Contemporary Strategy Analysis of American Apparel Company - Essay Example

Though their success was highly recognized, it has got some pullbacks to it. The company has some loose ends that greatly mending and that are limiting the company's reputation.

The founder Dov Charney is by far ignoring his role as a leadership idol for his company. He was allegedly accused of sexually harassing his female employees. These cases were settled even before being taken to trial. His dressing in the factory (underpants and a thong) clearly defines the dress codes of any office. His reputation was relished as a pervert and a libertine. Thus, it is clear that the company has some problems. The company's structure is an integrated corporation whereby the company has integrated with other companies in terms of manufacturing, distribution, and retail of their products.

It has integrated with companies such as Jie He Sona Martirosian Christina L Oregano Oguzhan Iskenderoglu Channon Chiu NYU MS. These integrations help with the international growth of the products and hence greater profits. The company also uses integration in the marketing of its products. The company integrates with companies in different countries, and they open up stores in those countries for the sale of their products. The integration strategy is often regarded as non-profitable though the cost-sharing is indisputable, and so are the profits.

Though the integration strategy is run by the main command in Los Angeles, It is quite hard to monitor the activities and keep the trends of the company. Mr. Carney should have a new company and marketing strategy, like the centralized strategy. The company individually develops itself internationally without integrating with any other company. Marketing, advertising, and marketing should be run under one central power (Los Angeles Company). That will be more profitable apart from the lack of cost sharing, and also, full benefits on profits.

The company shall also be able to assess its failures and success without blaming them on external parties. It should also adopt Continuing infrastructure investments that will be essential for growth support. That will inconclusive of expenditures for new buildings and stores, machinery, tools, and equipment, upgrade manufacturing forms, and additions to the Company control and management team. To reduce expenses on earnings, Mr. Carney should get cheaper alternatives in sources of power such as solar energy.

Since the case was written the company kept the overly sexual ad campaign and continued loss of money as it greatly prevents more customers. Mr. Carney still gets sued for sexual harassment. The company has also appointed the first female board member, colleen brown, who oversees human rights, especially female rights. They also appointed three board members and four resigned; there are hopes that the apparel's reputation might change for the good. American Apparel did not apologize for the controversial ads but decided to introduce a new ad in the Los Angeles area.