Choose One Public Corporation American Eagle Is The Company
Choose Onepublic Corporation American Eagle Is The Company That I
Choose one public corporation, American Eagle, in an industry with which you are familiar. Research the company using its website, the SEC EDGAR database, the university's online databases, Nexis Uni, and other credible sources. Analyze how globalization and technological changes have impacted American Eagle. Apply the industrial organization model and the resource-based view to determine how the company could achieve above-average returns. Evaluate how the company's vision and mission statements influence its success. Assess how various stakeholder categories impact overall performance. The paper should be four to six pages long, formatted with double spacing, Times New Roman font size 12, and one-inch margins. Include a cover page with the assignment title, your name, professor's name, course title, and date. Cite at least three credible references, following your institution’s preferred citation style. Use the assignment template provided, and ensure full adherence to all formatting and content instructions.
Paper For Above instruction
Choose Onepublic Corporation American Eagle Is The Company That I
American Eagle Outfitters (AEO) is a prominent public corporation operating within the apparel and accessories retail industry, primarily targeting teenage and young adult consumers. As a globalized company, American Eagle has significantly been affected by the evolving landscape of globalization and technological innovations, which have both challenged and created opportunities for growth and strategic development. This paper explores these impacts, employs strategic models such as the industrial organization (I/O) and resource-based view (RBV), and examines how the company's mission and vision statements, along with stakeholder influences, drive its overall success.
Impact of Globalization and Technology on American Eagle
Globalization has profoundly influenced American Eagle’s supply chain, product sourcing, and market expansion strategies. The company's supply chain capitalizes on low-cost manufacturing countries, mainly in Asia, to maintain competitive pricing. This global sourcing strategy has enabled the company to reduce costs and diversify its product offerings across international markets (American Eagle Outfitters, 2022). Furthermore, globalization facilitates access to new markets, enabling American Eagle to reach cosmopolitan audiences and expand its retail footprint beyond North America into countries like Canada, the United Kingdom, and China.
Simultaneously, technological advancements have transformed American Eagle's operational and customer engagement frameworks. The rise of e-commerce platforms, social media marketing, and mobile shopping applications have revolutionized how the company interacts with consumers (Statista, 2023). Digital supply chain management and data analytics enable more efficient inventory control and personalized marketing strategies. The COVID-19 pandemic accelerated the shift toward online shopping, forcing American Eagle to bolster its digital footprint rapidly and adapt its logistics and distribution channels, illustrating how technological change has both disrupted and opened new avenues for revenue growth (Forbes, 2022).
Applying Strategic Models: I/O and RBV
The industrial organization (I/O) model emphasizes that a company's profitability is primarily determined by external industry structure. American Eagle operates in a competitive retail environment characterized by product differentiation, brand loyalty, and online retail growth. The company's ability to leverage economies of scale, strong branding, and supplier negotiations affords it above-average returns within this industry (Porter, 1980). The company's focus on customer segmentation and store locations also serve as barriers to entry for potential competitors, maintaining its competitive edge.
Conversely, the resource-based view (RBV) suggests that unique internal resources and capabilities underpin sustained competitive advantage. American Eagle’s brand reputation, supply chain efficiencies, and innovative marketing strategies constitute its core resources. Its ability to effectively utilize social media influencers and personalized online experiences enhances customer loyalty, representing valuable, rare, and difficult-to-imitate resources (Barney, 1991). To sustain above-average profitability, American Eagle must continually develop and protect these core capabilities while adapting to technological changes that threaten or enhance their strategic assets.
Influence of Mission and Vision Statements
American Eagle's mission statement emphasizes providing high-quality, affordable fashion tailored to young consumers, which aligns with its strategic initiatives. Its vision focuses on becoming a leading global lifestyle brand through innovative retail experiences and sustainable practices (American Eagle Outfitters, 2022). These statements influence strategic decision-making, guiding product development, marketing, and corporate social responsibility efforts, thereby fostering brand loyalty and attracting a committed customer base.
The clear articulation of purpose and long-term goals aids in aligning employee behavior and stakeholder perceptions, enhancing overall corporate coherence. For instance, the emphasis on sustainability resonates with environmentally conscious consumers, positioning the company favorably in the global marketplace.
Stakeholders and Their Impact on Success
American Eagle’s stakeholders encompass customers, employees, suppliers, investors, and communities. Customers directly impact revenue and brand perception, especially as digital-savvy young consumers demand ethical and sustainable products. Employee engagement programs foster innovation and operational efficiency, critical for competitive advantage (Hitt et al., 2017). Suppliers influence product quality and delivery timelines; strategic partnerships with domestic and international suppliers can improve flexibility and resilience.
Investors’ confidence depends on the firm's financial health and strategic direction. The company's commitment to social responsibility and sustainability initiatives influences investor relations and long-term profitability. Community engagement and corporate social responsibility foster goodwill and brand affinity, supporting American Eagle’s global expansion and resilience amid market fluctuations (Crane et al., 2019).
Conclusion
American Eagle Outfitters’ success is intricately linked to globalization and technological innovation. The company's strategic position, reinforced by industry analysis and core internal capabilities, enables it to achieve sustainable above-average returns. Its mission and vision serve as guiding principles that shape strategic choices and stakeholder engagement, which collectively drive competitiveness and growth. As the retail landscape continues to evolve, American Eagle must persistently innovate, align its resources, and deepen its stakeholder relationships to maintain its market position and achieve long-term success.
References
- American Eagle Outfitters. (2022). Annual Report 2022. Retrieved from https://investors.ae.com
- Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
- Crane, A., Matten, D., & Spence, L. J. (2019). Corporate Social Responsibility: Readings and Cases in a Global Context. Routledge.
- Forbes. (2022). How Technology Reshaped Retail During the Pandemic. Retrieved from https://www.forbes.com
- Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Concepts and Cases. Cengage Learning.
- Porter, M. E. (1980). Competitive Strategy. Free Press.
- Statista. (2023). E-commerce retail sales worldwide. Retrieved from https://www.statista.com