American Eagle Outfitters SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of American Eagle Outfitters analyses the brand by its strengths, weaknesses, opportunities & threats. In American Eagle Outfitters SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like American Eagle Outfitters to benchmark its business & performance as compared to the competitors. American Eagle Outfitters is one of the leading brands in the lifestyle and retail sector.

The article below lists the American Eagle Outfitters SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the American Eagle Outfitters SWOT Analysis:

SWOT Analysis of American Eagle Outfitters

For American Eagle Outfitters, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Strength

The strengths of American Eagle Outfitters looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of American Eagle Outfitters :

1. American Eagle Outfitters has continuously grown and has been appreciated since 1977.

2. The brand has also diversified into other sub brands like Aerie and Kids with different segmentation to reach more customers.

3.The company has close to 1000 stores spread worldwide

4. American Eagle Outfitters has strong sales and revenue, especially in the United States

5. The company has more than 35000+ employees

6. Other American Eagle brands include aerie, Martin + Osa and 77kids

Weakness

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the American Eagle Outfitters SWOT Analysis:

1. Limited market share & advertising as compared to some other global brands

2. American Eagle Outfitters has limited global presence as compared to bigger popular clothing brands


Opportunity

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in American Eagle Outfitters SWOT Analysis:

1. Global expansion of American Eagle brand through opening more stores

2. The brand can increase its business by tapping the online market and using ecommerce

3. Tie-ups with fashion institutes can help the brand grow

4. Making contemporary fashion clothing to capture the youth with trendy designs

American Eagle Outfitters Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of American Eagle Outfitters are as mentioned:

1. Similar designs available in other brands hence switching cost is less

2. Local market poses a risk

3. International operations of American Eagle can be affected by recession, economic slowdown etc


American Eagle Outfitters Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 7 competitors of American Eagle Outfitters:

1.Levi Strauss & Co (Levi's)

2.Gap

3.Lee

4.Tommy Hilfiger

5.Wrangler

6.Spykar

7.Abercrombie and Fitch

Hence this concludes the American Eagle Outfitters SWOT analysis.

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About American Eagle Outfitters

American Eagle Outfitters Overview
Parent CompanyAmerican Eagle Outfitters
Category

Apparel and accessories

Sector

Lifestyle and Retail

Tagline/ slogan

Brighten up; Live your life

Usp

American Eagle Outfitters brand is known for low-rise jeans, polo shirts, graphic T-shirts and henley shirts

American Eagle Outfitters STP
Segmentation

People seeking trendy and fashionable apparel

Target group

Young boys and girls looking for stylish and comfortable clothing

Positioning

American Eagle Outfitters offers casual clothing for men and women


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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