Saturday, April 27, 2019
The Strategic Management Process of a Major Apparel and Denim Brand, Case Study
The Strategic counselling Process of a Major Apparel and Denim Brand, Levi Strauss - Case Study ExampleIn this paper, the outcome of Levi Strauss- The Boss and the Yogi as published in the Economist in the year 2014 is analyzed through the industriousness of relevant business and corporate strategy models with the aim of identifying the current strategic position of the brand, understanding the content and contemporary strategies taken up by the family in the recent years, identifying the success of the employment of the freshly strategies and finally for recommending a suitable future strategic direction for the company. Levi Strauss uses the generic strategies of equal leadership and cost focus in which the company is trying to reduce the overall expense of the business by developing more efficient logistics and procurement systems in their global operations, trying to increase the profit levels by diminish the operating costs while at the same time maintaining the product prices as per the industry standard. The company is also using the cost focus strategy to ensure that it can leverage on the node sentiments associated with the brand and maintain the gamey prices of the products while at the same time remaining sufficiently warring in the securities industrys of operation. The intensity of competitive rivalry The intensity of competitive rivalry is extremely high for Levi Strauss. everywhere the last few years, both the revenues and profits of the company have dropped by considerable extents due to the high degree of competiveness in the industry and the internal weaknesses of the company itself. Currently, the company is experiencing a declining market share in the American as well as global denim markets. The shares of the company have decreased from 7.2% to 5.3% in the period from 2004 to 2013. The threat of impudent entrants The threat of new entrants is medium for Levi Strauss. This is becausethere are many realized big and small playe rs in the denim market which create high entry barriers for a new player in the market. Also, this market is so intensely concentrated that there is hardly any market gap left for a new company to enter into and position itself.
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