Swot for aeo

The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term.

Swot for aeo

It provided an evaluation window but not an implementation plan based on strategic competitiveness of American Eagle Outfitters, Inc. Intense competition — Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales. Automation of activities brought consistency of quality to American Eagle Outfitters products and has enabled the company to scale up and scale down based on the demand conditions in the market. It provided an evaluation window but not an implementation plan based on strategic competitiveness of American Eagle Outfitters SWOT is a static assessment - analysis of status quo with few prospective changes. Threats American Eagle Outfitters, Inc. New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as American Eagle Outfitters to increase its profitability. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. New environment regulations under Paris agreement could be a threat to certain existing product categories. This is one of the major limitations of SWOT analysis. The matrix is only a starting point for a discussion on how proposed strategies could be implemented. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. This should open a window of opportunity for American Eagle Outfitters in other product categories.

SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. This investment has opened new sales channel for American Eagle Outfitters. Good Returns on Capital Expenditure — American Eagle Outfitters is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.

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Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.

This should open a window of opportunity for American Eagle Outfitters in other product categories. Weakness of American Eagle Outfitters, Inc.

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It has come across as a mature firm looking forward to bring out products based on tested features in the market. High level of customer satisfaction — the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.

Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time. American Eagle Outfitters, Inc.

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Automation of activities brought consistency of quality to American Eagle Outfitters products and has enabled the company to scale up and scale down based on the demand conditions in the market. Reliable suppliers — It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Not highly successful at integrating firms with different work culture. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. The new technology provides an opportunity to American Eagle Outfitters, Inc. For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors. Certain capabilities or factors of an organization can be both a strength and weakness at the same time. Superb Performance in New Markets — American Eagle Outfitters has built expertise at entering new markets and making success of them.
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American Eagle Outfitters, Inc. (NYSE:AEO)