Premium Jeans Essay

Words: 1097
Pages: 5

This case study talks about the slowdown in the premium jeans market. The first slowdown was in 2007, after that time premium jeans never the same. Between 2008 and 2010 the premium denim prices fell 10-15 percent over this time period. There were different tactics these premium denim designers including 7 for mankind, True Religion, Diesel, Joe Jeans and Levi Strauss tried to attempt to maintain their positions. Some did this by lowering the price of jeans, creating lower priced jeans (i.e. recession collection and jeggings), creating more brands and stores. This case study also talked about the major effects that things like economic issues (i.e. the recession) and rising cotton prices (due to low stockpiles, heavy rains and
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Another advantage they had that was sustainable was the fact that they had established 100 company owned stores in the U.S. True Religion’s competitors.

Threat | Threat Level | Comments | Rivalry | moderate | I think the rivalry threat is moderate because it’s great number of rivals that also have strategies but at the same True Religion has a sustainable competitive advantage | Entry | low | Entry threat is low because there was a lot of brand jeans that came out around the same time as True Religion but the numbers didn’t compare to how True Religion’s was when it first came out. A lot of jeans struggle to get in the premium jeans industry, for example Lucky Brand. | Suppliers | High | Suppliers threat is high because mostly where the premium jeans industry get there jeans from are having difficulties that effect the distribution of jeans for example flooding in China and also the rise of cotton prices | Buyers | low | There is no problems or implications with the buyer | Substitutes | high | There are plenty of substitutes for True Religion like Diesel, 7 for mankind etc |

Resource/Capability | | Valuable | Rare | Costly to imitate | Organized to leverage Assets | Use of U.S. suppliers | Yes- home superiority | No- Used by other premium labels | Very costly to imitate – can be cheaper overseas | Encourages higher sales from foreign and home markets |