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, Early 2000's)
What is Levi’s strategy?
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?
Which source(s) of differentiation are relevant (see Chapter 5 and Table 5.2 of textbook for sources)?
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:
Broader industry: apparel manufacturers
Specific industry: jeans manufacturers
How attractive is its industry what are the key industry forces and success factors?
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?
What does the value chain look like for Levi’s with & without the CCTC offer?
How else could Levi’s adjust its participation in the value chain?
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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