Levi Strauss & Company, maker of Levi's popular 501, 512, and 711 jeans, also makes a...

 

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Levi Strauss & Company, maker of Levi's popular 501, 512, and 711 jeans, also makes a brand that was introduced for discount retailers such as Walmart. Levi's strategy with the new jeans (the Signature brand) was to sell a competitively priced pair of jeans. The jeans are about one-half or less the price of the popular 501, 512, and 711 jeans. To reduce costs Levi's: Uses cheaper fabrics and materials. • Shuns costly mass-market advertising. • Strictly limits the variety of fits, styles, and colors. Required: 1. Assess the new strategy at Levi's. What do you think to be the potential benefits and risks? 2. How will the firm's value chain and balanced scorecard change as a result of the new strategy? Levi Strauss & Company, maker of Levi's popular 501, 512, and 711 jeans, also makes a brand that was introduced for discount retailers such as Walmart. Levi's strategy with the new jeans (the Signature brand) was to sell a competitively priced pair of jeans. The jeans are about one-half or less the price of the popular 501, 512, and 711 jeans. To reduce costs Levi's: Uses cheaper fabrics and materials. • Shuns costly mass-market advertising. • Strictly limits the variety of fits, styles, and colors. Required: 1. Assess the new strategy at Levi's. What do you think to be the potential benefits and risks? 2. How will the firm's value chain and balanced scorecard change as a result of the new strategy?

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1 Assessing the new strategy at Levis Potential benefits Increased market share By offering competitively priced jeans Levis can target a broader cust... View the full answer