Free «Pacific Sunwear of California Inc» Essay Sample

Pacific Sunwear of California commonly identified as (PacSun) is an American based retailer fashion brand which is basically rooted deeply in youths’ lifestyle and the culture of California. The corporation trades in lifestyle apparel, beside footwear and numerous accessories intended for teens as well as the young adults. The company has encountered some difficulties in the recent past and mostly competition from other clothing corporations like Abercrombie & Fitch, Tilly's and Zumiezand this has seen the company close a number of stores all over U.S. for instance, the company recorded a drop in revenues by 9.5% for the financial year that concluded on January 2011 thus getting $929.5 million. The factors surrounding the company’s competition include fashion, customer delivery, store location, quality, and price, amongst others (SWOT Analysis, 2011).

The PacSun clothing company has several competencies in terms of strengths and opportunities which make the company outshine other competitors. Its strengths indicate that the corporation’s owned brands fully complement custom brands and they also expand the company’s product portfolio. Also it has a refined products assortment. The opportunities the company has include expansion into online markets which drives considerable market share growth and also incorporation of new marketing schemes in their business strategy. Moreover, the company faces some inadequacies in terms of weaknesses including legal actions which have stained its image and the dilapidated sales productivity. The company too faces several threats like intense competition which might wear down the market, probable increase in the costs of product sourcing, and compelling weak costumer spending in the country (SWOT Analysis, 2011).



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The Abercrombie & Fitch Company is known to be specialty dealer selling special care products, sportswear clothing, and accessories. It runs in Asia, Europe, and North America and its portfolio of well reputable brands have placed it to be a single stop shopping area for the whole family. Therefore the company has a wider competitive advantage or rather strength than the PacSun Company. One of the major strengths of the company is that it has heavily explored the e-commerce trading and also it has a strong brand assortment which shows its business competencies. It has several opportunities including the mounting require for men’s accessories and outfits and also expanding its international presence to regions like Asia and Africa. A major weakness the company is facing is the declining analogous store sales in Canada and U.S. by 23% yearly. On the other hand the company faces threats from the increasingly reducing wages in the country which might affect the profitability margin and also its reliance on third party producers poses a great risk (DATAMONITOR: Abercrombie & Fitch Co., 2011).

Zumiez Inc. Company is an American vendor of athletic attire, sporting goods, footwear, and accessories and it targets the youth under 24. It trades in third party products and goods obtained from its personal brand, which is basically focused on tremendous sports actions like bicycle motocross, snowboarding, surfing, and skateboarding. The company competes for both female and male teenagers as well as young adult clientele for hard goods and footwear/apparel industries. In the hard good industries, Zumiez company competitors vary from local skate and snowboard shops to big range sporting goods chains and stores (Peterson, 2010).

The Zumiez Company has several proficiencies in its portfolio in terms of strengths and opportunities which make it flourish in the corporate world. The company has differentiated products strategy whereby it follows seasons and trends in manufacturing sporting merchandize. In addition, it has an expansive divergent store experience and the management team which is super competent. On opportunities present, the company has dwelled on innovations and acquisitions with the aim of expanding their market share. However, the company suffers weaknesses in expansion as it limits itself to only extreme sports. Moreover, it faces threats from a weak economy and competitors who offer cheaper merchandise (Peterson, 2010).

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Tilly’s Inc. Company is a U.S. founded retailer in clothing which include action branded attire, equipment, shoes, and accessories. The company competes with other clothing companies, stores, boutiques all over U.S. and also in specialty stores selling active sporty goods like skates, and surfboards. It is well established brands increases the company’s strength and the diversity of merchandise. In fact the company’s brands have been associated with the top American sports personnel in motocross, skate, and surf which have greatly uplifted its image in the market (Hamanaka, 2012).

The PacSun Company has gone through challenging times due to the economy of the country as well as the competitive environment which has cropped up due to many specialty clothing manufacturers coming up. The current performance management is good since the management has succeeded in ensuring that the company’s brands remain visible in the market. The current work force has not fully been engaged since the company gives them no room to advance or rather offer them chances to grow. This has increased their turn over as they leave their jobs in search of better opportunities. The company offers discounted merchandise to the child care centers but it doesn’t provide elder care program.

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Employee retention is important as it helps the company safe a lot in terms of finances and time in recruiting new workers. Therefore the PacSun Company ought to employ incentives towards the workforce so as to increase their motivation thus reducing the turnover rate. Offering job satisfaction is a major way to ensure that all employees are motivated to do their duties. In essence, the management ought to put in place discounts, benefits, job security and also formulating a good pay/compensation for the workers. These incentives would ensure that the workforce is motivated enough to do their duties effectively.


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