Levis Strauss Case Study Analysis

IntroductionCompanies part various strategy models to analyse their current status and formulate strategies for early directions they ought to take (Johnson et al., 2014). With the high level of dynamism than characterises the present-day business environment, companies bring to be aw are of their internal capabilities, and use them to deal with the external threats and opportunities. Among the models that foundation aid in this gatekeepers generic wine strategies, the PESTEL and SWOT frameworks and porters beers five forces (Zott, Amit and Massa, 2011). This paper presents an analysis of a carapace resume more or less Levis Strauss 3 ostiarys generic strategies, and further determines the partnerships strategic limit using SWOT analysis. Models2.1. Porters generic wine strategies (From the case study) Narrow Market ScopeSegmentation strategy1.Older disaffected shoppers fans who love us simply quite frankly left us2.The lost generation fans who wear outt really k now who we areBroad Market ScopeDifferentiation strategy1. Classic pieces of clothing such as button fly and truck driver jacket that are the seam for the giant business of dungaree2. parry the brand to its roots while moving forward3. Innovation- Levi Strauss is using high-tech by involving a team of 30 people on its constantan lab to work on 30 prototypes a week. The companion encourages the transition of ideas into design in less than 24 hoursCost snuff itership1. Reduction of lofty m anetary value structure by the impertinent Levi CEO2. Progressive developing in sales volumes for successive years. Uniqueness CompetencyLow Cost Competency2.2. SWOT compend (From the case study) Strengths1. Popular and strong brand name2. Expertise and father in the blue jean Industry3. Focus on things some opposite than lucre- captioned profits through principles for examples, donations and scholarships4. Levi Strauss caller has a visionary CEO in hitch Bergh Weaknesses1. The bon ton focuses too much on brand protection2. contain business growth due to attach in contest from early(a) denim companies3. Complacency in plan of attack up with innovative designs for customers4. Delays in trends such as colored jeans for women and more tailored jeans for men5. With 16200 employees, the caller-up incurs high expenses in paying wages. Opportunities1. The casual wear market is developing fast2. Internationalisation into emerging markets characterised by low be manufacturing and output signal3. High tech re-invention that is the use of technology to create a tech-advanced womens denim that fit depending on body shape.Threats1. Fast changing consumer tastes2. change magnitude Competition from low end substitutes such as Lee and horse wrangler hence lower market share4. Very close ambition for market share with rivals targeting the same high-end customer base Discussion3.1. Porter Generic strategiesMichael Porter suggests 3 broad generic strategies that can be utilise by a ships caller-out to outperform its competitors (Porter, 2008). These are segmentation, distinguishableiation and cost leadership strategies. From the analysis of Levi Strauss case, the strategies from Porters generic model are clearly exhibited. Cost leadership, according to the model, refers to a strategy where a friendship sets its prices below that of its rivals and is independent of the market structure. From the analysis, this strategy was implemented on debut of Chip Bergh the companys new CEO cut the cost and pricing structure that was previously inflated as it targeted high-end customers. The adopted prices force not be lowest in the effort, but is close to that of the companys key rivals, which also makes Levi products to attract new price-sensitive customers and those that were lost to other cheaper brands. The differentiation strategy is also evident at Levi Strauss. Companies use different approaches to differentiate themselves from their competi tors. These include basis of unique designs, adoption of new technologies and devising changes their brand images (Zott, Amit and Massa, 2011). Levis has used all these strategies to achieve uniqueness in the denim industry. The company capitalises on the specific designs that will attract consumers and win their loyalty, including those that had shifted to other less costly brands.In regard to the segmentation strategy, the company strives to take over the needs and specification of a given target market for suit type of product, location of sales or the category of customers it targets. In intercourse to Levis, the customer segments it targets are the older disaffected shoppers who genuinely left the company for alternatives that suited them better and the lost generation customers, who know nothing around it. By defining its customer segments, the company is able to design products and function that are tailored towards add togethering the needs and preferences of these g roups. as argued by Porter (2008), a company that fails to develop any strategy in regards to the three broad categories defined by Porter is considered as being stuck in the middle because it will have no competitive advantage in the market.3.2. SWOT AnalysisSWOT analysis is a strategic tool that is used to subjectively assess information about a company or ecesis outlining its strengths, weaknesses, opportunities and threats (Ommani, 2011). Whilst strengths and weaknesses are internal elements of an organisation, opportunities and threats are external elements that the company has no go through of. From the analysis present in section 2.2, Levi Strauss draws one of its strengths from the fact that it has a big brand name in the denim industry with a lot of expertise and experience drawn from the fact that it is the oldest denim company. In addition to this, the company known to focus more on things related to the smooth flow of business than only on profits and it has a fast gro wth of retail shops. These strengths have enabled the company to survive the rivalry it has faced from companies like Zara and H&038M.The major weakness that was noted about Levi Strauss is the complacency of the companys design team in coming up with unique products. Such weaknesses make the company prone to competition from rivals that are committed towards providing the best designs and are flexible enough to brace the changing market trends. As stated by the companys CEO in the case, At Levi, designers sit in the companys archives and look at old Western shirts and jeansWe have one of the greatest brands in the world, but I think that there whitethorn have been periods where we thought the brand itself could carry us through dim and thin, there is no question that we got complacent.The opportunities that have been identified in the SWOT analysis above give the company a chance for better performance in future, especially if it puts its strengths to beneficial use. These opp ortunities include the increase in market demand for casual wear, opportunities to expand operations into new markets, and the technological developments taking place in the fashion industry, which can greatly increase production and marketing efficiency of the company. In regard to the probable increase in demand of casual apparel, the company needs to whatsis strategies that will motivate its employees avoid complacency and embark on invention competitive products. Failure to do so will make the company to lose these potential clients to rivals because these opportunities are for all companies in this industry (Grant, 2013). The important threat, as highlighted in the case study, is the rivalry that exists in the industry. This has to be stamp down by application of the strategies that were earlier discussed in Porters generic strategy model. This will make the company a formidable competitor in the industry. Conclusion and Recommendations From the analysis above by the use o f Porters generic strategies and SWOT analysis it has been identified that whilst the company may have some weaknesses, it also possesses several capabilities if well utilised, will strengthen its brand position in the denim apparel industry. Several testimony can however be made for Levi Strauss. One of these would be that the company should focus on the frequently changing needs of consumers in the denim market and ensure that its operations and designs are flexible enough to match with these changing trends. Taking advantage of technological milestones in the fashion industry also recommended. This will ensure the production of unique yet stylish designs. From the Ansoff matrix below, the strategic directions that a company can use to position itself in the market are presented (Taylor, 2012).Two of the four strategic directions suggested by this model have already been adopted by Levi Company, that is, selling alert products to existing markets and extending existing product s in new markets. It can however recommended that the company should adopt one of the two remaining factors of this model, which is the diversification through creation of more designs of products that suit a wider demographic scope of customers. 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