After reading the Levi’s Case (attached document), respond to the following prompts in one to five sentences:
Based on the information in the case:
- What is Leviās strategy?
- Where is Leviās on spectrums of differentiation and cost leadership? What are other important elements of Leviās strategy? Would these change under CCTCās proposal?
- How is Leviās able to differentiate?
- Which source(s) of differentiation are relevant?
- Which of Levi’sĀ 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 CCTCās proposal & its impact on Leviās participation in the value chain?
- What does the value chain look like for Leviās with & without the CCTC offer?
- How else could Leviās adjust its participation in the value chain?
- Evaluate potential outcomes – Do Leviās resources/capabilities support implementing CCTCās 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.)