Levi Strauss Case Study Marketing Essay

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Levi Strauss Case Study Marketing Essay

Levi Strauss & Co.

 

Type of Industry

Apparel

Headquarters

San Francisco, California, USA

Sales/Revenue

US$5.575

Area Served

Worldwide

Number of Stores

824 (Approx.)

Competition

1) Wrangler.

2) Diesel.

3) Lee Jeans.

4) Pepe Jeans.

5) Calvin Klein.

6) True Religion.

7) Armani.

8) Killer.

USP

Strong portfolio of brands

Target Group

Young adults

Products

jeans

Website

www.levi.com

Levi Strauss Case Study Marketing Essay Introduction

Levi Strauss & Co. (Levis Strauss), the American clothing giant, is a globally reputed brand of denim jeans. Founded by the German immigrant Levi Strauss, the Company has now been considered as one of the most renowned clothing brands of the world. The Levi Strauss case study marketing essay must be composed in order to ascertain the business position and the factors contributing to the success of Levi Strauss’ business worldwide. A thorough SWOT and PESTLE analysis is essential to conduct in order to strengthen the Levi Strauss case study marketing essay. Moreover, the analyses will also help the target audiences in determining the business potentials of Levi Strauss.

Levi Strauss Case Study Marketing Essay SWOT Analysis

Strengths

One of the primary strengths of Levi Strauss, as revealed by the Levi Strauss case study marketing essay, is that, it has got a strong portfolio of brands. The popularity of the Company’s brands and its strong brand image on a global basis should be considered among the primary strengths of the Company. Moreover, the Levi Strauss case study marketing essay reveals that all the brands of Levi Strauss have global popularity and this has added to the Company’s strengths. Besides, a strong global presence of Levi Strauss also should be considered among the primary strengths of the Company. Available in over 110 countries, Levi Strauss’ products have the potential to cater to the demands of its global customer segments. Furthermore, as the Levi Strauss case study marketing essay reveals, the Company has multiple distribution channels, and this has made it easier for Levi Strauss to strengthen the process of its market penetration on a continuous basis.

Weaknesses

One of the primary weaknesses of Levi Strauss, as revealed by the Levi Strauss case study marketing essay, is that, the Company relies hugely on few wholesale customers and this heavy dependence limits the Company’s business growth and expansion. In this respect, it must be noted that any conflict with any of the major wholesalers can eventually put the business of Levi Strauss at stake in the long-run. The Levi Strauss case study marketing essay also reveals that much reliance on contract manufacturers is yet another weakness of Levi Strauss. This is because; over dependence on independent product manufacturers can face the Company with business risks on a global basis. Imitation and duplication of the Company’s products is yet another weakness of Levi Strauss and this weakness has the potential to incur huge loss to the Company’s global business.

Opportunities

The growth in the United States apparel market has provided growth opportunities to Levi Strauss. Moreover, the Levi Strauss case study marketing essay reveals that the strong inclination on the part of the global youths towards purchasing jeans of Levi Strauss also provides opportunity to the Company to spread its business and maintain profitability. Besides, the developments in lifestyle of people belonging to emerging economies also provide opportunities to Levi Strauss to expand its business on a global basis.

Threats

The stiff competition in the global apparel industry must be considered a serious threat to Levi Strauss’ business. The Levi Strauss case study marketing essay reveals that, the Company is already facing tremendous competition from various global and local brands that are playing key roles in the global apparel industry. Moreover, increasing labor costs should also be considered a serious threat to the global business of Levi Strauss. In this respect, it should be noted that the increase in labor costs has triggered the rise in the production cost, and this rise has eventually affected the pricing strategy and structure and the sales of Levi Strauss thoroughly.

Levi Strauss Case Study Marketing Essay PESTLE Analysis

Political Environment

Political environment plays a crucial role in determining the fate of a business. This holds true for Levi Strauss. The Levi Strauss case study marketing essay reveals that a stable political condition in the United States and a stable government has ensured stability in the overall business of the Company. Besides, the lower rate of corruption in the political system has also ensured the business prosperity of Levi Strauss. Moreover, the Levi Strauss case study marketing essay reveals that low rate of government interference in the free market of the United States has also allowed Levi Strauss to enhance its business globally.

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Economic Environment

Economic environment plays a decisive role in shaping the future of a business. In this respect, it must be noted that Levi Strauss has succeeded in penetrating the markets characterized by emerging and growing economy. This has added to the growth opportunities for the Company in many developing countries. Moreover, as the Levi Strauss case study marketing essay reveals, the lowered rates of inflation on a global basis has also helped the Company to sustain its profitability worldwide.

Social/Socio-Cultural Environment

The inclination of the majority young members of different societies across the globe to wear jeans products has strengthened the business prospects of Levi Strauss. Wearing jeans has now become a cultural symbol in many societies, and this trend and cultural representation has provided opportunities to Levi Strauss to enter new markets and target new customer segments in many emerging economies. This has added to the Company’s business vigor. Moreover, a steady financial growth among the middle class in majority of countries of operation has also provided chances to Levi Strauss to market its products to potential customer segments, and this has ensured the Company’s global profitability in a thorough and effective manner.

Technological Environment

Advancements in the Internet technology and innovations ushered in social networking platforms have helped Levi Strauss in improving its external communication channels. This in turn has helped the Company in enhancing its online marketing efforts and its customer care services on a global basis. Moreover, the lower cost of technology diffusion in the United States has also helped Levi Strauss in strengthening its market hold both domestically and internationally.

Legal Environment

Strong and effective intellectual property laws and data protection laws have made it easier for Levi Strauss to conduct its business with much ease and with sheer profitability. Moreover, consumer protection laws have compelled the Company to remain customer-oriented, ensuring customer protection and satisfaction. This, in turn, has enhanced the Company’s market reputation.

Environmental Factors

Considering the importance of incorporating sustainable practices in business operations, Levi Strauss has strived for sustaining its carbon neutrality. This effort has also helped the Company in emerging as an energy efficient Company that works for a greener economy.

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