Levis Strauss Case Study Analysis

IntroductionCompanies use various dodging flummoxs to analyse their stream status and formulate strategies for future directions they ought to take (Johnson et al., 2014). With the high level of dynamism than characterises the present-day business environment, companies need to be aw ar of their internal capabilities, and use them to lot with the external threats and opportunities. Among the models that prat aid in this doorkeepers generic strategies, the PESTEL and SWOT frameworks and Porters five forces (Zott, Amit and Massa, 2011). This paper presents an analysis of a causal agent study about Levis Strauss three Porters generic strategies, and further determines the familiaritys strategic position using SWOT analysis. Models2.1. Porters Generic strategies (From the fibre study) Narrow Market ScopeSegmentation strategy1.Older disaffected shoppers fans who love us but quite frankly left us2.The lost generation fans who dont re all(prenominal)y know who we areBroad Market ScopeDifferentiation strategy1. Classic pieces of clothing such(prenominal) as button fly and trucker jacket that are the seam for the giant business of denim2. Return the brand to its roots while moving forward3. Innovation- Levi Strauss is using high-tech by involving a group of 30 people on its Eureka lab to work on 30 prototypes a week. The company encourages the conversion of ideas into design in less than 24 hours embody leadership1. Reduction of inflated cost structure by the new Levi chief operating officer2. Progressive growth in sales volumes for successive years. Uniqueness CompetencyLow Cost Competency2.2. SWOT Analysis (From the case study) Strengths1. Popular and strong brand name2. Expertise and experience in the denim Industry3. Focus on things other(a) than profits- captioned profits through principles for examples, donations and scholarships4. Levi Strauss company has a visionary CEO in Chip Bergh Weaknesses1. The company focuses too much on brand protection2. r estrict business growth due to increase in challenger from other denim companies3. Complacency in coming 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 company incurs high expenses in paying wages. Opportunities1. The casual wear market is growing fast2. internationalization into emerging markets characterised by low 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. Increasing Competition from low end substitutes such as Lee and Wrangler hence lower market assign4. Very close competition for market share with rivals targeting the same high-end customer nates Discussion3.1. Porter Generic strategiesMichael Porter suggests 3 broad generic strategies that can be used by a company to outperform its competitors (Porter, 2008). The se 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 insertion of Chip Bergh the companys new CEO cut the cost and pricing structure that was previously inflated as it targeted high-end customers. The leaded prices might non be lowest in the industry, 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 competitors. These include creation of unique designs, adoption of new technologies and making cha nges 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 deliberate to the segmentation strategy, the company strives to meet the take and specification of a given target market for instance type of product, location of sales or the kin of customers it targets. In relation 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 zip about it. By defining its customer segments, the company is able to design products and services that are tailored towards matching the needs and preferences of these groups. as argued by Porter (2008), a company that fails to develop any strategy in regards to the three broad ca tegories defined by Porter is considered as being stuck in the midpoint 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 knowledge about a company or organisation 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 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 wasted 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 growth of retail shops. These strengths have enabled the company to survive the competition it has faced from companies like Zara and H&M.The major weakness that was say 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 bendable enough to match 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 may have been periods where we thought the brand itself could carry us through thick and thin, there is no inquire that we got complacent.The opportunities that have been identified in the SWOT analysis above give the company a prospect for better performance in future, specially if it puts its strengths to beneficial use. These opportunities include the increase in market demand for casual wear, opportunities to expand operations into new mark ets, and the technological developments taking place in the path 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 designing 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 earlier discussed in Porters generic strategy model. This will make the company a formidable competitor in the industry. shoemakers last 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 strengthen its brand position in the denim apparel industry. Several recommendation can however be do 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 until now trendy 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 existing 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 thi s 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 revenue.ReferencesCunningham, J., & Harney, B?. (2012) Strategy and Strategists. Oxford Oxford University Press.Grant, R. M. (2013) Contemporary Strategy Analysis. New 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 management cheek of wheat farmers of Shadervan District, Shoushtar Township, Iran. African Journal of Business Management. 5(22). p.9448-9454.Porter, M. (2008) Competitive Strategy Techniques for Analysing Industries and Competitors. New York Simon and Schuster.Tanwar, R. 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