Swot Analysis Of Levis
Acknowledgement
We would like to acknowledge the help of Professor Kaushik Datta who has been very supportive throughout the study. Without his consistent mentoring, this report would not have been a success. I would also like to express my gratitude to the Levis store owners and the employees who were courteous to us and helped us in our study.
Constructive criticism and feedback would be highly appreciated.
Table of Content
About Levi
Levi Strauss & Co is a privately held American clothing company known worldwide as Levi's. It was founded in 1853 when Levi Strauss came from Bavaria to San Francisco, California to open a west coast branch of his brothers' New York
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The use of copper rivets in jeans increased the durability of the jeans and thus differentiated the jeans from other regular jeans. This patent gave a monopoly power to the company as it created an entry barrier for other companies on selling riveted jeans.
More differentiation was created by proper positioning of the product. This contributed in the increase in the market share of the company.
As the jeans were positioned to be used by cowboys, the high interest in the culture of the west thus led the survival of the company through the great depression of 1930. As the employees in the defense industry were issued Levi’s jeans during World War II, when those veterans went to college wearing the jeans, it increasing popularity as the veterans of World War 2 were considered to be heroes.
The jeans were positioned to be suitable for casual wear. Levi’s targeted youngsters by describing the product as “cool.” They used celebrity endorsements and the jeans symbolized youth. Gradually the demand shifted from durable jeans to fashionable jeans. New products were included with change in time and
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It ruled the market for a very long period of time. But suddenly it faced decreased in the sales, failed products, and lost the market share. So what were the possible reasons for these events? Was it because the consumer preference changed? Or the new brands that entered the market, like UCB, Mufti, etc. gave a stiff competition that was too much for Levis’ to handle? Or was it because they were unable to change with time and were stuck with the denim only and were not able to address to the changing needs of the
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