After reading the Levi’s Case from our textbook, respond to the following prompts in one to five sentences: Based on the information in the case (and as of the case’s date, 2013)
• What is Levi’s strategy? o Where is Levi’s on spectrums of differentiation and cost leadership? What are other important elements of Levi’s strategy? Would these change under CCTC’s proposal? • How is Levi’s able to differentiate? o Which source(s) of differentiation are relevant (see Chapter 5 and Table 5.2 of textbook for sources)? o Which of Levi’s capabilities/resources are most important for maintaining a differentiation advantage? • Evaluate the external environment and its strategic implications at two levels: o Broader industry: apparel manufacturers o Specific industry: jeans manufacturers
How attractive is its industry what are the key industry forces and success factors? o Do any major manufactures of jeans (with substantial market share) have broader product offerings (e.g. jeans < 50% of total revenue)
Should Levi widen their offering offerings (if so to where) based on the analysis of its competitors (both those who are focused and diversified) • Analyze CCTC’s proposal & its impact on Levi’s participation in the value chain? o What does the value chain look like for Levi’s with & without the CCTC offer? o How else could Levi’s adjust its participation in the value chain? o Evaluate potential outcomes – Do Levi’s resources/capabilities support implementing CCTC’s offer; what are the strategic and financial upside and downside and how certain are the outcomes (e.g. impact of external environment change, reliability of the cost savings estimates, etc.)
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