Levis Strauss & Co. an Analysis

2383 WordsApr 6, 201010 Pages
Levi Strauss & Co. An Analysis EEP 142 Group Project Young Lee James Moon Michael Lin Problem •The Levi Strauss company is experiencing losses and is continuing to under-perform in the denim jean market. •The firm faces the general problem of a dominant firm losing market share when more firms enter the market. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Background - History •The company was founded by Levi Strauss in 1853 primarily selling wholesale dry goods. The company was founded in San Francisco, California. •A tailor named Jacob Davis thought of an idea to use copper rivets to reinforce the points of strain on pants. •Davis and Strauss purchased the patent of the idea of using…show more content…
Although Levi’s jeans may be physically the same as its competitor’s, consumer preferences are affected by brand name. •In addition to the idea of branding, Levi’s largest consumer market were Baby Boomers, and by the time competitors increased in the 1980s, the Levi’s brand was perceived to be “mommy jeans.” This reinforced the more youthful perception of other brands. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Competition - Premium Jeans •Levi’s failed to recognize and enter a new and booming premium jeans market, originating in 2000 and led by brands such as Seven For All Mankind, True Religion, and Rock & Republic. •Levi executives themselves admitted failing to see the premium jeans trend, and the company was forced into radical cost-cutting, closing dozens of factories and laying off thousands of workers. •The premium jeans market has over the last five years largely driven the growth of an otherwise stable jeans market, as premium jeans sales grew at a 40-45% rate for multiple years. Levi’s failure to adequately respond to this trend was a large part of its posting declining sales in nine
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