True Religion Case

Strategy Case Analysis

Case 1.4 True Religion

True Religion was founded in 2002 by Jeff and Kym Lubell, a husband-and-wife duo. The company specializes in premium jeans which are priced in the range of $100 to $400. Being the second largest premium denim brand in the country, True Religion has faced a lot of changes and threats since its birth; but with effective and efficient business strategies, the company has survived the economic crisis of 2008 and competed successfully with other prominent denim brands such as Levi Strauss, Rock & Republic, etc… This paper sets to explain the success story of True Religion by examining the strategies used by True Religion and how those strategies help fought off the competition.

One of True Religion business strategies is the diversification of products ranging from denims to non-denims items such as sportwear, T-shirts and hoodies. The related diversification of products helps to boost the sale of denim and non-denim products. Accompanying the diversification strategy is the implementation of forward vertical integration in its distribution and marketing of products. Using its own stores, True Religion was able to introduce to customers the non-denim products because the offers to sell those to big retailers were denied because retailers only viewed True Religion as a denim brand. Also by having over 70 stores in the United States, with many located in the best locations, True Religion has a competitive edge over its competitors in the race for sales. As of 2009, as the majority of sales were coming from the domestic market, the company saw an immense opportunity to expand internationally to Europe ( United Kingdom, Germany as major markets) and Asia ( Japan as the major market). Soon after the expansion move, the company experienced a 36% increases in international sales with the strongest growth from Germany and Japan. True Religion’s motive was clear in the international expansion strategy to become a...