Competitive Environment Essay

Words: 2667
Pages: 11
Open Document
CASE #12
The Competitive Environment in the 18-22-Year-Old-Apparel-Market

Difference in A&F΄s and AE΄s retail strategies

To start with, both A&F and AE share the same target market and offer similar merchandise. However, there are some differences in their retailer strategies that make this fashion stores stay competitive. Both retailers target mostly teenagers, and offer casual wear for young men, women and kids accompanied with accessories, outerwear, footwear and sweaters... As a difference, AE offers dorm wear and intimate apparel. In addition, A&F goods are more expensive and tend to target higher class teenagers while AE prices are ¨a little cheaper.¨ For this reason, A&F also runs Hollister Co. Stores which can compete …show more content…
To conclude, as I explained the two different retail strategies for these stores, one can more easily understand their different target groups, retail mixes and competitive advantages. According to this, one would expect the gross-margin, operating expense to sales ratio, inventory turnover and asset turnover to indeed be different when comparing Tiffany’s and Blue Nile stores.

Financial Performance

Tifany΄s

• In the Americas, sales of $303.5 million in the third quarter and $887.4 million in the year-to-date were 9% and 21% below prior year levels. Comparable U.S. store sales declined 10% in the third quarter (declined 5% in the month of October) and 25% in the year-to-date. Sales in the New York flagship store declined 8% and 27% while comparable U.S. branch store sales declined 11% and 24%. During the quarter, the Company opened stores in Roseville, CA and Seattle, WA. Combined Internet and catalog sales in the U.S. declined 9% and 11% in the quarter and year-to-date.

• In Europe, sales increased 12% to $65.0 million in the third quarter and sales of $188.9 million in the year-to-date were equal to the prior year. On a constant-exchange-rate basis, sales rose 16% in the third quarter and 15% in the year-to-date, and comparable store sales increased
Show More

Related Documents: Competitive Environment Essay

Innovation And Creativity And Innovation In A Competitive Environment

It is vital for an organization to integrate creativity and innovation as part of their strategy plan in order for the company to stay relevant in such a competitive environment. A company that advocates innovation and creativity and it is well known around the globe for taking innovation to the next level is Apple Inc. Recently Apple announced its plan to purchase of Beats Entertainment for $3 billion (Chen, 2014). This deal is to include the Beats’s streaming music service and their premium headphones…

Words 349 - Pages 2

Essay about Burberry Analysis of the Competitive Environment

Burberry Analysis of the competitive environment The aim of this essay is to provide brief and structured analysis of the competitive environment of a Burberry. RENATA GECAN MILEK 19.11.2012 Professional MBA Business Core 2012-2014 Competitive Analysis and Strategy Business Core Class 3 1. Introduction The aim of this essay is to provide brief and structured analysis of the competitive environment of a Burberry. In the first part I will briefly present luxury goods sector, trends,…

Words 993 - Pages 4

Essay about Evaluation of the Strategic Management in the Global Competitive Environment.

EXECUTIVE SUMMARY The purpose of this report is to evaluate the process of the strategic management in the global competitive environment. The globalization of the business in our environment has been a source for global organizations to incorporate the process of a global strategic management. In this report, we are going to propose three different frameworks from three different group of authors: Yip, Johnson and Scholes, and Cavusgil and Zou. However, theses proposed framework would be analysed…

Words 5212 - Pages 21

How Government Regulations Affect The Competitive Environment And Impact Individual Business

Government regulations affect the competitive environment and impact individual business. There are also laws set forth by the government to regulate businesses. The four major pieces of legislation are collectively known as the Antitrust laws. 1. Sherman Act 1890 o Illegal to restrain trade between states on foreign nations. As well as persons who monopolized, attempt to monopolized, conspire, or combine in order to monopolize any type of commerce or trade with states or foreign nations. Originally…

Words 727 - Pages 3

HR Contextual Factors That Will Shape The Business Competitive Strategy

The Organizational Environment Identifying the HR Contextual Factors that will shape the business competitive strategy. SWOT analysis The New Competitive Context No Sustainable Competitive Advantage: HYPERCOMPETITION- all competitive advantages are short-term and temporary Due to: Iconoclastic market rivals- competition we didn’t expect “reject the past way of doing things” Transitory customer tastes- less brand identity, people change Ineffective barriers to entry- new ways of thinking Rapid…

Words 1347 - Pages 6

DCrawford MT140 10 Unit2Assignment Essay

Contemporary Approaches and Environments of a Business By: Deanna Crawford April 2, 2015 MT 140-10: Intro to Management Instructor Young Kaplan University The contemporary approaches to management include: sociotechnical theory, quantitative management, organizational behavior, and systems theory. Regarding environments, an organization has an internal environment, a competitive environment, and a macroenvironment. I have been granted the opportunity to explain how these approaches are different…

Words 531 - Pages 3

Pixar Case Study Essay example

sustain competitive advantage” (Dess, Lumpkin, Eisner, & McNamara, 2014). Strategic management focuses on the entire organization and is used by Pixar by putting their ideas to reality. They use strategic planning to create valuable products for their audience. Through computer animation and cooperation between employees in the organization Pixar creates unique characters and stories that relates with their audiences and it how they have created their competitive advantage. Pixar’s competitive advantages…

Words 976 - Pages 4

BP Lecture 9 Value Chains II Lecturer Recorded Essay

New Potential Entran ts Threat of New Entrants Industry Competition Bargaining Power of Buyers Suppliers Bargaining Power of Suppliers Buyers Intensity of Rivalry Threat of Substitutes Substitutes Background • Business exists in a competitive environment – Market share is divided against rival groups • Government regulation enforces competition • Value Creation – Linked to overall firm performance (so far) – Delivery of efficient processes – Delivery of effective processes – Remember Drucker…

Words 849 - Pages 4

Planning Organizing Leading And Controlling

Functions of Management OBJECTIVE: Define the four functions of management. Resource: Ch. 1 and Appendix A of Management: Leading & Collaborating in a Competitive World Content Ch. 1: “Managing” Managing in the New Competitive Landscape Globalization Technological Change Knowledge Management Collaboration across “Boundaries” Managing for Competitive Advantage Innovation Quality Service Speed Cost Competitiveness Delivering All Five The Functions of Management Planning: Delivering Strategic Value…

Words 483 - Pages 2

Strategic Management and Robert M. Grant Essay

Elizabeth & The House of Windsor Lady Gaga and the Haus of Gaga Goals Life-long dedication to role as head of state and reigning monarch Single-minded quest for stardom through her Lady Gaga persona Understanding the Environment Alertness to the changing political environment Sensitive to the mood and needs of the British people Awareness of the new economics of the music business, the marketing potential of social networking and needs of Generation Y Resource Appraisal Recognized lack of…

Words 1072 - Pages 5