Abercrombie & Fitch is a popular American clothing brand that can be seen around the world. The marketing campaign of the company, which usually includes semi-nude men and women models, contributed a lot to the popularity of its brand. In fact, the concept of body image and sexuality play such a big role that numerous men and women come to the stores to be casted as an Abercrombie model. As expected, parents are not pleased to see their teenagers obsessed with this brand; therefore, many controversies emerged.
Like Jason Mah suggested, I believe certain values are more critical than maximizing profit. Abercrombie CEO Michael Jeffries once stated that he only wants “thin and beautiful customers” to shop at his stores, which is the reason one wouldn’t be able to find a XL sized clothes. Using Porter’s Generic Strategies, I assume Abercrombie applies focus strategy (differentiation) to generate profit since the brand is definitely not low cost and focuses on “thin and beautiful customers”. Although this strategy has been working really well for Abercrombie, but to me it is ultimately not ethical. For all one knows, Abercrombie might even violate certain business ethics.
Article: http://www.nydailynews.com/life-style/fashion/abercrombie-won-sell-xl-article-1.1339454