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
0 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?
0 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.)
Sample Solution