(1). Identifying and Exploiting Opportunities

For sophisticated international firms, assessing global markets, opportunities and challenges is an ongoing process. Levi Strauss is the largest manufacturer of trousers, notably denim jeans. Countries differ in their tastes and fashions, which necessitates adapting products and services. Levi regularly seeks new opportunities to sell its products and reduce its worldwide operating costs. As it enters new foreign markets, Levi must surmount various challenges. For example, the firm had to substantially adapt its approach in Islamic countries, where women are discouraged from wearing tight-fitting attire and generally do not interact with male sales personnel. In Japan, local preferences and the smaller physique of many Japanese required Levi to make its blue jeans tighter and smaller. Levi does much of its manufacturing in low-cost countries, in order to reduce production costs. Levi sells its trousers in over 100 countries, and international shipping and logistics pose various challenges. Recently, in order to find new markets and cost-saving ideas, Levi managers decided to conduct a global market opportunity assessment.

(i)   Summarize the process that Levi should undertake when performing such an assessment, and provide some examples of what Levi management might learn in the course of such an assessment.

 (ii)  Describe the screening methodologies that Levi could employ in order to find potential foreign markets.

(iii)  Identify some key global macro trends that might affect Levi’s international business, and how the firm could take advantage of these trends (e.g., Levi might find new customers in particular world regions). What are some of the lessons learned by other companies and how could Levi’s take advantage of these lessons?

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Introduction In the current competitive business landscape numerous companies have recognized that expanding their market share necessitates a global approach Various factors including advancements in ... View the full answer