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Levi Strauss & Co.: Swot Analysis

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SWOT ANALYSIS

LEVI STRAUSS & CO.

INTRODUCTION

Founded in 1853 by Bavarian


immigrant Levi Strauss
Levi strauss & Co. is one of the
worlds largest brand name
apparel marketers with sales in
more than 110 countries
In 2009 completed 15 years in
india

INTRODUCTION CONT

It expanded its portfolio from being a


jeans only brand to emerge as the
complete casual wear brand

MISSION

We will market the most appealing


and widely worn casual clothing in
the world. We will clothe the world."

VISION

We are the embodiment of the


energy and events of our times,
inspiring people with a pioneering
spirit.

VALUES

Empathy walking in other peoples shoes

Originality being authentic and innovative

Integrity doing the right thing

Courage standing up for what we believe

SWOT ANALYSIS

POTENTIAL INTERNAL THREATS

POTENTIAL INTERNAL STRENGTH

A distinctive competence?
Adequate financial resources?
Good competitive skills?
Well acknowledged market leader?
Well-conceived functional area strategies?
Access to economies of scale?
Insulated from strong competitive
pressures?
Proprietary technology?
Costs advantages?
Product innovation abilities?
Proven management?
Ahead on experience curve?
Other?

No clear strategic direction?


A deteriorating competitive position?
Obsolete facilities?
Subpar profitability because?
Lack of managerial depth and talent?
Missing any key skills or competence?
Poor track record in implementing strategy?
Plagued with internal operating problems?
Vulnerable to competitve pressures?
Falling behind in R&D?
Too narrow a product line?
Weak market image?
Competitve disadvantages?
Below-average marketing skills?
Unable to finance needed changes in strategy?
Higher overall unit costs relative to key competitors?
Other?

SWOT ANALYSIS CONT.


POTENTIAL EXTERNAL OPPORTUNITIES

Serve additional customer groups?


Enter new markets or segments?
Expand product line to meet
broader range of customer needs?
Diversify into related products?
Add complementary products?
Ability to move to better strategic
group?
Complacency among rival firms?
Faster market growth?
Others?

POTENTIAL EXTERNAL THREATS

Likely entery of new competitors?


Rising sales of substitute products?
Slower market growth?
Adverse government pressures?
Growing competitive pressures?
Vulnerability to recession and
business cycle?
Growing bargaining power of
custormers or suppliers?
Changing buyer needs and tastes?
Adverse demographic changes?
Others?

LEVI STRAUSSS SWOT ANALYSIS

OPPORTUNITIES
1.The consumer is becoming more leisure-oriented and
wearing jeans more often
2.Levi strauss more commands 43% of the market in
jeans
3.K-mart, Wal-mart and other retailers do not currently
sell Levis jeans

THREATS
1.Both Blue Bell and VF corps jeans are gaining market
share
2.Sears and J.C. Penneys may withdraw their orders
from Levi Strauss
3.Levi strauss traditional distributors are angered by
Levis policy of selling to mass retailers such as Sears
3. 1980-1982 were financially disastrous years for Levis

STRENGTHS

WEAKNESSES

1.Levi strauss has excess


working capital
2.Advertising effectiveness
is excellent
3.David Hunter has become
a successful fashion brand

1.Customer loyalty has


declined
2.Retail sales of Levis
jeans are declining
3. Nine plants have
been shut since 1982

SO Strategies

WO Strategies

1.Product development
S1,S3,O1
2.Forward integration
S2,O3

ST Strategies

WT Strategies
1.Retrenchment:W2,
W3,T3,T4
2.Martket
penetration :
W2,T3

THANK YOU.

QUESTIONS?

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