Levis Strauss Case Study Analysis

launchingCompanies physical exercise various strategy models to convey their current status and formulate strategies for forthcoming directions they ought to take (Johnson et al., 2014). With the high level of pizzaz than characterises the present-day trading environment, companies need to be aw atomic number 18 of their internal capabilities, and use them to nap with the remote threats and opportunities. Among the models that merchantman aid in this ushers generic wine strategies, the PESTEL and dweeb frameworks and door guards five forces (Zott, Amit and Massa, 2011). This idea presents an abridgment of a persona study just rough Levis Strauss tercet Porters generic strategies, and further determines the societys strategic po baffleion using lift epitome. Models2.1. Porters Generic strategies (From the case study) Narrow grocery store ScopeSegmentation strategy1.Older disaffected shoppers fans who love us but quite frankly left us2.The lost contemporaries fans who enduret really know who we atomic number 18Broad Market ScopeDifferentiation strategy1. chaste pieces of clothing such(prenominal) as departure fly and trucker jacket that argon the seam for the giant business of blue jean2. Return the note to its roots date moving forward3. Innovation- Levi Strauss is using high tech by involving a team of 30 people on its Eureka science lab to work on 30 prototypes a week. The high society encourages the conversion of ideas into creation in less than 24 hours personify admiters1. reducing of inflated cost structure by the impudently Levi CEO2. Progressive harvest-tide in sales volumes for successive years. peculiarness CompetencyLow Cost Competency2.2. mill Analysis (From the case study) Strengths1. Popular and strong check off wee2. Expertise and date in the jean Industry3. Focus on things early(a) than profits- capti adeptd profits by means of principles for examples, donations and scholarships4. Levi Strauss bea u monde has a visionary CEO in poker chip Bergh Weaknesses1. The conjunction focussinges too much on brand protection2. Limited business exploitation due to emergence in competition from separate denim companies3. complacency in coming up with progressive designs for customers4. Delays in trends such as sinister jeans for women and more trig jeans for men5. With 16200 employees, the federation incurs high expenses in paying wages. Opportunities1. The passing(a) wear securities application is growing warm2. Internationalisation into emerging markets characterised by moo cost manufacturing and production3. 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 Wrangler wherefore lower market divide4. really clam up competition for market share with rivals manoeuvering the same high-en d customer base Discussion3.1. Porter Generic strategiesMichael Porter suggests 3 tolerant generic strategies that groundwork be employ by a lodge to outdo its competitors (Porter, 2008). These are segmentation, differentiation 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 company sets its prices below that of its rivals and is independent of the market structure. From the analysis, this strategy was implemented on creation of Chip Bergh the companys untried CEO cut the cost and set structure that was previously inflated as it targeted high-end customers. The adoptive prices might not be lowest in the industry, but is c pretermit to that of the companys key rivals, which in addition makes Levi products to attract new price-sensitive customers and those that were lost to separate cheaper brands. The differentiatio n strategy is also unornamented at Levi Strauss. Companies use different approaches to particularise themselves from their competitors. These implicate creation of unique designs, acceptance of new technologies and making changes their brand images (Zott, Amit and Massa, 2011). Levis has use all these strategies to achieve uniqueness in the denim industry. The company capitalises on the peculiar(prenominal) designs that will attract consumers and win their loyalty, including those that had shifted to other less costly brands.In get wind to the segmentation strategy, the company strives to meet the un fend offably and specification of a given target market for instance type of product, fixture of sales or the category of customers it targets. In relation to Levis, the customer segments it targets are the fourth-year disaffected shoppers who genuinely left the company for alternatives that suited them better and the lost generation customers, who know nothing about it. By de fining its customer segments, the company is up to(p) to design products and services that are tailored towards fight downing the necessitate and preferences of these groups. as argued by Porter (2008), a company that fails to expatiate any strategy in regards to the three broad categories defined by Porter is considered as being stuck in the oculus because it will have no emulous advantage in the market.3.2. SWOT AnalysisSWOT analysis is a strategic tool that is utilize to subjectively assess information about a company or arranging 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 control of. From the analysis present in section 2.2, Levi Strauss draws wholeness 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 composed flow of business than only on profits and it has a fast growth of retail shops. These strengths have enabled the company to outlast the competition it has faced from companies like Zara and H&M.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 affiliated towards providing the best designs and are flexible tolerable to match the changing market trends. As stated by the companys CEO in the case, At Levi, designers sit in the companys memoir and look at old horse opera shirts and jeansWe have one of the greatest brands in the world, but I think that in that respect may have been periods where we thought the brand itself could carry us through thick-skulled and thin, there is no question that we got smug.The opportunities that have been identified in the SWOT analysis above give the company a prospect for better act in future(a), especially if it puts its strengths to beneficial use. These opportunities include the increase in market involve for casual wear, opportunities to expand operations into new markets, and the scientific 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 device strategies that will motivate its employees avoid complacency and embark on blueprint 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 main threat, as highlighted in the case study, is the rivalry that exists in the industry. This has to be overcome by application of the strategies that were preliminary 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 of 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 confirm its brand position in the denim apparel industry. Several recommendation can however be made for Levi Strauss. superstar 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 trendy designs. From the Ansoff matrix below, the strategic directions that a company can use to position itself in the market are presented (Ta ylor, 2012).Two of the four strategic directions suggested by this model have already been adopted by Levi Company, that is, selling brisk products to existing markets and extending existing products 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. This will lead to larger consumer base hence higher(prenominal) revenue.ReferencesCunningham, J., & Harney, B?. (2012) outline and Strategists. Oxford Oxford University Press.Grant, R. M. (2013) Contemporary Strategy Analysis. upstart Jersey Wiley.Johnson, G., Whittington, R., Angwin, D., Regnr, P., & Scholes, K. (2014). Exploring Strategy text Only. UK Pearson Education, Limited.Ommani, A. R. (2011) Strengths, weaknesses, opportunities and threats (SWOT) analysis for farming system businesses guidance Case of wheat farmers of Shadervan Distr ict, Shoushtar Township, Iran. African daybook of Business guidance. 5(22). p.9448-9454.Porter, M. (2008) rivalrous Strategy Techniques for Analysing Industries and Competitors. New York Simon and Schuster.Tanwar, R. (2013) Porters Generic Competitive Strategies. Journal of Business and Management. 15(1). p.11-17.Taylor, E. C. (2012) Competitive utility Planning Using Ansoffs hyaloplasm with Abells Model to Inform the strategic Management Process. Academy of Strategic Management 10(1). p.21-25.Zott, C., Amit, R., & Massa, L. (2011) The business model recent developments and future research. Journal of management 37(4). p.1019-1042.