Discuss how American Apparels' vertical integration may allow it to save on transportation costs. How could this efficiency impact its bottom line?
Discuss consumer buying behavior when purchasing apparel. Would you recommend an intensive, selective or exclusive distribution strategy for American?
Assume that American Apparels only operation was to sew fabric together. How could it integrate backward? Forward?
How American Apparels vertical integration may allow it to save on transportation costs. How could this efficiency impact its bottom line?
American Apparel can use vertical integration to reduce distribution costs by partnering with retail companies who have companies who specialize in the transportation of goods. The retailer and the wholesale distributor of American Apparel can then share the costs with the retail company. Business Dictionary.com (2011) states that vertical integration can be defined as "The Union between two companies who come together in order to create a value chain that allows all parties to enjoy the benefits of business while sharing the costs and risks" (para. 1). The cheapest way for the mutually binding two countries would be to have the companies use airlines to ship products in most cases. This will most likely be the cheapest way to reduce costs and offer value to the customer and share ...
American apparel marketing strategies are examined.