Introduction and Analysis of Business Environment
The company is a clothing manufacturer is in North America. It was formed by Dov Charney who a prominent businessman in the year was 1989. The company was vertically integrated and ranked as one of the top manufacturers in the North of America. He formed the company when he was just a student. By the time of its formation, the company was not really destined for greatness (Noel, 2015). The idea behind its formation was to sell t-shirts. However, even after ten years down the line the company continued to be featured in the news for many reasons. This paper aims at critically reviewing the setting of American Apparel.
Internal and External Setting of American Apparel
Despite of its initial setup, the company the company was ranked as one of the fastest growing companies in the United States. When the company was starting, it was mainly a wholesale business which was selling blankets that were manufactured ethically as well as t-shirts. Other related garments such as panties were also among the products it sold. However, it better to note that since its early days, the company was still involved in the selling of clothes that had some sexuality elements. The company capitalized on a big market. When it opened its very first store in 2003, it fast expanded its market to 11 countries having opened 143 stores in 2007 (Noel, 2015). During this time, the products of interest were mean accessories, garments. Later on, the company became synonymous with t-shirts, undergarments as well as jeans. The products were moderately an unbranded as well. The strategy it laid promoted a very high demand from young employees. The publications made during this time made it known far and beyond. The founder was as well as one of the youngest entrepreneurs of the year. By developing a strong foundation, the company was able to obtain further boost from Endeavour Corporation which bought the company.
Although American Apparel was still a new company in the United States, it managed to take on challenges emanating from the larger competitors. The success was largely attributed to its branding using free garments as well as the edgy advertisements it made. At this point the advertisements made by this company were majorly provocative characterized by girls wearing almost nothing. Although criticism from such advertisements was witnessed, this did not pull the company back from its mandate. By the year 2007, the company had developed to become the largest manufacturer of T-shirts in America (Won,Myung-Sim, 2010). It was one the companies that were exporting products that were labeled as “Made in the USA”. At this time the company managed to make sales of up to $125 million of clothing that were domestically manufactured outside the American borders. However, as company progressed, it created an internal hostile environment which subjected it actual acts dominated its markets ranging from the advertisements made to the controversies surrounding the CEO and the founder.
From the above context, it is evident that American Apparel had sufficiently developed its internal and external setting. The coordination that existed in the company when it begun promoted its success. The huge investments made by the company on creation of advertisements created awareness of its existence beyond the boundaries of America. Although it was surrounded by many controversial deeds, it had established a successful environment.
Noel, H. (2015). Branding Guilt: American Apparel Inc. and Latina Labor in Los Angeles. Diálogo, 18(2), pp.37-52.
Won,Myung-Sim (2010). American Apparel Industry’s Niche Market Strategy: Tween Apparel Industry. Journal of Korea Design Forum, null(29), pp.7-20.