Levis Case Study Levi Strauss

Levis Case Study

Levi Strauss and Company has effectively transformed itself from an American firm to a global one, taking advantage of a transnational business environment. When the jeans manufacturer learned that its products were in high demand abroad, it facilitated a full entry into those foreign markets. Its strategies included low-cost manufacturing and region-specific product design. The global business environment permits the type of networked production strategy that Levi Strauss employs: allowing design, production, and distribution to be handled separately and in accordance with the needs and regulations of each consumer region.

The global environment has enabled Levi Strauss to minimize the cost of entry into foreign markets and to increase production without increasing costs. For example, Levi Strauss had secured a low-cost raw materials provider in Texas, and dying facilities were located nearby. The company located its manufacturing and assembly plants in areas with low-cost labor. Levi Strauss could keep its core corporate and design elements in the United States while setting up subsidiary companies abroad that could take care of the manufacturing and production. The principles of global business including free trade allow firms like Levi Strauss to prosper internationally and establish brand presence worldwide.

Moreover, Levi Strauss stays abreast of differential demands, taking advantage of localized tastes and body types when designing clothes for foreign markets. The company can increase sales by targeting its products for specific markets. To do so, Levi Strauss employs local market research experts to advise product design. Similarly, Levi Strauss forms strategic alliances with remote distributors. Distributors located in the target market region have pre-established relationships with local shippers, familiarity with transportation infrastructures, and knowledge of local laws. Just as subsidiaries can provide high quality, low-cost manufacturing, they can also offer Levi Strauss high value channels for distribution and marketing.

2. Levi Strauss's global expansion strategy depends on maintaining a networked structure, on strategically locating production and distribution operations worldwide, and perhaps especially on its approach to product customization. Customizing its products for different markets worldwide enhances sales in localized markets and helps Levi Strauss meet the needs of differential consumer demands.

Furthermore, Levi Strauss can expand the range of products it provides in all markets. If a certain cut, style, or color proves successful in one area, it may likely become a trend in another. Researching the needs of specific markets also allows Levi Strauss to design products for a target population. For instance, the Asian lines will include more production of smaller sizes vs. The North American or European markets. Localized trends and climate factors will also impact design decisions such as which colors or cuts to promote in which region and when.