A & F

Question 1

What are their means?

Answer 1

Pay tax to US Federal gov. as HQ in Ohio
Manufacture mainly in factories in China, India, Vietnam with low pay & child labour
Cut tariffs by manufacturing and selling in same trade bloc and also easier glocalisation

Question 2

How do they glocalise?

Answer 2

No topless models in UAE

Question 3

How do they horizontally integrate?

Answer 3

Oshman’s Sporting Goods revived A&F

The Limited bought it in 1988 selling niche clothes to young

Question 4

How do they vertically integrate?

Answer 4

Subcontract manufacturing to ‘That’s It Sportswear’ in Bangladesh but had fire in 2010 with 29 dead workers

Question 5

What are their motives?

Answer 5

Horizontal Integration
Vertical Integration
Single bulk with A&F Kids, Hollister, Gilly Hicks so costs reduced as economies of scale for cotton

Question 6

What is their mobility?

Answer 6

N American mail order retailer to Europe & Asia
Fast cheap transport - goods to shops in 10 days by air and ocean freight
Cloud computing - less employers needed
Subcontracted to GT Nexus - supply system gather all vendors and shipping info.
1 to 40 stores abroad
Sales grew 87% overseas