Leading Apparel Companies: Aeropostale

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Aéropostales main business strategy is a combination of product differentiation and cost leadership. The brand is well known here in the United States. They have stores in malls across America. However with this approach of having their own stores they look like they are going after making the brand well known so they can charge more. This is not the case. They charge cheaper prices than most if not all the retail stores in the mall.
In 2012 Aéropostale had 1092 stores under their control. (Aeropostale, 2014) This gives them a sizeable market in the United States to sell. The mission statement of the company is for them to be the destination of the young adult market. For people to want to go there it means they are looking for a product differentiation strategy. They want people to know there brand very well. They are trying to become a popular brand that is worn by a lot of people. This means they need to stick out.
Although they are trying to do a product differentiation strategy they are also trying to be a cost leader at the same time. There prices tend to be cheaper than many other competitors such as Abercrombie, American Eagle, and Hollister. Compared to these brands they do not stick out as much. They are able to get brand awareness at a cost. Their prices bring customers in who are budget minded. Their style is also very similar to all of the other brands. This does not allow them to achieve the desired product differentiation strategy well and why they have implemented a lower cost to their products also.
Very recently they have changed their goals though. They are keeping 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...

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... April 11). Bloomberg Businessweek. Retrieved from Bloomberg.com: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=BKE
Durisin, M. (2013, March 13). Business Insider. Retrieved April 10, 2014, from Business Insider: http://www.businessinsider.com/aeropostale-launching-new-tech-for-teens-2013-3
Fitch, A. &. (2014, April 11). Bloomberg Businessweek. Retrieved from Bloomberg.com: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=ANF
Lomax, A. (2013, March 14). The Motley Fool. Retrieved April 11, 2014, from http://www.fool.com/investing/general/2013/03/14/is-aeropostale-one-of-the-best-companies-in-americ.aspx
Team, T. (2014, January 23). 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/

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