Swot Analysis Of American Eagle Outfitters

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American Eagle Outfitters (AEO) differentiates from its competitors because it’s a leading global specialty retailer offering latest trends that are high-quality and affordable. The source of competitive advantage is the quality of their clothes and their environmentally friendly fabrics. American Eagle Outfitters is a high-quality and inexpensive brand of their two competitors Aéropostal and Abercrombie and Fitch. AEO centers in every category of purchaser such as kids, tweens, teens, and adults. American Eagle Outfitters has further stores open globally and their product line is more assorted than its competitors and its name brand and logo is known world-wide.
American Eagle Outfitters specializes in denim jeans that are higher-quality and more affordable than Aéropostal and A&F. AEO’s jeans are always updated with the latest fashions and trends. They even have an AE jean guide online so their customers get the perfect fit every time. AEO is also very earth friendly and has been making their merchandise packaging made out of recycled matter. AEO noted that they had a 2010 holiday collection called “Eco Shop” which presented both men and women’s clothing that was crafted out of qualified organic and recycled material. Many of the attire were made out of unrefined cotton that was grown without the use of hazardous synthetic pesticides which resulted in fewer fossil fuel emissions. (Product Innovation) Customers who are environmentally friendly would much rather purchase AEO than the other opponents. This is something their competitors, Aéropostal and A&F, haven’t done for their customers and the environment.
AEO does market sharing because they have several collections within their stores such as American Eagle Outfitters, Aer...

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...e my competition brand will gain more customers since teenagers nowadays want to appear youthful but mature. Recognizing the tweens as being unbeneficial and reducing these customers, we will lose market share but still improves effectiveness.
I would also decrease advertising expenditures by decreasing print promotion such as billboards, magazines, and flyers. I wouldn’t change the online promotion since internet is used at a daily basis for teenagers and adults. Electronic advertising will stay the same. By decreasing print ads it will lower the costs and increase revenue. I would make these changes because the company needs to change its targeted customers since there are so many stores targeted for tweens and teens, and also decrease the print promotions because these changes will decrease the amount the company has to spend and still increase its profits.

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