 21 or Urban Outfitters. The choice to purchase Hollister, however, involves buying into the company philosophy and history. Hollister, similar to other Abercrombie subsidiaries, devised a fictional company history to aid in its credibility and marketing. Abercrombie designed a character, John Hollister, who founded the company in Southern California in 1922 after years of travelling the world. The brand also positioned itself as a sponsor of surfing contests and events in seaside California cities such as Santa Cruz and Huntington Beach. While these creative concepts remained fictitious, they became powerful assets in

Loblaw Companies Limited’s business strategy of “driving down costs through size and operational efficiencies, and differentiating both its products” has enabled the firm to gain 32% of the food retail market in Canada. Despite this success, Wal-Mart is looking to enter into the mature food retail market with the introduction of their SuperCenters (combining grocery and nonfood items). Wal-Mart is a forceful competitor, and the Every Day Low Prices strategy of Wal-Mart’s Supercenters could wean away traffic from Loblaw’s various value banners. The objective of this paper is employ a PEST analysis and Porter’s 5 Forces Analysis to access the Canadian food retailer industry to decide if Loblaw should continue its current

Due to a variety of uncertainties ranging from the instability of Mexico’s economy, to a limited knowledge of the possible company to do business with, Charles River Laboratories have to assure to their stakeholders that a joint venture with ALPES is beneficial to the growth of the company.

Hollister Co. founded in 2000 is a retail store chain providing customers with high-end fashion at affordable prices. It is a division of Abercrombie and Fitch with the revenue of $1,5 billion in 2010. The brand is aimed at attracting teenage customers with casual wear of the Southern Californian style. Hollister is also notable for being once ranked as second best clothing brand for teens in the US among many other companies on the market.

In this assignment, I have chosen to research Hollister to find out if they are discriminative to customers and in recruiting staff, and if they attract the target market. Hollister is an American brand found on July the 27th, 2000 by Abercrombie & Fitch. They welcomed their first store on July 27th in 2000, Columbus, Ohio.

The Porter Five Forces has been developed in 1979 to analyse industry’s affective and profitability. It is a famous tool for gaining insight into the overall fashion apparel industry and more importantly the role of Creación with a variety of key factors affecting the company itself. The Porters Five Force model comprises competitive rivalry within an industry, threat of new entrants, threat of substitutes, bargaining power of suppliers and bargaining power of buyers.

TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20

Abercrombie & Fitch (F&A) is an American specialty retailer of upscale casual apparel. It was founded by David T. Abercrombie and Ezra H. Fitch in New York City in year 1892. In year 2002, it moves to the new headquarters in New Albany, Ohio. (Advameg Inc., 2017) It holds three unique lifestyle brands which are Abercrombie & Fitch, Abercrombie Kids, and Hollister Co. It engages in the retailing of casual sportswear apparel, graphic t-shirts, jeans and woven pants, shorts, sweaters and outerwear, personal care products, and accessories (“Abercrombie & Fitch Co, ANF: NYQ profile - FT.com,” 2016)Youth market is targeted, but men and women of all ages like it due to its portrayal of youth. (Bhasin, 2016)In order

Porter’s five forces analysis not only provides the ideas to create the strategic plan but also assesses the attractiveness of an industry.

Singapore is an island that lies just off the southern tip of the Malay Peninsula between the South China Sea and the Indian Ocean. Its strategic location on major sea lanes has provided the country with an economic importance in Southeast Asia. Singapore is often considered as a base for global enterprises looking to expand into Asia and Asian enterprises looking for global connectivity. Located at the heart of Asia, Singapore is sitting at the centre of business opportunities. Having the four key attributes - Trust, Knowledge, Connected and Life, Singapore is being positioned as an ideal city to Work, Live and Play. Singapore was ranked first in Mercer’s Quality of Living Survey 2009.

Singapore has good relationships with its immediate neighbors and is in a prime location in Southeast Asia that business can use to access multiple markets. Singapore is a founding member of the Association of South East Asian Nations (ASEAN). ASEAN members include Thailand, Indonesia, Malaysia, the Philippines, Brunei, Cambodia, Laos, and Vietnam. ASEAN aims to promote regional peace and beneficial collaboration of Southeast Asian nations in order to facilitate economic, social, and cultural

Two of the worlds leading economic countries accounted for more than three fourths of Singapore 's trade in services, while other smaller countries accounted for the remaining one fourth. Due to these foreign investments into the economy, Singapore was able to prosper. The Aegean Islands was the highest percentage of Singapore 's South Eastern Asian trade. As predicted by Stamford Raffles, Singapore succeeded in trade with the Aegean Islands, which made up 74% of Singapore 's overall trade in 1825. Towards the early 19th century, the Singapore economy began to benefit from one of the world leading powers. By the early 1930 's, Singapore had become the principal distributor of Japanese goods in Malaya, Thailand and Dutch East Indies. Elsewhere the increasing financial bond between Singapore and Japan is evident through their early trade and distribution. From the early entrepot trade economy of the British, a trading port where products could be imported, stored and trade, Singapore has continued to restructure itself and diversify with the inclusion of other foreign powers. Singapore’s wide range of foreign powers is what has allowed it to grow financially over seas. With the aid and investment of some of the most economically successful countries in the world, Singapore was able to grow. Singapore 's major trading partners were commercial services that would open possibilities for the future enterprises of Singapore.