SWOT Analysis of Levi Strauss and Co - Essay Example

of the Business of the Concerned 30 December Business Studies Part I. Levi Strauss & Co. - A SWOT Analysis There isno denying the fact that a sustainable and vibrant business does need to have a proper hold over the advantages and opportunities it tends to command in the contemporary, fast altering markets (Golembiewski 2000, p. 838). In that context, it will be really pragmatic to attempt a SWOT analysis of the Levi Straus, so as to get an insight into a viable way out of the problems and challenges being faced by this company in the contemporary market scenario. When it comes to the specific strengths at the disposal of Levi Strauss, the company’s big asset is the strong hold it has over the already existing product line that is the jeans (Gilligan & Wilson 2003). The customers interested in jeans do view Levi Strauss as a brand that could be trusted. Thus, the positive customer perception is further bolstered by the hold that the company has over the varied aspects of the apparel business that is purchase, production, marketing and sales. Besides, the company has also made salubrious inroads into the new product lines through diversification, which portends a positive future. The company does has the financial resources at its disposal to be invested into new product lines and entering new markets. However, it does need to be mentioned that the strengths acquired by the company came with a heavy price. The company did come out with some product lines like the permanent press slacks, the denim bathing suit and the disposable sheets and towels, which did not gel with the already existing product lines and lead to considerable losses. So the company needs to avoid entering into such flop product lines (Adcock 2000, p. 90). This may jeopardize the strong brand image of Levi Strauss and dilute customer perceptions (Reddy 1994, p. 129). The demographic aspects associated with the traditional customers are also going against the company, as it faces tough competition from the established competitors like Wranglers and Lee. However, the company has a potent opportunity at its disposal in the sense that the hitherto loyal customers that grew up wearing Levi Strauss jeans are likely to graduate to casual products affiliated to the upper end of the market. In that sense, Levi Strauss has a viable opportunity at its disposal to garner the ascending interest of these customers by expanding into such product lines. The biggest threat that the company faces is relying predominantly on the established product lines, which may fade away soon (Gilley 2005). Besides, a less than proactive attitude may give advantage to the other established competitors. Also, expanding into product lines that do not deliver the expected customer satisfaction may dilute the brand appeal of the company. Hence, the best possible way out for the company is to expand into product lines that cater to the proceeding tastes and requirements of the already loyal customer base, while desisting from venturing into lines that rub away the exiting brand reputation, while extending unwanted advantage to the established competitors. Reference List Adcock, Dennis 2000, Marketing Strategies for Competitive Advantage, Wiley, New York. Gilligan, Colin & Wilson, Richard MS 2003, Strategic Marketing Planning, Butterworth Heinemann, Boston. Gilley, Ann 2005, The Manager as Change Leader, Praeger, Westport, CT. Golembiewski, Robert T 2000, Handbook of Organizational Consultation, Marcel Dekker, New York. Reddy, Allan C 1994, Total Quality Marketing, Quorum Books, Westport, CT. Part II. McDonald’s and the Health Conscious Consumer It goes without saying that McDonald’s has been a leading fast food brand not only in the US, but in a more current context, the world over. However, with the consumers getting more health conscious and the commensurate health trends like the rising number of obese people within the population, many of the McDonald’s existing product lines that also happened to be high calorie products are poised to lose their appeal in the coming times (Gard 2005, p. 21). It is a fact that the heat from the health affiliated pressure groups is gradually rising so far as the McDonald’s is concerned and the company is also well aware that in the coming times it needs to expand into opting for new and effective solutions, so as to be able to retain its viability and profitability. In the fast food industry, the consumer preferences and choices are rapidly changing in the light of the inputs being facilitated by the more recent research. In that context, McDonald’s had always felt proud about its already established product range, which had also been responsible for accruing maximum profitability to the company. Besides, McDonald’s has always made it a point to dedicatedly target the culinary preferences of the children and teenagers (Dalton 2004, p. 92). However, with the rising precedence of obesity and the associated health problems amongst the children and the teenagers, a considerable segment of the consumers is getting wary about the type and kind of food being sold by the company (Kitchen 2004, p. 39). This is alienating a large segment of consumers and is in a way directly challenging the viability and profitability of the company, both in the short and long run. Besides, many of the already established and new competitors are already coming out with the fast food that specifically caters to the needs and requirements of the more health conscious consumers. A consistent segment of the politicians, health related agencies and concerned customers are also openly challenging the health related credentials of the product lines being sold by the company. The good thing is that the company is not only aware of the dwindling potential of the already existing product lines, but is already moving a step ahead to ameliorate the health issues being raised by the consumers (Gubman & Russell 2006). McDonald’s is trying to reposition and diversify itself by coming out with new product lines that do promise an immense success in the coming decades. McDonald’s new line of Premium Salads has not only turned out to be a success, but is poised to reposition the overall image of the company (Fry 2003). McDonald’s has also taken many other approaches to enhance its appeal to the health conscious consumers. The company has also shrunk the size of many of its already existing high calorie products (Fry 2003). The company is also adding fruit and veggies to its existent meal plans and is providing the calorie information regarding its products aimed at challenging the obesity related trends. McDonald’s being a successful business does know the importance of consumer preferences and choices and is coming out with healthier, new product lines, while reconfiguring many of the existing product lines. Reference List Dalton, Sharron 2004, Our Overweight Children, University of California Press, Berkeley, CA. Fry, Eric 2003, ‘Fast-food’, Vegetarian Times, September 2003, p. 62. Gard, Michael 2005, The Obesity Epidemic, Routledge, New York. Gubman, Ed & Russell, Steve 2006, ‘”Think Big, Start Small, Scale Fast”. Growing Consumer Innovation at McDonald’s’, Human Resource Planning, Vol. 29, no. 3, pp. 21-22. Kitchen, Philip J 2004, Integrated Marketing Communications, Routledge, New York. Read More