SWOT of Levis
SWOT of Levis
SWOT of Levis
Principles and
Practises of
management
Submitted by:-
Zonunmawii
R/no.: 22
Regn no.:
11003689
Section: S1013
Introduction and Findings
Levi Strauss & Co. (LS&CO) is a private clothing company found in 1853
by Levi Strauss. The name of the company was named after the founder. It
was in 1853 when Levi Strauss came from Buttenhiem , Franconia,
(Kingdom of Bavaria) to San Francisco, California to open a west coast
branch of his brothers' New York dry goods business. Although the
company began producing denim overalls in the 1870s, modern jeans
were not produced until the 1920s. The company briefly experimented (in
the 1970s) with employee ownership and a public stock listing, but
remains owned and controlled by descendants and relatives of Levi
Strauss' four nephews.
It is a worldwide corporation organized into three main divisions
Levis Strauss America (LSA), Levi Strauss Europe and Middle East and
Africa (LSEMA). The company employs staff of approximately 10,500
people worldwide. Their main product is jeans and it experienced a huge
growth from the early 1960s through the mid 1970s. Levis under the
leadership of Jay Walter Haas Sr., Peter Haas Sr., Paul Glasco and George
P. Simpkins Sr., expanded the firm's clothing line by adding new products
like t-shirts, bags, belts, shoes and many more exciting things which
makes the company grows faster and faster. Mr. Simpkins is credited with
the company's record paced expansion of its manufacturing capacity from
fewer than 16 plants to more than 63 plants in the United States from
1964 through 1974. Perhaps, most impressive work under Mr. Simpkins,
Levis plants were perhaps the highest performing, best organized and
cleanest textile facilities of their time.
Levi Strauss sold his first jeans to gold miners during the California
Gold Rush (which peaked in 1849), the manufacturing of denim overalls
only began in the 1870s. Levi Strauss started the business at the 90
Sacramento Street address in San Francisco. He next moved the location
to 62 Sacramento Street then 63 & 65 Sacramento Street. By changing the
location of the store the company began to become more successful. In
1950s and 1960s, Levis became popular because of its updated styles
which different kinds of teenagers loves to wear.
In 2003, Levis features new products on jeans wear and casual wear.
In November 2007, Levi's released a mobile phone in co-operation with
ModeLabs. Many of the phone's cosmetic attributes are customisable at
the point of purchase.
According to the New York Times, Levi Strauss leads the apparel industry
in trademark infringement cases, filing nearly 100 lawsuits against
competitors since 2001.By 2007, Levi Strauss was again said to be
profitable after declining sales in nine of the previous ten years. Its total
annual sales, of just over $4 billion, were $3 billion less than during its
peak performance in the mid 1990s.
After more than two decades of family ownership, rumours of a possible
public stock offering were floated in the media in July 2007. In 2009, it was noted
in the media for selling Jeans on interest-free credit, due to the Global Recession.
Till today Levis is always one of the best brands and if I am going to
buy a jeans I will always prefer Levis because it is the best, the price might
be a little high but I still prefer it the most than others because, for me the
price is worth the satisfaction when I wear it. Even their bags and shirts
have variety of styles which attracts the teenagers and even some adults.
There are different kinds of people who like punks, simple, stylish in every
way and Levis produces a variety products almost for every kind of people
which gives the company a good reputation till today. Years passed,
cultures and lifestyles changes, even the taste of people keeps on
changing, the kinds of clothes we wants to wear keeps changing in time
and so do Levis.
The company recorded revenues of $4,105.8 million during the
financial year ended November 2009 (FY2009), a decrease of 6.7%
compared with 2008. This decrease reflects unfavorable changes in
foreign currency exchange rates across all regions, particularly in Europe.
The operating profit of Levi Strauss was $378.1 million in FY2009, a
decrease of 28% compared with 2008, driven by declines in Europe—
primarily reflecting the unfavorable impact of currency, the wholesale
channel declines and continued investment in retail expansion. The net
profit was $151.9 million in FY2009, a decrease of 33.8% compared with
2008.
Strengths
• The main strength of Levis is its popularity. Because of its popularity
most people go for it. Even if they don’t like it, some people think it’s
a must and it makes them look fabulous which actually is true. It
became popular because of its durability.
• Teenagers prefer it always because it is good and they have a high
consistent quality product, updated fashion styles according to time
change.
• It is a globally recognised brand all over the world.
• Because of the company’s continuous assessment, it is still
maintaining its goodwill in every level.
• Competitive pricing with its rivals.
• Levis are the original authentic jeans with one of the best quality
among its competitors.
• They stood for something beyond profit like creating a new social
business task which involves a huge risks both of personal and
financial.
• The company took pride in providing quality products, personal
service and fair treatment.
• The family name and tradition was associated with respect for
people—customers, employees, and the community.
• Variety products like t-shirts, bags, shoes, casual, jackets and many
others make the company more profitable.
.
Weaknesses
• Recently lose market to newer, trendier, more stylish and
cheaper price range of other brand.
• Lost lustre to younger generation and is working on it.
• Various other brands like pepe jeans, turtle, lifestyle, flying
machine, reliance trends, shoppers stop and many others create
a competition in the market which makes it hard for Levis in
marketing.
• It also faces financial problems during the 1990s.
• They only focus mainly on youth wants not the adults which make
the company weaker in marketing area.
• Various other new brands keeps on improving in styles with
cheaper price and thus results in weaknesses of Levis marketing.
• When there is a change of seasons, climate change, other
companies also used to sell their products in high discount
attracting prices with free gifts and all, it is thus a weakness for
Levis because they cannot sell enough on their products. People
will go for other companies who have more attracting prices and
styles.
Opportunities
• It is a worldwide organization and creates the company an
opportunity to sell its products more and more in different parts of
the world.
• The company has more than 5,000 trademark registrations and
pending applications in approximately 180 countries worldwide.
• The company's products are sold in approximately 60,000 retail
locations in more than 110 countries. This includes approximately
1,800 retail stores dedicated to Levi brands, including both
franchised and company-operated stores.
• Levis trademark is one of the most recognisable in the world and
registered in more than 160 countries.
• Levis brands mainly focused on teenagers and youth wants. Since
the youths are more aware of fashion than other range of people it
creates an opportunity for the company to sell more.
• Youths and teenagers like us don’t like to wear same clothes now
and then, time changes, our minds and tastes changes. Since Levis
is always updated with the changes in lifestyles. It creates an
opportunity for the company to get an idea on new fashion and thus
more products.
Threats
• Various other brands like pepe jeans, turtle, lifestyle, flying
machine, reliance trends, shoppers stop and many others which
are rivals to them create a competition in the market which
makes it hard for Levis in marketing.
• Youths especially teenagers are not always in static in mind, they
want changes very fast in everything which goes the same for
fashion. All these kinds of problems are threats to the company
because they have to think and develop a new brand every now
and then to satisfy their customers.
• By 1990s the company faced problems in selling because of
tough competition from other brands and cheaper brands from
overseas. In 1991, Levi Strauss faced a scandal involving six
subsidiary factories on the Northern Mariana Islands, a US
commonwealth, where some 3% of Levi's jeans sold annually with
the Made in the USA label were shown to have been made by
Chinese labourers under what the United States Department of
Labour called "slave like" conditions. Today, Levis jeans are made
overseas.
Conclusion
Levis jeans still today is one of the best and most popular brands among
its competitors all over the world. Their products are stylish, updated and
loves by all teenagers, the price is worth the satisfaction we have when we
wears it.
Reference URL’s
• http://en.wikipedia.org/wiki/Levi_Strauss_%26_Co.
• http://answers.yahoo.com/question/index?qid=20080607142142AAFxUH4
• http://www.oppapers.com/essays/Swot-Levis/144950