The Strategic Case Analysis of Levi - Myassignmenthelp

Question: This study is about Levi Strauss Co. which is now known as Levis which was name of its brand jeans. Levi is 161 year old family owned company which was a pioneer in blue jeans. There was a time when Levi enjoyed monopoly in the market. Accustomed to this monopoly, Levi hardly noticed when new brands started emerging in the market and soon Levi started to fall. In this case we have done a strategic analysis of Levi so we can know what are the areas were Levi can improve and try to attain its previous position (Chauhan, 2012).Demonstrates understanding of the case study organisation and depth of insight and synthesis from the analysis of each model and analysis of the overall strategic position (synthesis of SWOT analysis).Recommendations are based on the earlier analysis and demonstrate good understanding of Ansoff and the case.Demonstrates understanding of a range of strategy models and ability to select models appropriately and apply them to the case effectively. Answer: Strengths of Levi Levi is a pioneer in blue jeans and has a strong brand name to which people are still attached. Levi e commerce platform is also its strength which is specifically tailored to meet the needs of its direct customers. Levi CEO Chip Bergh is also its strength with under whose leadership company has raised its revenue in 2013. Weaknesses of Levi Levi is slow in reacting to the market, Levi does not quickly adapt to the change in consumer needs. Levi is facing high pressure in the market because of the emergence of new brands. Opportunities for Levi Its two new innovations - women denims, which fit according to body shape and another innovation, which is denim especially designed for commuters with bike. Markets of China and India also provide food opportunities which are still denim less. Levi new CEO, Chip Bergh, can bring new opportunities for Levi by changing the attitude of employees and making new innovations. Threats for Levi Levi faces threat from the new entrants that have entered the jeans market, also constantly changing trends in jeans and the fact that whether young shoppers will adopt Levi or not is also a threat for Levi. Porters Five Forces Levi Bargaining power of buyers: The Bargaining power of buyers of Levi is high as changing cost from Levis to other brands is very low and there are no standardized or customized product styles and sizes in each and every country (Mann, 2009). Bargaining power of suppliers: Mass production Levi is high and because of worldwide attendance of manufacturing firms of Lewis Bargaining power of suppliers is low Threat of new entrants: Levi has a high Threat of new entrants as there are always new entrants entering the jeans market, this is mainly because of the changing trends of the people. Degree of rivalry: Degree of rivalry of Levi is high as there are many brands in the market, most of which are low cost stylish and keep innovating and changing themselves with the needs of the customers. Threat of substitutes: Levi has high Threat of substitutes as market is full of other substitute products, mainly apparels which can easily take place of jeans. Value Chain of Levi Levis has been changing its value chain into being more maintained at economic growth. Levi is capable to whet in on its product manufacturing and design improvements: bringing into line alertness with a concrete result of the quantity of water accumulated and aid customers in thinking how they shop (MARQUETTE, 2012). The value chain comes full circle with Levis speaking about the fabric and cotton production. From the lifecycle study, Levis cultured that approximately half of the water used in whole life cycle of jeans comes from the early phase when farmers grow cotton in their fields. Levis got along with the Better Cotton Initiative, and opened communication channels between NGOs, farmers, and new companies to advance cotton growth.Levis takes efforts with them to educate cotton farmers the steps to work in direction of lowering pesticide, water conservation, and against use of child-labor practices.In addition, Levis persuades mills to decrease their water, use of chemical and e nergy ; this undertakes the stage where fiber is turned into fabric. PEST Analysis of Levi Political/Legal factors Promotional behavior is kept in pace in all countries by law. There has been range of editions were necessary in local markets. For example, the unique commercial had to be again shot in Brazil and Australia as the local policies became adamant on domestic formed commercials. With high opinion to channels of distribution, there are few legal manacles upon the option of distribution channel. But, there are few exemptions such France and Chinas ban against selling door to door which may not be chiefly valid to jeans. Economic factors The economic factors are very significant in ornamenting adaptation. Local markets differ extremely by their non-refundable income per capita. Hence standardizing prices in all countries would result in reduced market for jeans in the poor countries. Prices for jeans do differ very considerably between markets and this price bias may be partially on the basis of income but may be also because of the ruthlessness of competition and the detachment of the territory. For example, a typical Levi jean in the UK sells for about 47 at the same time as in certain US states 22 is the norm. Delivery channels might need version with respect to the growth of local market. The full variety of selling prototypes in employment for higher markets cannot be organized in poorer ones. Socio/cultural factors Socio-cultural has values, customers, religion, perceptions, language and ethnics. Levis desires to minimize the degree to which culture stops them from manufacturing standardized endorsement campaigns. In addition, to the result on the design of endorsement, cultural differences have linguistic insinuation with stare to the product name. The brand name of product is the key element of its endorsement but concern has to be put to keep away from causing offence in paraphrase or using symbols that do not mean same or have the same importance worldwide(Narella, 2013). Technological factors Technological factors refer to the fact if the local market has an adequate amount of developed technologies to take benefit of the product. The use of good technology is necessary to make full use of the diverse of endorsement methods such as television advertisements or Web sites. Similarly the use of high technology is very important for allocation of the products. For example if consumers can utilizeonline home shoppingfacilities or not. In less developed countries, like Africa, where advanced technologies are in rather unformed stage, adjustment is necessary such that a superior degree of use is made of more conventional methods. From the above we can say that Levi has both threats and opportunities in front of it, now it depends on Levi how it uses the market. Company CEO Chip Bergh should use his innovative skills to change the environment of the company; he should bring some innovation in the product, with this he should also encourage employees and build their morale. Market penetration:For market penetration Levi should choose a particular age group of customers which should be young people and try to focus only and only them. Market development: Levi should try to develop its market and to enter new markets of India and China were denim is still not widely used. Levi should also increase its distribution centers and makes its jeans available in more countries and that too at affordable prices(Bernat, 2011). Product development: Levi should start penetrating the market by introducing new markets, it should work on its two new innovations - women denims, which fit according to body shape and another innovation, which is denim especially designed for commuters with bike and try to introduce them as soon as possible. Diversification: Levis should also diversify itself, it can do this by introducing new products, may be it can take a new product line and introduce formal pants, or may be casual shoes. References Bernat, H., 2011. Marketing equity. Chauhan, N., 2012. Levis Strauss Company. Mann, I., 2009. PORTERS GENERIC STRATEGIES AND THEIR APPLICATION IN SUPPLY CHAIN MANAGEMENT. MARQUETTE, D., 2012. Value Chain Management.