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Levis Assgn

Levi Strauss & Co. is a major clothing company best known for inventing blue jeans in the 1870s. Some key points: 1) Levi's was very successful in the 20th century but lost significant market share to cheaper competitors and designer brands starting in the 1970s. 2) While Levi's jeans remain popular, the company has faced criticism for outsourcing production to overseas factories accused of using sweatshop labor. 3) Levi's competes in the men's clothing industry against department stores, discount retailers, and online companies. Maintaining brand relevance and expanding its customer base will be important for the company's continued success.

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195 views

Levis Assgn

Levi Strauss & Co. is a major clothing company best known for inventing blue jeans in the 1870s. Some key points: 1) Levi's was very successful in the 20th century but lost significant market share to cheaper competitors and designer brands starting in the 1970s. 2) While Levi's jeans remain popular, the company has faced criticism for outsourcing production to overseas factories accused of using sweatshop labor. 3) Levi's competes in the men's clothing industry against department stores, discount retailers, and online companies. Maintaining brand relevance and expanding its customer base will be important for the company's continued success.

Uploaded by

instantshikhar222
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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http://www.scribd.

com/doc/19236242/Marketing-Levis

http://en.wikipedia.org/wiki/Levi_Strauss_%26_Co.

http://www.oppapers.com/subjects/threats-to-levis-page1.html

http://www.ehow.com/facts_5489340_information-levis-jeans.html

http://www.hoovers.com/company/Levi_Strauss__Co/cftkxi-1-1njea3.html
BACKGROUND

Beginnings
 In 1853, Bavarian Levi Strauss joined a family-owned dry goods business in San Francisco. In 1873,
he and tailor Jacob Davis patented a design of pants with reinforcing copper rivets, creating the
forerunner of modern-day jeans.

Structure
 Levi Strauss & Co. is a privately-held company with three main divisions, Levi Strauss Americas,
Asia Pacific and Levi Strauss Europe, Middle East and Africa. Its CEO is John Anderson.

Market Share
 Levi's heyday was the 1970s; it lost market share to both cheaper competitors and high-end
"designer jeans." According to the New York times, Levi's aggressively sues competitors who copy its
signature pocket stitching.

Brands
 Levi's main brand is its jeans, including the popular shrink-to-fit 501s and the Signature line, sold in
Wal-Mart. In the 1970s Levi's acquired Great Western Garment Company, who introduced the
stone-washed style. Other brands include Dockers khaki clothing.

Production
 Until the 1990s, production was mainly in North America. Today, Levi's outsources its production
overseas and has drawn criticism for using sweatshops. Levi's reported $4.4 billion in sales for 2008,
with net income $229 million.

Read more: Information on Levis Jeans | eHow.com


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Competitors
Personal income and fashion trends drive demand for clothing. The profitability of individual
companies depends heavily on effective merchandising and marketing. Large companies can offer
wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small
stores can compete by offering unique merchandise, targeting a specific demographic, providing
superior customer service, or serving a local market. The industry is labor-intensive: annual revenue
per worker is about $145,000. Competition for the clothing store industry includes department
stores, discount stores, and Internet and catalog retailers

Industries Where Levi Strauss & Co. Competes


 Men's Clothing
 Retail
 Apparel & Accessories Retail
 Nonstore Retail
 Internet Retail
 Consumer Products Manufacturers
SWOT Analysis – Levi Strauss

Strengths.   Levis' are the original, authentic jean. They were a hit with baby boomers decades ago
when they were in their teenager years. Another is that they stood for something beyond profit.  
The family took pride in providing quality products, personal service, and fair treatment.   The family
name and tradition was associated with respect for people—customers, employees, and the
community.  

Weakness-.   The company began to rapidly lose market share to newer, trendier, more aggressive
brands and designer labels. The Levi brand lost luster and relevance to the younger generation.
Levi's jeans are perceived to be their “parent's jeans.” For that reason they will wear anything else
but a pair of Levi's. This perception is an ongoing marketing problem and the company is struggling
to find a way to reverse the brand's fortunes. Their tradition of promoting within may have started
their dark side.   Long-term managers became used to doing things a certain way, and kept new
ideas and new blood at a distance. Since the company was so committed to its employees, it kept
the younger recruits with new ideas from finding a place.   They were so inwardly focused, that they
missed the great changes occurring in the fashion world.   Their main flaw was that they did not have
a clear developmental strategic plan, did not pay attention and learn new technologies, and did not
keep track of the competition, market and consumer tastes.  

Opportunities-   In today’s society, the consumer is becoming more leisure oriented, and wears
jeans more often.   Levi’s is still on top, and hold the majority of the market share in jeans sales.  
Their biggest opportunity is to expand their market.   Mega retailers like K-Mart, Wal-Mart, and
other large retailers do not currently sell Levi’s.   It would be a great opportunity to increase sales
and find a new market with a younger generation.  

Threats -  Styles change as fast as people do, and brand name items are the...

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