After reading Jonny Young’s views on Abercrombie’s decisions recently, I am leaning towards the fact that A&F’s decisions have more negative effects than positive ones. Along with the CEO Mike Jeffries’ disrespectful comments, the company also burns damaged and unsold clothes rather than donating them.

Although A&F increases its focus on one particular market, its overall image has suffered tremendously. I actually think that A&F in a way deals with a problem regarding business ethics; the comments the CEO released are socially unethical. Before the bad publicity, A&F was doing well expanding into other countries outside the USA and many different sized people like its style and bought the clothing. The sudden change in brand values may have negative effects. Although A&F may face increase in revenue from its focused market area, the company is losing out on significantly more sales from other consumers. People were willing to pay relatively high prices in other areas of the world for a middle-priced clothing store in the States. Thus, I think that A&F should go back to a differentiation strategy that targets a wider audience as it was proven effective in different markets around the world.

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Works Cited:

“Abercrombie and Fitch CEO Backlash Sees Greg Karber Hand Out Clothes To The Homeless.” The Huffington Post UK. N.p., 15 May 2013. Web. 16 Nov. 2013.

Mark Jeffries. Digital image. N.p., n.d. Web. 16 Nov. 2013.