Swot for American Apparel

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S.W.O.T for our competition- American Apparel

Strengths: Their profitable idea is the plain T-shirt which never goes out of style and is something everyone has or wants. This makes their store have a wide range for many different demographics making it appeal to a huge amount of customers. They also have a very creative mission statement and are a very loyal brand.

Weaknesses: They have a very young CEO who has already been accused of sexual-harassment within the company numerous amount of times. And although the brand is of great quality, just selling the same plain shirts in different solid colors can get tedious and boring.

Opportunities:  They have very many opportunities to expand their stores and their locations. They have many offers in different states to open up stores and that is a huge opportunity for their company. They also have so many opportunities to expand their demographics even more than they already are.

Threats: They are known for being a very edgy company and there has been controversy in the past regarding their overly sexualized ads using young models. They have also gone the political route and advertised their political views on different topics. Some of this controversy has lead them to lose some of their customers and talked bad through the press. All of these things raise attention to their company, but it isn’t the type of attention a company wants to be known for.

External Environment Factors:

1. Competition:
Opportunities:
-They have options to expand their stores in various other locations where there competition are currently selling. -Since American Apparel is well known for basic solid attire, it can venture into having more complex designs for more variety.

Threats:
-Their prices are higher as compared to other brands selling similar products. -Their target customer base is narrower as compared to their competitors.

2. Economics:
Opportunities:

Threats:
-The cost of production is significantly higher than their competitors because of their “made only in USA” policy.  It would be difficult to lower prices to for consumers’ economic needs

3. Technology:
Opportunities:
-Broaden its customer base through advertisements and public relations as most of their ads are currently through print and Internet only.

Threats:
-Their provocative ads

4. Society (Social):
Opportunities:
-Increase male customer ship  
-Sweatshop free (vertically integrated) – one of the only stores that pushes the fact that they do not outsource and everything is American made.  They can use this as leverage against other companies saying that they care about certain topics such as unfair labor conditions in outsourced countries and gain more market share among people who care about the cause, unlike other stores that do not address the topic at all.

Threats:
-A large amount of public does not dress as they portray in their ads -Advertisements are too weird or overly sexual

Internal Factors:

1. Customer:
Demographics- American Apparel’s current target customer is young female in their early twenties. Strengths:
-Maintains their target audience well
-Their customer base knows they can depend on American Apparel for their kind of look and need for solid colored basic attire. Weakness:
-It’s hard to diversify customers because everything they sell is too focused on certain people (White and Asian females).

Geographic- AA’s customer lives in the city.
-They do not show much diversity with people in their advertisements, which may cause a negative impression to certain people that they would not fit into the American Apparel brand

Behavioral buying traits
-The associates often let the customer know if something they are looking at pairs well with another item in hopes to increase their purchase amount. There is often a well labeled sale rack towards the back of the store, and the chance for impulse buying here is huge. During check out, there are many more...
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