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L e v i S t r a u s s
& C o .
Market Failures
Levi Strauss & Co.
Wicked Problem
COMPLACENCY
Underestimated the
Competition
Product Design
Failure to Meet
Niche
Markets/Trends
Complacency
LS&Co.'s Market failures
Levi is rated in the top
5 of Most American
Brands... Yet LS&Co.
outsources 95% of its
products
IMPERFECT COMPETITION
1 2 ...
LEVI'S LIFE CYCLE
ASSESSMENT
CARE TAG FOR THE PLANET IN-STORE PROMOTION
LS&Co. Created the First
Apparel Industry Life
Cyc...
Men's Wear Accounts for
75% of LS&Co.'s Business.
Leaving the Women's Line
Vulnerable to an Already
Overcrowded Market
OPP...
Slow Response to
Trends
Failure to Meet
Niche Markets
NEEDS OF DIFFERENT GROUPS
“The average
consumer’s closet is
composed...
STRENGTHS
1. Authentic "American"
Branding 
2.Pioneered the Denim
Industry 
3. Wide Range
Distribution Channels
and Global...
Levi strauss & Co. Market Failures
Levi strauss & Co. Market Failures
Levi strauss & Co. Market Failures
Levi strauss & Co. Market Failures
Levi strauss & Co. Market Failures
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Levi strauss & Co. Market Failures

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Levi strauss & Co. Market Failures

  1. 1. L e v i S t r a u s s & C o . Market Failures
  2. 2. Levi Strauss & Co. Wicked Problem COMPLACENCY
  3. 3. Underestimated the Competition Product Design Failure to Meet Niche Markets/Trends Complacency LS&Co.'s Market failures
  4. 4. Levi is rated in the top 5 of Most American Brands... Yet LS&Co. outsources 95% of its products IMPERFECT COMPETITION 1 2 3 Fast Fashion Retailers and Premium Denim Lines have been "chipping away" at LS&Co.'s market dominance FALLACIES FACTS PRODUCTS No longer monopolized the denim market... Private Ownership Enforced Complacency Levi's vs Main Competitors Return on Assets Ratio   
  5. 5. LEVI'S LIFE CYCLE ASSESSMENT CARE TAG FOR THE PLANET IN-STORE PROMOTION LS&Co. Created the First Apparel Industry Life Cycle Assessment The Study Showed That Most Water Use Happens During the Consumer Care Stage Levi's Study Has Shifted the Blame of the Company Being Wasteful to the Consumer LS&Co. Heavily Promotes Sustainability Through Their Online Presence and Care Tag Initiative... However, LS & Co.'s Instore WaterLess Items are not as Heavily Promoted - Consumer Expected to Inquire About the Water:Less Products. INFORMATION ASYMMETRY
  6. 6. Men's Wear Accounts for 75% of LS&Co.'s Business. Leaving the Women's Line Vulnerable to an Already Overcrowded Market OPPORTUNITY COSTS CONSUMER Design LS&Co. Men's Sales "Focus on innovative products and initiatives is great, but they've failed to meet the basic consumer needs."
  7. 7. Slow Response to Trends Failure to Meet Niche Markets NEEDS OF DIFFERENT GROUPS “The average consumer’s closet is composed of around 7 to 8% denim, if you could just snapshot the value… That means by definition that more than 90% is not denim” Failure to Respond to Consumer Feedback and Trends. Private Ownership Allows for Complacency and Slow Growth CONSUMERS CONSEQUENCES PRODUCERS/MEDIATORS CONSEQUENCES Continuous Revenue Loss Problems Staying Relevant and Trendy to New Market Segments
  8. 8. STRENGTHS 1. Authentic "American" Branding  2.Pioneered the Denim Industry  3. Wide Range Distribution Channels and Global Outsourcing  OPPORTUNITIES 1. Entry into the "Athleisure" Market  2. New Emerging Global Markets 3. Incorporate Stretch into the Women's Line   WEAKNESSES 1. Slow Response to Trends  2.  Increased Competition of Niche Markets  3. Slow Growth Rate SWOT ANALYSIS THREATS 1. Fast Changing Consumer Tastes  2. Increased Competition 3. Product Substitution  

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