Topic > Leading Apparel Companies: Aeropostale - 1477

Aeropostales' core business strategy is a combination of product differentiation and cost leadership. The brand is very well known here in the United States. They have stores in malls all over America. However, with this approach of having their own stores, it seems like they are trying to make the brand well known so they can charge more. This is not the case. They charge lower prices than most if not all mall retail stores. In 2012 Aéropostale had 1092 stores under their control. (Aeropostale, 2014) This gives them a sizable market in the United States to sell into. The company's mission is for them to be the destination for the young adult market. If people want to go there it means they are looking for a product differentiation strategy. They want people to know their brand very well. They are trying to become a popular brand worn by many people. This means they need to stand out. Although they are trying to implement a product differentiation strategy, they are also trying to be a cost leader at the same time. Prices tend to be cheaper than many other competitors such as Abercrombie, American Eagle, and Hollister. Compared to these brands they don't stand out as much. They are able to gain brand awareness at a cost. Their prices attract budget-conscious customers. Their style is also very similar to all the other brands. This does not allow them to achieve their desired product differentiation strategy well and why they have also implemented lower cost for their products. Very recently, however, they have changed their objectives. They are maintaining the main values ​​which are integrity, respect, honor and teamwork. (Lomax, 2013) They are trying to use the pillars as a way to succeed in a ver...... middle of paper ...... April 11). Bloomberg Business Week. Retrieved from Bloomberg.com: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=BKEDurisin, M. (2013, March 13). Company interior. Retrieved April 10, 2014, from Business Insider: http://www.businessinsider.com/aeropostale-launching-new-tech-for-teens-2013-3Fitch, A. &. (2014, April 11). Bloomberg Business Week. Retrieved from Bloomberg.com: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=ANFLomax, A. (2013, March 14). The heterogeneous madman. Retrieved April 11, 2014, from http://www.fool.com/investing/general/2013/03/14/is-aeropostale-one-of-the-best-companies-in-americ.aspxTeam, T. ( 23 January 2014). Forbes. Retrieved April 11, 2014, from http://www.forbes.com/sites/greatspeculations/2014/01/23/new-collections-can-make-aeropostale-a-more-attractive-takeover-option/