True Religion
It is suggested that True Religion continue their increase and implementation of company owned stores in the northwest for longer term success. True Religion should also consider exploiting the company’s new distribution channels and develop the company’s lifestyle brand.
By investing in more company owned stores their chance in launching True Religions lifestyle brand and increasing denim margins are grater. By increasing facilities, contract manufactures and company owned facilities in the North America, this would generally deliver lower cost production and contactor-sourced goods offered more flexibility and shorter lead times. As a result True Religion will have lower manufacturing costs with the ability to hold lower inventories resulting from the use of contractors. This gives the company an imperfect imitability between competitors through distribution channels. This also adds value and decreases net costs.
Exploiting True Religions distribution channels by continuing the uses of exclusive third party distributors to gain access to upscale retailers in foreign market, would allow for a basis to be set in product differentiation. International markets would be more easily penetrated due to the benefit of distribution. There is a positive correlation between the unique distribution True Religion has managed to obtain and rarity unlike the company’s competitors.
As True Religion continues its quest to developing a diverse product mix and launching a new lifestyle brands, the company owned stores can avoid miss sales and incorrect earnings forecasts and will have the ability to realize projected future cash flows and profits. The new life style brands and product mix will bring in strong profits and cash flows similarly to that of Vanity Fair which will be costly to imitate.
True Religion can enjoy a sustained competitive advantage by implementing life style brands, exploiting distribution channels and creating company owned stores.
By investing in more company owned stores their chance in launching True Religions lifestyle brand and increasing denim margins are grater. By increasing facilities, contract manufactures and company owned facilities in the North America, this would generally deliver lower cost production and contactor-sourced goods offered more flexibility and shorter lead times. As a result True Religion will have lower manufacturing costs with the ability to hold lower inventories resulting from the use of contractors. This gives the company an imperfect imitability between competitors through distribution channels. This also adds value and decreases net costs.
Exploiting True Religions distribution channels by continuing the uses of exclusive third party distributors to gain access to upscale retailers in foreign market, would allow for a basis to be set in product differentiation. International markets would be more easily penetrated due to the benefit of distribution. There is a positive correlation between the unique distribution True Religion has managed to obtain and rarity unlike the company’s competitors.
As True Religion continues its quest to developing a diverse product mix and launching a new lifestyle brands, the company owned stores can avoid miss sales and incorrect earnings forecasts and will have the ability to realize projected future cash flows and profits. The new life style brands and product mix will bring in strong profits and cash flows similarly to that of Vanity Fair which will be costly to imitate.
True Religion can enjoy a sustained competitive advantage by implementing life style brands, exploiting distribution channels and creating company owned stores.