Abercrombie & FItch vs American Eagle Essay Example for Free

Abercrombie FItch vs American bird of Jove EssayINTRODUCTIONFashion may be delimit as a way of living, decorating, etc., which is popular nowadays, but will soon lose their popularity. It is something passing and temporary, a simple craze of the moment to be looked win upon with dislike. For example, stiff pants are the fashion today, but yet a short while past broad loose pants were the order of the day. If today a man appears in society wearing broad pants, he would be held up to ridicule, but only a few years ago they were the height of fashion, symbols of good taste and culture. American Eagle Outfitters (AEO) and Abercrombie foulmart (AF) are two companies that play a major role in the clothing industry. The undermentioned discussion with compare and contrast the competitive advantages of the supply chain of the two companies.COMPANY HISTORYAEOAmerican Eagle Outfitters, Inc., a billion dollar corporation, is ranked as one of the largest retail chains in America. With their central corporate driftquarters in Pittsburg, Pennsylvania, and two other corporate facilities located in cleanborn York City and Tokyo, Japan, American Eagle, Inc. operates numerous mainline rememberings, factory stores, franchised stores, and distribution centers across the country and the globe.In 1977, brothers, Jerry and Mark Silverman, who owned and operated Silvermans Menswear, a Retail Ventures, Inc. smart set, founded American Eagle Outfitters. Opening their first store in Novi, Michigan at Twelve Oaks Mall, the Silverman brothers were hoping to diversify their menswear line (AEO Management Co., 2013). Several stores were opened up and a catalog was created. American Eagle Outfitters continued to grow into 1990, when Jacob Price took over which led to the introduction of cursory, private-label intersection for men and women. In 1994, American Eagle Outfitters became soften of the NASDAQ stock exchange, which enabled the opening of 90 stores the following ye ar (AEO Management Co., 2013). In 1996, sore executives joined AEO and decided to modify the target demographics of the target market and clutches much women, as well as focus on those who were between the ages of 18 and 32.Shortly after, American Eagle expanded to e-commerce with ae.com. By 2000, American Eagle operated 500 stores and revenues for the company quintupled to $1 billion. The Canadian market was penetrated in 2001 and in 2003 American Eagle expanded to Hawaii. Aerie, a brand extension of American Eagle, focal point on intimates for women, was launched in 2006. Another line extension, 77kids, which offered clothing for babies to pre-teen girls and boys, was established online in 2008 and the first 77kids store was opened in 2010. Today, American Eagle Outfitters, Inc. operates over 1,000 stores, including 911 American Eagle Outfitters stores, 158 Aerie stores, and 21 77Kids stores, 21 of which are franchised around the globe. Additionally, ae.com, which includes lin ks to Aerie and 77kids, reaches 77 countries.American Eagle Outfitters offers apparel, shoes, and accessories for both men and women. Clothing merchandise is comprised of denims, sweaters, graphic Ts, fleece and workout suithirts, outerwear, tops and shirts, dresses, and skirts. Shoe merchandise includes sneakers, boots, flats, sandals, slippers, clogs, heals, loafers and socks. Accessories merchandise consists of jewelry, hats, sunglasses, scarves, bags, perfume and cologne, purses, and wallets. Aerie offers merchandise for college girls that include dorm wear, such as sweats and pajamas, exercise apparel, bras, underwear, accessories, and some personal care items. 77kids offers apparel for infants, children, and preteen girls and boys (AEO Management Co., 2013).AFAbercrombie Fitch originated in 1891 as a retail sporting goods store found in New York City. It was known for its wide variety of expensive and often exotic sporting equipment and attire, ranging from tennis shoes to elephant guns. For more than half a century, the stores apparel, guns, tackle, and other merchandise were the image of wealth and prestige.When it expanded, the firm confined its new branch stores to downtown areas of large cities and to resort areas. In the early 1970s, Abercrombie Fitch attempted to widen its guest base by adding less-expensive items to its usual stock and by moving into the suburbs, where other stores had been building for some time. Although these steps did attract new customers, they came too late Abercrombie Fitch was in financial trouble and filed for bankruptcy in 1976 after 85 years in business (Encyclopedia Britannica Online, 2013). Oshmans gaudy Goods, Inc. bought the firm in1978. In 1988 Abercrombie Fitch was bought by The Limited, Inc (Encyclopedia Britannica Online, 2013). Repositioned as the trademarked casual luxury brand, it became parent to the subsidiary brands Abercrombie kids, a childrens line launched in 1998 and marketed as Abercrombie Ho llister Co., a line for younger teens launched in 2000 RUEHL No. 925, a line targeting post-graduates launched in 2004 and Gilly Hicks, a womens line launched in 2008. Following Abercrombie Fitchs overhaul, the company received momentous criticism for its advertising and its clothing, which were perceived by many as encouraging its target audience to adopt a sexually promiscuous lifestyle (Encyclopedia Britannica Online, 2013).MISSION STATEMENTAEOAmerican Eagle has a clearly defined set of corporate values which guides the actions of employees at all levels of the AE placement PEOPLEThe vitality of our company resides in our people. We collaborate, we engage, we achieve (About.com, 2013). INTEGRITYWe hold ourselves accountable to the highest standards. In the face of difficulties and challenges, we dont compromise (About.com, 2013). PASSIONOur passion infuses our actions and purpose. It transforms stores into places of energy and customer delight (About.com, 2013). INNOVATIONWe o perate in a dynamic and competitive industry. We continually refine the unique processes that drive our business, and we use insightful research and outline to balance our instinct and to guide our decisions. Our associates embody entrepreneurial spirit, develop creative solutions, and initiate change (About.com, 2013). TEAMWORKWe work together listening to one another, reaching consensus and backing group decisions. We celebrate achievements. Because we respect and trust one another and commit ourselves to our company goals, our aggroupwork succeeds (About.com, 2013).Additionally American Eagle has a service goal that guides employees in their everyday retailing tasks We respond to the needs of our customer and enjoy the satisfaction of a job well done (About.com, 2013). AFAbercrombie and Fitch focuses upon high-quality merchandise that compliments the casual classic American lifestyle (About.com, 2013). But beyond that simple mission statement, Abercrombie Fitch emphasizes it s brand vision, brand attributes, and the value of the Abercrombie Fitch brand, which has been of ultimate importance since chief operating officer Mike Jeffries took on the leadership role. Abercrombie Fitch has said this about its brand to its stakeholdersThe AF brand is more authentic and relevant than ever. The brand is our lifestyle, our focusit ensures growth and promises st expertness. A great brand is a center of growth and revenueit represents a relationship with customers. Its not a faddish chip to be change in on shortsighted gains. The value of having a great brand is far-reaching and cannot be overstatedits a snowball effect. The AF label gives us the ability to evolve, creating endless growth opportunities. It helps us attract the brightest, most talented young people from around the country. It attracts millions to our website. It allows for greater profit margins. It lessens the risk of moving on new business concepts. It promotes innovation. It ensures long-term profitability. It adds built-in value to everything we produce. It accelerates growth. It stabilizes. It gives focus and direction. It produces an emotional response in consumers (About.com, 2013).Comparing these two mission statements, it is clear that American Eagle Outfitters is centre more on just their merchandise, unlike Abercrombie Fitch. AEO has a passion not only for their brand and employees but their consumers as well. While AF, is only focused on their brand not on theoperational execution of its employees, or the experience of its customers.This holds true of AF because recently their CEO, Mike Jeffries, came under fire for reportedly saying they only target to thin and beautiful people which is why they do not sell or make any size over 10 or large for women. Mike Jeffries has said, Thats why we hire bounteous people because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We dont market to anyone other than t hat (Walker, 2013). On AFs website, they claim to embrace diversity without the entire organization but what Mike Jeffries has been quoted saying, is distant of what the company claims they are about.We are committed to embracing the diversity of our associates and management throughout our organization. On the surface, our dedication to maintaining a diverse working and shopping environment can be easily seen by walking through one of our stores, domestically and internationally. More notably, Abercrombie Fitchs commitment can be seen through our exceptional diversity programs, whether they are internal or external, and the results they yield. Diversity reflects the multidimensional insights we share together with. Simply put, it is imperative to our growth that we staff our business with diverse talent and run our business with an inclusive mindset (Abercrombie Fitch, 2013).SUPPLY CHAINAEOAmerican Eagle Outfitters strategy to improve apparel factory working conditions starts with factory inspections establish on their Vendor Code of Conduct. They then focus on remediating the issues they find during those inspections, which often includes additional factory training and capacity building programs (AEO Management Co., 2013).They quisling with other brands and retailers, multi-stakeholder organizations, civil society groups, trade unions, governments, and others to better understand and address what is happening in the factories and countries where their clothes are made. By working together, they strive tocollectively develop more sustainable solutions to the problems they find (AEO Management Co., 2013).Finally, they are committed to being obvious about how they are doing. By reporting publicly on their efforts, this is one of the many ways they ensure that they remain focused on their goals, disciplined in their efforts, and accountability for their performance (AEO Management Co., 2013).AFAbercrombie Fitch has very tight control over the design and manufacturing of their clothing. To help the company keep control, have higher margins and comfort the brand, they design their own ranges which are manufactured exclusively for AF.The head office for AF is located in Ohio and is called The Campus. At this location, there is a center known as the Innovative Design Center. Here, a dedicated team uses over 100 wash, quality assurance, lab and graphic machines (Webb, 2009). They are responsible for merchandise design and development. Design packages were created by the company to reduce the time and appeal of product development (Webb, 2009). These design packages are then given to the vendors.By keeping strict control over design, manufacturing and product development, the company is able to protect the brand from being copied and having the image damaged. By having greater control, it allows AF to deliver on their promise to the customer and consumer. This in turn creates a relationship based on trust and gives them a competitive advantage.Again, with Abercrombie Fitch, they are more focused on keeping control of their brand and image, while American Eagle Outfitters are seek to improve factory conditions for their workers. This once again proves that AF does not care about their people.CONCLUSIONIn summary, Abercrombie Fitch and American Eagle Outfitters play a significant role in the clothing industry. While AFs practices are somewhat contradictory and outlandish, AEO remains the opposite. AF needs to take a cue from AEO and focus more on their consumers than just their brand. There is no question why it is that AEO is ranked at 649 on the Fortune 1000 List and AF is trailing behind them at 651 (Salesforce, 2013).Works CitedAbercrombie Fitch. (2013). Diversity Commitment. Retrieved from AF Cares http//www.anfcares.org/diversity/commitment.jsp About.com. (2013). Abercrombie Fitch Mission Statement. Retrieved from About.com http//retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Stateme nts/AbercrombieFitch-Mission-Statement.htm About.com. (2013). American Eagle Company Mission Statement. Retrieved from About.com http//retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/American-Eagle-Mission-Values.htm AEO Management Co. (2013). AEO History. Retrieved from American Eagle Outfitters http//phx.corporate-ir.net/phoenix.zhtml?c=81256p=irol-history AEO Management Co. (2013). AEO Supply Chain. Retrieved from American Eagle Outfitters http//www.ae.com/web/corpResp/supply_chain/our_strategy.jsp Encyclopedia Britannica Online. (2013). Abercrombie Fitch. Retrieved from Encyclopedia Britannica Online http//www.britannica.com/EBchecked/topic/1121/Abercrombie-Fitch Salesforce. (2013). Fortune 1000 Company List. Retrieved from Data.com Connect https//connect.data.com/directory/company/fortune/1000 Walker, T. (2013, May 08). Not available in XL. Retrieved from The Indepedent http//www.independent.co.uk/news/uk/home-news/not-available-in-xl-abercrombief itch-ceo-mike-jeffries-accused-of-only-wanting-thin-and-beautiful-people-8608022.html Webb, B. (2009). Managing the Fashion Brand Case Study Assignment.