Threat Of Five Pest Analysis Of Levi's Strauss

2.0 Porter’s five forces of Levi’s Strauss

Threat of new entrants – low

• Entry into a market where the production volume is so high already is not really a threat because the cost of production goes down.

• Levi’s can produce more at a lower price and possibly sell for more. Bargaining power of supplier – low

• Competition within manufacturer is high since it is mass – produced.

• Manufacturer is located in many third world countries: Central America, China, Cambodia therefore Levi’s can switch to other manufacturer easily.

Threats of substitute product - high

• Buyers are likely to shift to other products considering the weather conditions.

• Low price jeans.

• Substitute like formals and trousers Bargaining power of customer – high

• The power of buyers is comparatively high considering the fact that they can simply change to other brands.

• Converting cost is low.

• substitutes

Competitive rivalry – high

• high chance for customers to shift to substitute brands – ( CK jeans , guess jeans, DKNY jeans and Diesel)

• mid – class employees prefers low rated jeans

• Low level of product difference will increase competition because of no brand ID.

3.0 Value chain – primary activities

3.1 Value chain –support activities

4.0 PESTEL analysis of Levi’s Strauss

PESTEL analysis module is which categories the environmental factors into key types. In this module Political, economic, social, technological ecological and legal factors are often