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Real Choices at True Religion Jeans - Research Paper Example

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Strategy can make or break the business. It’s in these strategies where the strengths and weaknesses of a company lie. All the business activities rest on this most important pillar…
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Real Choices at True Religion Jeans
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Real Choices at True Religion Jeans

Denim is a huge industry with a very few entry barriers but an extensive and aggressive competition exists within the industry. An effective strategy is built on the basis of real choices and the SWOT analysis. True religion jeans have used a combination of both and have achieved success over the years. True Religion Jeans entered the market in 2002 and faced enormous competition. It used its strengths to establish itself and is now a well-known brand. It not only made the best use of the opportunities that were available, but instead created new opportunities for the brand.
True Religion Jeans is a luxury brand and charges a high premium for the products that it sells. It has a strong brand image of quality and class. The strength of True Religion Jeans lies in its differentiation point. What is delivered to its customers is something totally different from the other competing brands. At True religion Jeans stress is laid upon the classic style which follows the theme of Bohemian life and style. It has played along the lines and has used this different style as its strength. Not only this, but the brand guarantees a best fit to its customers. True religion jeans target the high-end consumer, but still provide with a lifetime guarantee of its products and in case of a malfunction provide its customers with a replacement policy. Customers do not hesitate in paying a high premium for a pair of jeans from True religion because they know that the brand is providing them with value for money (Temperino 2010). One of the strengths of this brand is that it is present globally across different countries. They have developed their own retail stores for a direct consumer contact. First the brand used to sell through other distributors but now the company has opened several retail stores in USA. These stores provide the customers with the whole range of its products. The product is manufactured in USA and the company has not outsourced any of its operations. The design team at True Religion Jeans comprises of 26 members who constantly work according to the changes in consumer demand and environment. Currently the brand is targeting the celebrities as they are the ones who would be most attracted to the new fashion. True Religion Jeans targets a niche market and this can be counted as a weakness for the company. They are getting all their profits from the small group of high-end consumers. To overcome this weakness the company can come up with a product which is targeted towards the mass market. Another weakness is that True religion faces intense completion from the competing brands and most of this competition comes from the brands that have the backing of some large corporations. The company of True religion Jeans is not backed up by any such large corporation which means that it has limited resources as compared to its competitors. The greatest opportunity that True religion Jeans has is that it can expand into the global market. It can find new markets to penetrate and can target new customers. True Religion Jeans has expanded its product line and has the opportunity to expand it further. This opportunity can turn into success because the brand name will be associated with any product that it decides to produce and in marketing brand name is what sells. So far expansion of its product line has been successful. It started in 2002, and now it is expanding at a relentless pace. This expansion is a possible threat for the firm itself. True Religion Jeans has the risk of saturating the market if it keeps on expanding at the same pace. (University of Oregan Investment Group 2010) True Religion is a brand which faces a problem in the near future because the brand is ... Read More
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