Good Example Of Case Study On Strategic Management And Competitive Advantage

In the past decade, the marketplace has been virtually flooded with different brands of jeans, making it hard to differentiate the ordinary jeans from the unique jeans. However, this has been a general misconception in the clothing industry. In 2002, True Religion Jeans was founded in 2002 and became a prominent company in the United States by 2012. Within a short span of time, True Religion Jeans became a significant premium and lifestyle brand in the market around the world having 36 stores in the US market and 30 stores in the international market.
True Religion Jeans' success is reflected in its investment in e-commerce business, and several department stores, clothing stores, high-end, premium boutiques, in over 50 countries. Additionally, the company's success has been echoed by the interesting facts that reveal how the company has fundamentally redefined the meaning of unique brand in the marketplace. The other pioneering success of True Religion lies in the stitching process that results to premium and quality brands. Consequently, this made the sales grow at an average annual rate of almost 22 percent from 2007 to 2012.
True Religion Jeans is one of the most recognized brands. The company benefits from its reputation of its high brand-positioning, premium brand image, and quality. Such attributes have helped the company to create awareness of its brands and expand its customer base. Another internal advantage comes from the ability of the company to adapt quickly to the changing market conditions.
True Religion Jeans has managed to remain competitive as a premium brand retailer during a downturn. Moreover, the strong trademark of True Religion protects the company against imitations and counterfeits. The product differentiation has also allowed True Religion to achieve market share as well as popularity. In addition, the company enjoys free celebrity endorsements that aid in creating products awareness and sufficient advertisements. Despite high competition in the marketplace, True Religion remains relatively competitive in the industry since it focuses on the very slim jeans for young women.
True Religion Brand Jeans is best known for its early success derived from the creation of its premium denim. However, in 2009, True Religion jeans were said to be of a cult classic, and this constrained consumers from purchasing their product during the initial stages. Nevertheless, after the company's CEO, Lubell, started giving away pairs of the company's premium denim, including the sales associates, there was a turnaround.
Lubell got an idea of launching his brand that he thought was stylish, comfortable and the brand not similar with the other premium denim labels. He wanted to create his unique trend, but it flopped. For instance, this was witnessed after shipping 24 pairs of gents' jeans to the Fred Segal boutique located on Melrose Avenue. However, they sold only two pairs in the first month. This made him understand that consumer perceptions can differ widely from one season to the next, causing massive swings in a company's profits.
True Religion Jeans has implemented several strategies to improve their internal organization for future success. The company has continued to develop trend-setting styles, increasing international presence, growing the consumer direct segment, reducing sales to wholesale off-price channels, and improving the wholesale business. The company has also increased stores in the US to increase sales and profitability. By hiring of a Chief Operating Officer, True Religion has improved their wholesale business by identifying market opportunities collaborative with the wholesale customers.