Levi's case analysis
- SWOT analysis
The strength of Levis Strauss & Co. can be driven from various internal characteristics which had previously seen an increased performance in the apparel market. Levis was a popular brand that was enhanced by advertisement using different languages, promotion of integrated factories and its human resources that were retained even amidst the Great Depression. Another source of strength is the product placement in various outlets including Woodstock, Marilyn Monroe and Marlon Brando which made the product to retain its popularity and fan favorite status. The ‘cool brand’ was major strength of the firm which allowed it to expand to various lines and finally, it had diversifies interest. This enhanced the competitive position of the Levis Strauss in the Apparel market. A major weakness of Levis was a lack of an effective distribution channel where they only placed their products only into their stores rather than using retailers that were owned independently for distribution. In addition, the firm lacked a defined target market, lacked a wardrobe selection and prices were not favorable to customers. Even after diversification efforts, the products were only success in some markets while its innovations were not being adopted at the right pace. The opportunities available for Levis Strauss included a constant growth in the apparel market and even a forecast expansion of the market in the future. The market had also expanded to include other pant categories including other types and khakis. These represented opportunities that Levis Strauss & co. would exploit to deal with various threats in the markets. The threats emerged from increased competition that saw other firms come with adopt strategies that reduced Levis competitive edge and hence reduced performance.
The strategy employed by Levi Strauss & co. was differentiation focus where it made products that were different and unique compared to those provided by competitors and the aim was to achieve a product leadership in the market. The management of Levi held a constant belief that their competitive rival was founded on brand that was globally recognized, a focus on value, quality and innovation. This was augmented by a focus on social responsibility and ethical treatment and these aspects made major selling points for their products. The differentiation focus can be seen in the decision to diversify product lines that involved high-image and innovative products that were newly released. The firm also focused slightly on cost leadership so that some of its products were diversified into price points indicated by various lines like Levi’s Engineered, Silvertab and fewer prices for the same products. Product innovation was seen as an important strategy that could help Levi back on its feet after experiencing difficulty in the market.
Levis should consider selling its products – jeans – at Wal-mart but using a strategy that is focused on the changing nature of the environment. With its brand reputation, the firm should exploits the opportunities availed at Wal-mart, especially taking advantage of the customers who were looking for value experience but affordable prices. The reason for lowering prices was in consideration of the larger and growing market segment consisting of individuals over 35 years whose preference was larger sizes but inexpensive brand. Even though there were risk of selling at Wal-mart – compromising the brand – the resulting benefits of increased growth in the market share and revenues justified this move.
