Saturday, September 7, 2013

2.Strategic Planning for Competitive Advantage



Aburaihan Rahman- Aeropostale



Aeropostale is one of fast growing appreal companies in US. Because of attractive design and affordable price, in a short time Aeropostale became one of the  popular brands in the fashion industries. 
Aeropostale commited to-

  • Supply affordable fashion apparel
  • Plans to add about 30 stores in Turkey over the next five years
  • Bring latest fashion for teens and young adults
  • start global shipping (100 countries currently
  • Improve community with social work.
  • Workforce for teens and young adults
  • Increase the amount of stores throughout the world 
In the year of 2008-2009 Aeropostale  has struggled to grow its revenues. The revenue was 9.38Billion dollars.A lack of fashion apparel and a weak response to its product lines have weighed on the retailer’s growth in 2009.But in 2010, Aeropostale made a tremendous change on fashion design and comeout with a  revenue of 2.23 Billion dollars..

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Aeropostale’s stores are largely confined to the U.S., where the apparel industry is very competitive. Moreover due to the  economic growth, U.S. buyers are looking for the best deals in terms of fashion and price. Since Aeropostale mainly offers basic styles for apparel, it has to rely on heavy discounts to attract customers, which negatively impacts the retailer’s sales. On the other hand, international markets where there is less competition and high demand for western brands could lead to further growth and better profitability for the company. Currently, Aeropostale’s international business is limited to 14 licensee stores in South-East Asia and Middle East, which account for a very small part of its overall revenues.


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