Unme Jeans: Branding in Web 2.0

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UnME BACKGROUND INFORMATION

Company and Industry

UnME is part of the Global Denim Jeans Industry which is comprised of hundreds of firms, from small businesses to some of the world’s largest multinational corporations with overall sales over $20B in the U.S. alone [1].

Over the past years, the denim jeans has become a necessity and has shown growth within 13 – 17 and 25 – 34 age groups. However, because of factors such as consumer confidence, unemployment and reduction of credit available, sales have decline in 2007 over 2006 and are expected to decline even further [2].

UnME participates in the market segment of Junior Denim Jeans. Its product line is fashion forward jeans and is used mostly by teenager girls.

The company distributes its products through upscale department stores and specialty retailers. UnME charges a premium for its products but tries to differentiate it from the competition.

Internal Analysis

In order to appraise the resources and capabilities of the company, the team has to answer many questions for getting an actual picture of the internal analysis of UnME.

The team conducted a VRIO analysis [3], and four questions (the question of value, rareness, imitability, and organization) were taken in consideration for each valuable organizational resources and capabilities.

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Our VRIO analysis reveals that Management skills and financial growth are the most valuable capabilities to UnME and it is also a strength that provides sustainable and distinctive competencies to the company.

Furthermore, diversifying advertising spread is a strength which brings to UnME distinctive competencies.

On the other hand, information systems and lack of a strong dealer network are weaknesses that result in competitive disadvantages for the company.

External Analysis

Threat of Substitute Products

The threat of substitute products is high. There are several substitute...