American Eagle Outfitters Analysis Essay

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American Eagle Outfitters SWOT Analysis

The Silverman family first founded American Eagle Outfitters in 1977. They operated specialty clothing stores under the name Retail Ventures. In 1980 the Silverman’s encountered financial troubles when the Schottenstein family bought out 50% of the Retail Ventures. In 1991 the Schottenstein family bought the rest of Retail Ventures and opened 153 American Eagle Outfitters. By late 2000 the company had introduced 46 new stores in Canada. American Eagle had approximately $2 million in annual sales in 2003 and now operates over 800 stores in the United States and Canada (http://www.hoovers.com/american-eagle-outfitters/--ID__17231--/free-co-factsheet.xhtml).
Strengths:

American Eagle
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They need to work on earning the trust of their customers with their affordable prices and good quality of the garments sold. In addition to customer loyalty, not enough time is spent on advertising of the company. Because of the lack of advertising AE has experienced a loss of fashion sales in the recent years. The store needs to reach out to its target market by providing more commercial or doing more promotional work. American Eagle is challenged with determining what trends are appropriate for its customers and how to interpret thee trends. Over the past two years, competitors such as Abercrombie and Fitch have lowered their prices, which have created additional promotional pressure for American Eagle. Some investors believe Aeropostale has the value niche and Abercrombie has the high end positioning, so American Eagle is sometimes perceived as being stuck in the middle, without a true niche (http://www.tcnj.edu/~keyser2/Strategic%20Management/American%20Eagle/Datamonitor%20Overview.txt).
. Opportunities:

American Eagle still has a lot of room to expand throughout the united States, Canada, as well as the entire world. The Northeast is the most penetrated area with American Eagle Stores. Most states in the West and Midwest have less than 15 American Eagle stores. There is an opportunity to move into the
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