Question

Forever 21 is reported to face a bankrupcy recently. Identify its issues and provide analysis method to use to develop the data and information which Forever 21 can use in adjusting or creating its strategic plans. NO COPIED ANSWERS PLEASE

3. Select a particular analysis method (SWOT ANALYSIS) to use to develop the data and information which Forever 21 can use in adjusting or creating its strategic plans. In this area you will provide a brief but comprehensive explanation of the method you are going to use and, more importantly, describe why you have selected this particular method to use to develop the information necessary to help Forever 21 design its response to the issue(s).

Answer 1

Forever 21 is a clothing brand known for its low cost and high speed deliveries which its competitors lacked

A) The strategic issues that Forever 21 are facing are many.

evolving due to which the dynamics of the target customers is shifting to a more easy and convenient

i) Slow Sales - The major cause of the declining of forever 21 is the slow and less sales of the clothes sold

The product is the vital source of income of any organisation or a retail brand.

means low revenue is being generated as compared to the money invested.

ii) Online Platforms -  The second reason would be the booming online retail stores.

preferring online stores than going to the physical stores as people find it more convenient to order the

The changing customer habits is causing the retail stores to be

iii) Large Stores - The space of the forever 21 is larger than the other retail stores.

investment less as the investment made on these huge physical stores couldn't be met by the slow retail.

B) The Analysis Method used in SWOT analysis is:

i)Staying in trend: Forever 21 has positioned itself as a retailer that stays on trend always and true to this it

always has the hottest trends for its shoppers in all categories.

The fact that Forever 21 is the one to set hot

ii) Affordable - The clothes are affordable for most of its customers.

iii) Customer Friendly -The brand focuses more on getting feedback from customers and implementing it.

iv) Association with celebrities - Forever 21 is associated with a lot of new generation celebrities making it a

: As the company is privately owned the business is

shared within the family.The decisions made in the organisation is also centralised making the designers

dissatisfied and less liberity to share their ideas and concepts.

vi) Focus only on young teens - The target population is only youngsters making it the retail spectrum

vii) Opportunities - Trend driven youth: peer pressure to stick to fashion norms is the driving force for the youth to buy new

viii) Changes in fashion industry - The fashion industry is a booming industry as the fashion is changing at a

rapid rate making new opportunities for brands like forever21.

Threats are:
1. Online Retail stores
2.Changing Consumer habits
3. Other Competitive Retailers Adapting to the new online trends