Levis Strauss and Co maker of Levis familiar 501 and Made an

Levis Strauss and Co, maker of Levi\'s familiar 501 and Made and Crafted brands of jeans, also makes a brand that was introduced for discount retailers such as Walmart and Kmart. Levi\'s strategy with the new jeans (the Signature brand) was to sell a competitively priced pair of jeans. The jeans are about one-half or less the price of the familiar 501 and Made and Crafted jeans. To get costs down Levi\'s: • Uses cheaper fabrics and materials. • Shuns costly mass-market advertising. • Strictly limits the number of fits, styles, and colors. Required: 1. Assess the new strategy at Levi. What do you think are the potential benefits and risks? 2. How will the firm\'s value chain and balanced scorecard change as a result of the new strategy?

Solution

The basic assessment of the any (in this case Levi’s) Strategy happens in 4 parametres: