Swot analysis of Levi's - Strauss company?

Answer 1

Based on Levis Strauss unique resources and capabilities as to be the first mover in the industry and one of the ten top US recognize brand name has to continue developing new products (as the jacket with MP3) and looking after new markets (example Russia and Central Europe) this will allow to adapt to the fast consumers taste changes and to move away from the saturation of the jeans market.

1-Strengths

• History

• Brand Name

• Finance and Access to international capital

• Management

• Expertise in Jean's industry -R&D

• Distribution Channels and global sourcing

2-Weaknesses

• High costs of brand protection

• Lack of control over quality (licensing)

• Lack of control over distribution decisions (Retailers pressures to stop selling on the Web)

• Distribution conflicts (Large food retailers i.e. Tesco have been selling Levi products at lower prices than standard, damaging other channel s such as Levis Strauss stores)

3-Opportunities

• Arising of new markets such as Central Europe and Russia (to supply local demand)

• Technological development lower production and coordination activities

• Low manufacturing and production costs in various international markets (i.e. Bangladesh)

• Development in other industries such electronic (MP3 Player) could pose new opportunities for complementing new Levi's products.

• Total market for casual wear is growing

4-Threats

• Saturation of Jeans' Market

• Competition from products of the higher end of the market i.e. Mochino and D&G

• Economic downturns in some countries

• Fast changes in consumer tastes

• Local regulations on advertisement such as the case when Levi's had to hire the services of a Brazilian ads company to release TV ads; and the increase tariff and non-tariff barriers.

• Lack protection of property rights in some countries such as China.

• Increasing competition from Gap, Guess, J.C. Penny, Nike, Osh Kosh, Oxford, Polo, etc.

by Naseer Ahmed Channa