Marketing Analysis for American Apparel
Problem Statement American Apparel whom once used to be the
Situational Analysis: American apparel is the largest clothing manufacturing company in the U.S. The company has initially specialized in cotton-knit wear yet it has gradually developed the interest for leotard, leggings and other vintage-inspired clothing. The company was founded in 1989 by Dov Charney. Charney was born in Montreal, Canada however he was fascinated by the American culture. In 1991, he started designing T-shirt using the name of American apparel. With the expansion of their sales and popularity, the company sub-contracted Sam Lim and moved the company to Los Angeles. The stores are usually situated in North America and Europe, however, its currently expanding its market into Asia by setting up stores in countries like China and Pakistan.
_____________________. From the SWOT and Porter’s five forces analysis, we have gained many insights into the company. The company has several strengthens. Being the largest clothing manufacturing in the fashion industry, it already created sufficient brand loyalty and barriers for new entrants into the market, thus easing the threats of potential competitors. Secondly, the company was designed to represent “American ideologies”, therefore, it has always been a fervent advocate for immigration and homosexual equality. (pink dollar)__________________ Lastly, the company is vertically integrated creating lower transaction cost and uncertainty within its production. Also, this eliminates the potential threat of suppliers’ bargaining powers creating more flexibility. Aside from strength, the company boasts several weaknesses. The most urgent one currently is the negative quarterly financial statements that limits the company’s functions, resources and decreases its reputation. After the interior analysis, it is most necessary to contemplate on the exterior situation. There are many foreseeable opportunities that may assist sales of the company. Given the
Situational Analysis: American apparel is the largest clothing manufacturing company in the U.S. The company has initially specialized in cotton-knit wear yet it has gradually developed the interest for leotard, leggings and other vintage-inspired clothing. The company was founded in 1989 by Dov Charney. Charney was born in Montreal, Canada however he was fascinated by the American culture. In 1991, he started designing T-shirt using the name of American apparel. With the expansion of their sales and popularity, the company sub-contracted Sam Lim and moved the company to Los Angeles. The stores are usually situated in North America and Europe, however, its currently expanding its market into Asia by setting up stores in countries like China and Pakistan.
_____________________. From the SWOT and Porter’s five forces analysis, we have gained many insights into the company. The company has several strengthens. Being the largest clothing manufacturing in the fashion industry, it already created sufficient brand loyalty and barriers for new entrants into the market, thus easing the threats of potential competitors. Secondly, the company was designed to represent “American ideologies”, therefore, it has always been a fervent advocate for immigration and homosexual equality. (pink dollar)__________________ Lastly, the company is vertically integrated creating lower transaction cost and uncertainty within its production. Also, this eliminates the potential threat of suppliers’ bargaining powers creating more flexibility. Aside from strength, the company boasts several weaknesses. The most urgent one currently is the negative quarterly financial statements that limits the company’s functions, resources and decreases its reputation. After the interior analysis, it is most necessary to contemplate on the exterior situation. There are many foreseeable opportunities that may assist sales of the company. Given the