GLOBAL MARKETING

Global Marketing: Levi Strauss



Global Marketing: Levi Strauss

Question 1

The name of Levi Strauss is popular as a an apparel manufacturer. Levi Strauss is engaged in production of a high proportion of blue jeans which it supplies around the world. The company also has clothing brands like Britannia, Slates, and Dockers (Cuneo 1999). The company distributes its products in more than 60 countries, and has 53 production sites in 49 countries across America, Europe and Asia. Levi has had a monopoly due to high entrance barriers and differentiation, but this is quickly changing due to saturation of the market. Moreover, due to the economic recession that spurred the global economy, Levi could not pace up with the economic and market changes of its products (Johnson 2009). In 2007, competition has soared, with Deisel brand exploiting many market opportunities. Levis introduced its Dockers brand using a differentiation strategy. However, there were other impeding factors well beyond the strategic control of Levi's operations. Although the company earned a decent £ 6 billion in 2010 (Doorey 2011), it needs to continue monitor the environmental variables using tools like PESTEL that reflects a sensitive and informative marketing information system.

The best marketing perspective action that could have been taken by Levi's in achieving its 2010 position is implementing the PESTEL model. PESTEL model can be look as a market research analysis which views and group environmental factors as a whole group picture and it is purposely for the manager to make decision for the organization. PESTEL can also let the manger to see the current market status, business position, and the opportunities of growing products and business (Wunker 2011). The factors determine the strategic direction and moves of the company, and are crucial to plan a change strategy. Still, however, these factors are not always controllable, and therefore must by accounted in strategy as possible threats or opportunities. Altogether, the six PESTEL factors that are grouped in a model, with the first factor as the 'political factor' which relates to the terms and change and activities of the government. For instance, tax rates and subsidies are accounted for by adjusting or increasing product prices. The second factor is the economic factor which looks into the current economy situation, such as inflation or recession and the exchange and interest rate. Manager will invest in more machinery or other investments when the interest rate is low. The third factor is the sociological factor which looks into the current needs and culture of the social. For instant, the demand of skinny jeans among the youngsters have increased, Levi's will design and produce this kind of jeans (Dolbow 2000).

The next factor is the technological factor which deals with the affect changes or growth of technology of Levi's. This factor should be consider seriously by Levi's, because the new development of technological can reduce the manufacturing cost and create better quality products. The other factor is the environmental factor, which is about the current climate and the environmental ...