Case Analysis Of American Apparel

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American Apparel is a clothing brand that is based in Los Angeles, California. One of the concepts that set American Apparel apart from other brands is that all of the items are manufactured in the United States. The target customers of American Apparel are children, men, and women. The men and women are generally in their teens and early twenties. The price of the clothing is mid-range and is meant to appeal to middle class consumers. As of now, American Apparel is not doing well financially. The company has many debt payments that need to be made, and also, they have many legal fees that need to be paid as a result of the Dov Charney sexual harassment charges (Fickenscher 2015). Their financial situation is so unfavorable that it is becoming less possible for them to produce the products in the United States (Heyward 2015). As a result of the financial circumstances, American Apparel should not expand to India. In order to create a successful business in India, American Apparel would need to understand the Indian market, consumers, and shopping habits. This not only takes time, but it also takes research. As of now, American Apparel is not even successful in the United States. Using their limited financial assets to invest in India would cause them to go bankrupt even faster. Resolution/Solution: 2 The solution for American Apparel at this point in time would be for them to concentrate on turning a profit in the United States and improving their business model there

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