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Forever 21 (Original objective (Profit maximisation) (Aggressive expansion…
Forever 21
Changes
Internal changes
Continued to expand its stores instead of focusing on expanding an online shopping network
Created stores with multiple floors for men, women and children fashion
Attempted to increase range of customers
Further stagnation in creating new clothing styles
Lost touch with customers and up-to-date fashion trends (Decrease in quality)
Inability to keep up with online shopping/(Retail Apocalypse)
Online shopping made shopping for clothes quicker, prompting rapid change of fashion trends. Younger customers, Forever 21's main consumers, shifted to online shopping
External changes
Online shopping becomes the main trend. Retail stores such as Forever 21 are not as popular.
Online shopping provides customer convenience
As online shopping is more recent, physical stores become less demanded.
Competitors catching up
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Other retail companies such as Zara and H&M also sold good quality products at lower prices.
Change in objective
Profit maximization -> Survival
Downsizing their stores
Selling stores that make the least profit
Strategic bankruptcy:
To restructure and stabilise the company, rebrand itself, and reform its business strategies, as well as being able to avoid expensive contracts from before bankruptcy.
Original objective (Profit maximisation)
Aggressive expansion of stores
Increases production rate, grows in popularity
Selling quality products at lower prices.
Sold specific products in a limited time
Rapid innovation of new products
Cheap prices and branding resulted in more customer satisfaction