American Eagle Outfitters

1752 WordsApr 20, 20058 Pages
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 Outfitters is…show more content…
If they were to advertise their line in television ads they would be able to reach a wider audience than what they have been reaching. American Eagle should not only advertise their brand online but also in catalogs to show off their fresh hip look. The advantages of advertising on the television and in catalogs are that more customers will become aware of what American Eagle is and begin to shop at the store. Sometimes word of mouth is not enough to thrive. The disadvantage of this would be the cannibalism of the internet site because of AE advertising in many different ways. Also AE might not be able to position itself to be able to set itself apart from the competition. Alternative Solution #2 American Eagle should continue to appeal to their targeted market of 16 to 32 year olds. AE needs to remind their customers that their brand is comfortable, bold and fresh, and is unlike any of the competition. Store atmosphere is also very important when trying to keep loyal customers. American Eagle should hire fun and energetic employees to represent their company. Advantage of appealing to the 16 to 34 year old range is not many retailers in the market appeal to that wide of an age gap because is difficult. Customers being reminded of AE's comfort and freshness will in turn keep sales flowing. Although this could help American Eagle stay one step ahead of its competitors, it could also be a burden on AE because they must know what is appealing to
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