Levi's at Walmart

Levi's at Walmart

Introduction

Levi Strauss & Co is a brand of jeans, created in 1853 in the United States; this brand is now known as Levi's famous manufacturer of canvas trousers of John. In 1945, he moved to Europe through the GI's. It symbolizes the revolt of the younger generation. Levi Strauss is now the best known brand, with a turnover of over $ 4 billion. Levi's now affects the entire population through a timeless garment and is worn by every generation and throughout the world.

Levi Strauss & Co. had a strong competitive position early on being the original, the first, the best. Starting with their overalls in 1872 and their work pants in 1873, Levi Strauss and Jacob Davis began the blueprints for their "lot number 501s" which soon would become their trademark jean. By avoiding layoffs during the Great Depression, advertising in different languages, and promoting integrated factories, Levis soon became a fan favorite. With the help of product placement, Levi's remained popular throughout the years with the help of John Wayne, Marlon Brando, Marilyn Monroe, Woodstock, and Bruce Springsteen, and was known as the "cool" brand. They expanded to different lines and eventually had many diverse interests. They did not stop there. Levi's even developed the Dockers brand to reach a new segment of the pants market, which was a huge success. They kept expanding to include Silvertab as well. By 1996, Levi's was more successful than ever. They were at the top of the jeans segment and had formed a strong global brand that every household knew and recognized.

Problems Analysis

SWOT Analysis

Strengths

International expansion

Increasing profits and margins

Focus on sustainability

Weaknesses

Excessive exposure to the UK and USA consumer's

Opportunities

London Olympics and Paralympics games to increase retail sales

Expansion through partnership with Landmark

Positive outlook for online retail sector in the UK

Threats

Intense competition

Weak economic outlook for the UK and USA

Porters 5 Forces

Excessive exposure to the consumer

Despite international expansion, Levi's still derives a large portion of its revenues. The company's revenues are highly correlated to the discretionary spending patterns of the consumer. Another key disadvantage is that Levi's competes in the market with retailers like H&M and Gap who have global presence and enjoy the advantages of scale. Although the company has been focusing on international expansion, it still suffers competitive disadvantage compared to peers who have established operations in some of the fast growing economies.

Intense competition

The company operates in an environment characterized by intense competition. Its competitors include Gap, H & M Hennes & Mauritz, House of Fraser Group, Marks and Spencer Group, and Zara France are benefited by large economies of scale and they are also large in terms of revenue in comparison with Levi's. Additionally, in the international markets, the company faces high competition not only from the global players but also from the local brands. Therefore the company is vulnerable to extensive pricing pressures adopted by competitors. Despite its recent progress, Levi's international presence remains relatively low compared to its main rivals. With the players in this industry ...