TRUE RELIGON CASE STRATEGIC MANAGEMENT
Table of contents
Table of contents 2
True Religion Jeans Case study
1. External and Internal Analysis 3
1.1 The fashion industry 3
1.2 Premium jeans industry 3
1.3 True Religion brand jeans. 3
2. Strategy formulation 4
2.1 Analysing opportunities 4
2.2 Competitive advantage 4
2.3 Strategic challenges 5
3. Strategy Recommendations 5
3.1 Generic strategy 5
3.2 Portfolio management 5
3.3 Geographic scope 6
3.4 Attracting new talent 6
3.5 Market positioning 6
4. Organizational implementation 6
5. Questions based on the case material 7
References 8
True Religion Jeans Case study
“There’s only one real religion and that’s people. And all the people in the world wear jeans. Our emphasis is on fit, quality and style and the inspiration to make men and women look and feel good in their jeans.” (Jeff Lubell)
1. External and Internal Analysis
1.1 The fashion industry
The fashion industry is an industry where trends and costumers’ preferences can change very fast. Top brands can however gain high profits when hitting the right market at the right time. But missing an important trend or aiming for a niche that is not profitable enough can also cause serious financial problems. Furthermore the industry faces new challenges in embracing the pace of change in combination with new technologies. Google glass or other wearable technology will create a new dimension in the industry. Evermore, the internet sales and data collection will capture individual consumer preferences.
1.2 Premium jeans industry
The premium jeans industry is a mature industry characterized by many mergers taking place and shifts in consumers’ preferences. Likewise the incapability to pass on the price increase of raw material due to declining retail prices between 2008 and 2010 is a strong indicator of a mature market situation. The low entry barriers for new entrants in this mature market can cause rapid loss of market share when newcomers are able to carve out a profitable niche. A good
Table of contents 2
True Religion Jeans Case study
1. External and Internal Analysis 3
1.1 The fashion industry 3
1.2 Premium jeans industry 3
1.3 True Religion brand jeans. 3
2. Strategy formulation 4
2.1 Analysing opportunities 4
2.2 Competitive advantage 4
2.3 Strategic challenges 5
3. Strategy Recommendations 5
3.1 Generic strategy 5
3.2 Portfolio management 5
3.3 Geographic scope 6
3.4 Attracting new talent 6
3.5 Market positioning 6
4. Organizational implementation 6
5. Questions based on the case material 7
References 8
True Religion Jeans Case study
“There’s only one real religion and that’s people. And all the people in the world wear jeans. Our emphasis is on fit, quality and style and the inspiration to make men and women look and feel good in their jeans.” (Jeff Lubell)
1. External and Internal Analysis
1.1 The fashion industry
The fashion industry is an industry where trends and costumers’ preferences can change very fast. Top brands can however gain high profits when hitting the right market at the right time. But missing an important trend or aiming for a niche that is not profitable enough can also cause serious financial problems. Furthermore the industry faces new challenges in embracing the pace of change in combination with new technologies. Google glass or other wearable technology will create a new dimension in the industry. Evermore, the internet sales and data collection will capture individual consumer preferences.
1.2 Premium jeans industry
The premium jeans industry is a mature industry characterized by many mergers taking place and shifts in consumers’ preferences. Likewise the incapability to pass on the price increase of raw material due to declining retail prices between 2008 and 2010 is a strong indicator of a mature market situation. The low entry barriers for new entrants in this mature market can cause rapid loss of market share when newcomers are able to carve out a profitable niche. A good
References: Barney J. B, Hesterly W. S, 2012, ‘Strategic Management and Competitive Advantage’, Pearson Lachapelle, T, True Religion Owners Seen Praying for Deal Erasing Loss, Bloomberg, October 17, 2012, http://www.bloomberg.com/news/2012-10-16/true-religion-owners-seen-praying-for-deal-erasing-loss.html (assessed on June 22) Lattman, P, 2013, True Religion To Be Sold To Towerbrook For 835 Million, The New York Times, May 10, 2013 http://dealbook.nytimes.com/2013/05/10/true-religion-to-be-sold-to-towerbrook-for-835-million-2/?_php=true&_type=blogs&_r=0 (accessed on June 25) Websites Fashion Industry Statistics http://www.statisticbrain.com/fashion-industry-statistics/ (assessed on June 23) True Religion http://www.truereligion.com (assessed on June 23)