Vertical Integration American Apparel:
American Apparel is a cloth manufacturing, marketing, designing,. Distributing and the retailer base company in California, and Los Angeles. This organization has the vertical integrated manufacturing, retail and distribution as no one has before. Vertical business model allow this organization to faster and flexible turnaround times than in most of the markets, and virtually every step of the process execute in downtown. From knitting, dyeing, cutting, sewing, designing and advertising, everything do within the organization, and do not rely any of the outsources.
Designing and Marketing:
This organization does not only design all the garments in the factory of Los Angeles, organization himself also design marketing or the advertising material. Employees and clothing model of the organization take the photographs and then use them in their different ads. For the advertisement, purpose organizations use the billboards, newspapers, websites and magazines.
Knitting and Dyeing
American Apparel operates in finishing facility and fabric dyeing I n Hawthorne, aside from the factory of Los Angeles. In Los Angeles knitting facility, dyeing, cutting fabric knitting and sewing facility in Garden Grove and in South Gate cutting, sewing and garment dyeing facility. Organization acquire these facilities in the effort to increase the product offering, in the effort to streamline the supply chain and by reducing the reliance on the subcontractors lower the cost of the products.
Fabric Storage, Cutting and Sewing:
Organization has their own warehouses for the storage of fabric in downtown Los Angeles American Apparel cut and sews the fabric in the 800,000 square foot factory. While some of the other, companies do the production the other countries but sale that products in the United States, but this organization manufacture their products on the bases of the facilities of Los Angeles. In the organization where the ideas for the designer conceived the garments starts band ends in the factory and last stitch is made.
America n Apparel organization has their own warehouses distribution center for the storage of the fabrics on the site. American Apparel ship out the orders and keep the inventory, which is received by the e-commerce websites, from the factory of Los Angeles the orders are placed on the same day. Organization uses a trucking company, the fresh airfreight and one of the subsidiaries throughout the US for replenishing the retail stores.
American Apparel starts to sale the T-shirts of high quality to the boutiques and screen printers as a wholesale. Into the retail realm American apparel, expand their operations with the help of the wholesale operations and the retail stores. This organization is the still largest retailer in this country, which is selling their T-shirts for animal rights groups and for the band merchandise and much more. (americanapparel.net, 2011)
Using the vertical integrated model, this organization owns their all retail stores, rather than the franchising. Including the online stores, retail sales of the organization that sells their products on the international level and within the country of United State. Around the world wide they have more than 260 stores In some of the countries like Italy, Austria, Japan, Israel, Korea, China, Germany and many of the others retail growth of the organization is continuously increasing with the new stores.
americanapparel.net. (2011). Vertical Integration. Retrieved december 2, 2015, from https://www.americanapparel.net/contact/vertical.html