Case Study On The Reset Button Pushed by Forever 21: Laceda, Dheavieth Revenmar S. BSA-II Saculo, Rae Steven D. BSA - II

CASE STUDY ON THE RESET BUTTON PUSHED BY FOREVER 21
July 2021
Proponents:
Laceda, Dheavieth Revenmar S. BSA- II
Saculo, Rae Steven D. BSA - II

Parole, Ruth Ariel Mae BSA- II
Executive Summary
Forever 21 is a US-based fashion retail brand located in Los Angeles, California. It was
established in 1984 by a South Korean couple named, Jin Sook and Do Won Chang. Forever
21 was a forerunner in the fast fashion industry and spurred by its initial success. It started
opening new stores at frequent interval. Later on September 29, 2019, Forever 21 filed for
Chapter 11 bankruptcy protection to restructure its business. In addition, the company said
that, “We do however expect a significant number of these stores will remain open and
operate as usual, and we do not expect to exit any major markets in the US”. The company
had 549 stores in US and 251 stores in other countries at the time of filing bankruptcy.
Furthermore, the company also said, it planned to “exit most international locations in Asia
and Europe” but would continue to operate in Mexico and America.
Introduction
Forever 21 is a fashion retail brand based in Los Angeles, California. Before it started,
its owner is having a hard time living US. That is the time when Do Won Chang noticed the
people with the nicest cars were all in the garment business. This is their motivation
together with her husband Jin Sook to enter fashion retail business. Forever 21 become
forerunner in the fashion industry and, spurred by its initial success. Then, it starts to open
new stores around the world with frequent intervals. But on September 29, 2019, the
company filed a Chapter 11 bankruptcy protection to restructure its business. The company
operated through 549 stores in US and 251 stores in the other country at the time of filing
bankruptcy. In addition, it is expected to close the 350 stores worldwide, including with 178
stores in US.
This case study aims to discusses how the Forever 21 started and its growth. The
factors that led to its economic downfall- the rapid expansion of the business, global
recession, retail apocalypse, new inline competitors, and the changing customer
preferences. Also, the objectives of this case study is to understand the internal and external
factors that can affect the performance of the organization. To identify the reasons of its
filing bankruptcy and to study how the company can adopt the online platform for growing
their business.
Discussion and Analysis
The major problems that Forever 21 led there organization in critical stage are the
rapid expansion of their business, global recession, retail apocalypse, new inline
competitors, and the changing customer preferences. For the rapid expansion alternative
solution is the Ansoff Matrix an strategy where focuses on the organization growth.
Solutions for the remaining key factors of its downfall have to make o mega-projects,
smaller and environmentally friendly infrastructure projects in emerging economies would
produce immediate results and enable the developed world to enjoy the benefits of
expanding economies to create a new consumer market share among the billions on low
incomes and the unemployed throughout the world. The main point is that the developed
and developing worlds have to work together in terms of its present crisis and new
upcoming problems and ideas had to be strategically planned there cause and effect.
Recommendation
Forever 21 clothing line was a famous brand they provided good quality and affordable
clothing items. Not changing consumer preferences is the one of clothing line problems
because of not focus on changing fashion trend and have many inline competitors where
they are good than forever 21 as the result forever 21 didn't reach the customer preferences
of clothes and customers choose other clothing line. I highly recommend Alternative course
of action, Brand Repositioning where they can analyze what costumer wants and trend's
today's and improve ther marketing strategy like blogging, online marketing and partnering
with social influencer to attract customers. This will help owner to set up his business.
Conclusion
To conclude, it is critical to adapt to large changes in the sphere of business in order to
retain the organization's stability. Because a business's processes and overall system are
dynamic, it necessitates flexibility on all levels in order to respond to changes. Particularly,
on the changing preferences of customers. Customers must be the primary focus of any
industry; as a result, they must ensure that the product being reproduced is in conformity
with the customers' styles and preferences. As in the case of Forever 21, they failed to
respond to these enormous developments, resulting in their abysmal collapse. It is critical to
follow the current trend because it will substantially aid the company's growth. Moreover,
customer analysis is also necessary in order to stay on top of market expectations. Similarly,
the current approach must be updated in order to effectively attract potential customers or
clients in the field. Today, social media has a significant impact on product promotion, and
when used appropriately, it can be extremely beneficial. Everything in the field business is
subject to change, thus it is necessary to respond to changes effectively in order to keep the
business stable.

Case Study On The Reset Button Pushed by Forever 21: Laceda, Dheavieth Revenmar S. BSA-II Saculo, Rae Steven D. BSA - II

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Case Study On The Reset Button Pushed by Forever 21: Laceda, Dheavieth Revenmar S. BSA-II Saculo, Rae Steven D. BSA - II

Uploaded by

Copyright:

Available Formats

CASE STUDY ON THE RESET BUTTON PUSHED BY FOREVER 21

Laceda, Dheavieth Revenmar S. BSA- II

Saculo, Rae Steven D. BSA - II

and Europe” but would continue to operate in Mexico and America.

Discussion and Analysis

smaller and environmentally friendly infrastructure projects in emerging economies would

To conclude, it is critical to adapt to large changes in the sphere of business in order to

dynamic, it necessitates flexibility on all levels in order to respond to changes. Particularly,

respond to these enormous developments, resulting in their abysmal collapse. It is critical to

You might also like