Levi's example - swot
Issue: How can Levi's Strauss sustain its competitive advantage/differentiations to retain absolutely free themes? Whether the firm should agree to the personal match proposal?
Strength - Levi's holds a top placement in the clothing industry. It has successfully used differentiation strategies in its organization with its history of a highly recognizable brand name and brand dedication. It costs customers a premium on its products by providing appreciated features.
Weakness - Levi's features high work costs due to its strong " social conscience, ” " US-made” tenacity, and nice salary and benefits packages. Also, the chain of Original Levi's Stores (OLS) is a weak spot in Levi's operations. Even though the OLS contains a 30% bigger profit per pair of denim jeans than the low cost channel, it was less successful than the from suppliers channel due to significant operation costs (largely due to the added SG& A costs) and inventory costs. In addition , the brand name would not carry all the cachet, so Levi's essential new respected features to differentiate alone.
Opportunity - Apparel imports were raising faster than exports plus the denim product sales grew about 10% annually. These suggested that there were a significant demand in the market and potential expansion for the corporation. Also, there is an growing requirement of rendering sufficient modification and keeping reasonable costs and functional feasibility, which will created a expensive niche market that permits Levi's in order to avoid price-based competition and shoot for differentiation.
Menace - In the lower end market, jeans suppliers set up low-cost overseas facilities. This allowed the cheap, high-volume makers to gain price advantages above Levi's. Inside the upper end of the marketplace, more expensive brands targeted the affluent consumers. As a result, Levi was at a disadvantaged location in the two market sectors.
There are two main alternatives for the Levi's work to retain the competitive...