American Apparel: Vertically Integrated in Downtown L.A. - Paper

924 words 4 pages
American Apparel: Vertically Integrated in Downtown L.A.
American Apparel is a clothing manufacturer in the United States. The company is vertically integrated clothing manufacturer, wholesaler, and retailer who also perform its own design, advertising, and marketing. American Apparel was founded in 1997, by Canadian Dov Charney (Grant, 2010). Dov had a fascination with American culture and the T-shirts. He started to experiment with screen printing, importing and other parts related to the apparel business Dov then started his business by exporting T-shirt to Canada in a U-Haul .The main competitor are T-shirt Giants Hanes and Fruit of the Loom (Grant, 2010). The clothing sector is vertically de‐integrated to include: designs,
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American Apparel needs to continue to move forward with their knowledge base that that have been working with. But also to be more diverse within the market opening another manufacturing company so that he is able to keep up with the demand of the consumer (Grant, 2010). Also one main course that would help the company is to make sure that their advertising and marketing is more tasteful and more appealing to the consumer. They also need to continue to make sure that their “Made in USA” continues as such due to the consumer not wanting to keep their business and money within the US.
Alternative Recommendations
American Apparel needs to expand brand awareness to more than the younger generations. Also expand their line of products and availability to stores also making sure that the price is comparable or better to their competition. Continue to make sure that they continue with the incentives to the employees and expand the company in order to reach more people and locations. Overall the company is on a great path but they need to use the feedback from their consumers in order to continue growing and have a strategy in place for the possibilities that may occur.

American Apparel does have some strong company strengths as well. When examining American Apparel’s unique strengths, the manufacturing operations strategy really stands out. American