1Figures title9Week 8 Assignment 3Week 8 Assignment 3Th.docx

1
Figures title:
9Week 8 Assignment 3
Week 8 Assignment 3
This paper describes the business-level strategies, corporate-
level strategies, competitive environment, and market cycles of
American Eagle Outfitters intricately. The thorough discussion
goes ahead to identify how these concepts relate to the real
world/corporations. The development of this material has
followed the course material, amongst other academic sources,
to support the data.
Business-Level Strategies
Business level strategies are the various integrations of
actions/activities that a business commits to gain a competitive
advantage over competitors (Hitt, Ireland, Hoskisson, 2020).
American Eagle Outfitters is an experienced company in the
industry that has tried out various business-level strategies. The
identified business-level plans include its cost leadership
strategy, differentiation, and focused differentiation strategy.
American Eagle Outfitters has differentiated from competitors
by developing a unique and identifiable brand logo. AEO
imprints this logo on its products to make them recognizable to
the customer. Competitors find it hard to beat this
differentiation strategy because of their weak brand names.
American Eagle Outfitters has incorporated the focused
differentiation strategy by identifying a niche market. AEO
targets young customers aged 15-25. That allows the company
to provide the best quality and fashionable clothes and products
to this group. This focus differentiation strategy has helped
AEO gain a substantial market share in the industry. However,
this analysis will focus on the cost leadership strategy.
American Eagle Outfitters is best suited to the cost leadership
strategy for its long term agenda. Cost leadership strategy for

American Eagle Outfitters aimed at producing quality and
fashionable clothes, among other products, at the best consumer
price in the market. American Eagle Outfitters manufactures
standardized garments in large quantities for its large market.
Some of the same materials sourced from multiple suppliers.
This process allows American Eagle Outfitters to cut on costs of
dealing with one executive supplier who may demand
privileges. This is some of the inbound logistics that the
company aims to optimize and cut on costs. American Eagle
Outfitters preserves its market position through effective value
chain management (American Eagle Outfitters Reports Record
Fourth Quarter and Fiscal year sales, 2018).
The middle-class market share is what American Eagle
Outfitters targets. This is because the middle class opts for
quality products at the best price possible. Middle-class people
are engulfed by multiple activities and events needing money;
hence, they tend to conserve their money the most. This
consumer segment places high importance on a company's
pricing factor. American Eagle Outfitters targets the middle
class through an effective cost leadership business strategy. The
company's cost leadership strategy is also evident in its focus
on the easy accessibility and affordability of products. This has
enhanced brand awareness and high sales in the market.
American Eagle Outfitters has gained a unique competitive
advantage in most of the market segments around the world.
American Eagle Outfitters offers coupons and sales discounts to
hit sales targets. Most of the competitors may not keep up with
such strategies hence giving AEO the upper hand in the fashion
and clothes industry. American Eagle Outfitters' core
competencies include customer service, quality control, job
knowledge, organization, and pricing strategy. American Eagle
Outfitters has used its pricing strategy and cost reduction
techniques to come up with a satisfying cost leadership strategy
in the retail industry. American Eagle Outfitters' choice of the
cost leadership strategy may become obsolete soon. In their aim
to reduce cost American Eagle Outfitters could fail to identify

key market and environmental trends. Moreover, competitors in
the retail industry are willing to keep up with the low prices.
American Eagle Outfitters needs to integrate more strategies
than cannot be mimicked by competitors.Corporate-Level
Strategies
The corporate-level strategy involves a business taking specific
actions to gain a competitive advantage by identifying and
monitoring other companies that are successful in different
product markets. American Eagle Outfitters has utilized the
corporate-level strategy in new market entry. The company has
a well-established network. Hence, it is quite easy to penetrate
new markets. The cost leadership strategy supports such
diversifications through the use of existing infrastructure for the
new business. Existing infrastructure enhances cost
minimization ability for the company. New markets and
products bring numerous opportunities for the company.
American Eagle Outfitters does not put much effort into
unrelated diversification because growth is only achieved
through product development and market penetration.
American Eagle Outfitters aim to reduce costs. Hence, they are
not much of risk-takers. Risk factors lead the company away
from trying out new markets that are not entirely known. The
presence of risk factors leads the company to focus on related
diversification by avoiding unknown regions. To cater for this,
American Eagle Outfitters utilizes brand awareness to infiltrate
the new market with their product. American Eagle Outfitters'
unrelated diversifications for new markets include products like
glasses, pens, fridges, and shirts. American Eagle Outfitters
aims at effect acquisition strategies, which helps expand the
business portfolio. The company reduces costs as well as
increase revenues (Damron, Melton, Smith, 2016).
American Eagle Outfitters uses a related diversification strategy
by carefully analyzing the situation in the new market segment.
Fist, the company acquires profitable businesses in line with
their plan. Additionally, American Eagle Outfitters analyzes the
market trends, including changing customer expectations in the

new market segment. American Eagle Outfitters has faced
reprimand from environmental conservation groups. In
response, the company diversified by investing in
environmentally healthy green businesses. This has dramatically
enhanced the company's brand name in the retail industry.
Through this diversification, American Eagle Outfitters has
reclaimed losses resulting from the criticism coming from
environmental protection groups.
I think that related diversification as a corporate-level strategy
is sufficient to help American Eagle Outfitters run the show in
the retail industry for a long time. Such wise applications of
related diversification enhance the sustainability of the
business. The long term objectives of American Eagle Outfitters
become achievable amidst turbulence in the retail industry. The
market can avert certain risks by managing product portfolio
very well. Emerging new trends to products can help salvage
obsolete products for the company. Competitive Environment
The retail industry is cupped by multiple competitors, both
tough and small. American Eagle Outfitters faces competition
giants like The Buckle, Gap, H&M, UNIQLO, Forever 21, and
Inditex. The most significant competitor to American Eagle
Outfitters is Gap Inc. Both giants in the industry have grappled
at obtaining better market share and customer preference for
their products. Gap Inc offers fashionable accessories and
clothes to customers at excellent and affordable prices. This is a
clear indication of the cost leadership strategy by Gap Inc.
Moreover, Gap Inc provides innovative casual designs and
casual clothes for its customers. Gap Inc has enhanced its online
presence to optimal performance for both males and females
through the use of psychological factors in consumers and
integrating these psychological instances with technology.
While Gap Inc is innovative with its products, American Eagle
Outfitters tends to be more rigid and focuses on producing
already certified designs. American Eagle Outfitters may
manage to fallout in the long run if they do not change their

deployment and business strategy tactics (United States
Securities and Exchange Commission, 2017).
Gap Inc has various strategies that help it in sustainability. Gap
Inc aims at reducing its environmental footprint. This will
enhance the company’s brand name and goodwill among
customers. American Eagle Outfitters has also engaged in
environmental conservation efforts through its diversification
efforts. Both companies can be noted to care for ecological and
societal interests. Gap Inc has identified with focus
differentiation strategy in its business-level strategy. Gap Inc
has gone the extra mile to focus on each gender for its products.
Gap Inc has identified the disparities in male and female buying
patterns and online shopping experiences. On their e-commerce
site, Gap Inc has prepared male and female user interfaces
differently to ensure everyone gets the best customer service.
American Eagle Outfitters has also used a focus differentiation
strategy by identifying their unique niche market. American
Eagle Outfitters produces fashionable wear for 15-25-year-olds.
Hence, both companies can be noted to undertake their lengths
of focus differentiation strategies. Gap Inc's mode of focus
differentiation appears to be more intricate and sophisticated.
Customers who visit their online platforms will always want to
return. Competition in the retail industry has evolved,
organizations like American Eagle Outfitters should be more
open to innovative measures that will help them attract more
customers.
Gap Inc has a differentiation strategy that offers three different
kinds of clothing brands targeting three demographic groups.
All three brands are distributed differently and have different
price tags. This is a unique differentiation strategy, and no other
competitor in the clothes retail industry has incorporated such
separate entities. Gap Inc also differentiates by offering clothes
for the entire family conveniently in one location. I deem this to
be very satisfying and convenient, especially for mothers with
young children. Gap’s ability to clothe an entire family from a
single store is on another level. This cutthroat competition

schemes have come to the aid and benefit of the customer.
American Eagle Outfitters uses the differentiation strategy of
the brand logo to identify its products in the market uniquely.
With it, the big brand name American Eagle Outfitters has
cemented its hold in the market. However, it is essential not to
lose customers to the competition by not providing customer
satisfaction.
The corporate-level strategy of Gap Inc is diversification. Gap's
three retailers have added other diversifications like Gap body,
Gap baby, Gap maternity, and Gap kids. All these
diversifications have ensured that each segment is fulfilled in
this retail industry. The Gap is looking to diversify into
international markets by conducting extensive customer
research. For example, Gap Inc researchers have identified that
Japanese women prefer tighter-fitting jeans as opposed to
American women. By matching products to geographical
segmentations, Gap Inc is achieving the ultimate corporate
strategy through diversification. Event through diversification
to new markets, Gap Inc, has built brand equity for itself and
customers from all over will continue to buy their products. As
discussed earlier American Eagle Outfitters has its
diversification policy of acquiring the most profitable
organizations in line with their plan as well as search market
segments for the best options. According to this evaluation, it is
evident that Gap Inc will outlive most of the competition in this
retail industry. Gap’s advanced diversification and other
business-level strategies will enable it to satisfy the majority of
customers in the market. Their implementation of multiple retail
shops and various products in one shop provides the best
customer experience and satisfaction.
Market Cycles
Fast-cycle markets are when a company’s competitive
advantages are exposed to imitation, preventing the business's
future sustainability. On the other hand, slow-cycle markets are
characterized by the protection of the company's competitive
advantages from copying. Imitation in slow-cycle markets is

very costly; there is long-term sustainability (Hitt, Ireland,
Hoskisson, 2020). In the case scenario of Gap Inc, the company
fits into a slow-cycle market. Gap Inc has efficiently
differentiated from other competitors in its strategy. Trying to
imitate Gap's plan would be extremely costly for other
companies.
Moreover, there is a high probability that imitating Gap's
approach would lead to its failure. Because Gap's trajectory is
unique, and they have finessed their strategy. Hence, the
diversification strategy for Gap Inc is a slow-cycle
market.Sources
1. Hitt, Ireland, & Hoskisson. 2020. Strategic management:
Concepts and Cases: Competitiveness and globalization (13th
ed.). Mason, OH: South-Western Cengage Learning
2. The United States Securities and Exchange Commission,
(2017). American Eagle Outfitters,
Inchttps://www.sec.gov/Archives/edgar/data/919012/000156459
017003969/aeo-10k_20170128.htm
3. American Eagle Outfitters Reports Record Fourth Quarter
and Fiscal year sales, (2018). AEO Investor Relations
http://investors.ae.com/news-releases/news-releases-
details/2018/American-Eagle-Outfitters-Reports-Record-Fourth-
Quarter-and-Fiscal-Year-Sales/default.aspx
Washington, 2020. American Eagle Outfitters Inc For the Fiscal
year ended January 28,
2017,https://www.sec.gov/Archives/edgar/data/919012/0001564
59017003969/aeo-10k_20170128.htm
5. Damron, T., Melton, A., & Smith, A. D. (2016).
Collaborative and ethical considerations in the vendor selection
process. International Journal of Process Management and
Benchmarking, 6(3), 404-418.

1
Figures title: 9Week 6 Assignment 2
Week 6 Assignment 2
American Eagle Outfitters is the international company
dissected in this paper. The student intrinsically identifies the
various general environments affecting the company, forces of
competition, future improvements for the company, external
threats, opportunities, strengths and weaknesses, strategies, and
resources, capabilities, and core competencies relating to
American Eagle Outfitters.General Environment
American Eagle Outfitters being a multinational company, is
right in the middle of influential environmental factors.
However, the two most dominant segments of the global
environment have played a significant role in the direction,
success, and trajectory of American Eagle Outfitters. The
political and economic factors have had the most recognizable
influence on American Eagle Outfitters. The specifics of each
segment are discussed below.
Political Factors
The political factors affecting American Eagle Outfitters are
quite adverse. It is important to note that political factors
affecting AEO do not only apply to the host country. Political
factors affecting business partners to American Eagle Outfitters
may also have a lasting effect on AEO. The political elements
of the global environment should be carefully considered by
American Eagle Outfitters should be dissected and looked at
intricately before making any investment or market entry.
American Eagle Outfitters has faced trade barriers in countries
like China. China imposes tariffs on the imports getting into
their country. However, American Eagle Outfitters is looking
for a way to bypass China's tariffs by partnering with other

vendors and diversifying its geographic production. American
Eagle Outfitters is subject to taxes from multiple jurisdictions
e.g., the United States (American Eagle Outfitters Reports
Record Fourth Quarter and Fiscal year sales). The result of U.S.
tax legislation i.e., Tax Cuts and Jobs Act, has included benefits
resulting from other deductions from the fiscal year 2017
(American Eagle Outfitters Reports Record Fourth Quarter and
Fiscal year sales). American Eagle Outfitters has their products
being manufactured in foreign countries. Hence, American
Eagle faces all kinds of regulations from multiple countries,
states, local, and federal governments. These regulations are in
line with the marketing, product labeling, regulatory testing,
customer product and safety requirements, and licensing
requirements. American Eagle Outfitters also faces regulations
from political groups relating to their employees both locally
and globally e.g., the 2002 Sarbanes-Oxley Act, New York
Stock Exchange, and the Securities and Exchange Commission
(The United States Securities and Exchange Commission,
Washington, 2020). Other political factors affecting American
Eagle Outfitters include mandatory employee benefits, wage
legislation, intellectual property protection, corruption levels,
political stability of certain regions, and favored trading
partners. Political forces acting on American Eagle Outfitters
have adverse effects on their success and profitability.
Economic Factors
Economic factors influencing American Eagle Outfitters offer
no assurance on the trajectory of the company. There can be no
assurances that consumer spending trends will always remain
constant. American Eagle Outfitters is under the plight of
influence from local, general, or international economic factors.
American Eagle Outfitters is very likely to incur losses or
experience huge profits depending on economic factors that
impact demand, business climate, and aggregate investment.
The rate of GDP growth in a country affects how AEO grows
shortly. The interest rates in a country will determine how the
citizens are likely to invest or borrow. High-interest rates will

mean better growth of American Eagle Outfitters resulting from
more investments. An unstable currency will discourage
investors from investing in American Eagle Outfitters if they
are affiliated with such money. Moreover, the efficient
operation of financial markets will influence how American
Eagle Outfitters can raise capital and at a fair price (The United
States Securities and Exchange Commission, Washington,
2020).Five Forces of Competition
All five forces of competition have some effect on American
Eagle Outfitters. However, this section will discuss the threat of
new entrants and the bargaining power of buyers. These two
forces offer a base to understand how these forces can have a
significant impact on American Eagle Outfitters.
The threat of New Entrants
American Eagle Outfitters, as an apparel store, is based in
an industry cupped with new entrants into the market. These
new entrants have brought innovation and better ways of
offering quality clothes to customers. Hence, American Eagle
Outfitters is under a lot of pressure to tackle such new entrants
into the apparel market. American Eagle Outfitters has lowered
its pricing strategy, provide better-valued propositions to
customers, and reduce operational costs to keep up with the new
competition. Also, American Eagle Outfitters has brought up
barriers that are effective in safeguarding its competitive edge
(Damron, Melton, Smith, 2016).
Bargaining Power of Buyers.
Customers of clothing products are demanding a lot to buy
clothes of good quality at low prices. This has put a lot of
pressure on American Eagle Outfitters, who have to include
discounts, offers, and satisfy their customer base. The
bargaining power of buyers is a denting factor on the
profitability of American Eagle Outfitters (Damron, Melton,
Smith, 2016). To tackle this, American Eagle Outfitters has
created a large customer base all over the world. This reduces
the bargaining power of customers compared to a small
customer base who can manipulate the prices of American Eagle

Outfitters with ease.
Moreover, American Eagle Outfitters is rapidly inventing and
innovating better products. Established products allow
customers to seek discounts and offers (Damron, Melton, Smith,
2016). Additionally, new products prevent the defection of
customers to the competitors of American Eagle
Outfitters.Future Improvements
It is essential to note that the Apparel industry is continuously
on the rise. Hence, the recommendations that can be made to
American Eagle Outfitters have to be innovative and ahead of
their competitors. The threat of new entrants should be handled
through the domination of suppliers and distribution channels.
This is more of instilling barriers to market entry. Since
American Eagle Outfitters is a company with strong market
roots, they should seek to dominate the supply chain and
prevent the new entrants in the market from obtaining the best
of products available. Also, buyers' bargaining power can be
tackled through the constant development of new products with
fixed prices. Buyers will not have the ability to bargain about
new products they have little or no knowledge about. Greatest
External Threat
A severe threat to American Eagle Outfitters is new
technologies that are developed by market distributors and
competitors. Competitors with better production, marketing, and
promotion technology pose the danger of capturing American
Eagles Outfitters' customer base. Customer base is the lifeline
to American Eagle Outfitters’ success. Hence, the competitor
with better technology tends to produce better quality products.
Customers who are satisfied with American Eagle Outfitters
products tend to be loyal to the competition leading to lower
revenue for American Eagle Outfitters (Damron, Melton, Smith,
2016). This threat can be tackled by American Eagle Outfitters
implementing technology in their organization. For example, a
digitized distribution network would efficiently capture a large
customer base leading to increased revenue for American Eagle
Outfitters. Another threat to American Eagle Outfitters is

environmental regulations. For example, the Paris agreement in
2016 is a threat to American Eagle Outfitters in that particular
market segment. However, this threat does not have a
significant impact on the company's overall trajectory (Hitt,
Ireland, Hoskisson, 2020).Greatest Opportunity
A significant opportunity for American Eagle Outfitters is the
government free trade agreement. As opposed to other
opportunities like a better taxation policy, stable cash flow for
the company, or an increase in customer spending, the chance of
free trade agreement opens up better doors for the company.
Free trade allows the company to source resources at lower
prices i.e., low importation costs, venturing into better market
segments, etc. American Eagle Outfitters could use the free
trade agreement to massive source amounts of resources and
raw materials at lower importation costs or venture into new
markets for an increased customer base. This opportunity is
excellent for the company because it will reduce the losses from
low-cost imports as well as increase the revenue for American
Eagle Outfitters through the increased customer base. Strengths
and Weaknesses
The automation of activities at American Eagle Outfitters has
brought a lot of consistency to the company. By improving the
product according to customer specifications, American Eagle
Outfitters can generate consistent products that keep customers
happy. However, American Eagle Outfitters has the weakness of
inadequate investment in research. This makes the company lag
behind the competition, which is spearheading innovation.
Automation of the companies activities has allowed the
company to scale up or scale down production according to
demand. Automation prevents unnecessary loss of products. On
the other hand, lack of investment in research precludes the
company from capturing a niche customer base that looks for
the best and new products in the market (Hitt, Ireland,
Hoskisson, 2020).
Strategy or Tactic
Automated activities and production processes at American

Eagle Outfitters can be improved through the integration of
operations, specialization of services, or simultaneous services.
Simultaneous operations will reduce the overall total processing
time for American Eagle Outfitters. Combining activities helps
link workstations together hence reducing the number of
machines needed to complete a task. While specialization of
operations helps improve the efficiency of the production
process at American Eagle Outfitters. Such changes to the
automation process at American Eagle Outfitters help reduce
operational costs for the company.
On the other hand, American Eagle Outfitters must address the
lack of innovation for the company. American Eagle Outfitters
being a mature company in the market, prefers to invest in
products based on already tested features in the market.
American Eagle Outfitters should look to research marketing,
business plan, and the company’s strategy. This will help
American Eagle Outfitters acquire new product lines and lead to
increased productivity (Damron, Melton, Smith,
2016).Resources, Capabilities, and Core Competencies
American Eagle Outfitters has a strong supplier base. With a
reliable supplier base, the company can overcome the supply
chain complications common in the particular market segment.
Being an experienced company, American Eagle Outfitters has
acquired secure distribution channels that have helped the
company remain ahead of the competition. American Eagle
Outfitters is capable of efficient new market entry. Over the
years, the company has built its expertise in the tactic. This has
enabled d the company to diversify its economic cycle and
strengthen its revenue stream. High customer satisfaction by
American Eagle Outfitters has enabled the company to improve
its grip on the competition. Customer satisfaction is a
competency that has allowed the company to grasp potential
customers to become loyal to American Eagle Outfitters
(Damron, Melton, Smith, 2016).
Sources

https://shabbiroffice.files.wordpress.com/2017/01/strategic-
managment-concept-and-case-by-hitt.pdf
2. American Eagle Outfitters Reports Record Fourth Quarter
and Fiscal year sales (2018). AEO Investor Relations
http://investors.ae.com/news-releases/news-releases-
details/2018/American-Eagle-Outfitters-Reports-Record-Fourth-
Quarter-and-Fiscal-Year-Sales/default.aspx
year ended January 28,
2017,https://www.sec.gov/Archives/edgar/data/919012/0001564
59017003969/aeo-10k_20170128.htm
4. Damron, T., Melton, A., & Smith, A. D. (2016).
Collaborative and ethical considerations in the vendor selection
process. International Journal of Process Management and
Benchmarking, 6(3), 404-418.
1
5Week 3 Assignment 1
Week 3 Assignment 1
The corporation chosen for assessment in this paper is American
Eagle Outfitters Inc. (AEO) the company deals in teen fashion
clothes in the American market. AEO is a multinational
company with trading roots in many regions. This trait makes
AEO the perfect company choice for dissection in this
assignment. This paper indulges in the globalization aspect of
AEO, how technology has impacted the company's growth, the
real importance of AEO's mission and vision statements, and the
models leading to the organization's success. Globalization
American Eagle Outfitters was founded almost 43 years ago in
1977. The company began as an accessory store for women and
men footwear with other retail chains in over 36 states in the

1980s. AOE’s growth was fueled by consistent and fruitful
integration into new markets all over the USA. A globalization
strategy implemented by the shareholders at the time involved
focusing the company’s sales on clothes outfits instead of
footwear. This focus has dramatically influenced the
organization's capability to produce quality and customer
targeted outfit products. This tactic aided in the company's
advancement to 803 company-owned stores as of February 2020
(American Eagle Outfitters Inc FORM 10-K, 2020). Another
effective strategy that helped AEO's journey to global market
indulgence is when the company joined the stock exchange in
1994. American Eagle Outfitters is a major player in the
American and global market. A giant among competitors, AEO
ranges in the likes of Nike in the market. The company has
impacted the competition by acquiring a niche market of
teenagers and occasionally 25-40-year-olds who also fantasy
wearing the company’s products. Globalization into other
countries and markets have changed American Eagle Outfitters
in the following ways. It has finessed the company’s market
entry techniques through the use of past market entry
experience.
Additionally, globalization has increased the company’s
revenue to over 2 billion in the 2020 fiscal year. Last but not
least, globalization has impacted AEO by providing extensive
access to resources, technology, capital, new market, and human
capital. The companies identify that globalization has enhanced
its acquisition of raw materials for its finished products.
American Eagle Outfitters acquires its raw materials from
multiple merchants all over the world. The company applies a
tactic of not buying more than 10% of raw material from a
single manufacturer. Hence, the company not tied to exclusive
rights for a manufacturer. Technology
American Eagle Outfitters is a versatile organization moving as
fast as the technological world is moving. The company has
advanced over into e-commerce and dominated the scene. With

digital platforms in over 81 countries, the company offers its
products to customers via a digital channel like
www.toddsnyder.com. This site is one of the digital channels
used by AEO to target markets in each market segment.
Moreover, this is a technology that has advanced and enhanced
the indoor experience of customers by replicating physical
stores on online channels. The company has perfected the art of
digital commerce by studying customer buying patterns and
working to fulfill customer needs. The company also recently
advanced into Oracle cloud computing technology to enhance
the companies employee transfer process. Efficient cloud
computing services from Oracle have improved the companies
online presence by reducing downtime and system maintenance
problems. Customers can now engage in AEO’s digital channels
with seamless ease when purchasing products. The use of
cookies on the companies official website has opened up
avenues for the company to improve the customer's buying
experience. Through the use of these cookies, the company can
offer streamlined and relevant information to its customers
based on their location and buying patterns.Industrial
Organization Model
The external environment of American Eagle Outfitters is filled
with hazardous and potential risk factors. For the organization
to reel in above-average earnings, various aspects need to be
implemented in the companies industry organization model.
American Eagle Outfitters has been taken to court on multiple
occasions on the grounds of design mimicking. On all these
occasions, American Eagle Outfitters won the case by proving
that it is impossible to patent design in their line of work. In
this light, American Eagle Outfitters has improved its brand
recognition by imprinting the company’s label on the clothes
products it sells. By doing this, it was an efficient strategy that
acts as a way to perfect monopolistic competition in the
sensitive industry. Another plan for the industry organization
model is aiming to acquire a market monopoly in other

countries. Buying market monopoly in the United States for
American Eagle Outfitters may be next to impossible, with other
brands like Nike having more significant influence in this
market. By advancing into new markets like Canada, and Dubai,
American Eagle Outfitters can acquire market monopoly status.
That would be a good tactic that will allow the company to gain
above-average revenue. Resource-Based Model
AEO is a company that has been in the retail clothing market
for 43 years. The reputation of the company is one that is
ingrained in most American minds. In this sense, the company
continues to produce quality products for its customers and has
continued to ferment the companies reputation in the eyes of
customers and potential customers. The continued production of
quality products has ensured increased revenue for the company
leading to above-average returns once new customers become
loyal to the organization. Additionally, the company has a
customer loyalty program that provides rewards, convenience,
and excellent customer experience for customers who visit the
digital channel of the organization. The efficiency of the
resource-based model begins when AEO orders products from
merchants from over 300 merchants worldwide. This model is a
trick that ensures the company acquires the best of materials
available from all over the world.
Similarly, the company has quality testing facilities for
procured resources and raw materials. The inspection program
monitors for compliance with AEO’s code of conduct for
suppliers. This program has ensured continued quality
production of the companies products and hence above-average
earnings.Vision
The vision statement for American Eagle Outfitters indicates
that AEO is a company that is built on trust, integrity, and
honesty. The company honors individuality and celebrates self-
expression. The company’s stakeholders are determined,
creative, hardworking, and aim at encouraging everyone to be

their best self (Borden, 2010). The company banks on integrity
by ensuring it provides quality products for its customers at all
times. That is evident in the company's inspection programs of
raw materials sourced from suppliers.
Additionally, AEO is continually creative and hardworking by
working continuously to provide customers with the best online
shopping experiences in the market. The company has also
invested in specializing with women wear by introducing
another child company of American Eagle Outfitters known as
Aerie. AEO has also encouraged its customers to be self-
expressive by providing platforms for the customers to raise
their issues online. This platform is in line with the company's
vision of delivering self-expression capacities to its
stakeholders, including customers.Mission
The mission statement for American Eagle Outfitters states that
the company is committed to treating the people making the
clothes in the company with respect and dignity (Mission
Statement Academy, 2019). This mission statement goes a long
way in chipping in for the company’s overall success. The
company has an employee review platform where employees
indicate their rating for the company. Employees can raise their
concerns anonymously, which are later evaluated and acted
upon. Employee satisfaction is a vital issue that means how
customers will be treated in the organization. The impact of the
mission statement is that it keeps American Eagle Outfitters
management on their toes in adhering and meeting to the
requirement of treating employees with dignity and respect.
Stakeholders
The capital market stakeholders of American Eagle Outfitters
include Cooke and Bieler, The Vanguard Group, Dimensional
Fund Advisors, and BlackRock Fund Advisors are some of the
largest shareholders of the company. These shareholders are
responsible for funding the companies projects and investing in
prospects in the company. Their impact on the companies

success is a phenomenon. Shareholders can steer AEO’s
trajectory towards success by implementing mitigation
techniques and funding in areas performing poorly in the
organization. There are the product market stakeholders, which
include suppliers, unions, primary customers, and host
communities. This category dramatically impacts the success of
the company, suppliers provide quality resources to the
company, primary customers purchase products from the
company and generate revenue, unions guide the company by
giving policies on how the company will operate in the market,
and host communities accept the company into their market.
Finally, organizational stakeholders of American Eagle
Outfitters e.g., managers, nonmanagers, and employees, are
responsible for the daily operations in the company. Managers
delegate duties to employees, and the nonmanagers monitor the
companies operation and income generation in the market. (Hitt,
Ireland, & Hoskisson. 2020).
Sources
https://shabbiroffice.files.wordpress.com/2017/01/strategic-
managment-concept-and-case-by-hitt.pdf
year ended February 1, 2020,
https://www.sec.gov/ix?doc=/Archives/edgar/data/919012/0001
56459020010469/aeo-10k_20200201.htm
3. Borden, R. (2010). American Eagle Outfitters creates a
branded intranet that unites its associates. Global Business and
Organizational Excellence, 29(2), 40-46.
https://onlinelibrary.wiley.com/doi/abs/10.1002/joe.20307
4. Mission Statement Academy, (2019). American Eagle
Outfitters Mission Statement https://mission-
statement.com/american-eagle-outfitters-company/

How to Use This Template
Each slide needed in your submission is provided in this
template.
Do not add slides
Do not delete slides (except the “How to Use This Template”
slide)
Replace the “blue” font on each slide with your presentation
content
Change all font to black
Use bullet points on the slides
Do not type every word you plan to say on the slide
Enter the text/transcript of your talk in the speaker notes section
The speaker notes section is the gray area below each slide
Do not enter your speaker notes in comment boxes
Do not include audio or video clips
Delete this slide before submitting your assignment
Delete this slide before submitting your assignment
Notes: This is the speaker notes section of the PowerPoint
presentation.
Do Not type every word you plan to say on the slide.
Everything you would say if you were giving a live presentation

should be provided in text form in the speaker notes section of
each slide.
1
BUS499 Capstone
Assignment 4
Insert Student’s Name Here
Insert what you would said to introduce yourself to your
executive audience and tell them what you are going to cover in
your presentation
Do Not type every word you plan to say on the slide. Use bullet
points only.
Everything you would say if you were giving a live presentation
should be provided in text form in the speaker notes section of
each slide.
2
SWOT Analysis of Company NameStrengths
Insert a bullet or two describing strengths of the
firmWeaknesses
Insert a bullet or two describing weaknesses of the
firmOpportunities
Insert a bullet or two describing opportunities available to the
firmThreats

Insert a bullet or two describing threats to the firm
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a strategy for the company to
capitalize on its strengths and opportunities.
3
SWOT Analysis Strategy
Strengths and Opportunities
Insert a bullet describing the strategy to capitalize on strengths
and opportunities
Insert another bullet describing the strategy to capitalize on
strengths and opportunities
capitalize on its strengths and opportunities.

4
SWOT Analysis Strategy
Weaknesses and Threats
Insert a bullet describing the strategy to minimize weaknesses
and threats
Insert another bullet describing the strategy to minimize
weaknesses and threats
minimize its weaknesses and threats.
5
Competitiveness Strategy
Competitiveness
1st bullet point of levels and types of strategies to maximize
competitiveness
2nd bullet point of levels and types of strategies to maximize
competitiveness

You should thoroughly discuss the various levels and types of
strategies the firm may use to maximize its competitiveness.
6
Profitability Strategy
Profitability
1st bullet point of levels and types of strategies to maximize
profitability
2nd bullet point of levels and types of strategies to maximize
profitability
You should thoroughly discuss the various levels and types of
strategies the firm may use to maximize its profitability.
7
Communications Plan
Competitiveness Strategies
1st bullet point on the plan to communicate the competitiveness
strategies to stakeholders
2nd bullet point on the plan to communicate the competitiveness

You should thoroughly outline a communications plan the
company could use to make the strategies you recommended on
the previous slide known to all stakeholders.
8
Communications Plan
Profitability Strategies
1st bullet point on the plan to communicate the profitability
2nd bullet point on the plan to communicate the profitability
You should thoroughly outline a communications plan the
company could use to make the strategies you recommended
known to all stakeholders.
9

Corporate Social Responsibility
Responsible (ethical) corporate citizen
1st bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
2nd bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
Impact of efforts on company’s bottom line
1st bullet point on the impact the efforts have on the company’s
bottom line – specific example
2nd bullet point on the impact the efforts have on the
company’s bottom line – specific example
You should thoroughly assess efforts by this corporation to be a
responsible (ethical) corporate citizen and thoroughly determine
the impact these efforts (or lack thereof) have on the company's
bottom line. Provide specific examples to support your
response.
10
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage

Learning.
Insert second source
Insert third source
Insert any additional sources
You should use at least three (3) quality references, one of
which should be the course textbook. Wikipedia and similar
websites do not quality as academic resources.
11

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