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The Strategic Management Process of a Major Apparel and Denim Brand, Levi Strauss - Case Study Example

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This study aims at evaluating and analyzing the strategic management process of a major apparel and denim brand, Levi Strauss. For this purpose, the strategic decisions and processes employed in the company by the newly appointed  Chief Executive Officer of the company, Chip Bergh…
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The Strategic Management Process of a Major Apparel and Denim Brand, Levi Strauss
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Download file to see previous pages In this paper, the case of “Levi Strauss- The Boss and the Yogi” as published in the Economist in the year 2014 is analyzed through the application of relevant business and corporate strategy models with the aim of identifying the current strategic position of the brand, understanding the core and contemporary strategies taken up by the company in the recent years, identifying the success of the employment of the new strategies and finally for recommending a suitable future strategic direction for the company. Levi Strauss uses the generic strategies of cost leadership and cost focus in which the company is trying to reduce the overall expense of the business by developing more efficient logistics and procurement systems in their global operations, trying to increase the profit levels by decreasing the operating costs while at the same time maintaining the product prices as per the industry standard. The company is also using the cost focus strategy to ensure that it can leverage on the customer sentiments associated with the brand and maintain the high prices of the products while at the same time remaining sufficiently competitive in the markets of operation. The intensity of competitive rivalry: The intensity of competitive rivalry is extremely high for Levi Strauss. Over the last few years, both the revenues and profits of the company have dropped by considerable extents due to the high degree of competiveness in the industry and the internal weaknesses of the company itself. Currently, the company is experiencing a declining market share in the American as well as global denim markets. The shares of the company have decreased from 7.2% to 5.3% in the period from 2004 to 2013. The threat of new entrants: The threat of new entrants is medium for Levi Strauss. This is because there are many established big and small players in the denim market which create high entry barriers for a new player in the market. Also, this market is so intensely concentrated that there is hardly any market gap left for a new company to enter into and position itself.  ...Download file to see next pagesRead More
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